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AY CDC: not much transparency in reports to directors; contentious issues regarding state oversight papered over

This the fourth of four articles on the 4/11/23 meeting of the Atlantic Yards Community Development Corporation (AY CDC). The first concerned open questions about the future of the platform and fines for affordable housing. The second concerned the timing and affordability of the income-targeted housing. The third concerned plans for the Urban Room and possible new public engagement.

Beyond the topics already covered, it’s worth noting how much transparency the AY CDC pursues—and is presented with.

Answer: not a huge amount. Contentious issues, such as a previous deadlock at the AY CDC and sharp questions at the (supposedly bi-monthly) Quality of Life meetings were papered over by the entity's Executive Director.

At the start, for those viewing the online meeting (as I did), there was no roll call of AY CDC directors, at least by the start of the meeting’s video, nor an announcement of the others at the table, surely staff of Empire State Development (ESD), the state authority that oversee/shepherds Atlantic Yards/Pacific Park.

The only staffer introducted was Arden Sokolow, ESD's new EVP for Real Estate and Planning. She didn't speak.

The two new board members, Anand Amin and Ron Shiffman, got to introduce themselves. Amin, Senior Advisor for Real Estate in the Mayor's Office, said he had a background in real estate and planning, but did not--as far as I can tell--weigh in.

Shiffman cited his founding the Pratt Center for Community and Environmental Development, his services on the City Planning Commission, his role as professor emeritus at the Pratt Institute, and even his term on the board of the (now-defunct) Develop Don’t Destroy Brooklyn "that was very concerned about the development around Atlantic Yards."

Not just concerned but critically opposed, in part because of the project's expected impacts, dubious promises, and wired deals. Based on his comments at the meeting, Shiffman now sees his role as trying to ensure a more equitable project, with more of a public and non-profit presence.

Missing minutes

Director Gib Veconi noted that the AY CDC board had not been presented with the minutes from most recent meeting, held last June. (The AY CDC is supposed to meet quarterly, but hasn’t done so, in part because of the difficulty getting a quorum.)

Tobi Jaiyesimi, who serves as the ESD’s Atlantic Yards Project Director as well as the AY CDC'S Executive Director, said the transcript was “still with our court reporter” and “we’ll be sure to flag it for next meeting,” noting that the webcast was available.

Budget issues

Jaiyesimi presented the AY CDC’s budget, which was supposed to be approved before the fiscal year starting April 1.

It covers two people, plus insurance and office costs, totaling $250,000 and “fully funded" by the development team, which implies--I think--contributions not just from Greenland Forest City Partners but also the other developers. She said the total would be flat through 2025 or 2026.

Director Ethel Tyus asked about the other staff person.

"Our other full-time staffer is... Greg Lynch. Greg is on site and walks the project’s perimeter numerous times a day, and helps to serve as ESD’s additional eyes and ears on the project site," Jaiyesimi said. "The staff costs also covers other aspects of the project team's time, working on Atlantic Yards."

I'd be interested in further evidence that Lynch "walks the project's perimeter numerous times a day" and what he has helped evaluate.

AY CDC functions

Shiffman asked about the functions of the AY CDC office between meetings, the relationship between the staff and developers, and how the Directors could be sure they were updated regularly.

The advisory AY CDC, Jaiyesimi said, is a subsidiary that supports the ESD project team, and she’s the liaison. She said they’d receive reports on construction prepared by the ESD’s owner’s representative, as well as reports from the mitigation monitor on compliance with environmental measures.

Note: those documents typically have not been made public consistently, as noted departing Director Jaime Stein in 2019.

Consultation before changes, but...

“Is it your intention to meet with the AY CDC board prior to any agreements with the developers” regarding any change in obligations, Shiffman asked.

Yes, Jaiyesimi said, referencing potential changes (platform, affordable housing) cited in previous coverage this week.

Any proposed changes to the guiding General Project Plan requires a public review process, and any actions that would go before the ESD board would first go to the AY CDC for consideration and recommendation.

In 2019, she said, proposed modifications to the General Project Plan went to the AY CDC "for consideration and recommendation" before going to ESD. Then, the AY CDC could vote, "recommending or not recommending the staff-presented action."

That careful language reflected the murky Board Materials, which stated merely that AY CDC directors "considered and voted on" proposed modifications to the Modified General Project Plan and Design Guidelines at two meetings.

That omits the results of the votes: support for six of seven proposed changes, but a deadlock on the proposed new below-ground space for the Chelsea Piers fitness center and fieldhouse.

Later, Jaiyesimi returned to the issue: "If you recall, the board had also made consideration back in 2019 related to below-grade use to allow for an indoor recreational facility… so we expect the Chelsea Piers fitness center and recreational facility will be open in summer and available to the public."

Note that "made consideration" omits the deadliock, which was reached after Director Gib Veconi raised significant questions about the purported swap of parking for below-grade space, the failure to do an environmental review, and the failure to require reciprocal public benefit.

Community relations

Jaiyesimi also summarized topics at the three Quality of Life meetings since the AY CDC's June meeting, nothing that because of "scheduling conflicts" involving both the ESD team and the developers, the meetings were not held bi-monthly as intended.

Topics included the status of the in-construction middle school at the base of the B15 tower (662 Pacific St., aka Plank Road), which was turned over by the developer to the School Construction Authority (SCA).

She noted that "we have no updates" on the opening though " there have been reports"--um, from the SCA itself--of academic year 2025, and noted that neighbors have requested an appearance from a Department of Education rep before the school opens.

She also cited questions about the Barclays Center plaza restoration work, without noting how the schedule had lapsed.

Jaiyesimi cited questions about the planned open space at the southeast block, Block 1129, which will include, among other things, a children’s play area and dog run.

"As I referenced earlier," she said, "there were questions about the affordable housing lottery and the project's affordable housing obligations." That omitted the inadequate answers from ESD and the developer, failing, for example, to disclose the affordability planned at 595 Dean (B12/B13).

She also cited questions about the schedule and format of the Quality of Life meetings, without acknowledging that the virtual format, which keeps participants offscreen and omits chat, allows the meeting host to control things far more than an in-person meeting.

She said ESD was considering alternatives, such as a hybrid model.

Acting Chair Daniel Kummer asked about typical attendance.

Jaiyesimi said it was recently about 20 people, and said attendance has varied depending on the topics of interest.

AY CDC in Brooklyn?

Veconi asked if AY CDC meetings could return to Brooklyn.

Jaiyesimi said they had trouble managing the webcasting requirements from previous locations.

Noting the gap between meetings, Veconi suggested that a change in bylaws--presumably involving quorum requirements--might allow more frequent AY CDC meetings.

Kummer suggested it would be more fruitful if the directors ensured they were flexible regarding the ability to meet.

Of course, meetings during the day in Manhattan make it less likely that members of the public would attend. No members of the public attended this meeting, as far as I can tell, and there was no public comment.

A new issue

Veconi noted another Quality of Life issue: a major water and sewer project on Dean Street between Sixth and Vanderbilt avenues, "implemented largely" to supply the new Atlantic Yards/Pacific Park buildings.

He said the construction liaison told about a dozen restaurants on Vanderbilt to expect water shutoffs from 9 am to 4 pm in July and August, "which makes it impossible to run a restaurant." (Veconi, as a leader of the Prospect Heights Neighborhood Development Council, helps run the popular Vanderbilt Avenue open street.)

He said it was not the fault of developer or state, but it was a major impact not factored in. In response to a question, he said he didn't think business interruption insurance applied, and there was no compensation from the city.

Given the delays in such projects, he said, "there’s a good potential that will still be going on by the time the school opens."

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