Has developer Greenland asked NY State about extending May 2025 affordable housing deadline (which surely can't be met)? Records request turns up blank.
It's a near impossibility that master developer Greenland Forest City Partners, dominated by Greenland USA, can deliver the required 2,250 affordable housing units by May 31, 2025, as established in a June 2014 agreement, which assigns $2,000/month fines for each missing unit.
No wonder that, in March 2021, then Empire State Development (ESD) Chair Steven M. Cohen suggested a legislative “fix” might be needed to enable the project to meet its affordable housing obligations.
Nothing has emerged, though I speculated that it could mean a targeted extension or modification of the Affordable New York tax break, which expired in June 2022, or a relaxation of the deadline, though GFCP had previously said it had not asked for such an extension.
This past June, Greenland USA's Scott Solish for the first time hinted that the developer might ask ESD, the state authority that oversees/shepherds Atlantic Yards/Pacific Park, for an extension or other accommodation.
Flashback, 2019
Historically, the state authority has provided a long leash. At a March 2019 meeting of the Atlantic Yards Community Development Corporation, then-ESD executive Marion Phillips III claimed that ESD was "very serious" about the affordable housing commitment.
"They have a responsibility, and we plan to hold them to a responsibility, for 2,250 units," he told Director Gib Veconi, who had asked for the developer to project its timetable.. "Y'know, your request for them making a projection I think is helpful and useful, but at the end of the day, the commitment of meeting the goal that we set is nonnegotiable on our end."
"Can you say that [housing total and deadline] will never be negotiable?" Director Cy Richardson asked Phillips.
Phillips' response began with a few weasel words. "At this point, I'm very clear, [then-ESD head] Howard's [Zemsky] very clear, we're not negotiating that number down, at all. I have been given very clear instructions that we're not negotiating that number."
Well, Zemsky's gone, Phillips is gone, and there's a new governor.
Richardson said, "I would like every opportunity to remind the broader community, defined as you would like, of this master commitment... Because I don't want it to be too late when these things have to be renegotiated."
"That's fair," Phillips said.
After all, the 876 (or 877) units needed haven't even started, despite plans floated to start B5, 700 Atlantic Avenue, which would be built in tandem with the first block (of two) of the platform over the Vanderbilt Yard, which was supposed to start in 2020 and then to start this spring.
No wonder that, in March 2021, then Empire State Development (ESD) Chair Steven M. Cohen suggested a legislative “fix” might be needed to enable the project to meet its affordable housing obligations.
Nothing has emerged, though I speculated that it could mean a targeted extension or modification of the Affordable New York tax break, which expired in June 2022, or a relaxation of the deadline, though GFCP had previously said it had not asked for such an extension.
And Greenland USA is an arm of Shanghai-based Greenland Holding Group, which has seen its credit rating plunge and its stock drop, so it no longer has deep pockets.
Emerging hints
This past June, Greenland USA's Scott Solish for the first time hinted that the developer might ask ESD, the state authority that oversees/shepherds Atlantic Yards/Pacific Park, for an extension or other accommodation.
As I wrote yesterday, belatedly released notes from the July Quality of Life meeting offer some weasel words: "The Developer and ESD are committed to the delivery of the Project’s affordable housing obligations and abiding by the Project documents."
That doesn't preclude the documents changing, or the clause in the 2010 Development Agreement that allows the state a "right to refrain" from enforcement. (Does that apply to the June 2014 document, which is separate from the Development Agreement? Unclear.)
FOIL request comes up empty
I recently filed a Freedom of Information Law request with ESD, seeking documents regarding the affordable housing deadline.
I sought documents, dated from Jan. 1, 2020 through the present, that indicate whether and how the developer intends to meet the deadline, and/or whether and how it has sought an extension, or otherwise proposed renegotiating the deadline and/or the terms.
"Please be advised ESD has no records responsive to request," I was told.
"Please be advised ESD has no records responsive to request," I was told.
Does that mean that Greenland has never discussed this with ESD?
That seems unlikely. It's possible there have been verbal discussions not memorialized in documents. Or, it's possible that such discussions are with the governor's office.
But if there truly have been no discussions, that's surprising--and a sign that ESD has been too disengaged to initiate them.
Historically, the state authority has provided a long leash. At a March 2019 meeting of the Atlantic Yards Community Development Corporation, then-ESD executive Marion Phillips III claimed that ESD was "very serious" about the affordable housing commitment.
"They have a responsibility, and we plan to hold them to a responsibility, for 2,250 units," he told Director Gib Veconi, who had asked for the developer to project its timetable.. "Y'know, your request for them making a projection I think is helpful and useful, but at the end of the day, the commitment of meeting the goal that we set is nonnegotiable on our end."
"Can you say that [housing total and deadline] will never be negotiable?" Director Cy Richardson asked Phillips.
Phillips' response began with a few weasel words. "At this point, I'm very clear, [then-ESD head] Howard's [Zemsky] very clear, we're not negotiating that number down, at all. I have been given very clear instructions that we're not negotiating that number."
Well, Zemsky's gone, Phillips is gone, and there's a new governor.
Richardson said, "I would like every opportunity to remind the broader community, defined as you would like, of this master commitment... Because I don't want it to be too late when these things have to be renegotiated."
"That's fair," Phillips said.
Today, after the pandemic-induced stall on the economy, the troubles of Greenland's parent, rising costs, rising interest rates, and the absence (so far) of a replacement for the 421-a tax break, that discussion resonates.
What's next?
Veconi and Richardson are still on the AY CDC board, but the (purportedly) advisory body hasn't met since June, despite a putative quarterly timetable.
The issue should come up at the next AY CDC meeting. It also should come up at the next Atlantic Yards/Pacific Park Quality of Life meeting, which also (and more unusually) remains unscheduled.
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