Who else made bank on Atlantic Yards? By now, the law firms and consultants have earned $63.4 million of the developers' funds.

Back in November 2020, I calculated (link) that, consultants and law firms hired by Empire State Development (ESD), the state authority that oversees/shepherds the project, had earned more than $50 million, paid for by the developers. 

That was imprecise. A recalculation shows about $57.8 million. So it wasn't that small an increase from 2016, as I reported, when total had approached $46 million, with some contracts starting as early as 2005 and 2006.

The overall number deserves an update, since each year, in its June board materials and annual report, ESD provides new statistics. 

According to my calculation, the total is now $63,427,386.70, or more than $63.4 million. Here's my chart summing up the totals detailed further below.

The largest sums are for three law firms, then nearly $21 million for three consulting firms, then a small sum for another law firm.

Presumably, if the project restarts and needs new public approvals, that would require new spending on consultants regarding the environmental review, construction monitoring (somewhat later), and contracting--plus, perhaps, new litigation.

In another article, I'll argue that separate funding should support the public interest more broadly. Only occasionally has that been available, in small amounts, in the history of Atlantic Yards.

Responses to pushback

Note that some of the spending likely regards a large, complicated project.

However, more than $19 million of ESD spending went toward lawyers pursuing eminent domain, while some legal spending went to lawyers was defending against lawsuits. Might a more legitimate process have avoided such spending?

Some money spent on contracting was to respond to, or avoid, legal challenges.

Who pays?

According to the project's guiding Development Agreement, the developers agree that, for themselves, affiliates and tenants, "all costs and expenses incurred by ESDC under this Agreement or the Project Documentation shall be for the account of, and shall be payable upon demand," by the developers. See excerpt below.

As I wrote in 2020, it's certainly good revenue for the consultants and law firms, and perhaps the cost of doing business for the developers. 

Whether it represents a wise expenditure--whether rom the perspective of those who think it's enabling or those who think it's delaying--is another question.

In 2008, architect and developer Vishaan Chakrabarti piquantly called the $15 million spent on the Moynihan Station environmental revenue a "kind of workfare program for lawyers and consultants."

It's unclear if different developers/leaseholders, beyond the master developer(s)--originally Forest City Ratner, then Greenland Forest City Partners, then (and for now) Greenland USA--have paid, or how obligations will be parceled out as the project evolves.

Non-law firms

AKRF: environmental review

AKRF, the firm that produces the environmental impact statements and technical memoranda, had, as of June 2017, earned $7,403,158 on a $7,700,000 contract amount, earning just $4,910 in the most recent fiscal year, as of then.

As of November 2020, I wrote, a new contract for AKRF to produce a Technical Memorandum regarding Site 5--the parcel across from the arena block--had started at $49,000 and saw $22,000 added to it, with $21,867 spent.

So that's a total of $7,425,025.

That new AKRF contract appeared to be separate from--and consecutive to--the previous one. It presumably can and will be expanded when the project goes proposed changes that require environmental review and a modification of the General Project Plan.

HDR: environmental monitoring

According to the June 2025 board materials, the firm Henningson, Durham and Richardson, known as HDR, has earned $6,550,332 of an $8,145,000 contract, with only $69,077 spent in FY2025, to "provide environmental monitoring throughout the construction of the Atlantic Yards Redevelopment Project."

HDR is also described, in that annual report, as a "Mitigation Monitor to ensure and monitor the Developer’s compliance with the Project’s Memorandum of Environmental Commitments."

Note that while the contract was said to end May 31, 2024, it presumably has been, or will be extended, when construction resumes--or another firm will perform similar duties. 

STV: owner's representative

The firm STV Incorporated, according to the 2024 board materials, had earned $6,737,354 out of a $7,500,000 contract, with just $24,901 distributed in the previous fiscal year.

Its role: "Provide Owner's Representative technical services which will include monitoring construction activity, site safety, and reviewing construction and design documents as well as contractor requisitions as it relates to the Atlantic Yards land Use Improvement and Civic Project."

That contract was said to end March 31, 2024, but presumably could be extended when construction resumes--or another firm will perform similar duties.

Law firms

Applebaum: condemnation

The firm Applebaum Katz Brodsky, in the most recent fiscal year, reached a total of $198,629 on a $300,000 contract, with $20,324 spent in the last year.

Its job: "Provide legal counsel to ESD in condemnation litigation issues for the Atlantic Yards Civic and Land Use Project." (There's one lingering case.)

Skadden: real estate

The firm Skadden Arps Slate Meagher and Flom, in the most recent fiscal year, reached a total of $13,842,961, within the last fiscal year earning $478,509. (That's more than $2.2 million more than I calculated in 2020.) 

Its job: "To represent ESDC on real estate and related litigation matters with respect to the proposed Atlantic Yards project. Also the Firm is to assist ESDC in the negotiation and preparation of ground leases and other related matters."

These is one of several so-called "no-upset" contracts, which do not have a cap, perhaps because the scope of work can't be as clearly bounded as that for other contracts.

There will be more ground leases, with at least seven parcels, and perhaps multiple developers or leaseholders.

Bryan Cave: environmental and more

The firm Bryan Cave, as of 2024, had reached $9,728,660 of another no-upset contract, within the last fiscal year earning $14,497.

Its job: "To represent ESDC on environmental and related litigation matters with respect to the Atlantic Yards development project. Also, to assist in the planning and development of the project and ensure ESDC's compliance with applicable environmental laws."

Note that Bryan Cave also defended ESDC in part of the eminent domain litigation, notably the state case, not the federal one.

Assuming the project proceeds, there will be additional spending to ensure compliance with environmental laws.

Berger and Webb: condemnation

The law firm Berger and Webb, as of June 2022 board materials, had earned $18,944,425.70, in another no-upset contract, with the previous year earnings $92,207.63. 

Its job: "Provide legal services to ESDC for condemnation and related legal matters with respect to the proposed Atlantic Yards Arena and Redevelopment Project."

As I wrote previously, I'm not sure if that larger sum is related to a greater number of billable hours, or whether the firm gets some percentage related to the overall condemnation costs. That may relate to the fees--the only ones among the above total--that include fractions of dollars.

However, it's unclear if that contract continues, given the role of the Applebaum firm. Note that Berger and Webb is now Berger Webb Hone & Rogin.