During 2014 negotiations, developer Greenland proposed *blanket city concessions* re future project changes. That didn't happen. But it shows chutzpah.

After Arana Hankin, former Atlantic Yards overseer for Empire State Development project overseer, left in 2013 for a Loeb Fellowship at Harvard University, her qualms about the project surfaced, as I wrote in 2016.

"There really is no accountability," she declared in a lecture, acknowledging that public agencies failed to count estimated jobs and that project agreements were "drafted to be as complicated and obtuse as possible.” One of her roles was to determine "how ESD should respond to developer requests for additional benefits, and there were many."

In other words, renegotiations were frequent. And they weren't over. I wrote recently about what I believe to be the inevitable renegotiation, based on not only the project's history but common Chinese business tactics. 

A request for carte blanche

Indeed, documents acquired via a Freedom of Information Law (FOIL) request suggest that the developers proposed asking New York City officials, when negotiating the 2014 settlement agreement regarding the affordable housing timetable, make significant forward-looking concessions, essentially green-lighting future changes in the plan.

A draft document, proposed for New York City letterhead and then sent to the new joint venture, was apparently prepared by the law firm DLA Piper, which worked on the pending purchase by Greenland USA of 70% of the project going forward.

Note: there is no evidence that the draft was ever placed on city letterhead, much less signed or implemented.

That said, the fact of the proposal echoes Hankin's observation, though in this case the developer was apparently Greenland USA, rather than the original developer, Forest City Ratner. 

Now Greenland owns nearly all the project going forward, and surely seeks to avoid the $2,000-a-month fines--once surely seen as distant and unlikely--for the 876 (or 877) units of affordable housing that must be delivered by May 2025.

(When I first got this document, I couldn't get a comment from the city, or Greenland. Surely this was discussed internally. The predecessor documents in the package I received via FOIL, which perhaps contained staff discussions, were redacted.)

Proposing language for the city

The draft letter, proposed to be dated some time in June 2014, notes that Atlantic Yards Venture, LLC--the new joint venture--would be acquiring the interests of Forest City's affiliate Atlantic Yards Development Company, LLC

"As part of the City of New York’s program to expand the availability of affordable housing in New York," the city was proposed to say, "we have requested you to modify your development plans for the Atlantic Yards Project" to ensure two "100% affordable" buildings," which were to be B14 (535 Carlton Ave.) and B3 (38 Sixth Ave.).

Those buildings gained preliminary approval for financing in letters dated 5/16/14 from the New York City Housing Development Corporation: 535 Carlton and 38 Sixth. (Most of those "affordable" units were for middle-income households, so the term income-restricted is more apt.)

In exchange for the developer's commitment to those "100% affordable buildings," according to the proposed letter, the city would have offered blanket concessions:

In consideration of your willingness to proceed with the proposal referenced above, we agree not to object to your revisions to other aspects of your development plan provided that the total number of affordable units required under the Atlantic Yards Project agreements with the New York State Urban Development Corporation and the Modified General Project Plan dated June 23, 2009 will be met. 

(Emphases added) 

That could've been significant, for example muting any city objections to still-pending plans for a giant, two-tower complex at Site 5, longtime home of Modell's and P.C. Richard, and involving a transfer of bulk from the unbuilt "Miss Brooklyn" tower planned for what's now the arena plaza.

It also seemingly would've locked in future administrations regarding a buildout that would surely last beyond the end of the de Blasio administration in 2021. So it's not surprising that city officials didn't sign off on it.

A state project

Atlantic Yards/Pacific Park is overseen/shepherded by Empire State Development (ESD), a state authority. So any proposed changes in the design of buildings, the provision of open space, and more, including plans for Site 5, are more ESD's business, though the city can weigh in.

ESD, to some controversy, in 2019 approved below-ground space for a fitness center and field house at two towers (B12/B13) now known as 595 Dean Street--a surprise to many, since such space had never been designated or contemplated for commercial or retail use, but a bonus to Greenland, selling the parcel lease to TF Cornerstone, which then could lease the below-ground space to Chelsea Piers.

Another bonus in the 2014 proposal

The proposed letter also would have committed by the city to housing subsidies, which can be scarce:

In addition, in consideration of your agreement to proceed as set forth above, we will not request any further revisions to your plans for development of the remaining affordable apartments at the Atlantic Yards Project and will provide you with the City subsidies in accordance with HDC’s existing “50/30/20 Program” (or any other applicable city and state affordable housing subsidy programs for which city subsidies may be available) to enable you to finance the construction of such apartments...

That's partly redundant, coupled with the earlier pledge not to make objections. Also, the state's guiding Development Agreement does not require specific levels of affordability, as long as the building participates in a city, state, or federal program for affordable housing.

Note that the most recent buildings (B15, B4, B12/B13) have proceeded with direct city subsidies but rather contain income-restricted middle-income housing related to the 421-a tax break, aka Affordable New York.

It's possible that signing the letter might have seemingly committed the city to offer direct subsidies to provide more affordable units. 

But "not request any further revisions to your plans for development of the remaining affordable apartments" could cover a lot of ground worthy of criticism, including the failure to provide the promised percentage of family-sized units or the failure to provide promised moderate-income housing, much less the vaguely-pledged affordable for-sale units.

What next?

Again, there's no evidence this letter moved forward. But the fact that it was even floated should remind us of a few things.

This is a "never-say-never" project. It's been revised multiple times, often because the developers--first just Forest City, then, after the 2014 (and further 2018) changes, Greenland Forest City Partners--seek more advantageous terms.

That means there are often surprises. The below-ground "recreational space" at 595 Dean was the latest. Gov. Kathy Hochul and Mayor Eric Adams surely will face more.