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March 23, 2008

Bad news for Atlantic Yards...

Community Benefits Agreements

Amy Levine explains how the delays and setbacks in the controversial Atlantic Yards project will affect developer Bruce Ratner's commitments to signatories of the Community Benefits Agreement (CBA):

All of this news suggests that the affordable housing promised in the CBA may not be built until years after the stadium, if ever. Unfortunately, the CBA doesn't give the community any real redress. Consider the following provisions (text of the CBA is available here):

  • The term of the CBA lasts until 30 years after construction begins on the first residential building. If Ratner only builds the arena, it might be difficult to show any breach for not building affordable housing since he can claim that the housing is still in the works (pgs. 5-6).
  • The CBA also provides that "[t]he Developers may change the Development Phases in their sole discretion prior to commencement of the first Development Phase; provided that they shall provide advance notice...as soon as reasonably practicable" (pg. 11). Again, Ratner has free reign here to change the plans, and significantly postpone construction of the residential units, since construction has yet to begin.
  • The affordable housing agreement specifies the percentage of units that will be affordable. It does not set any minimum amount of affordable housing that must be completed, even though the creation of new affordable housing has been one of the key reasons for public support of the project.
  • Ratner is required to submit quarterly status reports to the CBA Coalition and the independent compliance monitor, but those status reports focus mainly on jobs--there is no requirement that Ratner report the amount of affordable housing that has been constructed (pgs. 41-43).
  • If a new developer takes over the project, it will have no real obligation to continue the CBA. Ratner will still be responsible for the jobs development and local employment provisions (pgs. 49-50).

The problem goes beyond affordable housing though. The CBA also includes provisions that the project will include open space (pgs. 30-31), a community health center (pgs. 26-28), and child care, youth and senior centers (pgs. 28-30). If Ratner postpones construction of most of the project due to financial problems, there's a good chance that these will be postponed too. And that means that the community may end up with a stand alone stadium that causes traffic, noise and crime problems without adding many of the benefits that the developer promised.

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Posted by lumi at March 23, 2008 4:52 PM