A Bloomberg article 11/17/16 about how FCR's market-rate rentals at 461 Dean face significant competition noted that parent Forest City Realty Trust took an accounting loss on the delayed Pacific Park project:
"We remain committed to bringing the entire project to completion, but there are a number of existing and near-term market factors that we must consider,” MaryAnne Gilmartin, CEO of Forest City Ratner, said in an e-mailed statement. Those include the new development supply, rising labor costs and the resolution of issues surrounding a New York affordable housing program, she said.(Emphasis added)
“While the overall schedule is fixed, and we will meet it, there is flexibility in terms of individual buildings, especially given the amount of work underway,” she said.
So we don't know what the overall schedule is.
CFO Bob O'Brien of parent Forest City Realty Trust said in an 11/4/16 conference call with investment analysts that the firm's financial model "extends to 2035, 20 years from now."
The 2035 date may represent stabilization of income, but presumably that's two-to-five years after which the final building is constructed.
Why 2032 might make sense
|From MTA Staff Summary|
It's all more complicated, though, since it's likely that market-rate and affordable units will be combined in several buildings, and the market for the former--currently tight--will fluctuate. If Forest City must meet that 2025 affordable housing deadline, then a good number of market-rate units must be built by then.
More details on plan for railyard development space
The 2014 Final Supplemental Environmental Impact Statement, Project Description, lays out the process:
• An FCRC affiliate is granted the right “from time to time” until June 1, 2031 [sic] to purchase any of the Air Space Subparcels, subject to certain conditions. One such condition is that FCRC has constructed the new LIRR rail yard in accordance with the Yard Relocation and Construction Agreement (which is discussed below).
• At the closing of such Air Space Subparcel, MTA is to deliver fee title to such Subparcel to a specified FCRC affiliate or its designee. It is anticipated that ESDC will be the designee, and will simultaneously lease such Air Space Subparcel to an affiliate of FCRC. The FCRC affiliate that has so acquired the Air Space Subparcel for the Project is granted the right to convey its rights in such Air Space Subparcel to another entity (such as a third-party developer) subject to certain conditions.
• The MTA may terminate FCRC’s right to acquire the Air Space Parcel if the new LIRR rail yard is not completed by 90 days after September 1, 2016, subject to certain extensions and payment of per diem fees.
• FCRC is obligated to have substantially completed construction of the entire platform within 25 years from the “Project Effective Date” (i.e., May 12, 2035), subject to specified force majeure and other provisions.