What is Commercial Overlay?
Commercial Overlay meaning
A commercial overlay is a C1 or C2 district mapped within residential districts to serve local retail needs (grocery stores, dry cleaners, restaurants, for example). Commercial overlay districts, designated by the letters C1-1 through C1-5 and C2-1 through C2-5, are shown on the zoning maps as a pattern superimposed on a residential district.
Unless otherwise specified on the zoning maps, the depth of C1 overlay districts, measured from the nearest street, is 200 feet for C1-1 districts, 150 feet for C1-2, C1-3, C2-1, C2-2 and C2-3 districts, and 100 feet for C1-4, C1-5, C2-4 and C2-5 districts. When mapped on the long dimension of a block, commercial overlays extend to the midpoint of that block.
reference: Glossary of Planning Terms – NYC Planning