Atlantic Yards/Pacific Park in 2019: signs of progress, lingering doubts, absent accountability (plus surprises: the "recreational" space, the Nets' coup)
Here's my 2020 preview.
For Atlantic Yards/Pacific Park, the year 2019 had signs of some progress, if not full re-boot. And the absence of accountability continued, with a new twist.
Two towers (B4, B15) started and two more (B12, B13) are set to start in 2020, on top of the four already completed. Various unreliable images of the full buildout (15 or 16 towers) surfaced, as did new (fractional) images of the open space.
That progress did not quell lingering doubts about such things as the fate of Site 5, the timing for the platform over the railyard, and the plan to meet the required 2,250 affordable housing units by 2025.
There were signs or hints regarding the above three issues, but nothing definitive:
And while Greenland USA, which owns 95% of Greenland Forest City Partners, professed continued commitment to the project, fiscal pressures and policy changes back home in China, as well as continued bumps in their Metropolis project in Los Angeles, left some doubt.
Surprises, surprises
This "never-say-never" project typically has surprises, as I wrote in my 2019 preview, and, indeed, there were.
Putting aside the Barclays Center and the Brooklyn Nets, the biggest surprise was the willingness of Empire State Development (ESD), the state authority overseeing/shepherding the project, to allow 96,000 square feet of below-ground space to be used a fitness center and field house on the southeast block.
That's below the B12 and B13 towers, under the dubious--and heretofore unknown--category of "recreational space." We didn't get any images of that, though we did--as shown at right--get images of the new open space.
Also a surprise was the new timing for the middle school at the B15 tower (664 or 662 Pacific Street, or 37 Sixth Avenue), which won't be completed until 2023, rather than 2021, as previously expected, and will accommodate more than 800 students, rather than the 640 students long cited.
At the arena
The Brooklyn Nets, despite league-worst attendance, ended the 2018-19 season with a playoffs appearance and more fans in the stands.
The $2.35 billion sale of the Nets by Mikhail Prokhorov to Joe Tsai, which began with a first phase in April 2018, was accelerated this year after the Nets, overachieving under General Manager Sean Marks and Coach Kenny Atkinson, pulled off a coup, attracting two superstar free agents, Kyrie Irving and Kevin Durant.
Tsai then bought the Barclays Center operating company from Prokhorov. And while the arena has historically struggled financially, clearly the provision of the Barclays Center fueled the astonishing leap in value for the Nets.
That left Prokhorov, not original developer Bruce Ratner, the clear--and maybe the only?--winner in the Atlantic Yards saga. And that fuels questions, in hindsight at least, as to whether New York City and State should've tried to capture some of the upside.
Meanwhile, the divorce between the arena and the New York Islanders accelerated, with the team playing more than half its games this season at the downsized Nassau Coliseum, closer to its historic fan base, while they wait for a new arena to be built at Belmont Park in western Nassau County.
Persistent questions, perimeter changes
Other questions persisted, and will tumble over the 2020, including the affordability of future rentals, the promised affordable condos, the promised senior housing, the timing to complete the permanent rail yard (almost done), the timing to complete the platform (in two phases) over the railyard, and the completion of the Times Plaza open space.
Retail at and around the project showed limited progress: the ice cream shop Van Leeuwen and the cafe Ciao Gloria opened at 550 Vanderbilt, though two retail spaces there remain to be filled. Empty retail spaces remain at 535 Carlton, 38 Sixth, and 461 Dean, as well as along the Barclays Center's Flatbush Avenue flank.
And while some new businesses opened near the arena, like Chick-fil-A on Flatbush Avenue, the former Triangle Sports building remained in limbo--though it was sold at a seeming profit.
Oversight and accountability
The departure (via absorption in 2018 by Brookfield) of New York Stock Exchange-listed Forest City Realty Trust did eliminate one limited form of corporate accountability, given Greenland's non-obligation to report to shareholders in English in the United States.
The Atlantic Yards Community Development Corporation (AY CDC), long mostly toothless, showed signs of being at least a partial check on Empire State Development. Also, one new appointment left the hint that the "community" side would focus on affordable housing.
And the coalition BrooklynSpeaks, mostly moribund since 2014, showed partial revival, with a protest press conference and a public meeting involving local elected officials. But the 2021 elections were too far away for any campaigns to ramp up and, potentially, invoke Atlantic Yards.
The developers and allied entities continued to encroach on the nearest neighbors, with last-minute construction and noisy weekend work. And events at the Barclays Center, however smoothly operating for basketball games, inevitably disturbed neighbors periodically.
The press remained mostly uninterested in the project--beyond the sports pages--but the developer still managed to float friendly stories in the New York Post and the real-estate press regarding the purported platform and the planned open space.
January 2019
NewYork-Presbyterian opens health center at 38 Sixth, but it doesn't really fulfill the Atlantic Yards Community Benefits Agreement, which indicated the health center was supposed to help the needy.
In the Daily News, I argue that the new Belmont arena will compete with Nassau's county-owned Coliseum.
There are more hints that future affordable housing might not be too affordable.
An absurdist dialogue: noisy construction activity on site doesn't count as "construction" and merit oversight unless it involves vertical activity.
Briefly, some middle-income units at "affordable" 535 Carlton come with three months free rent as a concession. One resident says she's happy, though not getting a great bargain.
Greenland in 2018 rose to #252 on Fortune Global 500 and to #341 in Forbes Global 2000, and is said to lead in revenue growth, though the latter claim raises questions.
Still no retail at 461 Dean, the tower flanking the Barclays Center at the southwest.
Brooklyn Paper editor fired "for being too credible a journalist," according to predecessor, fueling more doubts about owner Schneps Media.
February 2019
Where a substance abuse treatment program operated on Flatbush, now Brooklyn's first medical marijuana dispensary.
The Islanders will play home games for the playoffs' first round at the Nassau Coliseum, but any further home games will be played at Barclays Center, "reflecting that the Nassau Coliseum does not qualify as an NHL major league facility.
According to Forbes, eight teams worth less than the Nets earn more income, sometimes much more, though the team's income is finally up.
In a victory for P.C. Richard and a delay for a planned tower complex at Site 5, a state judge has rebuked original project developer Forest City Ratner, saying it reneged on a promise to provide the retailer replacement space at the site.
Leasing three sites raises nearly $199 million for Greenland, records suggest.
In Los Angeles, Greenland USA's on its third condo broker for the Metropolis project, as buyers from China become scarce.
March 2019
With 25% affordability (at least) in four buildings starting in 2019 and 2020, still a heavy lift needed to meet May 2025 deadline of 2,250 total units.
Will Greenland sell more of Atlantic Yards/Pacific Park? Unclear, but Chinese firms face changing policy controlling debt and outbound capital.
Atlantic Yards CDC doesn't get chance to hire its own consultants on project changes, as per 2018 proposal. Advisory body can't get updated building-by-building timetable.
Years after misleading marketing for "Atlantic Yards II" EB-5 investment, controversy recurs: charges of fraud, countercharges of defamation (plus misleading information about project progress). There will be no news on whether investors in any of the three tranches of Atlantic Yards investments will be repaid.
April 2019
My article in City Limits, Ever-Shifting Pacific Park Plan Highlights Uncertainty of Big Development Schemes, cites an unconfirmed plan to meet the affordable housing deadline with a "100% affordable" tower.
Isles' 2018-19 attendance in Brooklyn was brutal, averaging 11,248 at an arena that holds 15,795 for hockey. They averaged 13,514 at 21 games at the Nassau Coliseum, which holds 13,900.
What might full Atlantic Yards/Pacific Park buildout look like? More images surface.
While Greenland is the majority shareholder, The Brodsky Organization “bought a significant piece and will manage development” of 18 Sixth Avenue, according to Greenland.
Ex-footprint resident and street photographer Jeff Mermelstein publishes a book, based on "spontaneous sightings" at Barclays Center. Is Bruce Ratner really an art patron and champion of free expression?
In 2014, immigrant investors in "Atlantic Yards III" were given misleading, outdated map estimating project completion by 2022. That was crazy even then.
May 2019
Third act: Bruce Ratner as "developer and philanthropist," catalyzing major Holocaust exhibition at the Museum of Jewish Heritage. Ball for Brooklyn: Barclays Center is site of Brooklyn library gala, where arena is honored; Ratner and BPL's Linda Johnson buy a Pierhouse condo.
A Jane's Walk moment: our tour group is bounced from the "public" Barclays Center plaza, though we weren't pursuing any "strictly prohibited" behavior.
Barclays Center maintains partial opacity on graduations, without stating names or estimating crowd size.
The need for a "larger conversation" about illegal parking during arena events means nothing ever changes.
As traffic concerns mount, especially near construction sites at Sixth Avenue, a study is promised (and required) in 2022, once 1,500 dwelling units are finished.
With Community Liaison Office now staffed by Greenland marketing director, a fading role for L&L MAG, headed by former Forest City executive MaryAnne Gilmartin.
As 12-story 561 Pacific tops out near the Atlantic Yards/Pacific Park site, it changes scale at Fourth Avenue near Site 5.
Politico scoop: one real estate executive who candidate Bill de Blasio improperly solicited was Bruce Ratner.
Incoming Nets owner Tsai says the team "value's not going to go down," thanks to the league's "socialist" economics. That's for sure.
"Tricky": True Hoop's word for enigmatic Nets owner Prokhorov, subject of intriguing series by Henry Abbott.
Gilmartin says, regarding former colleague Jim Stuckey, she was not involved in departure but supported Ratner’s handling of personnel matters.
Is a giant Equinox (and outdoor swimming pool) coming to 18 Sixth Avenue (B4)? A mention on LinkedIn, but no details yet.
Greenland USA executive says Vanderbilt Yard upgrade exceeds $200 million, as do projected platform costs.
Noisy, disruptive Saturday work at B15 site gets disclosed at last minute, but after-hours permit had been acquired 11 days earlier.
June 2019
For now, 38 Sixth corner retail space serves as a construction field office for work nearby.
Three state legislators from Brooklyn write a forceful letter to state economic development chief Howard Zemsky, asking him to explain how Pacific Park will deliver the required 2,250 affordable units by the approaching deadline of May 2025. No answer.
After surprising night work involving trucks disturbs neighbors, ESD sends out last-minute notice.
A rising chance of sports betting in New York, if not this year.
At Fifth Avenue and Dean Street near the arena, a one-time location for accountants will be home to Insomnia Cookies.
During real estate summit, talk of a possible "supertall office tower" at Site 5.
Why 2022 could be a very big year for Atlantic Yards/Pacific Park: looming 2025 housing deadline, plus renewal of Affordable NY tax break.
For B12 and B13, a big boost in unit count planned: from 542 apartments to 800, which means smaller units.
461 Dean, with new owners, no longer promotes Pacific Park, but offers astoundingly whimsical Brooklyn map.
Ten years later, the promises at the MTA meeting on Vanderbilt Yard development rights: "Imagine what this project will do over ten years to put people back to work, to give union jobs." Maybe not so much.
July 2019
In dramatic fashion, Brooklyn Nets re-set NYC basketball fandom, signing Durant and Irving. (Was the practice facility a factor?) Nets/arena CEO Brett Yormark says new Nets drive ticket sales and interest, recycles rhetoric about "hip, cool building. “When we first got to Brooklyn, in some respects it was manufactured,” he says. “There was a lot of hype in moving the team to Brooklyn.”
New York Post suggests Barclays might exit the Brooklyn arena naming rights deal before 20-year contract ends in 2032. No more details emerge.
In a photo request from solitary confinement, one man cites the Barclays Center: “I just want to see it the best way the photographer can capture it. To feel as if I’m right there."
Surprise! ESD will allow 96,000 square feet new below-grade space for fitness center and field house, calling it "Clarification on Commercial Use on Residential Blocks." Shortly afterward, that's said to represent recreational space, replacing parking.
Atlantic Yards CDC vote postponed. Previously, the ground-floor space at B12 and B13 towers, notes AY CDC's Gib Veconi, was described as "small local retail." Also, AY CDC directors request more details on ventilation structures in open space.
Parking cut from 1,200 spaces to 1,000 provokes skepticism; move would ratify 2014 decision to exclude parking from B11 tower (550 Vanderbilt), which was then slated to have it.
Instead of secured, indoor bike parking to serve Barclays Center attendees, new plan to add 56 outdoor, unsecured spaces to arena plaza, plus count existing 44 spaces at mall across the street. Fewer spaces makes sense, but arena developer never seriously implemented original promise.
Site constraints said to trigger change in massing (but not size) of B5 tower (first one over the railyard), moving it closer to the street. Now tower's Atlantic Avenue facade will go straight up, above the base.
North-South walkway width cut from 16 feet to 12 feet. The explanation--to allow more green space--provokes skepticism.
My op-ed in Gotham Gazette, headlined Cuomo’s Getting His Belmont Arena, But the Numbers Don’t Add Up, cites underplayed public assistance, among other things.
In 2019, Greenland Group rises in Fortune Global 500 to 202, from 252. Its credit rating is still "junk," though analysts are more positive. Caution regarding state-owned firms remains.
In New York Times article, How ‘Developer’ Became Such a Dirty Word, Ron Ratner of Cleveland-based Forest City Realty Trust laments, "I always felt that I was behind one of those Coney Island cutouts." The article backhandedly refers to Forest City's sale to Brookfield, a story the Times (and other major publications purportedly covering real estate) ignored. See comments about yield and profit.
August 2019
In Real Estate Weekly, developer Seth Pinsky says, “We have to be less greedy and we have to acknowledge that we can’t always win and other people lose, which is the way it was perceived for many years.”
In The City, officials express doubts that affordable housing timetable will be met. I think it's possible, but more transparency is needed.
With Nassau Coliseum operator reportedly up for sale, a sign of Prokhorov's diminishing venue ambitions. His company doesn't sell it. But it hasn't finished renovating the Paramount Theater yet, either.
At Vanderbilt and Atlantic avenues, McDonald’s lot opposite Pacific Park flank eyed for high-rise; expected spot rezoning might exceed Community Board 8's still-significant broader plan. Times have changed.
As Belmont arena gets approved, belatedly released appraisal summaries dubiously claim lease is above fair market value.
At BrooklynSpeaks press conference, elected officials call for denial of new underground space without environmental review and new timetable for affordable housing.
Unusual Atlantic Yards CDC deadlock: board unwilling to recommend that parent ESD vote for (or against) new underground space. Veconi says “today, at least in Brooklyn, developers are not getting new floor area without concessions.” A Chelsea Piers rep dates the planning to last fall, though TF Cornerstone in July claimed they didn't know who'd operate the proposed facility.
Is proposed below-ground "recreational" space really a swap for parking, as ESD claims? No way.
A decision to modify parking on that southeast block was made in 2014, and the new plan seems to relate significantly to that choice, rather than a post-hoc analysis of parking usage.
As Veconi points out, the change shouldn’t be framed as a “clarification” but rather a new use, with new square footage.
ESD's Tobi Jaiyesimi says, "The proposed use is more in line with that of the community facility designed for this parcel, which would be a use that would provide recreational services to a residential community." That was confounding; the document setting maximum gross square footages already counts retail and community facility use.
Ignoring key criticisms, ESD board predictably approves new below-grade space for fitness center and field house.
ESD's Marion Phillips III refuses to pressure Greenland on its plan to meet the 2025 affordable housing deadline: “And I believe that, as they finish working with the LIRR to finalize approval of the design”—presumably of the at-grade deck, or platform—"I think we can get those answers. I just don’t think those answers exist today.” Surely, though, Greenland is evaluating plans.
Tsai buys Nets, Barclays Center operating company, in faster-than-expected transaction. Yormark leaves. Cost/value of arena unclear. Slate's Ben Mathis-Lilley suggests Prokhorov did "almost nothing" to increase the value of the Nets franchise, while the state and city governments of New York did a lot, and deserve some of the upside. The Nets, according to the Post, could gain in China.
Mikhail Prokhorov was a total failure running the Nets, except in the way that counts, writes SB Nation's Tom Ziller. “I’m not sure if at the beginning [Prokhorov] fully realized how the NBA worked,” former Nets exec Irina Pavlova tells Sports Illustrated.
Yormark spins in exit interview, claims that, after "36 lawsuits," Barclays Center was built "against all odds."
So, Greenland USA's parent company has $550 million in unpaid notes. Cash crunch could constrain Pacific Park ambitions (and raise timetable questions). Wall Street Journal says it's time to sell newly hamstrung, debt-burdened Greenland.
September 2019
Obscured in illustration but revealed after FOIL request: "low scale" Vent Structure in open space would be 12 feet tall.
Second look: how state discussion and newly revealed document fudged plan for new fitness center and field house. "The proposed indoor recreational space has always been permitted," an ESD executive claims. But "commercial" has a very specific use in this context. In 2005, "health and fitness clubs" were considered by Atlantic Yards developer to represent retail space. Now they're a new category: "recreational" space.
Years before distorting Design Guidelines for the fitness center and field house, ESD stretched to allow arena roof logo.
Yes, the Tech Memo fudges the decision to provide less, and unsecured, bicycle parking.
Wall Street Journal interviews new Nets' star Durant, who says choosing Brooklyn was easy (and he may live in DUMBO).
Video shows noisy, undisclosed work at B12 site, where there's no construction fence. No consequences: when questioned about noisy work unmentioned in two-week Construction Update, state rep says they'll do better going forward.
Construction on two sides of Sixth Avenue, medical facility drop-offs, and scofflaw parking cause continued pedestrian safety issues.
School Construction Authority surprise: middle school at B15 tower won't open until 2023, will house 800 students (not 640); more concern about safety issues.
In railyard, how far along is the platform? Some preliminary work is done, but the state either doesn't know or won't offer an assessment.
Chinese developers (including Greenland) face domestic hazards from "unearned revenue." Will there be a ripple effect in Brooklyn?
Is closed open space at 535 Carlton caused by a sinkhole? (It will partly reopen in October.)
Nets have a new CEO, new court colors, and a chance at seizing the NYC basketball narrative from the hapless Knicks.
Prokhorov tells Tass: "It’s been an amazing project from a business point of view. I don’t know of another investment that has shown this kind of return in a relatively short period, so it was simply too good to pass up."
At E-Sports tourney, another private use of the "public" plaza at Barclays.
Looking at the Affordable New York program: even middle-income units at 130% of Area Median Income (vs. 165%) are getting pricey. A template for future Atlantic Yards towers?
October 2019
State document from 2018 offers new hint of affordability strategy: towers over railyard with 50% affordable units. No confirmation, no info on Site 5. Will final buildings have affordability?
Before public meeting, Greenland tells New York Post it will start railyard platform in 2020. That makes 2025 affordable goal more plausible, but questions remain. The Post doesn't ask about the timetable to finish the platform, to start the towers, and the number of affordable units. It's a p.r. strategy for the developer.
With settlement regarding 80 Flatbush, a "Community Benefits Agreement" with perhaps some Atlantic Yards pointers: a promise of "a full-time project manager on call 24 hours a day."
Atlantic Yards/Pacific Park seems to be at an inflection point, presenters at a BrooklynSpeaks forum say, and that should offer leverage for improvements in public benefits and public oversight.
Is there a chance for more lower-income affordable housing? The options seem limited.
The Schneps-ification of local media continues, as Brooklyn Paper owner buys amNewYork, free commuter paper. Gothamist offers a sobering look at Schneps.
As big-ticket apartment prices drop, given larger state transfer tax, price cuts for Pacific Park condos.
In NBA firestorm over China, sparked by Houston GM's Hong Kong tweet, a reminder of the bottom line; Nets owner Tsai backs regime. As controversy subsides, the general tensions won't go away. The China protests come to the Barclays Center.
Barclays Center will get new (Tsai-owned) tenant: WNBA's New York Liberty, with at least 17 home games.
Brett Yormark joins twin Michael at Jay-Z's Roc Nation.
Yes, Atlantic Yards was an example of a "new mega-project," which "takes on the guise of a much broader and more responsive socioeconomic framework." Footprint neighbor Peter Krashes comments: "You can’t underestimate the disruption caused by a community and its members not being able to plan."
After electric games from star Irving, the Nets lord it over the Knicks. Around the arena, a plaza used for promotion, usual on-sidewalk parking, and dicey, crowded Sixth Avenue.
In Bloomberg biography, generous, misleading treatment of Atlantic Yards, arena, and rezoning policies.
A little late, Newsday casts some doubt on (and repeats tired cheerleading for) the coexistence of Belmont arena and Nassau Coliseum.
November 2019
New Nets/arena CEO David Levy claims Barclays Center will be active 285 days/year. But last 12 months had 146 ticketed events (and biggest year was 240+ events). Levy departs after two months, with enigmatic statement to the Times: "It wasn’t one thing. It just wasn’t the job I signed up for."
So, were Barclays Center tax revenues from direct spending in line with initial projections? Not even close (though numbers did change).
For third tower at Metropolis project In Los Angeles, Greenland shifts from condos to rentals.
As New York City Planning report points to inadequate regional housing and transportation, a reminder of the mayor's limited power to address inequality.
In Gilmartin interview from May, a reminder that Atlantic Yards pace was never realistic, the role of luck, and the dubious claim of her company's ongoing alliance with Forest City.
In Amazon bid, Site 5 was proposed as single, 28-story office building with significant lot coverage.
Revealed: NYC's "agreed-upon discounts" for city properties and streets within Atlantic Yards/Pacific Park means $2.3 million valuation for five parcels.
Only two (of five) city properties contributed to project might prompt payment. And that's not so likely. City tax relief also might prompt payment, but that's also constrained.
Without construction at Site 5, May 2020 deadline looms for developer to pay NYC for its development rights (estimate: just $1 million).
Is Pacific Park really on “fast track”? First phase of new platform, document I acquire reveals, should take three years. That squeezes affordable housing timetable.
When will first stage of platform over railyard start in 2020? No answer, but contractor not signed yet. That hints at delay.
Construction at Site 5, catercorner to arena, now on horizon after agreement with P.C. Richard enables state to re-launch eminent domain, so it says.
Parking garages on project's southeast block were once to have three entrances. Now one entrance to serve 758 spaces.
The new total contrasts with the definitive statement that the project will have 693 spaces there. My guess: this helps the Site 5 project. ESD non-credibly defends increase in parking spaces and decrease in entrances.
B12 & B13 design reflects brick and masonry, with one shared lobby (?) and underground connection.
Open space on southeast block shifts quarter-acre lawn to center, between mostly market-rate towers. Is a homage (!) to demolished Ward Bakery planned?
If B4 tower arrives in 2023, that should trigger damages for delay (perhaps $1.65 million). Update: it's expected to be done in 2022. Times Plaza making slow progress; railyard "substantially" (but not finally) complete.
Will there be art on the Dean Street construction fence? Unclear. If so, it won't be like the last time.
After traffic chaos around Disney on Ice performances, no-shows at meeting from Barclays Center, DOT, and NYPD leave question marks.
What is the Pacific Park Conservancy? It oversees the open space. The developer's in charge, for a while. The Pacific Park Owners Association funds the Pacific Park Conservancy.
With supertall skyscraper stalled (and re-started) in Wuhan, Greenland project suggests tougher times in China.
Curbed calls Barclays Center among NYC’s 10 most important buildings of the past decade.
December 2019
Pacific Park middle school due by summer 2023. Students likely to spill over into nearby Pacific Park open space, Dean Playground.
A simple explanation for the surprise jump in school seats (to 812, or 825): middle-school classes have more students.
Lawsuit: after signing 20-year lease in 1999 with 20-year renewal, McDonald's across from Atlantic Yards/Pacific Park site faces huge rent hike because landlord would rather build tower.
Documents show design of B6 and B7 towers shifted toward Atlantic Avenue from Pacific Street, given use of "bump" for residential cellars. Otherwise, the platform would not allow cellars.
The Real Deal: In Los Angeles, a very bumpy ride for Greenland USA's project. “The Metropolis development never made sense in the first place,” says one expert. “There is a mismatch between the product that is downtown and the demand.” Still, Greenland announces completion of the project (but not close to full occupancy).
Barclays Center offers two-for-one event discounts--a first?
Updating New York City subsidy level for Atlantic Yards/Pacific Park, thanks to 2010 document: $185 million, or $205 million?
For now, there's a glut of office space around Brooklyn. Does that hinder Site 5 project? No evidence yet that Site 5 condemnation has moved forward.
As of 2009, another sign Forest City was estimating more rental units and fewer condos.
My City & State essay (plus bonus content): "Brooklyn’s Barclays Center is a questionable part of Bloomberg’s legacy."
As the Brooklyn Nets honor Biggie and Bed-Stuy, the team's Bar Network ignores his (and Jay-Z's) old neighborhood.
Stalled Triangle Sports building across from arena sells for $7 million; any profit tempered by seven years of stasis.
Notes posted summarizing last Quality of Life meeting don't tell the full story. Duh.
Gilmartin's firm leaves alliance with L&L, will now be MAG Partners. Is that success, or spin?
Oonee arrives: attended, nearly-free, bike parking near Barclays, at Atlantic Center mall.
Forbes: Islanders value keeps rising, to 18th in league, even as profits remain elusive.
My 2029 predictions, ten years out: Atlantic Yards/Pacific Park will probably muddle along, but there will be surprises.
The Downtown Brooklyn Partnership's plan to remake Downtown Brooklyn streets includes a multidirectional pedestrian crossing at Atlantic and Flatbush avenues. A fanciful (?) image of a rising walkway at Barclays Center plaza.
In (New York Post-conveyed) announcement of B4 loan, fuzzy prognosis for platform: 2020 start requires pending MTA approvals.
Forbes: vault in Nets' value over the past decade is 773%, second only to that of the Warriors.
Yes, the project and Barclays Center make a few end-of-decade round-ups, with some omissions and errors.
For Atlantic Yards/Pacific Park, the year 2019 had signs of some progress, if not full re-boot. And the absence of accountability continued, with a new twist.
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Cropped image of full buildout, Greenland USA.
Missing: Site 5 rendering across Flatbush Ave. (far left)
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That progress did not quell lingering doubts about such things as the fate of Site 5, the timing for the platform over the railyard, and the plan to meet the required 2,250 affordable housing units by 2025.
There were signs or hints regarding the above three issues, but nothing definitive:
- Site 5, after a long delay, was said to be moving toward eminent domain
- the platform was said to start in 2020, but without a timetable (though information I acquired indicated three years for the first phase)
- developer Greenland Forest City Partners (GFCP), as always, insisted it would meet the deadline, but refused to provide a timetable (but another "100% affordable" building might be planned)
And while Greenland USA, which owns 95% of Greenland Forest City Partners, professed continued commitment to the project, fiscal pressures and policy changes back home in China, as well as continued bumps in their Metropolis project in Los Angeles, left some doubt.
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| Updated Dec. 2019 map of plans and progress. Click to enlarge. Design by Ben Keel; editing by Norman Oder |
This "never-say-never" project typically has surprises, as I wrote in my 2019 preview, and, indeed, there were.
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| The "lawn" has moved between B12 and B13 |
That's below the B12 and B13 towers, under the dubious--and heretofore unknown--category of "recreational space." We didn't get any images of that, though we did--as shown at right--get images of the new open space.
Also a surprise was the new timing for the middle school at the B15 tower (664 or 662 Pacific Street, or 37 Sixth Avenue), which won't be completed until 2023, rather than 2021, as previously expected, and will accommodate more than 800 students, rather than the 640 students long cited.
At the arena
The Brooklyn Nets, despite league-worst attendance, ended the 2018-19 season with a playoffs appearance and more fans in the stands.
Tsai then bought the Barclays Center operating company from Prokhorov. And while the arena has historically struggled financially, clearly the provision of the Barclays Center fueled the astonishing leap in value for the Nets.
That left Prokhorov, not original developer Bruce Ratner, the clear--and maybe the only?--winner in the Atlantic Yards saga. And that fuels questions, in hindsight at least, as to whether New York City and State should've tried to capture some of the upside.
Meanwhile, the divorce between the arena and the New York Islanders accelerated, with the team playing more than half its games this season at the downsized Nassau Coliseum, closer to its historic fan base, while they wait for a new arena to be built at Belmont Park in western Nassau County.
Persistent questions, perimeter changes
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| Still waiting on Times Plaza |
Other questions persisted, and will tumble over the 2020, including the affordability of future rentals, the promised affordable condos, the promised senior housing, the timing to complete the permanent rail yard (almost done), the timing to complete the platform (in two phases) over the railyard, and the completion of the Times Plaza open space.
Retail at and around the project showed limited progress: the ice cream shop Van Leeuwen and the cafe Ciao Gloria opened at 550 Vanderbilt, though two retail spaces there remain to be filled. Empty retail spaces remain at 535 Carlton, 38 Sixth, and 461 Dean, as well as along the Barclays Center's Flatbush Avenue flank.
And while some new businesses opened near the arena, like Chick-fil-A on Flatbush Avenue, the former Triangle Sports building remained in limbo--though it was sold at a seeming profit.
Oversight and accountability
The departure (via absorption in 2018 by Brookfield) of New York Stock Exchange-listed Forest City Realty Trust did eliminate one limited form of corporate accountability, given Greenland's non-obligation to report to shareholders in English in the United States.
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| Assemblymember Jo Anne Simon at BrooklynSpeaks press event photo: North Flatbush BID |
And the coalition BrooklynSpeaks, mostly moribund since 2014, showed partial revival, with a protest press conference and a public meeting involving local elected officials. But the 2021 elections were too far away for any campaigns to ramp up and, potentially, invoke Atlantic Yards.
The developers and allied entities continued to encroach on the nearest neighbors, with last-minute construction and noisy weekend work. And events at the Barclays Center, however smoothly operating for basketball games, inevitably disturbed neighbors periodically.
The press remained mostly uninterested in the project--beyond the sports pages--but the developer still managed to float friendly stories in the New York Post and the real-estate press regarding the purported platform and the planned open space.
January 2019
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| Not much of a "public park," actually |
In the Daily News, I argue that the new Belmont arena will compete with Nassau's county-owned Coliseum.
There are more hints that future affordable housing might not be too affordable.
An absurdist dialogue: noisy construction activity on site doesn't count as "construction" and merit oversight unless it involves vertical activity.
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| 461 Dean retail space |
Greenland in 2018 rose to #252 on Fortune Global 500 and to #341 in Forbes Global 2000, and is said to lead in revenue growth, though the latter claim raises questions.
Still no retail at 461 Dean, the tower flanking the Barclays Center at the southwest.
Brooklyn Paper editor fired "for being too credible a journalist," according to predecessor, fueling more doubts about owner Schneps Media.
February 2019
Where a substance abuse treatment program operated on Flatbush, now Brooklyn's first medical marijuana dispensary.
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| From Forbes |
According to Forbes, eight teams worth less than the Nets earn more income, sometimes much more, though the team's income is finally up.
In a victory for P.C. Richard and a delay for a planned tower complex at Site 5, a state judge has rebuked original project developer Forest City Ratner, saying it reneged on a promise to provide the retailer replacement space at the site.
Leasing three sites raises nearly $199 million for Greenland, records suggest.
In Los Angeles, Greenland USA's on its third condo broker for the Metropolis project, as buyers from China become scarce.
March 2019
With 25% affordability (at least) in four buildings starting in 2019 and 2020, still a heavy lift needed to meet May 2025 deadline of 2,250 total units.
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| Is there really a senior loan in Atlantic Yards II? |
Atlantic Yards CDC doesn't get chance to hire its own consultants on project changes, as per 2018 proposal. Advisory body can't get updated building-by-building timetable.
Years after misleading marketing for "Atlantic Yards II" EB-5 investment, controversy recurs: charges of fraud, countercharges of defamation (plus misleading information about project progress). There will be no news on whether investors in any of the three tranches of Atlantic Yards investments will be repaid.
April 2019
My article in City Limits, Ever-Shifting Pacific Park Plan Highlights Uncertainty of Big Development Schemes, cites an unconfirmed plan to meet the affordable housing deadline with a "100% affordable" tower.
Isles' 2018-19 attendance in Brooklyn was brutal, averaging 11,248 at an arena that holds 15,795 for hockey. They averaged 13,514 at 21 games at the Nassau Coliseum, which holds 13,900.
What might full Atlantic Yards/Pacific Park buildout look like? More images surface.
While Greenland is the majority shareholder, The Brodsky Organization “bought a significant piece and will manage development” of 18 Sixth Avenue, according to Greenland.
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| Completion 2022! |
In 2014, immigrant investors in "Atlantic Yards III" were given misleading, outdated map estimating project completion by 2022. That was crazy even then.
May 2019
Third act: Bruce Ratner as "developer and philanthropist," catalyzing major Holocaust exhibition at the Museum of Jewish Heritage. Ball for Brooklyn: Barclays Center is site of Brooklyn library gala, where arena is honored; Ratner and BPL's Linda Johnson buy a Pierhouse condo.
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| The arena and the library |
Barclays Center maintains partial opacity on graduations, without stating names or estimating crowd size.
The need for a "larger conversation" about illegal parking during arena events means nothing ever changes.
As traffic concerns mount, especially near construction sites at Sixth Avenue, a study is promised (and required) in 2022, once 1,500 dwelling units are finished.
With Community Liaison Office now staffed by Greenland marketing director, a fading role for L&L MAG, headed by former Forest City executive MaryAnne Gilmartin.
As 12-story 561 Pacific tops out near the Atlantic Yards/Pacific Park site, it changes scale at Fourth Avenue near Site 5.
Politico scoop: one real estate executive who candidate Bill de Blasio improperly solicited was Bruce Ratner.
Incoming Nets owner Tsai says the team "value's not going to go down," thanks to the league's "socialist" economics. That's for sure.
"Tricky": True Hoop's word for enigmatic Nets owner Prokhorov, subject of intriguing series by Henry Abbott.
Gilmartin says, regarding former colleague Jim Stuckey, she was not involved in departure but supported Ratner’s handling of personnel matters.
Is a giant Equinox (and outdoor swimming pool) coming to 18 Sixth Avenue (B4)? A mention on LinkedIn, but no details yet.
Greenland USA executive says Vanderbilt Yard upgrade exceeds $200 million, as do projected platform costs.
Noisy, disruptive Saturday work at B15 site gets disclosed at last minute, but after-hours permit had been acquired 11 days earlier.
June 2019
For now, 38 Sixth corner retail space serves as a construction field office for work nearby.
Three state legislators from Brooklyn write a forceful letter to state economic development chief Howard Zemsky, asking him to explain how Pacific Park will deliver the required 2,250 affordable units by the approaching deadline of May 2025. No answer.
After surprising night work involving trucks disturbs neighbors, ESD sends out last-minute notice.
A rising chance of sports betting in New York, if not this year.
At Fifth Avenue and Dean Street near the arena, a one-time location for accountants will be home to Insomnia Cookies.
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| From 461 Dean web site |
Why 2022 could be a very big year for Atlantic Yards/Pacific Park: looming 2025 housing deadline, plus renewal of Affordable NY tax break.
For B12 and B13, a big boost in unit count planned: from 542 apartments to 800, which means smaller units.
461 Dean, with new owners, no longer promotes Pacific Park, but offers astoundingly whimsical Brooklyn map.
Ten years later, the promises at the MTA meeting on Vanderbilt Yard development rights: "Imagine what this project will do over ten years to put people back to work, to give union jobs." Maybe not so much.
July 2019
In dramatic fashion, Brooklyn Nets re-set NYC basketball fandom, signing Durant and Irving. (Was the practice facility a factor?) Nets/arena CEO Brett Yormark says new Nets drive ticket sales and interest, recycles rhetoric about "hip, cool building. “When we first got to Brooklyn, in some respects it was manufactured,” he says. “There was a lot of hype in moving the team to Brooklyn.”
New York Post suggests Barclays might exit the Brooklyn arena naming rights deal before 20-year contract ends in 2032. No more details emerge.
Surprise! ESD will allow 96,000 square feet new below-grade space for fitness center and field house, calling it "Clarification on Commercial Use on Residential Blocks." Shortly afterward, that's said to represent recreational space, replacing parking.
Atlantic Yards CDC vote postponed. Previously, the ground-floor space at B12 and B13 towers, notes AY CDC's Gib Veconi, was described as "small local retail." Also, AY CDC directors request more details on ventilation structures in open space.
Parking cut from 1,200 spaces to 1,000 provokes skepticism; move would ratify 2014 decision to exclude parking from B11 tower (550 Vanderbilt), which was then slated to have it.
Site constraints said to trigger change in massing (but not size) of B5 tower (first one over the railyard), moving it closer to the street. Now tower's Atlantic Avenue facade will go straight up, above the base.
North-South walkway width cut from 16 feet to 12 feet. The explanation--to allow more green space--provokes skepticism.
My op-ed in Gotham Gazette, headlined Cuomo’s Getting His Belmont Arena, But the Numbers Don’t Add Up, cites underplayed public assistance, among other things.
In 2019, Greenland Group rises in Fortune Global 500 to 202, from 252. Its credit rating is still "junk," though analysts are more positive. Caution regarding state-owned firms remains.
In New York Times article, How ‘Developer’ Became Such a Dirty Word, Ron Ratner of Cleveland-based Forest City Realty Trust laments, "I always felt that I was behind one of those Coney Island cutouts." The article backhandedly refers to Forest City's sale to Brookfield, a story the Times (and other major publications purportedly covering real estate) ignored. See comments about yield and profit.
August 2019
In Real Estate Weekly, developer Seth Pinsky says, “We have to be less greedy and we have to acknowledge that we can’t always win and other people lose, which is the way it was perceived for many years.”
In The City, officials express doubts that affordable housing timetable will be met. I think it's possible, but more transparency is needed.
With Nassau Coliseum operator reportedly up for sale, a sign of Prokhorov's diminishing venue ambitions. His company doesn't sell it. But it hasn't finished renovating the Paramount Theater yet, either.
As Belmont arena gets approved, belatedly released appraisal summaries dubiously claim lease is above fair market value.
At BrooklynSpeaks press conference, elected officials call for denial of new underground space without environmental review and new timetable for affordable housing.
Unusual Atlantic Yards CDC deadlock: board unwilling to recommend that parent ESD vote for (or against) new underground space. Veconi says “today, at least in Brooklyn, developers are not getting new floor area without concessions.” A Chelsea Piers rep dates the planning to last fall, though TF Cornerstone in July claimed they didn't know who'd operate the proposed facility.
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| 2014 plan; arrow added to 550 Vanderbilt |
A decision to modify parking on that southeast block was made in 2014, and the new plan seems to relate significantly to that choice, rather than a post-hoc analysis of parking usage.
As Veconi points out, the change shouldn’t be framed as a “clarification” but rather a new use, with new square footage.
ESD's Tobi Jaiyesimi says, "The proposed use is more in line with that of the community facility designed for this parcel, which would be a use that would provide recreational services to a residential community." That was confounding; the document setting maximum gross square footages already counts retail and community facility use.
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| Construction at B4 |
ESD's Marion Phillips III refuses to pressure Greenland on its plan to meet the 2025 affordable housing deadline: “And I believe that, as they finish working with the LIRR to finalize approval of the design”—presumably of the at-grade deck, or platform—"I think we can get those answers. I just don’t think those answers exist today.” Surely, though, Greenland is evaluating plans.
Tsai buys Nets, Barclays Center operating company, in faster-than-expected transaction. Yormark leaves. Cost/value of arena unclear. Slate's Ben Mathis-Lilley suggests Prokhorov did "almost nothing" to increase the value of the Nets franchise, while the state and city governments of New York did a lot, and deserve some of the upside. The Nets, according to the Post, could gain in China.
Mikhail Prokhorov was a total failure running the Nets, except in the way that counts, writes SB Nation's Tom Ziller. “I’m not sure if at the beginning [Prokhorov] fully realized how the NBA worked,” former Nets exec Irina Pavlova tells Sports Illustrated.
Yormark spins in exit interview, claims that, after "36 lawsuits," Barclays Center was built "against all odds."
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| Vent structure in the back |
September 2019
Obscured in illustration but revealed after FOIL request: "low scale" Vent Structure in open space would be 12 feet tall.
Second look: how state discussion and newly revealed document fudged plan for new fitness center and field house. "The proposed indoor recreational space has always been permitted," an ESD executive claims. But "commercial" has a very specific use in this context. In 2005, "health and fitness clubs" were considered by Atlantic Yards developer to represent retail space. Now they're a new category: "recreational" space.
Years before distorting Design Guidelines for the fitness center and field house, ESD stretched to allow arena roof logo.
Yes, the Tech Memo fudges the decision to provide less, and unsecured, bicycle parking.
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| Walking north on the west side of Sixth Ave. |
Video shows noisy, undisclosed work at B12 site, where there's no construction fence. No consequences: when questioned about noisy work unmentioned in two-week Construction Update, state rep says they'll do better going forward.
Construction on two sides of Sixth Avenue, medical facility drop-offs, and scofflaw parking cause continued pedestrian safety issues.
School Construction Authority surprise: middle school at B15 tower won't open until 2023, will house 800 students (not 640); more concern about safety issues.
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| 535 Carlton |
Chinese developers (including Greenland) face domestic hazards from "unearned revenue." Will there be a ripple effect in Brooklyn?
Is closed open space at 535 Carlton caused by a sinkhole? (It will partly reopen in October.)
Nets have a new CEO, new court colors, and a chance at seizing the NYC basketball narrative from the hapless Knicks.
Prokhorov tells Tass: "It’s been an amazing project from a business point of view. I don’t know of another investment that has shown this kind of return in a relatively short period, so it was simply too good to pass up."
Looking at the Affordable New York program: even middle-income units at 130% of Area Median Income (vs. 165%) are getting pricey. A template for future Atlantic Yards towers?
October 2019
State document from 2018 offers new hint of affordability strategy: towers over railyard with 50% affordable units. No confirmation, no info on Site 5. Will final buildings have affordability?
With settlement regarding 80 Flatbush, a "Community Benefits Agreement" with perhaps some Atlantic Yards pointers: a promise of "a full-time project manager on call 24 hours a day."
Atlantic Yards/Pacific Park seems to be at an inflection point, presenters at a BrooklynSpeaks forum say, and that should offer leverage for improvements in public benefits and public oversight.
Is there a chance for more lower-income affordable housing? The options seem limited.
The Schneps-ification of local media continues, as Brooklyn Paper owner buys amNewYork, free commuter paper. Gothamist offers a sobering look at Schneps.
As big-ticket apartment prices drop, given larger state transfer tax, price cuts for Pacific Park condos.
In NBA firestorm over China, sparked by Houston GM's Hong Kong tweet, a reminder of the bottom line; Nets owner Tsai backs regime. As controversy subsides, the general tensions won't go away. The China protests come to the Barclays Center.
Barclays Center will get new (Tsai-owned) tenant: WNBA's New York Liberty, with at least 17 home games.Brett Yormark joins twin Michael at Jay-Z's Roc Nation.
Yes, Atlantic Yards was an example of a "new mega-project," which "takes on the guise of a much broader and more responsive socioeconomic framework." Footprint neighbor Peter Krashes comments: "You can’t underestimate the disruption caused by a community and its members not being able to plan."
After electric games from star Irving, the Nets lord it over the Knicks. Around the arena, a plaza used for promotion, usual on-sidewalk parking, and dicey, crowded Sixth Avenue.
In Bloomberg biography, generous, misleading treatment of Atlantic Yards, arena, and rezoning policies.
November 2019
New Nets/arena CEO David Levy claims Barclays Center will be active 285 days/year. But last 12 months had 146 ticketed events (and biggest year was 240+ events). Levy departs after two months, with enigmatic statement to the Times: "It wasn’t one thing. It just wasn’t the job I signed up for."
So, were Barclays Center tax revenues from direct spending in line with initial projections? Not even close (though numbers did change).
For third tower at Metropolis project In Los Angeles, Greenland shifts from condos to rentals.
As New York City Planning report points to inadequate regional housing and transportation, a reminder of the mayor's limited power to address inequality.
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| Amazon and Site 5 |
In Amazon bid, Site 5 was proposed as single, 28-story office building with significant lot coverage.
Revealed: NYC's "agreed-upon discounts" for city properties and streets within Atlantic Yards/Pacific Park means $2.3 million valuation for five parcels.
Only two (of five) city properties contributed to project might prompt payment. And that's not so likely. City tax relief also might prompt payment, but that's also constrained.
Without construction at Site 5, May 2020 deadline looms for developer to pay NYC for its development rights (estimate: just $1 million).
Is Pacific Park really on “fast track”? First phase of new platform, document I acquire reveals, should take three years. That squeezes affordable housing timetable.
When will first stage of platform over railyard start in 2020? No answer, but contractor not signed yet. That hints at delay.
Construction at Site 5, catercorner to arena, now on horizon after agreement with P.C. Richard enables state to re-launch eminent domain, so it says.
Parking garages on project's southeast block were once to have three entrances. Now one entrance to serve 758 spaces.
The new total contrasts with the definitive statement that the project will have 693 spaces there. My guess: this helps the Site 5 project. ESD non-credibly defends increase in parking spaces and decrease in entrances.
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| B12 and B13 |
Open space on southeast block shifts quarter-acre lawn to center, between mostly market-rate towers. Is a homage (!) to demolished Ward Bakery planned?
If B4 tower arrives in 2023, that should trigger damages for delay (perhaps $1.65 million). Update: it's expected to be done in 2022. Times Plaza making slow progress; railyard "substantially" (but not finally) complete.
Will there be art on the Dean Street construction fence? Unclear. If so, it won't be like the last time.
After traffic chaos around Disney on Ice performances, no-shows at meeting from Barclays Center, DOT, and NYPD leave question marks.
What is the Pacific Park Conservancy? It oversees the open space. The developer's in charge, for a while. The Pacific Park Owners Association funds the Pacific Park Conservancy.
With supertall skyscraper stalled (and re-started) in Wuhan, Greenland project suggests tougher times in China.
Curbed calls Barclays Center among NYC’s 10 most important buildings of the past decade.
December 2019
Pacific Park middle school due by summer 2023. Students likely to spill over into nearby Pacific Park open space, Dean Playground.A simple explanation for the surprise jump in school seats (to 812, or 825): middle-school classes have more students.
Lawsuit: after signing 20-year lease in 1999 with 20-year renewal, McDonald's across from Atlantic Yards/Pacific Park site faces huge rent hike because landlord would rather build tower.
The Real Deal: In Los Angeles, a very bumpy ride for Greenland USA's project. “The Metropolis development never made sense in the first place,” says one expert. “There is a mismatch between the product that is downtown and the demand.” Still, Greenland announces completion of the project (but not close to full occupancy).
Barclays Center offers two-for-one event discounts--a first?
Updating New York City subsidy level for Atlantic Yards/Pacific Park, thanks to 2010 document: $185 million, or $205 million?
For now, there's a glut of office space around Brooklyn. Does that hinder Site 5 project? No evidence yet that Site 5 condemnation has moved forward.
As of 2009, another sign Forest City was estimating more rental units and fewer condos.
As the Brooklyn Nets honor Biggie and Bed-Stuy, the team's Bar Network ignores his (and Jay-Z's) old neighborhood.
Stalled Triangle Sports building across from arena sells for $7 million; any profit tempered by seven years of stasis.
Notes posted summarizing last Quality of Life meeting don't tell the full story. Duh.
Gilmartin's firm leaves alliance with L&L, will now be MAG Partners. Is that success, or spin?
Oonee arrives: attended, nearly-free, bike parking near Barclays, at Atlantic Center mall.
Forbes: Islanders value keeps rising, to 18th in league, even as profits remain elusive.
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| A walkway at the plaza? |
The Downtown Brooklyn Partnership's plan to remake Downtown Brooklyn streets includes a multidirectional pedestrian crossing at Atlantic and Flatbush avenues. A fanciful (?) image of a rising walkway at Barclays Center plaza.
In (New York Post-conveyed) announcement of B4 loan, fuzzy prognosis for platform: 2020 start requires pending MTA approvals.
Forbes: vault in Nets' value over the past decade is 773%, second only to that of the Warriors.
Yes, the project and Barclays Center make a few end-of-decade round-ups, with some omissions and errors.
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