Atlantic Yards/Pacific Park in 2023: no platform start; exit of ESD/Greenland staff; 3-acre "Park" emerges; foreclosure surprise, at 20 years, raises big uncertainty.

Screenshot from The Real Deal

There's always a surprise with Atlantic Yards/Pacific Park, and in my 2023 preview (link), I speculated that it could mean "a new timetable, a new plan, and a new agreement with the state... Greenland going into default?"

The latter occurred, in a way, putting the project deeply in jeopardy, just in time for the 20-year anniversary of the Atlantic Yards announcement.

Master developer Greenland USA, failing to pay back more than $300 million in debt loaned under the EB-5 investor visa program, faces a foreclosure auction on Jan. 11, raising huge doubts about the future of the project.

Frank Gehry's rendering of arena + flagship tower

It's unclear, though, whether and how much any bidder would pay for the share of a Greenland affiliate's rights to six development sites over the Vanderbilt Yard.

After there's an obligation, for now, to pay fines for 876 (or 877) units of affordable housing due by May 2025, fund the construction of a platform, and continue paying the Metropolitan Transportation Authority for development rights.

Note: my year-old speculation about default centered not on U.S. subsidiary but on the Shanghai-based parent company, Greenland Holdings Corp., which, like other big developers, has suffered financially, seeing its share price and credit rating both plummet. 

That leaves no cushion to proceed with projects that don't "pencil out," and this one won't, it seems, without a successor to the 421-a tax break--proposed by Gov. Kathy Hochul but not passed by the state Legislature--and likely other changes. 

That said, New York City this past week floated another surprise: the concept of a partial 421-a substitute, a new city program of tax breaks and financing. That fulfilled my speculation that one surprise could be a "boost from Mayor Eric Adams for deeper affordability." Then again, other projects are likely better positioned.

Ominous quiet

Until the surprise foreclosure news surfaced in late November, it had been a relatively quiet year for Atlantic Yards/Pacific Park. The platform didn't start, despite previous feints toward progress, so it remained in limbo.

Empire State Development (ESD), the state authority the oversees/shepherds the project, seemed uninterested in discussing the housing deadline.

From City Limits

The departure of the two key point people--Greenland USA's Scott Solish and ESD's Tobi Jaiyesimi--without named replacements hinted that the project was precarious.

Nor was there discussion about plans for Site 5, catercorner to the Barclays Center and longtime home to Modell's and P.C. Richard, despite a public suggestion that they'd be connected to a new public engagement process. That presaged, potentially, a renegotiation process--which was short-circuited by the foreclosure announcement.

Nor was there discussion about about the fines, totaling $10 million, for not building the Urban Room, the atrium bridging Miss Brooklyn and the arena. (Proponents would argue that the plaza is more useful.)

Limited accountability

ESD continued to slack in scheduling the Quality of Life Meetings, previously bi-monthly, and the meetings of the (purportedly) advisory Atlantic Yards Community Development Corporation (AY CDC), which has never met its quarterly schedule. 

And when the AY CDC board, at an Aug. 2 meeting, requested a financial analysis of the project's future within two months, it never arrived. 

Press attention continued to wither, with only the Real Deal, a real-estate publication, paying much attention. The foreclosure news, astoundingly, has not made the New York Times nor the other dailies. 

A "Pacific Park" entrance on Dean St.

The coalition BrooklynSpeaks, led by Gib Veconi of the Prospect Heights Neighborhood Development Council and Michelle de la Uz of the Fifth Avenue Committee, has the ear of local elected officials, notably Assemblymember Jo Anne Simon.

It planned--but did not release--a report that would follow up on its 2022 Crossroads charettes. After the foreclosure news surfaced, it issued critical comments and held a virtual press briefing.

Upon the 20th anniversary of the Atlantic Yards announcement, I launched a newsletter, Learning from Atlantic Yards/Pacific Park, aiming to complement this blog with a look, at least weekly, at some bigger-picture issues. 

I hadn't anticipated that it would coincide with the foreclosure.

Incremental progress

The two-tower 595 Dean opened, though the affordable housing lottery--for middle-income units only, with one-bedrooms at $2,690--didn't start until after market-rate move-ins, and was extended twice, apparently to attract more responses.

The Vanderbilt Yard between Carlton & Vanderbilt avenues

With Chelsea Piers occupying key street-level frontage in both buildings, leading to below-ground space swapped with parking, it became clear what was sacrified: a front entrance to 595 Dean's East Tower, which is reached, incredibly, via an underground passage from the west.

The completion of the buildings led, ultimately, to the completion of three acres of open space on the project's southeast block, including a dog run, children's play area, and benches. Stanchions announcing "Pacific Park" emerged at the Dean Strett entrances.

But the remainder of the open space depens on construction of the platform and, especially the final towers, allowing the incorporation of demapped Pacific Street between Carlton and Vanderbilt avenues.

About the Nets and the arena

The Brooklyn Nets saw their roller-coaster calm down, with the departure of stars Kyrie Irving and Kevin Durant, some solid new players, and a steady hand under new Coach Jacque Vaughn. But they're still a few stars away from contention.

The WNBA's New York Liberty, though, assembled a "superteam," provoked positive buzz, and made it to the league finals, with a significantly elevated attendance--averaged 7,777 attendance, fifth in the league, a huge jump from the 2022 average of 5,327.

The web publication Hell Gate concluded that The Liberty Have Finally Brought Good Vibes Basketball to the Bad Vibes Barclays Center. Star Breanna Stewart won league MVP.

After a surprise shift, swapping ticket provider Seat Geek for industry behemoth Ticketmaster (connected to promoter Live Nation), the Barclays Center event schedule got busier. Coincidence? That arena plaza got a fourth sponsor.

Arena operators, under their alter ego Joe and Clara Tsai Foundation's Social Justice Fund, sponsored plaza events, a "new music" concert, and playground revamps.

Retail effects

Just Salad finally emerged at 461 Dean Street, the modular tower adjacent to the arena. Two restaurants were announced, but haven't opened yet, at 595 Dean.

A pizzeria, Fini, opened in the retail space at the Barclays Center once occupied by Starbucks. A fitness chain was announced at Brooklyn Crossing (B4), and a physical therapy chain already opened.

Across from the arena, a large Flatbush Avenue parcel said to become a Walgreen's didn't, while progress was stalled at the Triangle Building, reportedly the future home to Rihanna's Savage x Fenty lingerie line.

The busiest, most challenging retail near the project, though not necessarily related, remained Chik-fil-A, which, with Shake Shack on Flatbush Avenue across from Barclays, has attracted a huge number of e-bikes.

Beyond the footprint

The area around Atlantic Avenue east of Vanderbilt Avenue, the eastern border of the project site, continued to be in the sights of developers and the city.

After the approval of multiple spot rezonings, New York City's Department of City Planning began to rezone the larger area, now known as the Atlantic Avenue Mixed Use Project, though the level of affordability floated was below what advocates sought, given that some spot rezonings delivered more.

January 2023

What's next from BrooklynSpeaks? New "third party" input to create "more detailed vision of challenges and opportunities" at Atlantic Yards/Pacific Park. (Didn't happen.)

How Atlantic Yards failed to deliver "affordable" condos. The cost of delay: "affordable" condos, if ever built, could go to households earning $200K+, nearly double the 2006 estimate.

Just Salad, first retail space at 461 Dean (flanking arena), opens on January 11.

Time for an open space master plan update? There's a new B12/13 configuration, new dog runs. A future "Pacific Street terminus"? Biggest question is whether platform gets built.

Six-month look-ahead says platform construction may commence." But it doesn't sound convincing.

Surprise! Barclays Center drops SeatGeek as ticket partner, returns to Ticketmaster.

At Senate hearing, new evidence of Ticketmaster's power: SeatGeek CEO says Barclays Center sought to retain contract for Nets games, not concerts. An alternate take: SeatGeek faced frustrating tech issues.

Coming to 18 Sixth Ave., aka Brooklyn Crossing: "crazy luxe" fitness chain Life Time, plus Spear Physical Therapy. Life Time's the year's largest Brooklyn retail lease, in square feet.

Chelsea Piers offering $180/month Fitness Center memberships at 595 Dean.

ANHD explains: not only are many "low-income" units not aimed at truly needy, AMI "high housing cost adjustment" makes things worse.

1010 Pacific, first spot rezoning built in Community Board 8, has "low-income" units $1,576 to $2,002.

February 2023

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

Ending "chaotic" tenure, Brooklyn Nets star Irving gets trade to Dallas. Reflections on Kyrie. It's a "business."

Nets, admitting "failure" of superstar era, trade disgruntled Durant to Phoenix Suns for hefty package. Reboot to better version of "old" team?

Do the New York Liberty now have a "superteam"?

After ten years, business-friendly Crain's suggested (last year) that "development around the Barclays Center is on solid ground." Really? Keep your eye on the ball.

AY CDC board adds community planner Shiffman, mayoral real estate advisor Amin. 

Atlantic Ave. rezoning plan “community-led,” but first discussion omits recent spot rezonings & City Planning’s 17-story benchmark.

Tenant complaints at 535 Carlton over a long-unlocked door.

March 2023

Greenland USA point man Solish leaves for The Brodsky Organization, which built B15 tower & partnered on B4. What's next? Greenland renegotiation with NY State?

Is the Barclays Center loading dock, however better than Madison Square Garden, really a model?

Where are Atlantic Yards/Pacific Park towers located? Today, promotional copy (mostly) says Prospect Heights.

In NY Times exploration of Rep. Jeffries' early career, allies saw his Atlantic Yards stance as forging alliances. Rather, it was more strategic ambiguity.

Official notes from Quality of Life meeting don't mention developer's platform pause or ESD downtplaying fines for absent affordable housing.

595 Dean residential entrance & Chelsea Piers

April 2023

At two-tower 595 Dean, now open, more Dean Street entrances (and canopies) for Chelsea Piers than for residents, given one residential lobby.

At meeting of Atlantic Yards Community Development Corporation, no answers to big questions about project's future. No sign that fines for missing affordable housing will be enforced. Developer is absent. New public engagement before Site 5 plan?

No progress at Triangle Building.

Updated graphic shows middle-income skew of Atlantic Yards/Pacific Park affordable housing.

Why isn't there a process to weigh proposals against plausible alternatives, asks Michael Gecan of Metro IAF.

Brooklyn Nets swept in first round of playoffs.

Vanderbilt Avenue restaurateurs frustrated by water and sewer upgrade on Dean Street.

595 Dean "affordable housing" lottery slated to launch, after market-rate move-ins have commenced. Middle-income-targeted rents revealed: studio, $2,290; 1-BR, $2,690; 2-BR $3,360.

Developer Elghanayan says "you must have a super-optimistic view of life" to be a developer. Or, maybe, an unfounded one?

With Gov. Hochul's housing plan scuttled, no lifeline for 421-a sites like B5 (700 Atlantic), the delayed first tower proposed for the railyard

May 2023

Routine delays in state oversight meetings.

At 461 Dean, long-running temporary boiler outside finally gone.

Back in 2010, I called the developer's fundraising effort one for the annals of real estate lending: "Extend, pretend, and find some Chinese friends." New friends needed?

New columns outside 595 Dean Street advertise Pacific Park, as open space expands to three acres, all on the southeast block of the project.

In corporate history posted by new firm formed by Forest City cousins, little mention of Bruce Ratner.

June 2023

Greenland Holdings stock price declines. Company plummets in Forbes Global 2000 rankings. 

State stalls on new housing policies crucial to project's future, notably 421-a tax break.

Greenland, with middleman Mastroianni, seeking to "restructure" $300+ million debt owed to EB=5 investors.

At East Tower of 595 Dean, lobby-plus-canopy serves... Chelsea Piers, not residential tenants.

Lottery for middle-income "affordable" units at 595 Dean extended, allows pool to expand, with higher income limits.

Big, if true: master developer Greenland says, despite lull, platform construction "likely to begin" in second half of 2023.

Jersey City developer LeFrak says project expected to take 20 years should take 50 years (or maybe 60 years).

Area Median Income (AMI) for 2023 up some 6%. That means 100% of AMI is $141,200 for a four-person household.

Arena workers rally to presage possible strike--or negotiation.

With Qatari wealth fund buying into DC sports conglomerate, will other NBA teams (Nets?) sell minority stakes? Sportswashing comes slowly.

Oh, the son of Eric Adams' top aide had a DJ gig at Woodland, the scofflaw nightclub Adams defended.

July 2023

Brooklyn Nets trade longest-tenured player, Joe Harris.

The two-tower 595 Dean has just one entrance.

Empire State Development's long-time Atlantic Yards point person, Tobi Jaiyesimi, departs without a replacement.

Former Atlantic Yards state overseer Hankin, after "growing disillusioned with economic development efforts," now a cannabis innovator.

With SeatGeek gone, Barclays Center plaza now branded by Ticketmaster (fourth sponsor in 10+ years).

A huge homage to Jay-Z, produced by his company, takes over Brooklyn Public Library's Central Library. Might there be contradictions?

Is "The Book of HOV" for anyone but Jay-Z? Well, maybe a bit for arena developer Bruce Ratner (and designer SHoP), thanks to a standalone Barclays Center replica (above right).

Gov. Hochul finds workaround to replace 421-a tax break, for Gowanus at least. Will it extend to other neighborhoods? To Atlantic Yards/Pacific Park?

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

Is another renegotiation inevitable?

Food and beverage workers at the arena negotiate a new contract, with better terms, though less than sought.

Belated Atlantic Yards Community Development Corporation meeting canceled due to quorum issue, then rescheduled.

Hooper Kevin Durant's very light footprint in NYC.

August 2023

Reinvent Albany's "Open ESD" report points to authority's convoluted structure, lack of independence, dubious math, and denial of public comment.

Penthouse East, final sponsor unit to sell at 550 Vanderbilt condo building, reaps $4.55 million, less concessions (24% off Offering Price). Buyer gets a huge tax break.

Lottery for 595 Dean affordable units extended again, to Aug. 15, which enlarges pool for middle-income units.

Does "Atlantic Yards Deal Pave Way for Pacific Park Towers"? Not quite. Financing questions run up against 2025 deadline for affordable housing.

From City Limits: "State Weighs Tax Deal, Plans ‘Public Engagement’ for Atlantic Yards as Housing Deadline Nears" (plus bonus material from Atlantic Yards Community Development Corp. meeting). 

AY CDC board member Veconi led the request for study of fiscal feasibility of project. Board member Shiffman asked for a report on how the affordable housing compared to the earlier promises.

The New Yorker goes deep on Eric Adams, after a separate investigation into his pal Lamor Whitehead.

In future, more opportunity to comment on Atlantic Yards Community Development Corp. agenda items and also at meetings? Sessions back in Brooklyn?

Coming on Dean Street next to playground, Park Edge: low-cost housing for 80-100 seniors. Specifics, timing yet unclear. Strained reference to Atlantic Ave. plan. Instead of 80-100 units, larger 542 Dean (11 stories) will house 154 seniors; on Dean and Bergen nearby, a stealth rezoning extends to 6th and (?) Flatbush Aves.

If Moody's calls bonds from Greenland Holding "highly speculative, or near default," how much incentive for subsidiary to spend in Brooklyn? Greenland Group plummets to #205 on Fortune Global 500, as profits evaporate & debts mount.

If "China's 40-Year Boom Is Over" (per WSJ), what's next for companies like Greenland facing complex calculations, and big upfront costs, in Brooklyn?

From Common Edge: Revisiting Brooklyn’s Barclays Center—a Telling Landscape. Notably, a lot more advertising or promotional signage.

"What the Builder Built:" a profile of Bloomberg's Deputy Mayor Doctoroff in New York Magazine sends Atlantic Yards down the memory hole. Later, the NY Timex bizarrely credits him for AY plan.

AY down the memory hole again: In book Unequal Cities and discussion, the "borderline calamity" Community Benefits Agreement gets ignored and mangled.

Pacific Grand emerges, with more lower-income units than in other early M-CROWN buildings. Market-rate not set. A good deal for the developer, a first mover.

Former Islanders General Manager says Barclays Center was a crucial fallback for the team, but "logistically it was a hot mess."

Atlantic Ave. Mixed-Use Plan "Community Vision & Priorities Report" avoids density question--which should be answered at upcoming City Planning meeting. Affordability the priority.

September 2023

At Brooklyn Public Library gala honoring Jay-Z, co-chairs include Bruce Ratner (husband of library CEO) + Joe & Clara Wu Tsai. "Book of HOV" exhibit extended, now with a Lexus on the lawn.

Barclays Center updates September 2023 event calendar: Just Brooklyn Prize Awards for racial justice, plus free "new music" concert, first in new series.

Is the big news that the Atlantic Ave. Mixed-Use Plan might deliver 4,000 apartments (per press release)? Or that NYC hasn't pushed for more/deeper affordability?

At contentious meeting, CB 8 committee opposes 962 Pacific spot rezoning unless developer improves affordable housing. Revision less than requested, but gets support in full CB 8 vote. What about CM Hudson?Given weather, Steve Reich "new music" concert moved just inside the Barclays Center doors,

City & State's Brooklyn Power 100 list downgraded Joe & Clara Wu Tsai (Nets/Liberty/arena/Social Justice Fund) to #42, but their clout is increasing.

Given weather, Steve Reich "new music" concert moved just inside the Barclays Center doors, meets enthusiastic crowd (and "Social Justice" doubts).

The paradox of parking enforcement, which is what the area around the Barclays Center endures illegal parking and standing.

October 2023

At "City of Yes" info session, City Planning officials say they hope to reach deeper affordability, go below 80% of AMI. But state must deliver tax break.

From Common Edge: "Does Brooklyn’s New Brooding Monolith Deserve Kudos?" (and do selfie-takers at Barclays Center plaza seek out the supertall?)

Barclays Center operating company in FY 2023 again reports loss. Operating income slighly above FY 2022. Owner Tsai kicked in $18M, less than previous years.

Barclays Center opening up for a (first-ever?) free watch party, as the New York Liberty play a road game in the WNBA finals. (The Liberty ultimately lose.)

Synergy: Tsais' Social Justice Fund supports $1.4M renovation of basketball courts in three Brooklyn parks, with murals honoring New York Liberty & Brooklyn Nets.

The last Atlantic Yards Quality of Life meeting was in February. The last Atlantic Yards Community Development Corp. meeting was in early August. Time for an update? Requested fiscal feasability study, due in early October, is overdue.

In plan for Brooklyn, Borough President Reynoso will advocate for more housing, especially near transit and in the borough's southern and eastern sections.

BSE Global, which runs the arena company, will operate, with IMG, Glide Brooklyn, a seasonal ice rink at Brooklyn Bridge Park.

Coming soon(er): restaurants at 595 Dean on southeast block: Ni Hao and SIMÒ.

Do parcels rezoned last year on Atlantic Avenue for 17 stories now have just one developer? Pariente seemingly takes control of second site.

At hearing on Atlantic Avenue rezoning plan, CMs Hudson & Ossé seek more public sites for affordable housing, plus deeper affordability throughout rezoning area.

So, how much did Jay-Z raise for the Brooklyn Public Library? Gala grossed $1.5M, little more than the 2022 gala's $1.3M, which had nearly 1/3 go to expenses.

A telling quote from lobbyist Coffey: "There are not enough reporters or media outlets anymore. You have to be really creative about getting news out in an interesting and dynamic way."

November 2023

Though Forbes says the Brooklyn Nets & arena company are worth $3.85 billion, rising tide in NBA valuations likely means a higher number.

Welcome to the Corner Store! A "bodega"-style store at the Barclays Center, with arena prices: soda, $8; water, $7, beer $13-$15.

Empire State Development, after being critized for posting the Agenda and Board Materials for its monthly meetings only a day or two beforehand, now posts them with several days' notice. But it still requires the public to comment on agenda items before the meeting.

Las Vegas Sands, seeking casino license, leases Nassau Coliseum for $241M. A win for EB-5 middleman Mastroianni. What about the immigrant investors?

Finally, scrutiny for Winnie Greco, ethically dubious liasion to Chinese communities for Brooklyn BPs & now Mayor. She met 2014 with incoming developer Greenland.

From Common Edge: "Jay-Z's Unseemly Takeover of Brooklyn’s Central Libraru."

If Brookfield, which bought out Forest City, no longer actively claims Pacific Park, what remaining stake does it have in the future project? "Nominal," says a rep.

December 2023

With Greenland EB-5 debt in foreclosure, big Qs about future of stalled project, including collateral, platform, & investor visa middleman. What's government's role? More questions.

BrooklynSpeaks: foreclosure sale "potentially fatal" setback & "searing indictment" of NYS oversight. My take: conditions imposed by ESD key to any sale. Big doubts about obligations. 

BrooklynSpeaks says it's time for new oversight & Atlantic Yards plan. But the immediate questions involve foreclosure sale & role of NY State. Will they get a meeting with ESD?

Documents show that below-ground Dean St. garage added 469 parking spaces, not the announced 455, to the existing 303 spaces. How well can 772 spaces work?

Announcing my new Substack newsletter, Learning from Atlantic Yards/Pacific Park, 20 years after the project unveiling. Why launch a newsletter? Flashback, Dec. 10, 2003: The Atlantic Yards unveiling.

The Real Deal assesses Atlantic Yards on its 20th anniversary, with a few key new insights—the Chinese company Greenland USA was out of sync—though I don’t fully agree with their analysis. 

As I wrote on Substack: Was Atlantic Yards fundamentally flawed? Yes, a cascade of problems impeded progress. At the start, though, Deputy Mayor Dan Doctoroff thought it "a crazy risk." He just didn’t say so.

Former Forest City CEO Gilmartin says Atlantic Yards gave her too much PTSD to consider a return to the troubled project. She used to sound confident.

Middle-school across from arena block now due to open Sept. 2024 (not 2025), thanks to interior work on evenings & weekends. Will SCA/DOE talk to neighbors?

Merch for Madonna! A row of idling 53-foot trailer-trucks outside the Barclays Center before three-show stint. What about the permits?

Barclays Center releases December 2023 event calendar: 16 ticketed events (twice the 2022 count), including three Madonna concerts. A New Year's Eve show is back.

In the latest required six-month project look-ahead, master developer Greenland USA says plainly: the platform over the railyard, location for six development sites, won't start.

There's no talk of Atlantic Yards at the monthly meeting of Empire State Development, but a spokeswoman says the advisory Atlantic Yards Community Development Corp. may meet early in 2024. So something’s likely cooking regarding the project’s future.

ESD's anodyne statement: “Governor Hochul’s highest priority is expanding New York’s housing supply and promoting housing growth, and Empire State Development is focused on the successful buildout and completion of this project. We are currently reviewing the situation and are working to determine the best path forward.”

In the publication Sportico's latest NBA valuations, the value of the Brooklyn Nets, plus the arena company, is estimated at $3.98 billion, but the growth rate far lags the league. Blame the demise of the “superteam,” which attracted sponsors.

From Substack: A "Garden of Eden"? Revisiting a NY Times Rave for the 2003 Atlantic Yards Debut. We've learned that architecture critics can't just focus on the "cultural dimension of building"

With proposed new city financing program for 70% affordable housing, a way forward for Atlantic Yards/Pacific Park? Stay tuned.

From NetsDaily, on the Brooklyn Nets' mediocrity: The Brooklyn Nets are who we thought they were.