With developer (conveniently) missing from scheduled meeting, ESD rep says Greenland *may* face penalty for missing affordable housing deadline. Renegotiation?

This is the first of three articles about the Feb. 7. 2023 Quality of Life meeting. The second addressed plans for 595 Dean St. The third concerned changes at the Atlantic Yards Community Development Corporation (AY CDC).

Last night's belatedly rescheduled Atlantic Yards/Pacific Park Quality of Life meeting--which is supposed to be held bi-monthly but hadn't been held since September 2022--lasted barely half an hour, attracted only 25 people, and disclosed little new information.

But what wasn't said, and who wasn't there, were in their own way telling, as was the suggestion that the looming penalty over unbuilt affordable housing might be optional rather than mandatory.

Missing meetings

What happened to the meeting scheduled for November 15, 2022, and then the (presumed) next meeting two months later in January?

"Due to a scheduling conflict on the 15th, that meeting did not occur as tentatively scheduled," said meeting host Tobi Jaiyesimi, of Empire State Development (ESD), the state authority that oversees/shepherds the project. "Due to limited availability in December and January, we weren't able to host meetings then and provide sufficient notice to the community."

Note: those explanations had not been previously floated. Also: theye managed to hold such virtual meetings in January 2021 and January 2022.

What about Greenland?

Where was Greenland USA, which owns nearly all of master developer Greenland Forest City Partners, and executive Scott Solish? 

"There was a scheduling conflict tonight for Scott and Greenland, and so he wasn't able to participate in tonight's meeting," Jaiyesimi said. "And to prevent any further delay of us hosting the first Quality of Life meeting for the year, we decided to continue with the meeting given his limited availability for tonight."

Well, the virtual format should make it less difficult for people to attend. And, yes, people have conflicts in their lives.

Whatever the reason, this conveniently made Solish unavailable to answer the hard questions about the project, regarding the delays in the platform over the Vanderbilt Yard, announced last May but with no work proceeding, and the impossibility of meeting the May 2025 affordable housing deadline, set in 2014, which comes with seeming teeth.

What about the platform?

So that responsibility fell to Jaiyesimi.

"With regards to the status of the platform, there are no updates to share at this time," she said. That means the boilerplate announcement about the potential start of work, pending permits, in the bi-weekly two-week Construction Update, is there just to alert people of possible work.

"If that changes, the document will reflect that moving forward," she said. "The developer remains in ongoing discussions with the Long Island Rail Road (LIRR) about commencing the work. And once we have updates available to share with the community, we'll be sure to provide accordingly."

One inference might be that the LIRR--which needs to ensure that work storing and serving trains proceeds during platform cosntruction--is holding up the work. Another might be that the plans were submitted in incomplete fashion. 

But the LIRR reference might also be a convenient way to paper over the real reasons. Note that previously they cited water main work, which has since been completed.

What about the affordable housing?

"With regards to questions about the project's affordable housing penalty. I know there was a question about that," Jaiyesimi said, citing a question submitted beforehand (by me and, perhaps, others).

"At this time, there have been no discussions with regards to the affordable penalty and for those who may not be familiar, the project has a requirement that there be a specific number of affordable units delivered by 2025," she said. "If not, the developer may face a penalty of $2,000 per unit that has not met that 2,250 number. And so at this time, there have been no considerations or discussions with regards to that penalty."

(Emphasis added)

That phrasing, whether intentional or a slip, suggests that Jaiyesimi thinks the penalty is optional, or will be waived or suspended. (The money, potentially exceeding $21 million over a year, would go to an affordable housing trust fund.)

There's no way Greenland Forest City can deliver the required 876 (or 877) income-targeted "affordable" units by May 2025, given that it hasn't started any new buildings.

Last June, Solish, for the first time, hinted that Greenland might seek an extension by invoking a provision in the guiding Development Agreement that covers "the availability of financing for affordable housing and also project financing."

It's hardly clear that the absence of the 421-a tax break, which expired last June and has not yet been renewed, qualifies for such an exemption, especially since they (apparently) didn't get permission to start building towers over the railyard.

But the gubernatorially-controlled ESD does have latitude to refrain from imposing certain penalties--note how it's ignored collecting fines for the missing Urban Room, the atrium attached to the promised flagship tower (aka "Miss Brooklyn"), once slated to loom over the arena.. 

Whether it can refrain from imposing the $2,000/month penalty regarding the housing is another question.  

What's next?

"So there will be larger discussions around the next phase of development at the project," Jaiyesimi said. "At this time, there are no updates on that. But once those details are available to be shared, we'll be sure to provide that to the community accordingly."

That suggests some sort of renegotiation is in the works.

Here's one speculation: the developer could seek an extension of the fines if it promises deeper affordability and/or more affordable units in the future six towers over the railyard, and/or in the planned two-tower complex at Site 5, the longtime home to Modell's and P.C. Richard across Flatbush Avenue from the arena.

From 2016 proposal

Of course, Greenland Forest City would have to offer some carrots regarding Site 5 alone, given that it is expected to seek state permission to transfer much of the bulk of the unbuilt "Miss Brooklyn" to Site 5, creating a far larger project than previously approved.

What about the school?

Jaiyesimi was asked about the middle school planned at the base of 662 Pacific Street (B15, aka Plank Road).

"I don't have any updates on the timing of the opening of the school," she said, adding that, "once we have details on that we'll be sure to invite the School Construction Authority [SCA] and also representatives from the Department of Education to participate in one of these meetings and provide updates to the community about school details, logistics and accommodations for the school population."

Note: the SCA publishes regular updates on in-construction projects and, as I reported last November, it's due in September 2025.