When Forest City Ratner released new designs by SHoP Architects of the Barclays Center yesterday, it was seen as an effort to right a listing ship. But no sooner had those copper-hewed renderings hit the presses than the city's Independent Budget Office released a report [PDF] today noting that the arena will cost the city $40 million in revenues over the next 30 years as a result of financial incentives granted to the developer. Furthermore, the city lost a potential $181 million in lost opportunities through tax breaks and incentives provided to the developer, which cost the state $16 million and the MTA $25 million, though the report also notes both will release a net gain of $25 million and $6 million, respectively, if the deal goes through.
Posts tagged with "Brooklyn":
Having lost its political fight to preserve most of Admiral's Row in the Brooklyn Navy Yard, the Municipal Art Society has hit upon a novel idea and is now focusing its energy on the developers who are vying to redevelop the old naval officers’ houses into a grocery store. The RFP was recently released for the project, and through that process, MAS is hoping to persuade prospective builders where the Army National Guard and the city were not. "We hope that our experience and information will be helpful to responders looking to create an exciting new development at Admiral’s Row that combines both new construction and the preservation of the incredibly-significant historic buildings," Melissa Baldock, a preservation fellow at the MAS, recently wrote on the group's blog. The effort seems like fighting a nuclear submarine with cannon balls, but who knows. In these cash-strapped times, a developer might look favorably upon some pro-bono design work and the imprimatur of one of the city's leading civic groups.
Earlier today, the Municipal Art Society posted an incredibly informative presentation that the group gave at the recent City Council hearings on the Bloomberg administration's plans for rezoning Coney Island. The presentation, which can be found above, pretty succinctly explains what's wrong with the city's plan, why it won't work, and alternatives--proposed, of course, by MAS--that could be undertaken. So why has this presentation surfaced so late in the process, when it will have little, if any impact on the rezoning? Rumor has it the group didn't want to rock the boat--after all, they got a warning from planning commission chair Amanda Burden--as the presentation was considered too incendiary for public consumption. Still, it make a far more compelling argument than some loopy renderings. And besides, isn't the MAS supposed to rock the boat? Jane Jacobs would be so disappointed.
Yesterday, in a quiet ceremony attended by Mayor Bloomberg, the city broke ground on the first phase of Bushwick Inlet Park. Situated between North 9th and 10th streets along the Williamsburg waterfront, this initial stage of construction will comprise a synthetic turf athletic playing field. Turns out I was also on the Williamsburg waterfront at the time, on a tour of that neighborhood with photographer and AN Editorial Intern Victoria Monjo, capturing images for our forthcoming developers issue (see last year's here). One of the images we captured was of Bushwick Inlet itself, which sits three or four blocks to the north of where the festivities were taking place. Eventually, park construction will extend all the way to this placid cove, where, according to the Parks Department's initial plan, there will be a beach, planted terraces, and a performance garden, whatever that is. See the view from Kent Avenue after the jump.
With the news today, reported by The Observer, that Larry Silverstein has begun legal proceedings against the Port Authority to end the gridlock at Ground Zero, as well as the developments two weeks prior at Atlantic Yards, it seems obvious to us what's going on here. Having witnessed the financial titans across town receive hundreds of billions of dollars in bailout money, these developers now want theirs. Granted, so did Larry Flint and the porn industry, but the comparison bears consideration. To begin with, the market has failed for both finance and real estate--to say nothing of every other industry--leaving "free market" options closed. Where the bankers have turned to the Treasury and the federal government, Silverstein and Bruce Ratner, in one form or another, have turned to local pols. At Ground Zero, Silverstein is having difficulty finding financing for Towers 2 and 3, so he wants the Port Authority to provide it, or at least back it, on those projects. The story at Atlantic Yards has been much the same, with Ratner unable to afford the full amount for the Vanderbilt Yards nor go through a complete public review process for a new general project plan to ensure there is time to qualify for already dubious tax-exempt bonds. In both cases, public agencies that are already hard up for cash have been asked to foot the bill or undersign considerable amounts of risk to ensure projects with uncertain futures go forward. In the case of Atlantic Yards, the MTA and ESDC have already rolled over. It remains to be seen whether the Port Authority will cave to the abiding political and now legal pressures surrounding the Ground Zero deal. It would not be surprising if the authority did, though, given the examples set in Brooklyn and Washington.
Last week, Prospect Height's became the city's newest landmark district. At 850-odd buildings, it is the largest district to be created since the Upper West Side Historic District was created in 1990. Clearly, a lot of work went into the three-year effort championed by locals and the Municipal Art Society and driven largely by the nearby Atlantic Yards project and the undue development it spurred on one of Brooklyn's last unprotected brownstone neighborhoods. To highlight just how hard it is, but also what a triumph, MAS put together this thoughtful little video. Hopefully it will inspire you to do something civic minded as well on this patriotic weekend or beyond.
We knew that Gehry Partners had trimmed its staff recently due to the recession. But according to a story in Architectural Record, the cuts are much worse than we thought. Tony Illia writes that the company has reduced its staff from 250 a year ago to 112 now. That's more than a 50 percent chop! Many of the cuts are due to the losses of projects like Atlantic Yards in Brooklyn, and the delay of projects like Grand Avenue in Los Angeles. Still the firm is still set to move into roomier new digs in El Segundo (pictured above) later this year. Should be.. spacious. Still the story says the firm is working on new projects like a Guggenheim in Abu Dhabi, the Beekman tower in Lower Manhattan, and the Eisenhower Memorial in Washington.
We recently wrote above how opponent's best hope of stopping Bruce Ratner's Atlantic Yards Project was not the departure of Frank Gehry but lawsuits. There was a good possibility the "sweetheart" deals the state had crafted to make Ratner's project easier to move forward could have triggered further litigation, but it seems it may not even come to that, as the Court of Appeals, the state's highest court, has decided to hear Develop Don't Destroy Brooklyn's challenge to the state's use of eminent domain. With oral arguments not due until October, the outcome of the suit may not even matter, as it will likely further delay a scheduled fall groundbreaking on the new arena and could make it even harder for Ratner to secure tax-exempt financing before year's end. Update: Forest City Ratner remains confident in the success of its project, with spokesman Joe DePlasco emailing along the following statement:
The Appellate Division ruled unanimously in May in favor of the use of eminent domain because of the public benefits associated with Atlantic Yards. We’re confident that the Court of Appeals will come to the same conclusion. We are moving forward aggressively following last week’s approval by the MTA and authorization by the Empire State Development Corporation. We intend to be in construction before the end of the year.What he failed to mention but what the Observer astutely, uh, observed was that the decision to hear the case in October was in contravention of a request from the state's attorneys to hear the case no later than September 9. This could be seen as yet another attempt by the state to accomodate the developer's very tight timeline for financing and construction, something that has been an acute complaint for opponents. Whether or not it means greater sympathy from the court, who knows, though it is also a welcome sign of judicial independence. As we noted above, litigation, while often unsuccessful, has been at the heart of opponents' efforts to stall, and thereby derail, Ratner's project. In fact, the deals reached last week will tentatively be rescinded if Ratner cannot secure financing by March 31, 2010, be it tax-exempt or otherwise. Depending on whom you ask, DDDB and company were given a decisive rebuff by the state appellate court's unanimous dismissal of the eminent domain case back on May 15 or a more apologetic there's-nothin'-we-can-do rejection. This may still be the case, but again it may not matter. As the dogged Norman Oder put it a thorough post on his Atlantic Yards Report: "At the very least, the appeal delays Forest City Ratner's announced plans to begin construction by October and severely narrows--but does not close--the window of opportunity to have crucial tax-exempt bonds issued by the end of the year." He also recounts the constitutional issues raised by the lower court's decisions that could lead to a different outcome at the Court of Appeals, which he had previously expounded upon when the state first asked the court to allow its "slum clearance" program to go forward earlier this month.
As we wrote in our story last week, Frank Gehry might not be involved with any buildings on the Atlantic Yards site and not just the arena. As a Forest City Ratner spokesperson told me, "Frank might design one of the buildings later, I don’t think it’s impossible. But right now, he is just the master planner.” Well, as of yesterday, WNYC reported that the it will be impossible after all:
Just two years ago, developer Forest City Ratner was insisting Gehry would design each and every one of the 16 towers that surrounded the arena. Gehry had dubbed one of them Miss Brooklyn. But two sources close to the project say now the developer is not planning to use Gehry any more, citing costs, the architect's lack of interest and the complications of meshing different architectural styles in a small space. A spokesman for Forest City Ratner said Gehry is still "involved" in the project but did not answer specific questions. The developer says it plans to break ground on the arena this fall, and the first residential building six months later.While this is unsurprising news, it highlights just how challenging the project will be going forward, from the prospective of design, and also reaffirms a frequent criticism of Ratner's project, that the developer has no interest in building anything but the arena. Sure, it could be done, but at what (additional) cost?
There have been countless symbols for the end of the real estate boom, both literal--the collapse of Countrywide, the Fannie & Freddie takeover, the unfinished tract homes and decaying "For Sale" signs--and figurative--the Eastside crane accidents, the TVCC Fire. But we think this back-to-nature scene spotted over the weekend in Williamsburg takes the, uh, mortgage. Perhaps the only thing more amazing than a Red-Tailed Hawk alighting upon an I-Beam of a half-finished condo a few blocks from the Graham Avenue L-stop is the scene it induced: two Italian women straight out of Scorsese and two bike-hipsters straight out of Quicksilver, all gawking at the same raptor. It even stopped traffic on Manhattan Avenue. The perfect tableau of a neighborhood that never was and never will be again. The project is 123 Skillman Avenue, designed by Robert Scarano Architects. It had lain dormant for years--becoming affectionately known as Skillman Ave. Pool of Death--but city records show the site very much back in action after a million dollar sale in August. Combined with the fact that red-tailed hawks are a rather common sight in the city, what seemed like a Weismanian dream on a brisk, sunny Sunday turns out to be just another Brooklyn condo project plugging along come windy, fluorescent Monday. Still, it was pretty badass when he swooped down into the pit and nabbed a rodent snack. UPDATE: Robert Scarano kindly sent along the following rendering of the building planned for the site. He also joked that the hawk was his and meant to keep meddlesome bloggers away.
The Atlantic Yards has been through a number of iterations, including one by the Post entitled Atlantic Lots, which was developed with the MAS. But today's rendering by the paper is perhaps its slyest yet, taking a proclamation by "biggest cheeleader" Borough President Marty Markowitz, who called for the project to be clad in brownstone as a cost-saving measure. The comment came after rumors circulated that not only was Frank Gehry's staff off the project, but so was the architect himself. Bruce Ratner, the project's developer, admitted that a cost-engineering firm had been hired--though as much of the press incorrectly presumed, this has little to do with the employment status of the project lead--and said later that he would consider Markowitz's proposal. And yet, neither agreed to comment on the Post's renderings when contacted by the paper. (Reporter Rich Calder said in an email that a firm in the city did the mock-up, though he would not identify which one, at the architect's behest.) Dan Goldstein, head of anti-Yards group Develop Don't Destroy Brooklyn, was happy to fill the void, calling the project's demise once again.
"With its substantial legal and financial obstacles, the Atlantic Yards proposal is on life support," Goldstein said. "It is time for the Paterson Administration to pull the plug.Naturally, Curbed had its own Romantic ideas about the whole affair. And if the whole brownstone saga weren't strange enough, No Land Grab picked up an interesting tidbit from a profile of retiring Miami Heat center Alonso Mourning, who said that after being traded to the Nets, where he expected to win a championship, the team subsequently took a nosedive. When he asked Ratner what was going on, Mourning said the Nets owner and Atlantic Yards developer told him that moving the team to Brooklyn was his sole priority, not winning games. (h/t AYR)
First Laurie Olin, now Frank Gehry. That was the news earlier this week when the Wall Street Journal reported that the Santa Monica-based architect had laid off "more than two dozen" staffers involved with Bruce Ratner's Atlantic Yards project. What followed was a string of cheers predicting the troubled Brooklyn mega-development's demise. After all, how could it go on without its signature architect? While considering this question, I kept thinking of a comment made by Kermit Baker yesterday, during an interview about the abysmal November billings index. Given what's going on elsewhere in the industry, the termination of a handful of architects may not signal the doomsday scenario the project's critics would like, and instead may be one more credit-related payroll pause like many others around the nation:
What we're seeing, as a result of the credit freeze, is a lot of projects, even a lot of good projects, being put on hold. Once the credit markets begin to unfreeze, though, a lot of this work will come back. You know, "Okay. We got our financing back in place, why don't you get back to work on this." It's very disconcerting because these sudden seizures can be very unexpected. It's hard to own and manage and know how to cope.Hence the layoffs, largely unforeseen, plaguing firms nationwide, a problem we've noted before. Though Baker was not speaking specifically to the Gehry/Atlantic Yards layoffs, he said he was seeing the same sort of "payroll activity" at many of the dozens of firms he surveys to put together the billings index. The upshot to all the bad news, Baker said, is that it is possible that, as credit becomes available again, a number of projects could come back online:
There are some projects that do make sense in this economy. Obviously, the list of ones that don't make sense has gotten longer and the list of projects that do make sense has gotten shorter. But there was a time when even those projects could not get financing. I expect that to change at some point, hopefully in the near future.And while financing could very well turn around for the project, as Baker speculates, the Observer is not so sure it will. Furthermore, the Daily News reports today that Gehry and Ratner may not be on the best of terms, as the architect has not been paid for what the paper reports are still unfinished Phase One designs. Still, the point is that, while the layoffs could be another possible death knell for Atlantic Yards, they could also simply be the economizing of one of many architects in dire straits at the moment. As for Gehry's office not returning phone calls--something the Daily News and others see as a sign that the project is faltering--don't read too much into that, either. The firm is notoriously press averse, even on the most laudatory pieces, almost never returning phone calls.