brooklynspeaks atlantic yards presentation march 2010

8/14/2019 BrooklynSpeaks Atlantic Yards Presentation March 2010

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BROOKLYNSPEAKS

BROOKLYNSPEAKS

Atlantic Yards 2010

From political theater to public loss:


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BROOKLYNSPEAKS

Atlantic Yards: then and now

Project approval: December 2006 Project closing: December 2009

Architect Frank Gehry Ellerbe Becket/SHoP

Buildings Arena and 16 buildings by 20161 Arena and 3 buildings by 20223

Residential units 6430 by 20161 10052 by 20223

Affordable units 2250 by 20161 3002 by 20223

Open space 8 acres1 1 acre, plus 7 acres of parking3

Initial payment for MTA rail yards $100MM $20MM 3

City direct subsidy $100MM $236MM

Jobs created 10,000 permanent15,000 construction4

3,600 annual average first 30 years2,5

Construction duration 10 years 25 years, with extensions possible3

Arena economic benefit $25MM over 30 years -$8MM over 30 years6

12006 Atlantic Yards Modified General ProjectPlan22009 Atlantic Yards Modified General ProjectPlan3Atlantic Yards master closing documents4 2004 Forest City Ratner promotional flyer

52005 NYC EDC report6September 2009 NYC Independent Budget Officebrief


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BROOKLYNSPEAKS

Delay compounds effect of loss fromfewer units

0

50

100

150

200

250

300

350

400

201 6 201 7 201 8 201 9 202 0 202 1 202 2 202 3 202 4 202 5 2026

$millions

2006 approved plan

,2006 approved plan anticipated delivery of 2 250 units in 2016

Value realized by tenants of affordable units by 2026 would be$376MM


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BROOKLYNSPEAKS

0

50

100

150

200

250

300

350

400

201 6 201 7 201 8 201 9 202 0 202 1 202 2 202 3 202 4 202 5 2026

$millions

2006 approved plan

2009 master closing

Delay compounds effect of loss fromfewer units

,2006 approved plan anticipated delivery of 2 250 units in 2016

Value realized by tenants of affordable units by 2026 would be$376MM

Delay until 2022 in delivering reduced number of units resultsin realizing 23MM ,by 2026 only %of original benefit


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BROOKLYNSPEAKS

A stunning loss of value to thepublic

Affordable housing delay to 2022 represents a loss ofmore than $353MM to New Yorks working families

Tax breaks on the arena bring total lost revenue impact toCity, State and MTA to $227MM over 30 years1

$80MM shortfall in MTAs expected revenue fromrailyards would cover two years of State cuts instudent Metrocard funding for the over 500,000 cityschoolchildren who use them2

Atlantic Yards gets yet another $31MMfrom the City evenas critical programs and personnel are cut

1 September 2009 NYC Independent Budget Officebrief

2 :Daily News article:// . . / / / / / - -http www nydailynews com news 2009 12 17 2009 12 17_gov__pols_derailed_s
http://www.nydailynews.com/news/2009/12/17/2009-12-17_gov__pols_derailed_students_free_rides_hidden_deal_revealed_as_mta_unveils_propo.htmlhttp://www.nydailynews.com/news/2009/12/17/2009-12-17_gov__pols_derailed_students_free_rides_hidden_deal_revealed_as_mta_unveils_propo.htmlhttp://www.nydailynews.com/news/2009/12/17/2009-12-17_gov__pols_derailed_students_free_rides_hidden_deal_revealed_as_mta_unveils_propo.html


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How did it happen?

Years of consultantreports, public hearingsmerely as a show ofSEQRA compliance,while

financial crisis andlitigation used asexcuse by developer to

negotiate deepconcessions in benefitsand schedule, with

closed-door negotiation

of definitive


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BROOKLYNSPEAKS

Whos in charge?

Fo re st C ity R a tn e r

N e w Yo rk S ta te

N e w Yo rk C ityLocal elected officials

Community Boards

Community Groups

ESDC

20062007200820092010

??

2013

?


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BROOKLYNSPEAKS

Affordable housing shouldnt be atrisk

To date, Atlantic Yards hasremoved nearly 400 units ofhousing from Brooklyn.

Delivery of most affordablehousing is now dependent

upon marketing luxury unitsto cover cost of decking railyards. Until favorable marketconditions exist, unbuiltareas will be used for

surface parkingup to 25years or longer.

Instead, the State shouldrequire that a minimum oftwo-thirds of the promised2250 affordable units be


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BROOKLYNSPEAKS

Provide accountability throughgovernance

Fo re st C ity R a tn e r

N ew York C ity Local elected officials

Community Boards

Community Groups

/NY State ESDC

Atlantic Yards Oversight Entity Stakeholder Council


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BROOKLYNSPEAKS

A proven model in every other largeESDC project

Brooklyn Bridge Park Development Corporation Convention Center Development Corporation

Erie Canal Harbor Development Corporation

Governors Island Preservation and Education

Corporation

Harlem Community Development Corporation

Harriman Research and Technology Development

Corporation Lower Manhattan Development Corporation

Moynihan Station Development Corporation

Queens West Development Corporation

USA Niagara Development Corporation


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BROOKLYNSPEAKS

More concern for public/privatepartnerships

State court ruling 12/3/09 against ESDCs use ofeminent domain for Columbia expansion

The exercise of eminent domain power by the New York State

Urban Development Corporation d/b/a Empire State Development

Corporation (hereinafter referred to as "ESDC") to benefit a

private elite education institution is violative of theTakings Clause of the U.S. Constitution, article 1, 7 of

the New York Constitution, and the "first principles of the

social contract." The process employed by ESDC predetermined

the unconstitutional outcome, was bereft of facts which

established that the neighborhood in question was blighted,

and ultimately precluded the petitioners from presenting a

full record before either the ESDC or, ultimately, this

Court. In short, it is a skein worth unraveling.


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Calls for curbs on power of public authorities


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Indictment of Yonkers council member for acceptinga bribe on upstate Ratner project


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Questions about viability of community benefitagreements


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What must be done now

Reverse approval of Atlantic Yards 2009MGPP

Realign developer commitments with

promised public benefits

Ensure ongoing decision-making istransparent, accountable, and

involves the public in a meaningfulway


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BROOKLYNSPEAKS

:For more information

. .www brooklynspeaks net

brooklynspeaks atlantic yards presentation march 2010

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