Manhattan's Upper East Side is known for being the place that celebrities and the super rich call home and it forms the backdrop for some of America's most famous TV shows.

But trouble is brewing in paradise as a homeless shelter is being proposed just a couple of blocks away from the prestigious $67,000-a-year The Dalton School.   

The school is widely recognized as one of New York City's top college preparatory institutions and ranked the eighth best private school in the city, according to Niche.

Famous Dalton alumni include journalist Anderson Cooper, actors Christian Slater, Jennifer Grey, and Chevy Chase.

However a shelter is being considered at 1587 3rd Avenue that critics argue will bring crime and chaos to the neighborhood and leave people fearing to walk their children to school.

According to a Change.org petition, the application submitted to the Department of Homeless Services (DHS) is reportedly for a men's shelter serving individuals with substance abuse issues.

The location places it directly in the middle of one of Manhattan's 'busiest and most densely populated residential corridors,' the petition states, that is sandwiched by liquor stores, fine wine shops, dispensaries, an Equinox fitness club and a Whole Foods.

Heidi Berger, a real estate broker who has lived in The Monarch condominium directly across from the proposed site since the building opened in 1987, is among those concerned.

'It's going to be a disaster,' she told the Daily Mail. 'This neighborhood is filled with families, children. 

'One of the main things that I don't get, why would you open up a homeless shelter right next to one of the largest liquor stores in the city?'

Having spent nearly four decades in the neighborhood, Berger says she has watched the area evolve into a thriving residential community and is now worried about the impact the shelter could have on residents and local businesses. 

'God knows what it's going to do to property values, particularly in this building,' Berger told the Daily Mail.

According to StreetEasy the median base rent is $3,950 and the median home sale is $1.2 million. 

She worried that shelter placement could create safety challenges and contribute to an increase in crime.  

'Find a new area. [The Upper East Side] is just so heavily populated with, you know, children, Dalton. You know, all the private schools are here. It shows you what kind of neighborhood it is.'

The petition cited that the area, which has Central Park to the left of it, has 'major school routes used daily by students as young as five.'

Sharon Guerin, a lifelong New Yorker, said she first learned about the potential shelter through neighborhood Facebook mom groups. 

'Honestly, I'm skeptical because of the placement, I've gone through the shelter system at one time and it wasn't always apples and sunshine growing up here,' she told the Daily Mail.

'Unfortunately the shelter system attracts the bad apples and outsiders that loiter around them, that's what ruins it for the people in the area. 

'Not everybody in the shelter system is a derelict and shouldn't be thought of that way,' she added.

Guerin, who has a 10-year-old daughter and a 23-year-old child, said the proposal hits close to home as a parent. 

She worries about her 10-year-old walking to and from school each day. 'I've seen firsthand what [the shelter] attracts,' the mom said.

'It's also right next to a liquor store and dispensaries and its right in the heart of like where the families and kids are. 

'There's a dance school that's one block over. You've got a playground that's a block and a half over. 

'Other moms are expressing their concerns about this too,' she added.

Many Upper East Siders who spoke with the Daily Mail emphasized that they are not opposed to homeless shelters in principle, but believe this particular location is not an appropriate one.

Pete Monsanto, a local resident whose daughter attends The Dalton School, believes the proposal won't pass.

'I think New Yorkers who are unhoused do need a place to go. I do not think that every place is really considered.

'That's literally on the block of the Dalton High School. There's a lot of money, a lot of influence, and there's a lot of residents that are not going to let that fly,' he said.

'I think as we build up New York, more specifically newly gentrified areas of the Bronx, I think those places could be considered for new build,' he added.

Monsanto himself has a personal connection to the issue, having grown up in the shelter system, and said he believes residents seeking a second chance deserve support, but that careful consideration must be given to where facilities are placed in the community.

'I am a kid who had incarcerated parents and I was in the shelter system and they would put it in the most random places,' explained.

Monsanto said his own life is proof that change is possible, adding: 'You can do things and be things, everybody deserves a chance, but you have to decide on what you want.'

The Upper East Siders petition is calling on city leadership to stop any approval pending full review, hold a public hearing, and ensure full transparency to the community. 

'We support solutions to homelessness. We support services for those in need,' the petition reads. 'But we also believe a basic principle must be upheld: Where you place a facility matters.' 

Business owners spoke out on the petition, expressing the increase of theft and danger they have already been seeing and fear will heighten if the shelter is placed.

'I own a business within a block from potential site, and have had locations nearby shelters in other neighborhood in the past,' a local named Jon commented on Change.org.

'Unfortunately, I speak from experience: This would be an unmitigated disaster for ALL businesses in the neighborhood.'

Jon added that he has called the police several times 'due to theft and verbal assaults on employees and customers.'

'All businesses should understand this: It was nearly impossible to retain my employees, as nearly all over them feared for their safety. Customers were harassed on a daily basis. And finally, as if the sidewalks are not dirty enough, it would get substantially worse! '

In a formal statement to the Daily Mail, the mayor's office gave insight on the proposal, saying it's in its infancy.

To ensure that adequate shelter capacity is available to meet demand, DHS is always in the process of accepting and reviewing shelter proposals submitted by not-for-profit providers. 

Prior to making any determination about a project, agency experts carefully assess each project’s viability and quality in addition to the overall need for such a resource. 

'No final decision has been made regarding a proposed shelter at this location,' spokesperson Sneha Choudhary told the Daily Mail.

'If the city moves forward with this project, we will engage the community before any facility opens, including notifying local elected officials, the community board, and neighborhood stakeholders well in advance. 

'Because no determination has been made, no such notification has been issued. We remain committed to keeping New Yorkers informed and ensuring communities have the information they need as decisions are made.'

The Upper East Side counts Madonna, George Clooney, Jacqueline Kennedy Onassis, Woody Allen and Michael Bloomberg among current and former residents.

It has also played the backdrop for TV shows such as Gossip Girl and Sex and the City and Holly Golightly's home in the iconic 1961 Breakfast at Tiffany's movie was a Brownstone on 71st Street.