Many of the rail yard conversion projects championed by Mayor Michael R. Bloomberg over the last decade have taken time to come to fruition.
Years after first being proposed, office towers are just now being built at Hudson Yards, on Manhattan’s West Side, and apartment buildings are finally going up at Atlantic Yards in Brooklyn.
But the efforts to remake Hunters Point, a waterfront section of Long Island City, Queens, where rail cars once rolled onto barges, are closer to schedule.
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…