Forest City doing worse on M/WBE contracting for Atlantic Yards than previously reported: ESD says total is 15.4%, not 22.6%, because some firms aren't certified

By the state's measure, developer Forest City Ratner has a much lower M/WBE (Minority and Women's Business Enterprises) utilization figure than previously reported, which suggests it's doing less than previously assumed in reaching out to businesses that truly need a boost.

On January 31, I reported that, according to statistics released by Empire State Development (ESD), the state agency overseeing Atlantic Yards, the MBE awards total $91 million (about 16.3% of total purchases), while the WBE awards total $35.1 million (about 6.3% of total purchases).

Thus the combined M/WBE participation is apparently 22.6%, about three-quarters of the way toward the goal of 30% (20% MBE plus 10% WBE), as reflected in the Community Benefits Agreement (CBA).

Revising the numbers

Well, that was  true, but I've since learned that the statistics, while released by ESD, were not only prepared by Forest City Ratner--there was no indication on the document--they do not represent the ESD's own analysis of M/WBE figures.

Arana Hankin, Director, Atlantic Yards Project for ESD, explained:

ESD and the Atlantic Yards Project have a certified MWBE utilization contract goal of 20%. Firms must use “best efforts” to meet that goal. If they have not met the goal they must show that they have used their best efforts to retain MWBE firms through outreach and solicitation. ESD has calculated that Forest City has awarded 15.4% to MWBE certified firms to date. ESD does not count the MWBE firms that are not certified. If non-certified firms were included the percentage would increase.

Why wouldn't they be certified? I speculate that either 1) they are/were too fledgling to bother or 2) are too large and prosperous to qualify under the state's newly narrowed rules aimed to exclude M/WBE firms that are very large or led by businesspeople who are so wealthy as to be clearly not disadvantaged.

Whatever the reason, the discrepancy again points out the need for Forest City to not merely self-report but to hire the Independent Compliance Monitor required by the CBA.

What are the M/WBE rules?

State rules passed in 2010 require:

All firms seeking MBE or WBE certification must be at least 51% owned, operated and controlled by minority members and/or women.
The ownership must be real, substantial and continuing, and the minority members and/or women must exercise the authority to independently control the day-to-day business decisions.
In addition, each minority or woman upon which certification is based, must have a net worth which does not exceed 3.5 million dollars. This calculation should not include the ownership interest in the applicant firm, the primary residence of the owner(s), and $500 thousand of present cash value of any qualified retirement savings plan, or individual retirement account held by the individual less any penalties for early withdrawal.
The firm cannot exceed 300 employees, must be independent and authorized to do business in New York State. Generally, the business must be in operation for at least one year.

Discomfort with the rules

The Albany Times-Union reported 1/15/12, in Wealthy minority and women business owners work to keep contract edge:

Several representatives of minority enterprises and at least one controlled by a woman have been working behind the scenes to get the Cuomo administration to support changes in a law signed by Gov. David Paterson shortly before he left office in 2010, according to several people interviewed.
The law sets a limit of $3.5 million in personal wealth. Minority- and Woman-owned Business Enterprise certification cannot be conferred by the state on companies whose principals have amassed net worth exceeding the figure.
Consultants, lawyers and lobbyists for some former MWBE-certified businesses are trying to get the law changed to raise the limit or grandfather their clients in, or to make other considerations that will maintain their status, according to people who have been involved in private talks.
The certifications give MWBE businesses an advantage over other firms for a share of public contracts. Cuomo has directed state agencies to boost MWBE participation in state contracts and procurements to 20 percent, more than double current levels.

Note that ESD had the 20% goal already.

It's not clear to me which companies working on Atlantic Yards no longer qualify. For example, the venerable McKissack Group, selected to manage railyard reconstruction (see press release at bottom),  remains in the directory; it does not employ more than 300 people but is presumably led by well-off leadership.

MWBE Contract Awards as of December 2011


McKissack Atlantic Yards Railyard Press Release October 2005

Forest City Enterprises, long a family-controlled corporation, to shift to a majority of independent directors; also, new plans to sell land, change corporate focus

Forest City Enterprises (FCE), parent of Brooklyn developer Forest City Ratner, is making some changes.

It has decided to sell its land band business to focus on"core rental products - apartments, office and retail properties" in core markets (including New York), and also to divest itself from properties in non-core markets.

Also, long controlled by some interlocking families, namely the Ratners, FCE is shifting its board to a majority of independent director, rather than family members.

That may be an effort to enhance credibility in the marketplace, but even independent directors are not necessarily corporate watchdogs, as history has proven again and again. FCE public board meetings, at least according to webcasts, show a clubby, go-along atmosphere.

Repositioning the company

The new business focus will cost the company's bottom line--an impairment charge means that the assets are worth less on the market than currently assumed--but also will provide new cash to drive new investments and pay off loans.

From the press release:

A primary driver of the company's strategic plan is greater focus on core rental products - apartments, office and retail - in core markets - New York, Washington, D.C., Boston, Dallas, Los Angeles, San Francisco and Denver.
As part of the commitment to greater focus on core markets and products, Forest City will strategically reposition or divest portions of its land business and is actively reviewing alternatives to do so. The land business buys and sells raw land, develops subdivisions and sells lots to homebuilders. The land portfolio consists of approximately 35 active projects primarily located in the Southwestern U.S., Texas, the Carolinas and Ohio.
As a result of this decision, Forest City expects to recognize a non-cash impairment charge of approximately $150-$165 million, pre-tax, in the quarter ended January 31, 2012. Anticipated cash proceeds from executing the repositioning will be used to both pay down debt and selectively activate new development.

The press release on directors

A press release from FCE, Forest City Announces Governance Actions:

CLEVELAND, Feb. 2, 2012 /PRNewswire via COMTEX/ --Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that its board of directors has determined to reduce the size of the board from the current 15 authorized seats to 13, effective with the company's annual meeting of shareholders in June

The board further determined that it expects seven of the 13 director nominees at the upcoming annual meeting to be independent, subject to identifying a suitable additional independent candidate for nomination to the board.

Two non-independent directors, James A. Ratner and Joan K. Shafran, will complete their service as directors at the annual meeting and will not be re-nominated. Ratner is an executive vice president of Forest City Enterprises and is chairman and CEO of the company's Commercial Group, its largest business unit. He will continue to serve the company in those capacities.

Commenting on the planned change, Chairman Charles A. Ratner stated, "The board determined that reducing the overall size of the board and moving to a majority of independent directors are prudent steps in keeping with our continuing commitment to good corporate governance practices. The board thanks Jim and Joan for their diligent and faithful service as directors."

"Forest City has a rich culture and a history of growth and adapting to change," Ratner added. "The actions we are taking demonstrate our commitment to that legacy and to continuing to improve, evolve and grow."

An analyst who follows the company applauded. Reported the Plain Dealer of Cleveland:

"There are two things that have greatly improved the governance at Forest City in the last year," said Paul Adornato, an analyst who tracks the company for BMO Capital Markets. "First, the company appointed the first non-family member as CEO in the company's history. Secondly, they have reduced the size of the board and have independent directors comprising the majority of the board.
"These are both shareholder-friendly moves."

Well, where were the analysts regularly complaining about the "shareholder-unfriendly" board dominated by one family?

The current board

Independent (6): Arthur F. Anton, Scott S. Cowen, Michael P. Esposito Jr., Deborah L. Harmon, Stan Ross, Louis Stokes

Family (7): Brian J. Ratner, Bruce C. Ratner, Charles A. Ratner, James A. Ratner, Ronald A. Ratner, Deborah Ratner Salzberg, Joan K. Shafran

Ex oficio (1): David J. LaRue (the first non-family CEO)

Retail politics vs. policy positioning: a contrast between the Markowitz and Stringer "State of the Borough" speeches

OK, Manhattan Borough President Scott Stringer is running for mayor. And he presides over a borough that, unlike Brooklyn, doesn't have an identity independent of the city at large nor, arguably, needs one.

But it's still worth noting how Stringer's State of the Borough Address, unlikes Markowitz's version, focused on policy. From the preview:

First, I’m announcing a plan to cut taxes for working and middle class families. It’s simply not right that in New York City someone who makes $50,000 per year pays the same city tax rate as someone who makes $500,000 per year. I’m proposing that we create a more progressive income tax system that restoresfairness and boosts the economy. You can read more about my tax plan in today’s Wall Street Journal.
Second, we should make housing more affordable by creating a larger fund to rescue foreclosed buildings. We should then work with non-profit developers to renovate these properties and turn them into affordable housing.
Third, at a time when small businesses are having trouble getting loans, we should create an alternative lending source for them. A city-run program is running successfully in Philadelphia, and we should use that model here to unlock the capital that small business owners need.

Also, from the speech, Stringer talked about racial profiling:

We all owe a huge debt of thanks to our brave men and women in blue.
But I have to tell you – I am troubled by a critical police strategy.
Last year, the NYPD stopped, questioned and frisked nearly 700,000 New Yorkers -- most of them for no reason at all.
In 94 percent of the stops, no arrests are made.
In 99.8 percent of cases, no gun is found.
And 85 percent of those stopped are Black or Latino.
The conclusion is inescapable: stop and frisk as currently practiced is riddled with racial profiling, and that is making us ALL less safe by breeding distrust across whole communities.

By the way, here's the word count per speech:

• Stringer: 4,190
• Markowitz: 11,246

State of the Borough: Markowitz's overstuffed tribute to Brooklyn, with only mild enthusiasm for the new arena

Well, maybe next year, once it's open, the Barclays Center will make a bigger splash. As in past years, the diverse crowd at Brooklyn Borough President Marty Markowitz's typically overstuffed State of the Borough address was only mildly enthusiastic to mentions of Atlantic Yards and the new arena.

Then again, he brought it up 38 minutes into a speech (full text) that went more than 95 minutes, and that's a lot of speech.

It was a speech without major announcements or major commitments of money, though Markowitz's office had already doled out a series of mini-scoops, none of them on the scale of his past support for, say, the Loews Kings renovation (finally launching) or his legacy amphitheater (stalled) in Coney Island.

The news:

• Daily News: a high-tech manufacturing plan in Brownsville/E. New York, but only $1 million in seed money (and, I'd say, zero chance to woo Apple from its China supply chain)
• Daily News: expansion of ferry service to southern Brooklyn
• Post: $1 million toward renovating the Crown Heights armory, one of three armory boosts
• Brooklyn Paper: $1.5 million toward 3rd Ward as a food incubator, which might be a kickstart.

The speech will be re-broadcast on Brooklyn Cable Access Network, on February 3 and February 6. Afterward, it will be available for viewing online.

Vintage Marty, today's Brooklyn

As in the past, and perhaps even more so, the State of the Borough, this year delivered at Brooklyn College, was vintage Marty, with the bonus of a video tribute that portrayed Markowitz's years as a nine-year night school student (and student body president) at that Flatbush campus, slender, with dark hair, and vibrant eyes.

While Markowitz did include his share of surprises and stunts--a Barbara Streisand impersonator, WTF? a fake GQ cover picturing himself--he avoided such p.r. miscues as over-demonstrating his loathing of bike lanes or leering at younger women.

And, in recounting his ahead-of-some-constituents embrace of gay marriage--to the point of catering ceremonies at Borough Hall--he leaves a legacy of humanity that should, for many, overshadow the "screamer" underneath.

It was another example of retail politics in a borough so large that retailing takes a lot of time, plus an array of performances and special guests who demonstrated the astonishing diversity of Brooklyn (gay marriage! Hasidic soup kitchen! a couple married 70 years! African-American girls doing classical Greek dance!).

One Brooklyn?

And while the theme of the speech was "one Brooklyn," the borough is very much economically fractured, which is beyond the powers of a Borough President.

In a sign that many elected officials seek Markowitz's blessing if not endorsement, the event featured greetings from State Comptroller Thomas DiNapoli and two leading mayoral candidates, City Council President Christine Quinn and Public Advocate.

Perhaps the biggest beneficiary of Markowitz's halo, such as it is, was MC Carlo Scissura, who shifted from Chief of Staff to Special Advisor to run for Borough President in 2013. Numerous elected officials got salutes from the stage.

Markowitz, apparently unwilling to be written off in the political world, even joshed during the speech about a potential run for mayor, displaying an image of a tattoo regarding his mayoralty during a salute to an entrepreneur who produces removable tattoos.

He even had the grace to josh about how he wished he could remove some unwanted "ink" in the form of bad press regarding fines by the Conflicts of Interest Board.

The arena mention

Just after that "ink" remark, Markowitz transitioned this: "After years of struggle and false starts, 2012 is the year that the Barclays Center will really come to fruition. With the new arena nearly complete, it's clear this area will be the hub of a new city center, creating the jobs in and around the arena that we desperately need."

There was no reaction. It's not at all clear that the area will create jobs "that we desperately need," since most jobs, it seems, will be in the fields of restaurants, entertainment retail, and arena services, which generally don't pay well.

But Markowitz found some applause lines. "For an old-timer like me, it feels like Brooklyn has gone 'Back to the Future' —to the days when Downtown was teeming with nightclubs and dancing halls — when we rocked — and we rolled — our way to the Fox Theatre, the Paramount, and back," he continued, generating some claps from old-timers.

"I can't wait to sit in the arena watching the Brooklyn Nets mop up the floor with the 'Manhattan Knicks,'" he continued, provoking more enthusiasm with a line that always works by appealing to reflexive borough pride.

"And I'm filled with hope that the Nets will get Dwight Howard, someone I really 'look up to!,'" he added, as a photo illustration of the diminutive Markowitz and the itching-to-leave Orlando Magic center appeared on the screen. "In fact, my ultimate dream would be Dwight Howard on the Nets — and Neil Diamond and Barbra Streisand on stage."

The Dwight Howard mention didn't do much for a crowd that apparently included relatively few basketball fans. Then again, it didn't have time to sink in. In a rather bizarre interlude, a Streisand impersonator then entered the stage, serenading the crowd and, Babs-like, began shaking hands, as if at a bar mitzvah or wedding, with the diverse group of honored guests on stage.

Markowitz returned to his script: "Events already booked at Barclays include the Ice Capades, the Ringling Brothers Circus, Andrea Bocelli, and a monster truck show."

"I couldn't be prouder that the first show will be Brooklyn's own, the pride of Bed-Stuy, the man who wrote the 'Blueprint' for success, Jay-Z," he said, to some applause. "By the way, we all send our congratulations to Jay-Z and Beyonce on the birth of their daughter, Blue Ivy."

"And I am delighted to say that for one night this October, Barclays will host the first ever NHL game in Brooklyn when the New Jersey Devils and the New York Islanders meet in a pre-season matchup," he said, to moderate applause for some news that had already leaked. "Of course, if I had it my way," he then said, indicating a graphic with the logo of the Brooklyn Islanders.

More and less enthusiasm

So, what exercised the crowd? A salute to Dr. Roy Hastick, founder, president, and CEO of the Caribbean-American Chamber of Commerce and Industry, which will get the landmark Erasmus Hall Academy building to serve as the organization's permanent home, with $1 million from Markowitz's office.

By contrast, when Markowitz mentioned his support for casino gambling in Coney Island, there was utter silence.

There was moderate enthusiasm for his call for ferry service and armory renovation.

The biggest claps tended to go to people, to special guests like the chap who lost 230 pounds or the good samaritan who saved a woman who fell on the subway tracks.

Those who've passed

While Markowitz saluted an enormous list of people, including Brooklyn's six Pulitzer Prize winners and array of magazine editors, the somber section came when he recalled those who'd passed in 2011.

They included former Governor Hugh Carey, community activist Murray Adams (father of ESD CEO Kenneth Adams), BargeMusic founder Olga Bloom, and Maimonides Medical Center official Dr. Joseph Cunningham.

Also, he said, "We lost Marie Louis, the Chief Operating Officer of BUILD and an active member of Community Board 8, at much too young an age." A photo of Louis, who was 39, served as a reminder.

Best line

Markowitz recounted the transition of the hot-sheet Golden Gate Motel in Sheepshead Bay to the Brooklyn Amity School, a private school sponsored by Brooklyn's Turkish community: "From illicit fornication to primary education--only in Brooklyn!"

P.S.

A note to future speechwriters: even if you're writing the speech in sections, don't ever use the word "finally" unless you really mean it.

When Markowitz uttered the word "finally" at the 57-minute mark, some in the audience might have gotten their juices ready for the post-event repast, but that was merely a false alarm.

Barclays Center provoking real estate boom? If so, why can't Ratner get housing off the ground

I can't say I completely buy the amNY article headlined Brooklyn nabes expect real estate boom with Barclays Center. After all, the neighborhoods described are already changing--and they're not exactly adjacent to the arena.

The article begins:

When you think about Brooklyn real estate, Williamsburg, Park Slope and the downtown district - the borough's hottest and priciest areas - are probably the first neighborhoods that come to mind.

But with the opening of a new arena in seven months, other nabes may be rising to the top - even if it comes at a price.

The buzz surrounding Barclays Center in Prospect Heights is expected to attract an onslaught of investment to the area and turn the nearby neighborhoods into some of the most sought-after ZIP codes in the city, real estate experts said.

"Crown Heights, Bed-Stuy, Bushwick and Sunset Park are on the verge of exploding," said Jamella Swift, senior associate broker at Citi Habitats. "Once the stadium opens, the domino effect from Fort Greene, Park Slope and Prospect Heights will carry over to the adjacent neighborhoods."

What? A domino effect from the corner of Atlantic and Flatbush all the way down to Sunset Park? Crown Heights began changing a while ago, as we were reminded this morning. Bed-Stuy began to boom before the 421-a law expired. Bushwick has been experiencing a domino effect from Williamsburg, not the arena.

Spillover effect?

The article concludes:

Michael Slattery, senior vice president of research for the Real Estate Board of New York, said it's hard to stop progress.

"Visitors [to the arena] will boost economic activity, and the capital investment and the creation of new businesses will have a spillover effect on housing," he said.

Well, it surely may drive restaurants and entertainment retaail--witness the fate of Triangle Sports--but if there's truly a boom market for housing, why is Bruce Ratner having such trouble building housing at the Atlantic Yards site?

Deconstructing the latest softball Ratner interview: plans for affordable housing are even shakier than before, and Ratner's tense even with a friendly publication

This New York Observer article, Waiting for Bruce: The Commercial Observer Tours Atlantic Yards Arena, is such a nada-burger that it deserves some off the cuff annotation.

The article is in italics, my commentary not. I'm not sure why it was published other than a generalized desire by the Commercial Observer, which is owned by a real estate mogul, to play nice with Bruce. (Well, here's the justification, I guess: slideshow.)

A chauffered Lexus LS sedan pulled up to the corner of Dean Street and Flatbush Avenue and out slid Bruce Ratner from the back seat. He was 15 minutes late.

In a navy suit with a merino v-neck sweater over a dress shirt with no tie and an open collar, he was also underdresed for the sunny but windy chill swirling across the $1 billion Barclays Center that his firm Forest City Ratner is well into building at the Atlantic Yards site in Brooklyn.

“I thought it was going to be 50 degrees,” Mr. Ratner said, immediately noticing the cold.

This is what's called "setting the scene." But there's not much drama--unless the implicit revelation that Mr. Ratner, is indeed, a warm-blooded animal, or his blatant use of non-public transit. But the writer had to wring out a transition.

So much at the site hasn’t gone according to plan. Mr. Ratner has waded through years of lawsuits launched by landowners who were eventually booted from buildings on the yards via emminent domain, community groups and others that oppose the 22-acre development. If that wasn’t enough, the project, one of the largest developments in city, has had to weather a deep recession and its lingering aftereffects, which have put a damper on demand and pricing for the 16 residential buildings slated for the site.

Emminent domain, indeed. We don't learn that, along with the eminent domain cases, another line of cases challenged the environmental review and, at the last juncture, won a victory, requiring the state to conduct a Supplemental Environmental Impact Statement (SEIS). An appeal will be heard February 14.

Mr. Ratner managed to break ground on the basketball arena – which will be home to the Brooklyn Nets – in 2010, just before tax free bonds the state had permitted him to issue in order to finance the arena’s construction at below-market interest rates were due to expire. 

Well, not exactly. The issuance of the tax-free bonds faced an end-of-2009 deadline. The groundbreaking could come later, which it did. And one of the reasons he managed is that the state chose not to conduct a SEIS, which would have delayed the re-approval of the project until 2010.

The timeline for other components of the project, including the construction of three residential towers that will hug the arena, is less clear.

Not to mention the fourth tower, long slated to house office space and thus "jobs."

“I think we’ll break ground sometime this year,” was all Mr. Ratner would say, referring to the first residential building that is slated to rise at the site, a tower on the corner of Dean and Flatbush whose base will cantilever over a rear entrance to the 14,000 seat Barlcays Center. 

Wait a sec. The arena will house 18,000+ for basketball, and for concerts. The seating area shrinks only for major league hockey. More importantly, Ratner already seems to be stretching the groundbreaking even farther, adding to a string of delays.

The first building will be something of a barometer, Mr. Ratner suggested. The offerings in the other two buildings, he said, be they studios, one bedrooms, or larger apartments, will be based off the market’s reception of the spaces that Forest City Ratner will offer in the first tower.

Y'mean, if market-rate tenants don't want studios and one-bedroom units in the first tower, Ratner will take a risk and build two-bedroom and three-bedroom units in the next two? Doubtful. And if the first building is somewhat successful, that means the configuration, with few larger units, will continue, despite promises in the Community Benefits Agreement to provide larger "affordable" units to help families.

Mr. Ratner bristled when asked to make further reaching projections of progress on the Atlantic Yards site. Standing inside the arena and gazing into its nearly finished bowl of seats, The Commercial Observer’s gaze couldn’t help but trail farther, through a large entryway being used by construction vehicles. Beyond was the rest of the site, a stretch of train tracks and dirt recessed below grade that runs east for several blocks between Atlantic Avenue and Pacific Street.

That's not the rest of the site. That's some of the site. There's more site on the block bounded by Carlton and Vanderbilt Avenues, and Dean and Pacific Streets. And on 100 feet east of Sixth Avenue, between Dean and Pacific. And on Site 5, now home to Modell's/P.C. Richard.

“We’re here to talk about the arena,” Mr. Ratner snapped when asked when those portions of the development would begin.

He's snapping now, even when faced with a reporter from a friendly publication? This is reminiscent of his 11/8/09 quotes to another friendly publication, Crain's New York Business, "Why should people get to see plans? This isn't a public project." and “Can you tell me when we are going to need a new office tower?”

One could forgive Mr. Ratner’s edginess given the opposition he has faced. Sensing that he had perhaps recoiled a little too fiercely, his demeanor quickly loosened.

“You have to understand, my words have been twisted around in the past,” Mr. Ratner said.

One might remember all the money Mr. Ratner's been spent on political contributions, public relations, strategic charity, and lobbying. As for twisting his words, he does pretty well on his own, putting his name on a questionable 2008 op-ed for the Daily News.

“And then all of a sudden I’m getting sued,” he added, seeming to refer to a recent suit by a group of workers who claim they were promised union jobs by Forest City Ratner for enrolling in a training program, but subsequently weren’t offered employment.

Well, the Observer might have taken the suit seriously. The promises allegedly were made by FCR's Community Benefits Agreement partner BUILD (Brooklyn United for Innovative Local Development).

Mr. Ratner said that the company had studied 16 arenas around the country, specifically Bankers Life Fieldhouse, formerly Conseco Fieldhouse, the home of the Indiana Pacers. The problem with most arenas, such as Madison Square Garden, according to Mr. Ratner is their elevation, which forces the flow of patrons all in one direction and creates congestion.

The court at the Barclays Center is below grade, so when fans enter from ground level, depending on where they sit, they will be split between heading either up or down to their seats.

“We broke up the flow of traffic,” Mr. Ratner said. “At a place like MSG, you have everybody heading up at the start of the game and then down at the end. It creates a jam and it’s confusing. You’re forced to kind of follow the crowd just to know where you’re going.”

Is this all he's got? This is old news. We get it. The arena has some advantages, for arena-goers. The impact on the neighborhood, on the other hand--that's produced a lot of forboding.

Mr. Ratner also pointed out that games will be partially visible from the plaza in front of the arena.

“It’s going to be the only court in the league where you can literally watch the game from the street outside,” Mr. Ratner said, pointing out the arena’s embrace of the surrounding community.

Embracing the community, say, by failing to produce the promised Transportation Demand Management plan remotely on time.

February 14: a day of reckoning for Forest City Ratner? Cases involving Atlantic Yards timetable and Ridge Hill corruption charges go to court

Tuesday, February 14, may be a day of reckoning for developer Forest City Ratner, as two key court cases proceed in Manhattan.

Sometime after 2 pm, there will be oral argument in the appeal filed by FCR and Empire State Development in the case challenging the state's finding that there was no need for a Supplemental Environmental Impact Statement (SEIS)  to analyze the impacts of a 25-year buildout.

In a victory for community petitioners, a judge ruled that such an SEIS was needed.

The case will be heard in the Appellate Division of New York State Supreme Court, 27 Madison Avenue. I've already written about the first two legal exchanges: the appeal brief from ESDC/FCR and the reply from the petitioners. The appellants get the last word, so I will write shortly about their reply.

The Ridge Hill case in Yonkers

On February 14, jury selection begins in federal court regarding the Ridge Hill corruption case, which touches on Forest City Ratner, though the developer was not charged. The case, which could take a month to try, will be heard by U.S. District Judge Colleen McMahon in courtroom 14C of the federal courthouse at 500 Pearl Street.

It involves two defendants. Former City Council Member Sandy Annabi, who changed her vote to approve the project and was indicted for accepting bribes. Her cousin, Zehy Jereis, was indicted for giving them.

A third defendant, Anthony Mangone, in November 2010 pleaded guilty to participating in a conspiracy to bribe Annabi regarding another project (the Longfellow project), aiding Annabi's receipt of corrupt payments, extortion under color of official right, and travel act bribery.

Forest City, which hired Jereis for an apparent no-show job, was not charged and issued a statement indicating that it had been told by federal prosecutors that neither it nor its employees was a "target" of the investigation. Will Forest City staffers or lobbyists be called to testify?

I'll have a preview article about the case in the next week or so.

Markowitz will promote Barclays Center hockey (exhibition game!) in State of the Borough, won't close door on mayoral run, but seems resigned to sitting it out; not sure "son" (gray parrot) understands his legacy

Brooklyn Borough President Marty Markowitz, who gives his invitation-only State of the Borough address tonight, apparently will be promoting future events at the Barclays Center.

As Newsday first reported yesterday, the Islanders will play the New Jersey Devils in a preseason game on October 2; it's the first NHL game in Brooklyn.

(Would you believe the New York Times devoted a Metro section article to the game, Testing the Ice Where Hockey Was an Afterthought, with credits to four reporters? The Times sure didn't cover the failure to provide the promised Transportation Demand Management plan, or the failure to provide promised larger affordable housing units.)

According to a Courier Life report issued before the official announcement, he indicated he'd be pushing for NHL hockey. Markowitz was appearing at the Bay Ridge Community Council's Presidents' Luncheon, held, not coincidentally, at the Bay Ridge Manor, long owned by state Senator Marty Golden and his family.

His political future

Also, Markowitz can be seen discussing his political future in a mid-December 2011 interview with Roberto Perez of The Perez Notes. (Last month I analyzed his comments about Atlantic Yards.)

Markowitz, asked whether he'd run for mayor, sounds ambivalent, unwilling to close the door--even as announced candidates like City Council Speaker Christine Quinn have maxed out fundraising. "I still have a little window of review," he suggests.



Questions of legacy

"The only thing that motivates me is not a legacy," he says, at about 1:37. "I must tell you, it's my wife and I, my son"--he smiles--"is almost an 11-year-old African gray parrot. So I'm not sure that he'll understand my legacy. But the incentive for me is really to do great things for New York."

(I know some people consider their pets--often dogs--their "children," but isn't it a little icky, especially when the animal isn't even a mammal?)

"The good news is this city is not dependent on any one mayor," he said. "I know I could do a lot of good. But I have to weigh that with the cost to myself, both in terms of my psyche, and in terms of my health, and the current political climate"--he frowns--"in terms of service to New York. So there's a lot of things in there. But"--he smiles again, ever the pol--"thank you for asking me that question."

He referenced "the political climate" with a tinge of disgust, perhaps a reference to the recent tough reporting on his fundraising for his charities.

"If I was 50 years old, you wouldn't be asking me this question," he says a bit later. "I'd be a candidate. I'll be almost 69 years of age should I win [in 2013]."

So, the question is: what will Markowitz do after he leaves office? Will he simply retire? Or will he snag a job, say, promoting a regional center for immigrant investors, or at the Barclays Center he helped bring?

BP candidate Scissura: "I get" the old/new/future Brooklyn

Carlo Scissura, Brooklyn Borough President Marty Markowitz's designated heir--former Chief of Staff, now Special Advisor so he can campaign--discusses his political predictions and political future in a mid-December 2011 interview with Roberto Perez of The Perez Notes.



His one political prediction, "Albany redistricting will be as partisan as it has ever been," was a gimme.

Next question: why Carlo Scissura for Borough President, and not rumored candidates State Senators Eric Adams and Kevin Parker, and Assemblyman Nick Perry?

Why Carlo?

Scissura, prudently, did not say 1) that he's Markowitz's candidate 2) he's a lawyer, not as cartoon-y as Markowitz, and 3) in a borough where a good number of voters vote along ethnic/racial lines, he's the only announced white candidate among the four listed.

(The above potential candidates have not committed, though I'd bet Adams, at least, is on board. And the race could be shaken up if, say, Council Members Dominic Recchia and Letitia James decide to run.)

"We're all good people, and we're all going to have great ideas for Brooklyn, but why me? Why me? Simple. I'm the son of immigrants who came to Brooklyn. I built my life here. I've done that things that a Borough President should do. I was on a Community Board for ten years, so I know what Community Boards are like. I was on a school board..."

"I was raised by a single mom [as of 15]... my mother works for a union... I get people. I get this borough. I love this borough. I'm going to come out with, I believe, some great visions for this borough, for the future. Let me tell you, the borough presidency is a very unique job. you're not a legislator, and you're not the mayor, you're somewhere in between. You have to really get where people are going...  I get the old Brooklyn, the new Brooklyn, the Brooklyn of yesterday, the Brooklyn of today, and the Brooklyn of tomorrow. And I'm the one to put it together."

The full interview

Here's the full audio interview, with excerpts, concerning efforts to spruce up Fourth Avenue (and the importance of affordable housing along with rezonings), Coney Island revitalization, the importance of increasing bus service and ferries, and education.

"I'm a grassroots guy," he says at one point. "Everything I do is from the bottom up. I've always said, I think working with schools taught me that, you let people yell at you when they have to... The more they talk, the more I learn. The more I listen, the more that can get done for the neighborhoods."

What should come out in the campaign is where he differs, if anywhere, with his boss and mentor. One place suggested by the interview: measured support for bike lanes, a topic that exercises Markowitz.

Scissura says, regarding rezonings, "My opinion is 30% must be for affordable housing period, whatever you build you want a rezoning and you're a developer and you come to me as Borough President, I will say to you, I will not approve it unless you commit to 30% affordable housing period."

The devil is in the details, however. Scissura also uses the term "workforce housing," a term generally applied to moderate- and middle-income housing. So any discussion of "affordable housing" has to address the income levels for whom the housing is targeted.

Asked about schools, he says, "Parental involvement is the most important thing, so mayoral control is good, as long as you have parent involvement, mayoral control is good, as long as you have community education councils with teeth."

From the latest Construction Alert: a two-week (at least) closure of the Flatbush Avenue sidewalk west of Dean

The latest two-week Atlantic Yards Construction Alert, dated 1/30/12, was distributed yesterday by Empire State Development (after preparation by developer Forest City Ratner).

There's not much dramatic in the alert, just indications of expected progress in various aspects of the project. Most notable to neighbors, perhaps, is this:

An 80’ section of the northern Flatbush Ave. sidewalk west of Dean St. will remain closed during this reporting period while façade installation is underway. This closure is due to agreement between NYCDOB [Department of Buildings] and Hunt [Construction].

Late-shift work

As in the previous alert, there will be double-shift and weekend work at the Long Island Rail Road/Vanderbilt Yard/ Carlton Avenue Bridge:

• All weekdays all locations in the yard: 6:00AM to 11:00PM
• Saturdays as required: 7:00 AM to 11:00 PM
• Sundays and Holidays as required: 8:00AM to 11:00PM

And there may be late shift and overnight shift work at the arena site:

Subject to receipt of permits, a second shift shall be continued throughout this reporting period, from 3 – 11 PM, Monday-Friday only. Also subject to receipt of permits, a third shift may be instituted during this reporting period, from 11 PM – 7 AM, Monday –Friday only.

The text below is excerpted from the latest document (bottom), with the bolded text indicating what's new compared to the previous alert.

Excavation

Excavation for the “A and B” lines (which circle the basketball court and ice floor) and inner bowl footings that support the precast rakers for the lower bowl seating is expected to begin during this reporting period.

Steel Erection and Stadia Installation

The de-shoring of the roof trusses is expected to commence on or about the second-third week of February. The de-shoring plan has been submitted and reviewed by DOB.The steel erector is expected to begin on the main entry canopy steel erection in mid – March. Fabrication of this material has started.

Façade Installation

• The façade subcontractor will continue to work a second shift as needed throughout this reporting period. Work may be performed on the Flatbush Avenue and 6th Avenue elevations on this shift, as well as the 6th Avenue and Atlantic Avenue elevations.• The installation of façade panels at the street level and up to the Upper Concourse levels on Atlantic Avenue has been substantially completed. Contractor will return to install the façade panels at the uppermost elevation and in the area of the material hoist at a later date, possibly beginning this reporting period and taking place on second shift.

Interior Build-out

• Precast concrete stadia erection of the upper seating bowl was completed during the last reporting period at Blocks 10-12 (Dean Street elevation). Precast erection is expected to resume within the lower bowl seating area in mid-March. The placement of concrete column wraps will continue during this reporting period.

New Subway Entrance: demolition

• The existing tunnel lighting room located in the IRT sub passage has been demolished now that the new tunnel lighting room has been completed.

Work outside the subway Fence

• Permits have been secured for the portions of the street immediately adjacent to the “Tip” of the project area. The southern eastbound lane of Atlantic Avenue continues to be taken behind an expanded MPT in order to facilitate the removal of the planking/decking to be removed and the installation of temporary roadway restoration. A pathway for the new water main has been coordinated with the utility team and is now complete. A substantial amount of the roadway plank has now been removed. The watermain installation has now commenced. This expanded MPT, noted above, has been approved by DOT.

Transit Canopy for subway entrance

• The steel and concrete roof for the canopy is now complete along with the spray fireproofing. The contour slab will commence in the next month and will then be followed by the roofing. Tile work has started. The steel risers will follow the completion of the MEP work, painting and canopy ceiling installation. MEP work will progress over the next 2 months and will be followed by the canopy ceiling.

Elevator/Escalator for subway entrance

• The two new escalator trusses from the fare array area to the new plaza have been set and final assembly continues. Electrical and fire protection work at the escalator trusses is in progress. The new elevator enclosure has also been erected and elevator installation continues. Work activities have been resequenced to accommodate canopy work items.

Railyard work

East Lead Track Foundation • The forming and pouring of the foundations and retaining walls for the East Lead Track will continue the next few months. Work on the new Lead Track retaining wall will continue in approximately 200 foot sections until the foundation and walls are completed. All of this work is located within Block 1121 adjacent to the Car Shop.

Carlton Avenue Bridge

• Concrete has been placed at the Pier #2 footing. Formwork for the stem will continue this reporting period.

Replacement of Adjacent Water Mains and other Utility Work

Stage One began in early August. The first work included the installation of a distribution water main along the sidewalk of Flatbush, north of Atlantic. The work is being done at night (10 pm to 6 am) and requires partial closure of the sidewalk and the curb lane of traffic during the work hours. The work along the west side of Flatbush is complete except for final pavement restoration. The work across Flatbush began in early January and was completed this month except for final restoration. The bus stop at the west side of Flatbush, north of Pacific, has been removed by NYC DOT, per the approval of NYCTA.
...Stage Three, which is over a portion of the transit area, began in mid January and will continue for two to three months.

Traffic Mitigation Site Work

The first element of the 2011 work includes the installation of curb extensions at the Pacific/4th Avenue, Dean/Flatbush and Pacific/Flatbush intersections and the reversal of traffic from westbound to eastbound on Pacific between 4th and Flatbush Avenues. This work is complete.

Arena Site Work

The revised Flatbush Avenue MPT is allowing work to continue on the installation of the Flatbush Avenue façade and the installation of bollards along this same stretch. Part of the overall site work for the arena block, bollard installation, commenced at the intersection of Dean and Flatbush in the area of the southern vents and is continuing north along Flatbush, eventually continuing around the entire block. The bollard work is now substantially complete along Flatbush Avenue. Other work that will be done as part of the site work includes sidewalks, installation of pavers, street furniture, street trees, light and signal poles, way finding signage, hydrants and the canopy to the new subway entrance. Additional detail on the work will be provided as the contractor progresses.

Atlantic Yards Construction Alert 1-30-2012

Did an "emergency situation" really preclude alerting neighbors to overnight work last Saturday? Permit for crane was issued 11 days in advance

Let's take another look at the explanation given for the disruptive overnight work beginning last Saturday at the corner of Atlantic Avenue and Sixth Avenue.

Arana Hankin, Director, Atlantic Yards Project, Empire State Development, stated:

The work that was occurring this weekend was being done by the LIRR and had nothing to do with Atlantic Yards. The LIRR is typically very good at notifying us of work that they need to do after hours so that we can inform the community, especially when it relates to Atlantic Yards. But apparently there was an emergency situation in the yard this weekend and they had to get in there very quickly.

Well, maybe it had "nothing to do with Atlantic Yards," but, given that reconfiguration of the LIRR's Vanderbilt Yard is part of the project, it seems like there's some connection, even if not formally part of the Forest City Ratner-led work.

"Emergency situation"?

It's even more doubtful there was an "emergency situation." After all, it's hard to get cranes on short notice.

And, it turns out, the (almost surely) related Department of Transportation permits were issued January 17, eleven days earlier. The permits were for work on Atlantic between Sixth Avenue and the block immediately to the east, South Oxford Street,beginning Saturday, January 28,

Three sequential permits, listed below, were issued the same day. (Click on graphics to enlarge.)

Given that the announced purpose purpose was "Mobile Crane to Lift Electrical Equipment," and that's what happened, I trust that the permits applied to the work indicated in the photo above. I've asked Hankin for any further explanation, and will update this post if I learn more.

Minority/women contracting numbers lag 25% behind ambitious CBA "goals" (sometimes billed as "promises"); results better than WTC, other projects

Update February 3: it turns out that the Empire State Development's statistics are different, with lower numbers.

In building the Barclays Center and other Atlantic Yards construction activities, Forest City Ratner is lagging 25% behind its ambitious plan to devote devoting 20% of construction contract dollars to minority-owned business enterprises (MBEs) and 10% to women-owned firms (WBEs).

According to statistics released last week (see below) by Empire State Development (ESD), the state agency overseeing Atlantic Yards, the MBE awards total $91 million (about 16.3% of total purchases), while the WBE awards total $35.1 million (about 6.3% of total purchases). The total, as of the end of 2011, encompasses work back to 2005.

Thus the combined M/WBE participation is 22.6%, about three-quarters of the way toward the what ESD calls the "program requirement of 30% for M/WBE," which also appears as goals--20% and 10%, respectively--in the Community Benefits Agreement (CBA).

The Atlantic Yards web site, as noted in the screenshot at right, presents the figures as certainties.

While Forest City had previously publicly reported the MWBE percentages for various components of the project, such as at the Atlantic Yards District Service Cabinet meeting last July, it had not done so in the context of the CBA goal of 30%.

At the Atlantic Yards District Service Cabinet meeting January 26, Arana Hankin, Director, Atlantic Yards Project for ESD, said that Forest City is committed to submitting M/WBE reports monthly, as opposed to every other month, and she would then circulate them to elected officials and Community Boards. (I requested the latest copy. I didn't know copies were previously being circulated.)

In perspective

Asked to comment, Forest City spokesman Joe DePlasco said Forest City aims for such a goal in all its projects, and "we endeavor/use best efforts to achieve" it.

He pointed out that the Port Authority announced the milestone of $1 billion in WTC contracts to M/WBEs, representing 17% participation. I'd add that MTA contract goals of M/WBEs or similar DBEs (Disadvantaged Business Enterprises) are typically 15-20%.

Thus, while the Atlantic Yards numbers may outpace such other projects, Atlantic Yards--and the special governmental benefits attached to it--gained support, in part, because of promises to meet the goals of the CBA.

And had Forest City Ratner hired the Independent Compliance Monitor as required by the CBA, we'd have been reminded more often how well they're meeting those promise, including the status of M/WBE initiatives and lists of those M/WBEs selected.

Promises or goals?

The goals have been presented as "promises." For example, the 7/13/07 Brooklyn Daily Eagle presented this press release:

The largest class to date — 57 contractors — has graduated from the Atlantic Yards Community Benefits Agreement (CBA) training program in June. The newest graduates, 57 in all, received certificates at a ceremony at Medgar Evers College School of Business in Brooklyn. Apart from what it might mean to some, the Forest City Ratner Companies (FCRC) Atlantic Yards development means work to minority- and women-owned Brooklyn contractors, because the CBA guarantees that 20 percent of construction dollars will go those that are minority-owned and 10 percent will go to those that are women-owned.

(Emphasis added)

Despite promotional statements (such as in this 2006 brochure) claiming "community commitments" that were "guaranteed by a legally binding Community Benefits Agreement," the CBA (p. 18) presents the targets as aspirational:

Developers will seek to award not less than twenty (20%) percent of the total construction contract dollars of each Development Phase to qualified Minority owned firms and not less than ten (10%) percent of the total construction contract dollars for each Development Phase to qualified women owned firms.

Even when the numbers were regarded as goals, as in this 10/24/05 press release, issued by the CBA Coalition, the issue was framed in a seeming effort to sway public opinion in favor of the project, which had not yet been officially approved:

McKissack & McKissack, the nation’s oldest minority-owned professional design and construction firm, will be announced as construction manager for the $182 million Atlantic Rail Yards at a press conference on Tuesday, October 25 at 1:00 P.M. at House of the Lord Church in Brooklyn. The Reverend Herbert Daughtry, interim chair of the Community Benefits Agreement Coalition, signatories to the historic Atlantic Yards Community Benefits Agreement (CBA), and other members of the Coalition will join Assemblyman Roger Green and executives from Forest City Ratner Companies (FCRC) to welcome the award-winning firm as a partner in the CBA. 

Trends over time

It seems that, for certain contracts, it has been easier for Forest City Ratner and its contractors to reach out to MWBEs.

For example, early in the construction activities, in a February 2008 report (below) to the Downtown Brooklyn Advisory & Oversight Committee, Forest City said that MBE awards were 36.7% of total purchases, while WBE awards were 8.8%, for a total of 45.5%. That was well ahead of the 30% goal.

The recent report from ESD suggests that in certain aspects of work, M/WBE totals are well above the goals, while in others they lag.

For example, as the chart at left suggests, the entire $16.7 million (100%) spent on infrastructure has gone to MWBE firms.

On Stage II railyard/Carlton Avenue Bridge work, of the $48.6 million, the MBE total is more than 30%, while the WBE total is nearly 5%

However, of the nearly $392 million spent on the Barclays arena, the MBE total is less than 12%, while the WBE total is less than 6%.

With $52.7 million spent on the transit connection, the MBE total is less than 10%, while the WBE total nudges over 8%.

Some other projects aim for more consistency. The Port Authority press release states:

Each of the World Trade Center contracts has a specific M/WBE goal, typically 17 percent of the total contract amount, which is in line with the agency’s overall contracting goal for such firms.

Local MWBEs from Brooklyn

The new report from ESD describes some borough statistics, surely of interest to local elected officials:

The total contract amount for Brooklyn based M/WBEs is $34,416,541 which represents approximately 27.3% of the total M/WBE purchases. The total number of contracts to Brooklyn based MWBEs is 52 or approximately 28.2% of all contracts awarded to MWBEs.

Another measure

Earlier this month, Merritt & Harris, the real estate consultant to the arena PILOT Bond Trustee reported that about 12.3% and 9.5% of the workforce on the job last month were attributed to MBEs and WBEs. The CBA measurement, however, is contract dollars; after all, minority and women workers may be employed by a variety of companies.

MWBE Contract Awards as of December 2011


Report on the Atlantic Yards Community Benefits Agreement to the Downtown Brooklyn Advisory & Oversight Com...

Atlantic Yards Community Benefits Agreement (CBA)

Workers at the AY site: 666 people, but perhaps 500 full-time jobs; record of 41% minority hiring exceeds CBA goal of 35% (but women lag)

How many workers are at the Atlantic Yards site? Last week emerged two reports, with slightly different numbers, based on slightly different reporting times.

At the Atlantic Yards District Service Cabinet meeting January 26, Forest City Ratner officials said there were 666 workers at the site, including the arena, transit connection, and railyard. (This number tends to exceed slightly the number reported by Merritt & Harris, the real estate consultant to the arena PILOT Bond Trustee, because the latter does not examine railyard work.)

That total, I later confirmed, represents the total number of individuals employed at the site, not the average number of workers based on a five-day week, since some individuals do not work each day.

Thus the total number of full-time "jobs"--construction jobs are calculated in job-years--is probably some 25% lower, or closer to 500. (As noted below, Empire State Development, the state agency overseeing the project, calculate the average number of workers as about 75% of the total of individuals working.)

This confirms that the numbers Forest City has been reporting at the cabinet meetings represent the number of individuals employed, not full-time jobs. Had Forest City Ratner hired the Independent Compliance Monitor as required by the Community Benefits Agreement (CBA), we might have had clarification earlier.

CBA goals met? Partly

Forest City does have some good news to report regarding CBA compliance; cumulative employment of minorities is 41%, while employment for women is 3%.

The CBA requires the developers to "use good faith efforts" to employ not less than 35% minority and 10% women construction workers, "of which 35% of each category shall have the status of journey level worker."

So they're well ahead of the goal for minorities, while behind for women. That likely has something to do with the difficulty in signing on with unions, but, again, the compliance monitor might help explain this.

Ditto for the question of whether "35% of each category shall have the status of journey level worker;" I didn't get an answer. But the Atlantic Yards web site reports all these goals as certainties, as noted in the screenshot at right.

Hiring from NYC/Brooklyn

The total of 666 included 355 workers from New York City and 151 from Brooklyn. Within those latter numbers were 101 people hired via a Community Labor Exchange (CLE) required by the Atlantic Yards Community Benefits Agreement (CBA). In total, 150 have been hired via the CLE.)

Also, 72 are from four local community districts. Forest City Ratner spokesman Joe DePlasco provided the breakdown:

• CB 2: 5
• CB 3: 10
• CB 6: 5
• CB 8: 52

More workers coming?

At the January 26 cabinet meeting, Carlo Scissura, special advisor to Brooklyn Borough President Marty Markowitz, asked if the number of workers would increase as the opening date of the arena approaches in September.

"We may see a slight uptick," responded Forest City construction executive Bob Sanna. "I think we are approaching the peak, between all three parts of the project." At best 20 to 25 more workers would be added.

Overall, of course, the number of workers is well behind the total projected in the Technical Memorandum issued in June 2009 by ESD, since only the arena (and infrastructure), and not any of the adjacent towers, is under construction right now. By now, the peak was to have exceeded 1700 workers.
(Click on graphic to enlarge for clarity, and focus on Cur., for Current, as opposed to FEIS, which represents the numbers in the Final Environmental Impact Statement.)

ESD report

A report (below) circulated by Empire State Development after the meeting provided slightly different statistics, based on an earlier date, the week ending 12/25/11.

There were 705 individual workers on site, but not all were full-time. The average number of workers, based on daily workers divided by five days, was 529.

Of the workers, 390 were city residents and 167 were Brooklyn residents.

MWBE Contract Awards as of December 2011


Atlantic Yards Community Benefits Agreement (CBA)

Goodbye, Triangle Sports: in 2005, Atlantic Yards sounded like a boon; now it's a reason to close

From a 7/6/05 New York Times article headlined Brooklynites Take In a Big Development Plan, and Speak Up:

Henry Rosa, 55, the co-owner of a sporting goods store at Flatbush Avenue and Dean Street, said: "I suspect it will be great for us. Once the project is complete, with new residents here, it will bring us more traffic." But he said that if he lived in the area, he would probably be angry.

From today's Wall Street Journal, Bowing to Change: Brooklyn's Triangle Sports Feels the Pressure From All Sides:

A family-owned sporting-goods and apparel store on Flatbush Avenue in Brooklyn is calling it quits after 96 years in business, another sign of changes sparked by the coming of the nearby Barclays Center arena complex.

Feeling the pressure from big-box stores and the weak economy, Triangle Sports has put its building up for sale in hopes of finding a store or restaurant itching to be close to the multiuse sports, retail and residential project rising across the street.

"It's getting harder and harder for a smaller, independent retailer to survive," said an emotional Henry Rosa, one of the partners behind Triangle Sports, who started working in the shop as a teenager in the 1960s.

...National retailers and Manhattan restaurateurs have been quietly scoping out properties around the arena, real-estate brokers and property owners said.

See photos and comments on Here's Park Slope, and some not-so-happy former customers on Brownstoner.

What's going on here? Noisy, chaotic congestion during (unannounced) overnight work at Atlantic and Sixth avenues (updated: It was LIRR)

Update 4:50 pm: Arana Hankin of Empire State Development responds:

The work that was occurring this weekend was being done by the LIRR and had nothing to do with Atlantic Yards. The LIRR is typically very good at notifying us of work that they need to do after hours so that we can inform the community, especially when it relates to Atlantic Yards. But apparently there was an emergency situation in the yard this weekend and they had to get in there very quickly.

[I'm not so sure it was an emergency, given that the permits for a crane were issued 11 days earlier.]

****

It was a very busy Saturday night at the corner of Sixth Avenue and Atlantic Avenue, but the street closure, noise, confusion, and heightened danger were not predicted in the latest two-week Atlantic Yards Construction Alert, dated 1/16/12, that was distributed by Empire State Development (after preparation by developer Forest City Ratner).

Though no weekend third shift work was announced, the documentation appears in two postings on Atlantic Yards Watch.

On Saturday afternoon, January 28, trucks dropped off transformers that were later to be lowered into the Vanderbilt Yard. The trucks positioned themselves on the south side of Atlantic, east of Sixth Avenue, thus taking up a lane used as a bus stop.



In the evening

As noted in the video below, which begins at about 11 pm, the congested traffic led to some untoward consequences



The camera, which starts on Pacific Street east of Sixth avenue, at first moves to Sixth, passing an open gate to the Vanderbilt Yard, then goes north up Sixth to Atlantic.

As seen in the screenshot at right, Atlantic Avenue is occupied by construction-related equipment, with cones marking off the area.

The video shoes that there's a flagger in middle of Atlantic Avenue, but the flagger--as at 3:17 of the video--does not always direct traffic.

At about 4:05 of the video, drivers among the southbound traffic on South Portland Avenue (the extension of Sixth north of Atlantic), begin prolonged horn honking to indicate their displeasure with the situation.

A stall on Sixth

Meanwhile, northbound traffic on Sixth Avenue starts to get backed up, at about 4:30 of the video. Some cars, like the one in the screenshot at left, even start making illegal U-turns. In the background, the under-construction Barclays Center is visible.

At about 5:10 of the video, drivers even crowd the intersection--a key intersection when the arena opens, which raises questions of how well it will be managed.

A woman looking for the bus stop finds it unavailable.

More confusion

This next video shows continued frustration and confusion experienced by drivers, pedestrians, and bicyclists.



For example, at about 0:17, a bicyclist coming south turns onto the Sixth Avenue sidewalk to avoid a collision with northbound traffic

As  in the screenshot at right, at about 1:25, a construction worker has to move quickly to avoid the southbound bicyclist.

There's a significant amount amount of horn honking and aggressive driving, as at about 2:57 of the video.

What happens when a fire truck travels north on Sixth Avenue (presumably coming from the station house on Dean Street just east of the arena site)?

As seen in the screenshot at left, at about 3:59, the truck has to wiggle through some significant congestion.

A bit later in the video, workers bring out cones and barriers to protect the crane located on Atlantic just west of Sixth Avenue.

But Sixth Avenue is a narrow street, with relatively little margin for error, so when an obstruction (the crane) meets a complication (a large vehicle), which itself faces its own complication (another vehicle), things get dicey, as detailed at about 6:05 of the video.

Enter the tour bus

As seen in the screenshot at right, a tour bus going east on Atlantic wanted to turn right (southbound) on Sixth.

It had to overshoot somewhat to get around the crane, and as it turned, it came quite close to the passenger vehicle that had been going northbound on Sixth and was turning right on Atlantic.

What happens if and when large vehicles are using Sixth Avenue on the day of an arena event? Sure, there will be traffic agents in place, but an unanticipated event--say a breakdown of a vehicle--could have ripple effects.

What was the result?

At about 5:30 am, as detailed in the screenshot at left and the video below it, transformers were lowered into place.

What exactly will they be used for? Why wasn't this all announced?

I'll update this when I learn more.

And the next Construction Alert, for the two weeks beginning today, should be issued today or tomorrow.

Lingering questions: Where's the Barclays Center security plan? What precinct will be in charge? Who'll pay for traffic agents?

Local elected officials are still waiting to examine the security plan presumably prepared for the Barclays Center arena, but are not getting very far. No one knows yet which police precinct will be in charge of the arena.

And there's still no clarity on whether the developer would pay for traffic agents needed for the area.

In other words, as the opening of the Barclays Center approaches in September, some major questions remain unanswered, as was aired at the Atlantic Yards District Service Cabinet meeting January 26, held at Brooklyn Borough Hall with agencies and officials whose work touches on the project.

Cost of overtime

The issue came up near the end of the meeting. Council Member Letitia James asked about the cost of police overtime for arena events.

"As I understand it, I'm not saying this is exactly how it works," Marshall responded, "what other arenas and venues do is they have a contract with the city to retain off-duty police at the expense of the venue, and that's something that we're hoping to have the same accessibility to the Police Department, and it's part of our discussions with them."

What about NYPD traffic agents?

"Sometimes it's a negotiation," Forest City Ratner executive Jane Marshall responded. "But there are traffic agents, for example, for the construction of the project. They've been funded, most of them, by Forest City Ratner. "

"But when they've been typical, historical locations, we have not funded them," she continued. "The NYPD does that just as its course of business. But something related to an arena event, because of the event, we would be, in all cases I would think funding the TEA [traffic enforcement agent]. Now where they would actually go is a function of NYPD and DOT [Department of Transportation] decisionmaking."

"The arena is not expecting the city to shoulder the burden of overtime that's necessary from the police for an event," she added.

Actually, according to the 2009 Amended Memorandum of Financial Commitments Forest City signed with the Empire State Development Corporation (ESDC), the developer's obligations are fuzzy:

FCRC shall enter into discussions with NYCDOT to determine the extent of FCRC’s financial responsibility for the traffic enforcement agents (“TEAs”) required to manage traffic flow for major arena events and shall comply with the terms of any such agreement with NYCDOT as required by the DOT letter. If necessary to ensure that the TEAs are deployed for major arena events as described in the FEIS, and only in the event that FCRC and NYCDOT do not reach a funding agreement, FCRC shall provide such funding for TEAs as ESDC shall reasonably direct, considering funding arrangements at other sports and entertainment venues in New York City.

Where's the security plan?

James noted that, along with Council Members Brad Lander and Steve Levin, had requested a copy of the security plan from Police Commissioner Ray Kelly, and to meet with him.

Last October, state Senator Velmanette Montgomery made a similar request. The arena will be very close to Atlantic Avenue, and officials since November 2007 have asked for a security study, once it was learned that a streets next to the Prudential Center in Newark were being closed. Forest City has hired its own security consultants.

After design changes in 2009, Forest City officials said they would meet with the New York Police Department--but only after the project had been re-approved by the Empire State Development Corporation.

Querying FCR

"Do you know whether the plan has been drafted, completed," she asked Marshall. "Is there a courtesy copy that we could be provided?"

"Council Member, I'm not aware--I know that we have been in discussion with NYPD, and I know that they're focusing on analyzing the manpower that's used and other things," responded Marshall. "I don't know that there's any plan that gets produced. I know there's a coordination and a protocol that's set up. And it changes on an ongoing basis. You don't have a plan, because the plan is different for every event.... It's all about protocol and communication."

She seemed to be focusing on the plan to deploy safety officers, not an overall security analysis, which presumably would state definitively whether streets would be closed, or the impact, perhaps, of narrow sidewalks.

Which precinct?

James didn't follow up, but moved on to a new question. She asked if one police precinct--of the three in the area including the project--would be put in charge.

"We'll have to talk to the NYPD about it," Marshall responded.

Captain John Breslin of the NYPD's Office of Management and Planning chimed in. "Currently there is extensive research on who's going to be policing the arena," he said. "That hasn't been signed off by the Police Commissioner. So we have gone into a review not only of crime, the population density, and... this is all done to try to figure out which precinct will be best served.... I'm sure as soon as the Police Commissioner signs off on it, you and all the other Council Members will be notified."

Before then, James said, she'd like Breslin to remind Kelly that local officials would like to meet with him.

Breslin said he would do so.