From City Limits: "New Development Team Promises Atlantic Yards Progress, But Housing Penalties Called ‘Insufficient’"
My coverage of meeting on the project's future. Representatives of Cirrus/LCOR joint venture speak publicly for the first time, cite value of former developer Greenland's (failed) investment.
Here’s my coverage of the big Atlantic Yards meeting last Thursday, in the policy publication City Limits: New Development Team Promises Atlantic Yards Progress, But Housing Penalties Called ‘Insufficient’.
The subheading:
The new development team—the third since the megaproject was announced in 2003—has agreed to pay $12 million as they plan a new way forward. A key advocate deemed that “insufficient” given the 876 unbuilt affordable apartments, which were supposed to be constructed by May 31.
Yes, it’s a long story, with appearances by developers Cirrus Real Estate and LCOR before the (advisory) Atlantic Yards Community Development Corporation; enthusiasm from Empire State Development, which oversees/shepherds the project; and criticism of the interim affordable housing payments as insufficient.
Developers’ case
Cirrus and LCOR enter with momentum, based on alliances with the city (though there’s a new mayor coming) and, notably, with the construction unions, who can both offer pension fund money and not require as high a return as other lenders.
Why is this time different? As the slide below says, they cited “mission-driven equity,” thus allowing a long-term view; the partnership with New York City; housing for all income levels (but maybe condos, as my article notes); and leveraging of Greenland’s investment.
They sounded confident. Still, the fine print on Cirrus’ slides offered a standard disclaimer aimed at investors, noting that “no assurance can be given that such targets, intentions or expectations will be met.”
Indeed, the devil’s in the details (one of my Atlantic Yards mantras). Their ability to make the numbers work may depend on state concessions on bulk (valuable vertical land), and city/state support, whether via tax breaks or financing, for below-market affordable housing and even construction of the costly platform.
“I haven’t heard any financial plan,” said Prospect Heights resident Robert Puca during the public comment period. “I’ve heard just like We can do it and and we’ll do it. So, that’s really hard to believe.”
Here’s the article link, again. There’s more to report, so stay tuned for more coverage, including plans for community engagement.