(Bi-)Weekly Digest: Would Related "Rescue" Atlantic Yards or Wrangle Concessions?
If new developer wants New York State authority to back a supersized project before entering the deal, wouldn't that make future public review meaningless?
This digest offers a way for people to keep up with my Atlantic Yards/Pacific Park Report blog, as well as my other coverage in this newsletter and elsewhere.
I was on vacation when I read the “big”—but how big, actually?—Wall Street Journal article, Related Closes In on Deal to Rescue Notoriously Stalled Massive Housing Project.
As I wrote, the article, which relied on one named source, EB-5 middleman Nicholas Mastroianni II, left a lot of questions unanswered about the pending deal between Related Companies, which would form a joint venture with Mastroianni’s U.S. Immigration Fund (USIF) and Fortress Investment Group?
Will New York State extend the deadline and/or waive penalties for the 876 more required affordable housing units?
Will Related build the project as currently approved?
I didn’t focus on that verb in the headline, “Rescue.” That implies a charitable impulse.
I think it’s more likely that any rescue plan, as I wrote concerning current developer Greenland USA’s 2023 proposal to supersize the project, would involve more square footage and extended deadlines, offering the new joint venture economic advantage.
What next?
I followed up with queries to Empire State Development (ESD), the state authority that oversee/shepherds the project, which told me it was “awaiting detailed information regarding the joint venture to evaluate as part of the permitted developer review process."
Note that ESD only is supposed to determine whether the “entity partaking in a foreclosure of the collateral qualifies as a 'permitted developer' pursuant to the project development agreement."
As I wrote, while Related obviously has the experience necessary to qualify as a permitted developer, arguably the USIF, headed by a guy with a criminal record, is a disqualified "prohibited person."
It’s hard to believe that more substantive discussions aren’t happening. The project can't be reconfigured without a new public process. But Related presumably wouldn't enter the project without a commitment from ESD to support an expansion of square footage and new deadlines.
If so, doesn't that make any public review process moot?
From Atlantic Yards/Pacific Park Report
Aug. 20: Despite promoting superfan and cheerleaders ahead of the team's promising players, Brooklyn Nets still seek top dollar for numerous games. You gotta pay to see the Boston Celtics and also LeBron.
Aug. 22: The New York Times steps aside, locally, again. No more endorsements in New York races. The newspaper is long past focusing on the city. That means no one follows Atlantic Yards/Pacific Park.
Aug. 24: Prof. Andrew Zimbalist, in an American Prospect article focusing on the fight in Philadelphia, says studies for sports venue proponents are "elaborate press releases based upon inappropriate methodology & unrealistic assumptions.” Like his in Brooklyn?
Aug. 26: A 13-minute video: "fire doors, Pacific Street, Atlantic Yards.” (OK, this was kind of random, but it was vacation coverage.)
Aug. 27: WSJ: "Related Closes In on Deal to Rescue" Atlantic Yards/Pacific Park. Will New York State waive penalties for missing affordable housing?
Aug. 29: While business deal for new Atlantic Yards joint venture proceeds, Empire State Development says it awaits developer info. (Will terms be renegotiated?)
Aug. 30: Barclays Center releases September 2024 event calendar: 18 ticketed events, including 12 concerts, plus a monster truck for 3 days on Ticketmaster Plaza. In other words, it’s public space until it’s not.