Tag: waterfront

CPCR Donated Over $100k to Local Supporters

03/28/2012 | Comment

According to the Brooklyn Paper, Community Preservation Corporation Resources, the for-profit developer leading the effort to redevelop the Domino Sugar site, paid out at least $100,000 to local groups over a two-year period. The neighborhood groups, which include El Puente, Los Sures, and Keren Ezer, received $10,000 each. (A fourth neighborhood group – Churches United – which is now defunct, received $30k.)

Not surprisingly, each of these groups was among the most vocal and active supporters of the Domino rezoning.

This really shouldn’t be a surprise to anyone – CPCR surely spent more than that on “public reputation” over the 5 or 6 years they spent getting the rezoning approved (including, for instance, T-shirts, box lunches and buses for the supporters they brought in from places like East New York). The period during which these payments were made (February 2008 through December 2009) doesn’t even cover the public review process in 2010, in which CPCR was able to bring out large blocks of supporters to a series of public hearings before CB1, the Borough President, City Planning and the City Council.

The article certainly seems to indicate that CPCR spent more than this, as it cites at least $20,000 (or maybe two $20,000 payments – the editing is not clear) going to Churches United for Fair Housing in late 2010 and 2011. (CUFH is a different entity from the defunct Churches United that received $30k from CPCR. CUFH’s members were also the most vocal supporters of the project.) If CPCR didn’t spend any more money than the article documents, they got a very good deal.

The recipients of CPCR’s largesse are, of course, vigorously contesting all assertions of impropriety, saying that this type of thing happens all the time (which is certainly the case), that they supported the project before any money changed hands, and that, of course, they would never sell their support. All this may be (and probably is) true, but whether or not anything improper did happen, the taint of impropriety is redolent.

As Norm Siegel told the Brooklyn Paper:

If the developer was giving community groups money five or 10 years before their mission, that would be one thing, but if the developer is giving money for the first and perhaps the last time, it raises the question whether the donor is buying recipients support and it raises questions about the community groups themselves.

Stores Go to the Edge

The Wall Street Journal has details on the new retail that is coming to the Edge. These include a name for the grocery store we learned about last month (“Brooklyn Harvest Market, which will focus on organic produce” – seriously, who doesn’t focus on organic produce in Brooklyn?), a bike store and a “contemporary Italian restaurant, espresso bar and bakery called Fabbrica, run by Alberto Baudo, owner of the Acqua restaurant and wine bar” in the Seaport district.

Domino Fight Turns Sour

Eliot Brown, in the Wall Street Journal fills in a few important blanks on the Domino saga:

[After defaulting a $125 million loan] CPC cut a tentative deal with [lender] Pacific Coast Capital, in which CPC agreed to give the company an 84% stake in the property in exchange for forgiving the debt… Under the deal, CPC would have day-to-day control over the project for now. But Pacific Coast Capital would have final say over major decisions such as sales and new partnerships…

And then there’s this:

The financial troubles of the Domino project also raise questions about some of the pledges CPC made when it won city approval for the project. According to city officials and [CPC CEO Rafael Cestero], the developer’s commitment to fulfill its pledge with regard to affordable housing isn’t binding… Mr. Cestero said CPC is still committed to developing the project as pledged. But he also acknowledged that the owners would be open to selling the project if the price were high enough. He said he doesn’t expect this to happen.

Reading between the lines, it sure sounds like Pacific Coast is in control of which entitlements will be taken (and which promises are fulfilled).

Domino is Not For Sale

CPC Resources tells the Brooklyn Paper that they are not selling out, just looking for a “reputable developer” experienced in waterfront development and affordable housing to partner with on the project. Which is to say, they want to sell part of the project. CPCR also acknowledged that they are working to renegotiate a $120 million loan – the same loan they apparently defaulted on in late 2011.

Meanwhile, the developer has officially pushed back the start date for phase one of the project to a very squishy “end of 2013”. That puts it a full two years behind the original schedule, and a year and half behind the most recent party line.

Things Get Worse at Domino

03/21/2012 | Comment

Crain’s reports this morning that the partners in the Domino project are in court, with Isaac Katan, the long-silent partner in the deal, alleging mismanagement, “misdirection and inaction” on the part of CPC Resources. According to Katan, CPCR has nothing to show for the over $100 million in equity and financing that the project has received. Now CPCR is trying to restructure the project’s $120 million in debt, in a deal that (according to the plaintiff) leaves Katan out in the cold:

Last month, CPC Resources told Katan it would enter a Letter of Intent that would allow Pacific Coast to restructure its debt. Under the arrangement, Pacific Coast would be able to convert its loan into an equity interest in the project, therefore reducing Katan’s interest in the project to 8% from 50%. Katan said in the filing that it never consented to such an agreement. Also, the new structure would give the lender the right to remove the current partners in the development from the project at any time and without reason.

But, at the same time, leaves CPCR with a guarantee of something:

But CPC Resources would still be paid an annual management fee of about $750,000, plus expenses.

Suddenly, even CPCR’s supporters seem to be having second thoughts:

“The tenants associations and the area residents, who worked hard to support Domino with its 660 affordable housing [units], are shocked that this project is now in jeopardy of collapse because of the spending spree and unaccountability by CPC,” said Isaac Abraham, a Williamsburg community leader and housing advocate. “Residents hope and pray that 660 affordable units and the entire Domino project doesn’t go up in the refinery smokestack.”

Of course, the 660 units were never guaranteed, and are certainly not part of the entitlements that CPCR has been looking to protect.

Sweet Movie

Aaron Short interviews the makers of the Domino Effect, a (still) topical documentary about the New Domino approval process. I’ve seen the picture in preview, and it is very well done and quite powerful.

Domino for Sale

03/12/2012 | Comment

In news that should surprise no one (but is surprising nonetheless), the Observer reports that the Domino site is on the block. Apparently, the Katan Group and their development partner CPC Resources have been shopping all or part of it to potential buyers.

A spokesman for CPCR told the Observer:

We are pursuing various options that will achieve our goals: to realize value for ourselves and our partners, and to insure that development is consistent with all project entitlements

Chief among the entitlements CPCR received (and of primary value to them, their partner and any potential buyers) was approval from the City to redevelop the site for as many as 2,400 housing units. In exchange, CPCR promised to build 660 units of affordable housing, a lot of open space and a public school, all (nicely) designed by architects Rafael Viñoly and Beyer Blinder Belle. Most of this of these benefits were not guaranteed – something that was a very big issue for people opposed to the project back in 2010.

Hopefully we were wrong.

Building Heats Up Down By The East River

03/11/2012 | Comment

Crain’s looks at development on the East River and finds things are booming up and down the Brooklyn waterfront. From the next tower at Northside Piers, to a hotel at Brooklyn Bridge Park, to industrial redevelopment at Bush Terminal, a lot is happening. But no news on the Greenpoint waterfront, and nothing new at Domino, which “hopes to set a start date soon” (they originally had a start date in 2011).

What IS Con Ed Up To On River Street?

12/30/2011 | Comment

con-ed-demo.jpg

Con Ed’s River Street site, partially demolished
Photo: Sharese Ann Frederick on flickr


I’ve mentioned this in passing before, but Con Ed is doing some serious demolition at its River Street facilities. The two-block site used to house a series of storage tanks, but over the past few months, the tanks have been slowly coming down. (The speed of the demo is probably due to the fact that the tanks are constructed of concrete 20″ thick; there is no evidence of any environmental remediation at the site that I can find.)

So what’s in store for this site? Could it be the site of the recently-rumored Williamsburg Whole Foods (I’m betting not)? Some other development (I’ve heard rumors that CineMagic’s Riverfront Studios is expanding somewhere “within a few blocks” of their Kent Avenue/South 9th Street studios, though I doubt this is that site)? Or is Con Ed just going to mothball it like they have their other waterfront site, the former BRT Power Plant at Division and Kent?

The options are somewhat limited by zoning, which is heavy industrial (M3-1), which limits the as-of-right options to industrial uses and certain commercial uses. (The six-block area between North 3rd and Grand Street west of Kent Avenue is actually ripe for rezoning – the industrial zoning on five of the six blocks is completely anachronistic since the residential rezoning of the Domino properties to the south in 2010.)

Or perhaps Con Ed will do something truly useful for the community and turn the site over for a waterfront park and esplanade? It would make a fantastic extension of the esplanade at 184 Kent to the north, wouldn’t it?