Skip to main content

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)

Comments

Popular posts from this blog

Forest City acknowledges unspecified delays in Pacific Park, cites $300 million "impairment" in project value; what about affordable housing pledge?

Updated Monday Nov. 7 am: Note follow-up coverage of stock price drop and investor conference call and pending questions.

Pacific Park Brooklyn is seriously delayed, Forest City Realty Trust said yesterday in a news release, which further acknowledged that the project has caused a $300 million impairment, or write-down of the asset, as the expected revenues no longer exceed the carrying cost.

The Cleveland-based developer, parent of Brooklyn-based Forest City Ratner, which is a 30% investor in Pacific Park along with 70% partner/overseer Greenland USA, blamed the "significant impairment" on an oversupply of market-rate apartments, the uncertain fate of the 421-a tax break, and a continued increase in construction costs.

While the delay essentially confirms the obvious, given that two major buildings have not launched despite plans to do so, it raises significant questions about the future of the project, including:
if market-rate construction is delayed, will the affordable h…

Revising official figures, new report reveals Nets averaged just 11,622 home fans last season, Islanders drew 11,200 (and have option to leave in 2018)

The Brooklyn Nets drew an average of only 11,622 fans per home game in their most recent (and lousy) season, more than 23% below the announced official attendance figure, and little more than 65% of the Barclays Center's capacity.

The New York Islanders also drew some 19.4% below announced attendance, or 11,200 fans per home game.

The surprising numbers were disclosed in a consultant's report attached to the Preliminary Official Statement for the refinancing of some $462 million in tax-exempt bonds for the Barclays Center (plus another $20 million in taxable bonds). The refinancing should lower costs to Mikhail Prokhorov, owner of the arena operating company, by and average of $3.4 million a year through 2044 in paying off arena construction.

According to official figures, the Brooklyn Nets attendance averaged 17,187 in the debut season, 2012-13, 17,251 in 2013-14, 17,037 in 2014-15, and 15,125 in the most recent season, 2015-16. For hoops, the arena holds 17,732.

But official…

At 550 Vanderbilt, big chunk of apartments pitched to Chinese buyers as "international units"

One key to sales at the 550 Vanderbilt condo is the connection to China, thanks to Shanghai-based developer Greenland Holdings.

It's the parent of Greenland USA, which as part of Greenland Forest City Partners owns 70% of Pacific Park (except 461 Dean and the arena).

And sales in China may help explain how the developer was able to claim early momentum.
"Since 550 Vanderbilt launched pre-sales in June [2015], more than 80 residences have gone into contract, representing over 30% of the building’s 278 total residences," the developer said in a 9/25/15 press release announcing the opening of a sales gallery in Brooklyn. "The strong response from the marketplace indicates the high level of demand for well-designed new luxury homes in Brooklyn..."

Maybe. Or maybe it just meant a decent initial pipeline to Chinese buyers.

As lawyer Jay Neveloff, who represents Forest City, told the Real Deal in 2015, a project involving a Chinese firm "creates a huge market for…

Is Barclays Center dumping the Islanders, or are they renegotiating? Evidence varies (bond doc, cash receipts); NHL attendance biggest variable

The Internet has been abuzz since Bloomberg's Scott Soshnick reported 1/30/17, using an overly conclusory headline, that Brooklyn’s Barclays Center Is Dumping the Islanders.

That would end an unusual arrangement in which the arena agrees to pay the team a fixed sum (minus certain expenses), in exchange for keeping tickets, suite, and sponsorship revenue.

The arena would earn more without the hockey team, according to Bloomberg, which cited “a financial projection shared with potential investors showed the Islanders won’t contribute any revenue after the 2018-19 season--a clear signal that the team won’t play there, the people said."

That "signal," however, is hardly definitive, as are the media leaks about a prospective new arena in Queens, as shown in the screenshot below from Newsday. Both sides are surely pushing for advantage, if not bluffing.

Consider: the arena and the Islanders can't even formally begin their opt-out talks until after this season. The disc…

Skanska says it "expected to assemble a properly designed modular building, not engage in an iterative R&D experiment"

On 12/10/16, I noted that FastCo.Design's Prefab's Moment of Reckoning article dialed back the gush on the 461 Dean modular tower compared to the publication's previous coverage.

Still, I noted that the article relied on developer Forest City Ratner and architect SHoP to put the best possible spin on what was clearly a failure. From the article: At the project's outset, it took the factory (managed by Skanska at the time) two to three weeks to build a module. By the end, under FCRC's management, the builders cut that down to six days. "The project took a little longer than expected and cost a little bit more than expected because we started the project with the wrong contractor," [Forest City's Adam] Greene says.Skanska jabs back
Well, Forest City's estranged partner Skanska later weighed in--not sure whether they weren't asked or just missed a deadline--and their article was updated 12/13/16. Here's Skanska's statement, which shows th…

Not just logistics: bypassing Brooklyn for DNC 2016 also saved on optics (role of Russian oligarch, Shanghai government)

Surely the logistical challenges of holding a national presidential nominating convention in Brooklyn were the main (and stated) reasons for the Democratic National Committee's choice of Philadelphia.

And, as I wrote in NY Slant, the huge security cordon in Philadelphia would have been impossible in Brooklyn.

But consider also the optics. As I wrote in my 1/21/15 op-ed in the Times arguing that the choice of Brooklyn was a bad idea:
The arena also raises ethically sticky questions for the Democrats. While the Barclays Center is owned primarily by Forest City Ratner, 45 percent of it is owned by the Russian billionaire Mikhail D. Prokhorov (who also owns 80 percent of the Brooklyn Nets). Mr. Prokhorov has a necessarily cordial relationship with Russia’s president, Vladimir V. Putin — though he has been critical of Mr. Putin in the past, last year, at the Russian president’s request, he tried to transfer ownership of the Nets to one of his Moscow-based companies. An oligarch-owned a…