Greenland Forest City: mum on new construction; full market-rate building now unlikely; three sites no longer being marketed
|My October 2016 annotation of a previous tentative schedule|
Cotton said that not only is the old 421-a gone, the rules that governed a project-wide tax abatement are gone, too. So there's no longer is there a carve-out allowing 421-a benefits for a market-rate building as long as the overall project meets affordable threshold.
"We're obviously seeing that a full market-rate building is probably not a reality anymore, given that we don’t have a project wide abatement program," Cotton said.
So GFCP is doing what any developer does, she said, analyzing the financial dynamics of each site.
But Forest City has said that the B12 site has the old 421-a tax break grandfathered in, as has the rental building B15 (aka 664 Pacific), slated to contain a school. (The building has been on hold, first because of a lawsuit with a neighbor about access to that property, now resolved, but reportedly because discussions with that neighbor continue.)
Cotton acknowledged that the developer had that flexibility, but said they're analyzing the revised law: "we got a new 421-a, we may decide it’s better, or worse."
Does GFCP have any update on plans for Site 5, which could contain a giant two-tower project catercorner to the arena, on parcels now occupied by P.C. Richard and Modell's?
"That’s not really the right way to think about it," Cotton responded. "As a JV [joint venture], are we always interested in seeing what deals are out there? Yes. Is there like a [marketing] book on the street? There was once... We’re looking to make the best deals we can, at any given time, to make sure, a) we meet our obligations, and b) build buildings that make sense."