Thanks to stipulation, state may start plan to move bulk from unbuilt "Miss Brooklyn" to enlarge Site 5 project across Flatbush--even as P.C. Richard condemnation stays on hold

On 8/31/20, I reported on what seemed to be another snag in the long-gestating (since 2015) plans by the developer of Atlantic Yards/Pacific Park to move the bulk from the unbuilt "Miss Brooklyn" tower at the arena block across to Site 5, long home to Modell's and P.C. Richard, creating a giant two-tower project. 

In a win for retailer P.C. Richard, hoping to stay at Site 5 and gain a replacement store at a future project there, a state Supreme Court judge agreed to stay a state condemnation action while a separate, related case proceeds, in which original developer Forest City Ratner appeals a decision awarding P.C. Richard that replacement space.

But the developer Greenland Forest City Partners and state have gained crucial momentum, with permission to start the approval process, likely to take at least a year, to modify the guiding General Project Plan and allow that shift of bulk.

This is the last remaining parcel on the 22-acre site which remains in contention. (The developer still doesn't have the right to build over part of the Vanderbilt Yard, but will get that right after stipulated payments.)

Site 5 was approved for a 250-foot single tower but, since "Miss Brooklyn" wasn't built looming over what's now the arena plaza, the project developer has since 2015 aimed to move that unused bulk across the street for a much larger project, nearing 800 feet tall, and projected most likely as office towers, plus major retail.

2016 plan for transferring bulk to Site 5

New public process coming?

According to a 9/4/20 stipulation (bottom), the parties in the condemnation proceeding agreed on a stipulation that, while not diminishing P.C. Richard's rights, "that ESD may initiate the statutory processes required to modify the General Project Plan," or GPP.

In other words, despite an injunction protecting P.C. Richard from losing its potential future site (subject to a future decision), Empire State Development--the state authority overseeing/shepherding Atlantic Yards/Pacific Park--and the developer, known formally Atlantic Yards Venture, can take several steps to modify the GPP. That includes:

• performing environmental impact studies analyzing potential designs and possible uses for the development of Site 5, and the impact of increasing the amount of square footage tghere, while decreasing square footage at the Arena Block
• obtaining public approvals for such designs and uses, including retail use, and for any necessary further permits and approvals
• adopting resolutions and findings to approve such potential development of Site 5
• amending the GPP and relevant project documents 
• taking such other action and executing such other agreements as may be necessary or desirable

Note that not only has Modell's closed down, unlike P.C. Richard, which owns its property, that retailer was a renter from Forest City.

Timing questions

No public statements have been made about the modification process, but it's not unlikely that the environmental impact study has begun. It would not surprising to see public pressure on the developer and state, requesting some new public commitments in exchange for the ability to monetize square footage they essentially disregarded.

Given that the process to modify the General Project Plan should take at least a year, with an environmental review and public hearings, that should allow time for the appeal to be heard.

However, if Forest City's appeal is is not decided in less than 14 months, by 12/1/21, ESD may then move to pursue condemnation of the P.C. Richard property, while the retailer reserves its right to oppose such a move.

The stipulation states that Atlantic Yards Venture and its affiliates "take no position" on the latter decision, "which concerns an issue between ESD and [P.C. Richard]." That's a little rich, given that the developer surely cares deeply about the issue.

Toward a post-virus future?

Another question is whether and when the developer plans to build at the site. Given the coronavirus crisis now, the market for a new high-rise office tower, coupled with high-end retail, seems diminished.

But the developers maybe be planning for a post-vaccine future, in which many of the old land use patterns resume.

Moreover, no developer throws away unused square footage--much less more than 1 million square feet.