Atlantic Yards CDC budget: Yes, Greenland's still paying. Some questions about spending. Could advisory body hire a consultant regarding the project's future?

This is the fourth of five articles on the March 25, 2025 meeting of the advisory Atlantic Yards Community Development Corporation (AY CDC), held at the office of its parent Empire State Development (ESD). The first concerned the Pacific Park Conservancy. The second concerned making BSE Global pay for a permanent arena plaza. The third concerned the unusually large plan for Site 5. The fifth concerned the project's future.

The main reason for the meeting was to approve the annual $250,000 budget for the AY CDC.

I had, in my preview, raised a question about who's paying: the answer was Greenland USA, which remains, nominally, the project's master developer, though it has been poised to lose the six railyard development sites to foreclosure.

Presumably if/when Greenland loses those sites in foreclosure--but still keeps Site 5 and B1--the required payments would be shared among those with responsibility for the project.

Other issues

Directors pointed to a few issues raised by the budget document, including a change from $13,250 in office occupancy expenses to zero. ESD, they were told, no longer charges the subsidiary for office space it used.

As to salaries, that reflects pro-rated time for the various team members who work on the project. 

 

The represents a restructuring, compared to when the budget went to fund the salaries of "one or two individuals," stated Joel Kolkmann, Senior VP, Real Estate & Planning.

 

(See for example the 2023 budget.)

Also, it was noted that the fringe benefits represent a significant 29% of salaries. (Well, that's a lure for government service.)

Insurance, they were told, covers liability for the director and officers

 

Hiring a consultant

 

AY CDC Chair Daniel Kummer noted that, at the previous meeting, they discussed the possibility of AY CDC hiring its own consultant to advise on issues.

 

He said (video) it was worth getting in the record why there's no line item for consulting fees.

"It would be part of any cost agreement that we would enter into with future development teams should there be a change in development teams," said Anna Pycior, Senior VP, Community Relations, "because that would be triggering the community process."
 

"So there's no need to budget for a consultant in this budget," Kummer followed up.

"That means that we could not engage a consultant," observed AY CDC Director Ron Shiffman, "to undertake a plan before we have a developer, to really decide on what the scope of the developer might be."

 

"I think that is the case," Kummer said.

 

Going forward

Shiffman suggested they consider amending the budget. He asked if ESD would contribute.
 

Pycior was unencouraging. "We really do think the most realistic and honestly best practice is to do it when you have a developer on hand, when you have the partner, you understand what they believe and you can bring it to the community and not work in complete hypotheticals," she said, "both because you don't want to over-saturate people in terms of outreach and then try to go back to the same people and bring them another public process."

Shiffman said there was a division among observers: some who believe that Site 5 should be separated from the platform sites--they'd likely have different owners--and those like him who believe there should be one overall plan for the remaining parcels.

 

"One would might want to have a consultant tell us which makes sense from a financial point of view, just to understand what the financial dynamics might be of separating the two and losing the ability to have a cross-subsidization within the overall plan," he said.

"In other words it may condition who and how we pick a developer or developers," he said. 

Kummer asked ESD if they had "in-house expertise that could inform us on those questions." He was told yes, and it could come out of ESD's general budget.

"So we can hold that as an option," Shiffman said.

"This would not preclude it," responded Pycior.