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November 7, 2005

Big Brooklyn project must shrink to fly

Forest City Ratner faces public outcry; compromise likely before crucial vote

Crain's NY Business
by Erik Engquist
Published on November 07, 2005

Update of where the project stands with an emphasis on positions of key politicians.

Faced with mounting opposition from Brooklyn residents and elected officials, Forest City Ratner Cos. is under increasing pressure to downsize its $3.5 billion Atlantic Yards project.

Resistance to Atlantic Yards began to swell in the summer, when its renowned architect, Frank Gehry, released renderings to the press. The sheer scale of the buildings shocked many Brooklynites and fanned what had been limited opposition into a grassroots revolt.

To save the plan, even its biggest cheerleader, Borough President Marty Markowitz, is calling for significant revisions.

"I will be pitching aggressively to convince Forest City Ratner to downscale the project," says Mr. Markowitz. "There is merit to lowering the height of the buildings."

Once seen as a slam dunk, the planned 9.1-million-square-foot project, which includes 16 residential, commercial and office buildings and a basketball arena for the Nets, now looks like anything but.

To break ground, Forest City must win unanimous approval from the three-member Public Authorities Control Board, the same body that in June derailed Mayor Michael Bloomberg's ambitious plans for West Side development. In addition, a legal battle looms over the project's likely reliance on eminent domain to condemn private property.

At this point, the developer's top priority is winning over the PACB, whose members are individual appointees of Gov. Pataki, state Senate Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver. While Messrs. Pataki and Bruno are expected to vote in favor, Mr. Silver's vote is uncertain.

Key player

The speaker will make a decision in consultation with the local Assembly members, says his spokesman, Skip Carrier. Insiders say Mr. Silver will give most weight to Assemblyman Roger Green, since the project sits largely in Mr. Green's district.

While Mr. Green has been a consistent supporter of Atlantic Yards, he suggested at a raucous hearing last month that the project's density could be reduced. His comments won applause from a crowd of 700, which had booed as he approached the microphone. Mr. Green is up for re-election next year, and project opponents have shown a penchant for political organizing against supporters of the development.

Two other area Assembly members are even more vocal in their opposition. At the same hearing, Assemblywoman Joan Millman spoke against the plan's colossal size and talked of "the potentially harmful effects this project will have on the surrounding neighborhoods."

Population density

Meanwhile Assemblyman James Brennan, whose district includes many Park Slope constituents opposed to the scheme, calls the project simply "too big." He blasts the plans for "7,000 housing units in 22 acres, which runs to about 18,000 people."

For its part, the developer says it always expected the public would question Atlantic Yards' density and its impact on traffic, air quality and noise levels. The developer also indicates that it is open to discussion.

"We intend to engage with those communities," says Forest City Executive Vice President James Stuckey, the project manager.

Observers read such comments as a sign that the company is willing to trim the project. Forest City might have no choice. The developer has received no promises from Mr. Silver or even Mr. Bruno, yet it has already spent about $100 million on land acquisition, architectural fees and other expenses--too big an investment to abandon.

Another peril concerns state condemnation of property by eminent domain, which the developer is counting on if it cannot buy the remaining private lots. Forest City has yet to secure the final 10% of the acreage it needs. Condemnation would require state approval and would be challenged in court, opponents vow.

.Comments? EEngquist@crain.com

Posted by lumi at November 7, 2005 11:14 PM