Bedford Union Armory

Host: Councilwoman Laurie Cumbo

February 2nd 2017

Recreation Community/Education Housing History/Sustainability

Agenda1. NYCEDC Process

2. Proposed Development

3. Employment & M/WBE Opportunities

4. Timeline

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NYCEDC ProcessBedford Union Armory

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Our VISION: New York City is the global model for inclusive innovation and economic growth, fueled by the diversity of our people and our businesses

Our MISSION: Create shared prosperity across all five boroughs of New York City by strengthening neighborhoods and growing good jobs

New York City Economic Development Corporation

In Summer and Fall 2014, the City conducted extensive community engagement to better understand how the Bedford Union Armory redevelopment could address the community’s needs, meeting with:

Elected Officials (Summer 2014 – present)

Leaders/Local Community Organizations (Summer 2014)

General Public (Fall 2014)Local elected officials co-hosted two public meetings with NYCEDC in October 2014 with a combined 250 attendees. Attendees were asked to complete a survey expressing their preferred uses and priorities for the Armory redevelopment. Attendees then discussed their individual priorities in randomly assigned small groups, and completed surveys that identified shared group priorities.

Community Board 9 Executive Committee71st Precinct CouncilBedford Union Franklin Block AssociationBrooklyn Avenue Tenants AssociationCommunity Board 8Community Board 9Community Armory CommitteeCorcoran Real EstateCrow Hill Community AssociationCrown Gardens Tenant AssociationCrown Heights Community Council Crown Heights Jewish Community CouncilCrown Heights Youth Collective

Crown Montgomery Homeowners AssociationCrown Street Block Association Ebbets Field Apartments Tenant AssociationFirst Baptist Church of Crown HeightsFriends of Crown HeightsLocal Development Corporation of Crown HeightsMedgar Evers CollegeMontgomery Street Block Association (Rogers & Bedford) Montgomery Street Block Association (Rogers & Nostrand)Tivoli Tower Tenants AssociationWashington Avenue Botanic Block Association

Review of Engagement Process

Borough President AdamsCouncil Member CumboCongresswoman Clarke

State Senator HamiltonAssembly Member MosleyAssembly Member Richardson

Negotiate for Community Needs

Lease, not sale

Community-Serving Space

Job Training & Opportunities

Contextual Housing

Contextual Design &Construction Guaranty

What Community Requested The Project Today

Establish long-term lease to maintain City control Allow limited exception for small residential condo Include reporting and financial penalties to ensure

development team’s performance

Include proven operator Include wide range of facilities at discounted rates

Target M/WBE participation of 25% Participate in HireNYC for construction and permanent jobs

Spread units across more income bands Include permanently affordable units, more 3-bedrooms Reserve units for local residents

Limit project height and largely maintain historic structure

EDC Requires Developer to Fulfill Its Commitments

Developer Commitment To Begin Lease To Continue Lease

Raise Sufficient Financing

Construct in Timely Manner

Operate Responsibly

Advance Workforce Development

Provide construction budget and proof of sufficient funds

Set aside fit-out funding

Submit payment & performance bond, completion guaranty

Establish escrow to collect returns until completion

Sign operator agreement for rec space, regulatory agreement for rental housing

Submit plans for M/WBE participation, HireNYC

Place returns in escrow until construction completion

Maintain capital maintenance reserve

Place returns in escrow until construction completion

Ensure community benefits through audited annual reports, rent credits, penalties, lease termination

Pay penalties if fail to pursue M/WBE, HireNYC plans

Proposed DevelopmentBedford Union Armory

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Development Team

Developer: 100% Own & Controlled by BFC Partners

Operator of the Community Facility

M/WBE Architect

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One of the 10,000 children CAMBA serves each year.

CAMBA makes New York City a vibrant and safe place to live by helping 45,000 New Yorkers in need obtain jobs, find affordable housing and raise happy, healthy families each year.

CAMBA is a Brooklyn based non-profit that was created in 1977 and has grown today to encompass over 160 programs at 80 locations in New York City.

Who We Are

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Community Centers & Facility OperationsCAMBA currently operates 12 Community Centers 3 school-based Beacons and 9 Cornerstones in NYCHA facilities across Brooklyn.

CAMBA provides: Security, Maintenance, Marketing, and Community Affairs

We coordinate and manage the activities of over 50 different co-located service providers and partnering agencies.

Diverse programming for 6,300 children, youth, parents, and community members each year based on community interest and amenities available:

• For youth: Unique services and opportunities that spark creativity and talent like archery, dance and step, robotics, slam poetry, film and music production experienced from 3-9pm daily including Saturdays.

• For adults: adult basic education and ESOL, financial literacy workshops, fitness classes, and tax preparation services.

180 full-time and part time staff, many of whom live in the communities we serve

Operator of the BED STUY Multi-Service Center since 2012

• 150,000 sq. foot facility includes 13 non-profit tenants and a school.

CAMBA’s Beacon 271 teaches archery to youth in the community, to develop their skills, become world-class competitors, and pursue collegiate scholarship programs.

Where You Can…Work

CAMBA has almost 40 years of experience helping New Yorkers find and maintain jobs

Workforce Development

We’ve helped over 3,300 people get jobs in the past two years

Specialize in helping unemployed and underemployed people overcome barriers to employment

Offers job readiness training in the fields of Private Security and Customer Service

Connects clients to other job training providers and employment agencies.

Careers:

500+ job openings across a variety of fields with competitive benefits and salaries

Community hiring for Bedford Armory positions

For more info: www.camba.org/about/careeropportunities

Main office: 1720 Church Ave, 2nd FloorBrooklyn, NY 11226

Phone: 718-287-2600

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Maintenance Garage

Drill Hall

HeadHouse

Stables

Existing Bedford Union Armory

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Proposed Project

• Community

• Recreation

• Education

• Housing

Proposed Community, Education & Recreation

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Community Benefit• Required to provide $1,500,000 annual community benefit to a range

of individuals in the form of discounted access, facility use or leases. The requirement increases 3% annually.

• Detailed Annual report will be submitted to EDC including, but not limited to; total number of users, rates charges to users, community benefit calculation, capital expenditures, etc.

• Bedford Courts is required to pay as additional rent any shortfall amount in community benefit.

• If Bedford Courts does not provide at least $500,000 (3% increase annually) for 2 consecutive years it is an Event of Default under our lease agreement.

Survey Results: Barriers to a Well-Rounded Physical Education Program

50% associated with the quality or lack of

access to recreational facility or equipment.

Survey Results: Sports & Fitness Activities Schools Would Like to Offer

Feasible at the armory

Recreation Facility- Existing Conditions

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Renderings of Proposed Recreation Facility

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Proposed Recreation Facility

• 67,752 GSF

• Wood & Multi-sport Surface

• Fitness Rooms

• 6 Lane, 25M Swimming Pool

21Armory will serve approximately 2,500 individuals per week, and growing.

• Services over 200 students annually through after-school and weekend programs and throughout the day during the summer.

• Since 2005, New Heights has maintained a 100% high school graduation rate.

• Graduates have maintained a 98% college matriculation rate and 75% college completion rate within 6 years

• $53 Million estimated in total scholarship and financial aid dollars have been awarded to New Heights student-athletes from independent, boarding and local high schools and top tier colleges.

• New Heights program is free.

New Heights’ mission is to educate and empower

promising inner-city youth to be leaders, champions and

student-athletes by developing the skills necessary

for success in high school, college and life.

• New York City's largest learn-to-swim school, welcoming over 4,000 students each week to its 9 pools in Manhattan and 5 pools in Brooklyn

• Provides lessons to children ages 4 months and up

• Offer a wide array aquatic programs:• Learn-to-Swim Lessons• Stroke Refinement Lessons• Competitive Swim Team• Water Polo• Synchronized Swimming

• Imagine will offer discounted lesson rates, open swim and other special programs based on financial need.

In the pool at Imagine Swimming, we strive to produce a lifetime

love of the water. By listening to children’s fears as well as

encouraging their curiosity, Imagine seeks to lead young

swimmers on their first strokes in the swimming pool and the

aquatic world.

Proposed Community/EducationFacility• Approximately 40,000 GSF of office space

leased to non-profits, small businesses, and local community groups

• Discounted office rents

• Includes 4,500 SF flexible community event space

• Approximately 26,000 SF Educational Facility

Existing conditions

Crown Heights Children & Youth Empowerment Zone

• Education & the Arts • Multiple Sports Activities

Education & Arts

Homework Support

STEM

Coding

Tutoring

Dance

Theatre

Recreation Center

Basketball

Soccer

Tennis

LacrosseSwimming

Boxing

Cardio & Strength Training

Cost Comparison

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Annual Membership Dues Youth thru 11 Years of Age Student +12 Credits Adult Senior 65+ Years

Bedford Union Armory Recreation Center

Free access through many of the sport and academic programs. General membership for the Fitness Center is approximately $120/year.

Pool access through discounted lessons and open lap swim and family swim. (approximately $2-$5/swimmer)

Will offer family discounts and scholarships.

YMCA - Bedford Stuyvesant $102 $552 $672 $552

YMCA - Prospect Park $185 $732 $912 $732

YMCA - Park Slope Armory $185 $588 $732 $588

YMCA - Coney Island $150 $480 $600 $480

NYC Parks & Rec - St. Johns Free - Under 18 Years of Age $25 $150 $25

NYC Parks & Rec - Brownsville Free - Under 18 Years of Age $25 $150 $25

Employment & M/WBE OpportunitiesBedford Union Armory

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By the Numbers Consulting Services

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• By the Numbers Consulting Services Corp (BTN Consulting) is a leading provider of compliance and supportive services to housing and commercial developers, construction contractors and suppliers, and property managers.

• BTN Consulting is a 100% minority-owned firm headquartered in Brooklyn, New York, and works throughout New York State.

• BTN Consulting was hired by Bedford Courts to do specialized outreach in Central Brooklyn for the project’s M/WBE and HireNYCcompliance.

Economic Impact & Jobs• Construction of the both the community and residential components

of the Armory will create 679 direct construction jobs• 460 additional indirect jobs will be created

• On-going operation of the both the community and residential components of the Armory will create 121 direct permanent jobs

• 17 additional full-time indirect jobs will be created

29Source: Appleseed 2016 study

Economic Impact & Jobs• Committed to 25% M/WBE participation

• Bedford Courts committed to 50% Hiring Goal; 40% Retention goal of those HireNYChires; 30% Advancement goal of the retained HireNYC hires

• Committed to paying a living wage for all permanent jobs at the Armory.

• All available and feasible positions listed with SBS Workforce1

• Local outreach events throughout the development process, , including job fairs and MWBE capacity building workshops

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M/WBE & Local Hiring Outreach To Date• M/WBE Info Sessions

• Target was M/WBE construction related firms of Central Brooklyn and immediate surrounding area

• 2 events held; 37 firms attended• “Get Certified” event

• Target was non-certified M/WBE construction related firms• 42 firms referred to SBS for Certification as an M/WBE

• HireNYC Info Sessions• Target was social service and workforce development providers of Central Brooklyn as

well as members of Community Board 9’s Economic Development Committee• 10 providers attended; event to be repeated in early Spring 2017

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Future M/WBE & Local Hiring Outreach

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• Repeat Past Events for Maximum Coverage• M/WBE Info Session• Get Certified Event• HireNYC Info Session

• Quarterly Recruitment for EDC’s ConstructNYC Course• Doing Business with BFC Partner’s Construction Unit• Individualized technical assistance for local M/WBE firms• Regular Updates

• Bedford Courts Newsletter• Regular Attendance at CB9 Economic Development Meeting• Regular Contact with M/WBEs Identified in Past Events

Opportunity M/W/DBENYCEDC’s Opportunity M/W/DBE works to counter documented disparities in public procurement by

increasing opportunities for minority-owned, women-owned and disadvantaged business enterprises using a

two-pronged approach:

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Compliance(Building Demand)

Capacity-Building

(Enhancing Supply)

OpportunityM/W/DBE

Building Demand

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• Local Law 1 (voluntary)• OneNYC - $16 billion awarded M/WBEs by 2025• City-wide goal of 30% award to M/WBEs by 2021(changes to LL1)• City Council reporting requirements for real estate and IDA/Build projects

City-wide M/W/DBE Goals

• M/WBE Participation Goal Applicable to:• Eligible City funded projects • All real estate development (sales and lease) • Eligible IDA/Build projects• Eligible EDC self funded projects

• Emerging Developer Preference on eligible real estate projects

NYCEDC’s contribution to City-wide M/WBE Goals

Building Demand

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• M/W/DBE participation goals vary depending the project specifics • Total value of the project• Type of project• Availability of M/WBE firms

• Bedford Union Armory M/WBE Participation Goal: 25%

• M/W/DBE progress on projects monitored quarterly (Corporate-wide and Departmental)

• Reporting metrics include:• Commitments, Awards and Payments

Goal Setting and Monitoring

Enhancing Supply

Launched in March 2016

Designed to give more opportunities to small-to-mid sized MWBE/DBE contractors to work on NYCEDC projects

ConstructNYC firms are selected after a collaborative vetting process

Intensive financial management training and technical assistance available to participating firms

Pre-qualified firms will have access to NYCEDC contracts

Partnering with Capital Programs and Asset Management

Program Goals for 2017:

- Award $25 Million to pre-qualified M/WBE firms by Dec. 2017- Pre-qualify 45 M/WBEs

Program Progress to date:

- Selected CMs that will manage ConstructNYC projects- Pre-qualified 28 M/WBEs- Awarded $150,000 - ConstructNYC projects to start in March 2017 36

Lender: Basis Management Group

Loan Size and Terms: Pre-development: $100,000-$750,000, up to 75% of financing needs

Acquisition/Construction: $100,000-$2.5 million, up to 30% of total financing needs

Maximum interest rate: 5% + 1-month LIBOR

Loan Term: between 6 and 60 months

If emerging developer comes in as a co-developer, role must be significant to the project, and it must be described in loan application

Senior Debt (60-70%)

Subordinate Debt (10-30%)

Equity (10-20%)

Target Need: Legal and title costs Security deposits Environmental assessments and appraisal fees Design and tax credit application fees Costs related to financing of the acquisition or ground leasing of

the property

Enhancing Supply

HireNYC Development at NYCEDC

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Creates upward career mobility by providing opportunities for low-income individuals to participate in the City’s economic growth.

HireNYC: Construction

- Establishes hiring process on EDC-managed real estate dispositions that create construction jobs- Developers & Tenants sign-up on HireNYC Portal and work with NYC SBS’s Workforce1 program and

community organizations to identify and interview HireNYC candidates- Job examples: trade labor and site administration

HireNYC: Permanent

- Establishes hiring, retention and advancement goals for EDC-managed real estate dispositions that produce permanent jobs upon construction completion for eight years:o Bedford Union Armory Goals:

• 50% Hiring Goal• 40% Retention goal of those HireNYC hires• 30% Advancement goal of the retained HireNYC hires

- Developer and Tenant work with EDC, hiring partners, and community organizations to identify and interview HireNYC candidates

- Job examples: retail, administrative

Successful HireNYC Project Community organization engagement

Outreach and marketing to project’s local community

Deliver interview day and local job fairs

Provide career training

Example: Loew’s Kings Theater in Brooklyn- Conducted outreach and direct marketing throughout Brooklyn and community organizations- Attracted 650+ prospective candidates to the 102 positions available- Worked with NYC SBS Workforce1 to source candidates for Interview Day

- Had a job fair planned but did not need it because Interview Day was successful

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How to make your project a successful HireNYC project

Position Interviewed Hired

Ushers 117 49

Ticket Sellers 8 9*

Supervisors 30 4

Project TimelineBedford Union Armory

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Project Timeline

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Program Development Environmental Review (CEQR) ULURP Construction

Establish site program (uses, sizes, components) that are used as inputs for environmental review

Due diligence with relevant agencies;

• Landmarks Preservation Commission

• Dept. of Transportation• Dept. of City Planning• Public Design Commission

• Environmental Assessment Statement (EAS), Positive Declaration and Draft Scope of Work issued December 23, 2016

• Draft Environmental Impact Statement (DEIS) being prepared

• Scoping hearing: March 7, 2017

• Scoping comment period until March 17, 2017

• DEIS anticipated: Spring/Summer 2017

• DEIS/ULURP Hearing: TBD

• Certification date and DEIS Hearing: Spring/Summer 2017

• Community Board 9 (60 days)

• Borough President (30 days)

• City Planning Commission (60 days)

• City Council (50 days)

2016 Winter 2016 –Spring 2017 Spring 2017-Winter 2017 2018 - 2021

• Complete Design

• File Building Permits

• Procurement/Bidding

• Commence Construction

• Completion Summer 2020-Winter 2021

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