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Delay demolitions? Not in public interest, say ESDC, FCR

The Empire State Development Corporation (ESDC) and developer Forest City Ratner (FCR) have responded forcefully to the lawsuit trying to invalidate the environmental review for the Atlantic Yards project.

In doing so, they argue against the temporary restraining order (TRO) sought by Atlantic Yards opponents and critics to block planned demolitions of some 15 properties owned by the developer, saying that it would not be in the public interest and that the chances of getting a preliminary injunction in court next month are low.

A decision on the TRO is expected by Friday. The preliminary papers filed this week will be followed up by more extensive legal arguments from both sides.

An affirmation filed by Philip Karmel, an attorney representing the ESDC, points out that the ESDC determined that Atlantic Yards ā€œwould achieve significant public purposes;ā€ thus, the ā€œpetitionersā€™ assertion that the public will not be harmed by any delay in the Project is self-serving.ā€

FCR attorney Jeffrey Braun states in another document that ā€œthe public benefits include the elimination of blight, the redevelopment of a largely derelict 22-acre site, the return to Brooklyn of a major league sports franchiseā€¦, the creation of new housing (including 2250 units of affordable housing), environmental remediationā€¦, the construction of extensive new mass transit improvements, the creation of thousands of jobs, and the generation of billions of dollars in new tax revenues.ā€

The impact of vacant lots

The crux of the matter, beyond the cost of delay alleged by the developer, is the impact of vacant lots cleared for development and "interim surface parking" that could last for decades.

Karmel argues that plaintiffs have not established that they would be irreparably harmed by limited demolition work, as the buildings are currently vacant: ā€œPetitioners have not demonstrated that they would suffer any legally cognizable harm from living next to a vacant lot rather than a vacant building.ā€

Braun makes a similar point, noting that Forest City had gained required permits and approvals to demolish buildings it owns. The request is ā€œbased on the idea that they have some protectable interest in the current character of these properties that they neither own nor occupyā€ and that Forest City might rehabilitate the buildings if the court sets aside the project approvals. ā€œThese suggestions are absurd.ā€

Even if the case succeeds, Braun notes, the developer could still demolish the buildings at issue and build more profitable new structures.

For the petitioners, civic and neighborhood groups organized by Develop Donā€™t Destroy Brooklyn (DDDB), the argument is about ā€œfacts on the ground.ā€ Attorney Jeff Baker argues, ā€œIt would be inequitable to permit FCRC to turn a substantial portion of the neighborhood at issue into vacant lots before the Court has had the opportunity to consider fully the merits of petitionersā€™ motion.ā€

Citing an affidavit from City Council Member Letitia James, Baker points out, ā€œdemolition of the buildings at issue would have a severely intimidating impact on residents who live adjacent to or near the demolished buildings,ā€ some of whom are in court challenging the project.

Whose delay?

ā€œIt would be illogical and unfair to allow FCRC to demolish buildings before the remanded environmental review is completed, just because of a ā€œwindowā€ of opportunity between the end of the unlawfully conducted reviewā€ and the reopening of the review after a judgeā€™s decision, Baker argues.

The defense blames the petitioners for asking the court to hurry up after they moved slowly. ā€œThey waited four months to file this proceeding and now seek extraordinary relief prior to proper briefing,ā€ Karmel states.

Similarly, Braun argues, ā€œIf anyone has been dilatory, it is petitioners, who for months have trumpeted their intention to seek an injunction halting demolition but did not apply for a T.R.O. until eight weeks after FCRCā€™s public announcement of the workā€™s commencement

Posting a bond

Braun suggests that the petitioners have no case, noting that a similar injunction, brought by parks advocates against the destruction of trees for the new Yankee Stadium, was denied because of the costs of delay.

He attempts to turn the tables, saying that the wealthy people are the petitioners: "Significantly, the potential economic harm to FCRC of injunctive relief is so substantial that petitionersā€™ papers devote considerable space to a specious effort to persuade the Court that, notwithstanding the fact that petitioners for the most part are associations of homeowners and other residents of prosperous Brooklyn neighborhoods, petitioners should be allowed to avoid financial responsibility for the economic havoc that they seek to impose upon FCRC by being excused form any requirement that they post an injunction bond in an amount sufficient to protect FCRC from its potential losses."

The petitioners had argued that the court "should not require petitioners to post more than a nominal undertaking,ā€ given that judges have discretion to consider the financial means of the parties and the balance between financial resources and public purpose. A large bond requirement would render moot a TRO or preliminary injunction.

Responding to the charges

Braun also takes aim at some major components of the lawsuit filed two weeks ago. While the petitioners argue that the Public Authorities Control Board (PACB) failed to make written environmental findings, the defense states that such findings are not required.

As for the charge that the ā€œcommunity forumsā€ were actually public hearings, and thus the public comment period should have been extended, Braun calls them ā€œgood faith efforts to facilitate public commentsā€ but does not specifically explain why they differ from the public hearing.

He argues that the petitioners did not point out an argument that was omitted because of the short window of opportunity to comment.

The petitioners argue that a privately-owned arena canā€™t be a ā€œcivic project,ā€ but Braun points out that the ESDC ā€œhas sponsored the construction of numerous sports stadiums and arenas in various locations around the state.ā€

As for the ā€œpurported deficienciesā€ in the FEIS, Braun points out that the ā€œstandard for judicial review of an FEIS is reasonablenessā€ and that courts shouldnā€™t substitute their judgment for an agency.

Ward Bakery

As for the Ward Bread Bakery, which preservationists would like to see retained, the State Historic Preservation Office, notes Forest City Ratner executive Jim Stuckey, concurred ā€œthat there are no prudent and feasible alternatives to demolitionā€ of the building.

ā€œHistoricā€ CBA?

Stuckey claims, as he did in February 2006, that the ā€œhistoricā€ Community Benefits Agreement ā€œmay set a standard for future projects in the City.ā€ Thatā€™s doubtful, as shown by the CBA being discussed in West Harlem regarding Columbia Universityā€™s expansion. (And there are further questions about the LDC established for that project.)

The "intended beneficiaries of the CBA" are "the least privileged residents of Brooklyn," according to Stuckey, which seems to omit certain beneficiaries, including the McKissack Group, cited by Stuckey as the "nation's oldest minority-owned professional design and construction firm," hired to work on the MTA's Vanderbilt Yard.

Stuckey claims that all of the CBA commitmentsā€”including job training, affordable housing, and minority contracting, ā€œhave teeth in the form of substantial legally enforceable penalties for a failure by FCRC to fulfill its obligations.

Actually, the CBA (XIII. ENFORCEMENT) sets up a 60-day right to cure and mediation, before the coalition members may seek binding arbitration or judicial remedies. If they go to court, seeking to require the developer to comply, they must pay their own fees.

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