Showing posts with label Citi Field. Show all posts
Showing posts with label Citi Field. Show all posts

Thursday, November 3, 2016

AG Schneiderman Goes To Bat For Related/Met's Owners In Parkland Mega-Mall Fight


Proposed Nightmare - Willets Point West. A $1 billion Bloomberg-era giveaway of 47.5 acres of public parkland in Flushing Meadow’s Corona Park to one of the country’s most politically connected developers.

Queens

By Geoffrey Croft

The City’s most politically connected developer along with the owners of the New York Mets are pulling out all the stops in its quest to build the city’s largest mall on public parkland.

New York State Attorney General Eric Schneiderman has petitioned the State’s highest court to vacate a lower court decision which prohibits the commercial development of the mega-mall in Flushing Meadows-Corona Park.

The developers strategy in court precedings and in public misstatements has been to try and connect the two development projects -  Willet’s Point West,  a proposed massive mall on 47 acres of public parkland, and Willets Point,  60 acres of automotive shops on the other side of Citi-Field.

In July 2015,  The New York State Appellate Division rejected the parkland mega-mall shopping complex deal and ruled in favor of plaintiffs, including NYC Park Advocates, who sued to block the city and the Queens Development Group from seizing nearly 48 acres of public parkland in Flushing Meadows-Corona Park. 

The court ruled that the project violated the Public Trust Doctrine and prevents any construction on parkland from proceeding.  

The Queens Development Group - a joint venture between The Related Companies and Sterling Equities, whose owners are New York Met’s principle owners Fred Wilpon and Saul Katz,  are attempting to build a 1.4 million square foot mall as part of a 48 acre project in the Park. 

The proposed mall in Flushing Meadow Corona Park was never part of the original Willets Point development which was approved in 2008.

The public land was thrown in to sweeten the deal for developers.

Related and Sterling have donated at least $187,300 in contributions to Governor Cuomo and AG Schneiderman since 2010 according to the Board of Elections’ website.  

Donations from Related’s top two executives and their wives,  Stephen M. Ross and his jewelry designer Kara Ross,  and Jeff and Kara Blau are included in the contributions.

More to Come...


Read More:

Council Misled City On Willets West Land Grab
A Walk In The Park - January 14, 2016 - By Geoffrey Croft 

A Walk In The Park - August 20, 2015 


A Walk In The Park -  March 22, 2013 


Sunday, August 3, 2014

Bloomberg's Yankee/Mets Luxury Landlord Suites Deal Not Paying Off
























In yet another Bloomberg stadium deal debacle, his Yankee/Mets luxury landlord suite arrangement is also not paying off as expected.  In 2009, then-Mayor Michael Bloomberg did an about face and decided to raise cash by having the Yankees and Mets lease out the 12-person ‘landlord suites’ owned by the public. That decision came about after embarrassing emails surfaced which revealed the behind-the-scenes antics of the Bloomberg administration in demanding that the city receive its own luxury boxes as part of the deal to heavily subsidize the new stadiums.  After the revelations the teams agreed  to a deal to turn over rent and ticket revenue to the city. 

Bloomberg predicted the city would make $1 million a year, but it’s only getting a fraction of that amount.   In 2013 the suites brought in less than $160,000.  The lease with the city mandates that both teams must make a “reasonable effort” to rent out the landlord suites.
In six years, the Parks Department has never requested a single receipt. 

The Yankees, the richest team in Major League Baseball  were allowed to seize 25.3 acres of public parkland to build the new stadium with little accountability from the city's elected officials. 

City-Wide


The plan was simple: Raise millions of dollars for the city by renting out the so-called “landlord suites” the public owns at Yankee Stadium and Citi Field.  

The plan was a big flop.  

The city, which owns the land upon which Yankee Stadium and the Mets’ Citi Field are built, has a luxury box with a capacity for 12 in each stadium.  Five years ago, then-Mayor Michael Bloomberg decided to raise some much-needed cash by having the teams lease out the suites and turn over rent and ticket revenue to the city. He predicted the city would pocket $1 million a year from these suites.  He was not even close, according to the New York Daily News.

Instead, the city has realized only a fraction of that amount, pulling in less than $160,000 last year. That’s because under its deal with the Yankees and Mets, the city relies entirely on the teams to scare up what could be easy revenue for the city that subsidized both teams’ new homes.  

Both the Yankees and the Mets now appear to make barely any effort in that regard, with the Yankees renting out the suite on only 16 of 83 home games during the 2013 season, according to documents obtained through the Freedom of Information Law. The Mets did slightly better, leasing it out for 30 games.  

A box of similar size at Yankee Stadium typically rents for $600,000 per year. Last season the Yankees scrounged up a paltry $100,107 in rent for the “landlord suite” for the entire season. The Mets managed to collect a pathetic $59,889.

The city must renew the agreement to waive use of the box each year. Because the city missed the waiver deadline with the Yankees last year, they were forced to accept a check for $113,000 for the 2014 season — no matter how many days the league’s richest team rents it out. The Mets’ rent has yet to be determined.

This lopsided deal began in 2009, after the Daily News revealed that the Bloomberg administration had demanded the city get its own luxury boxes as part of the deal to heavily subsidize the new stadiums.  Shortly after The News’ revelation, Bloomberg decided instead to use the boxes to raise revenue, signing a lease amendment in 2009 requiring the teams to rent out the suites and turn over most of the rent and ticket revenue to the city.  

At the time, the billionaire mayor predicted the city would net $1 million in revenue each year. His spokesman Andrew Brent noted, “We took another look at the numbers and decided we wanted to take the value of the boxes in cash.”  

The first year the two teams turned over $351,000, then peaked with $481,000 in 2010. From there it was all downhill, bottoming out at $159,996 from both teams last year.

The Yankees were recently designated the richest team in Major League Baseball, valued at $2.5 billion with $461 million in revenue last season. The Mets are the ninth-richest, valued at $800 million with $238 million in revenue. Both teams built new stadiums with generous public assistance, including low-interest bonds, tax breaks and credits, and outright public grants worth a total of $1.8 billion over the coming decades.  

The lease with the city mandates that both teams must make a “reasonable effort” to rent out the landlord suites, and requires them to charge “market rates” for rent and tickets. Most of the money — minus certain expenses — must be turned over to the city each year.

Since 2009, however, the city has never double-checked to see if the teams were, in fact, charging market rates for the use of the city’s boxes.

“We do not have this information,” said Arthur Pincus, spokesman for the city’s Park & Recreation Department.

“You would have to ask the teams directly.”

Also under the 2009 deal with the Yankees, the city can request at any time “copies of invoices, bills, contracts, receipts, evidences of payment and other expense records” related to the landlord suites.

In six years, the city has never requested a single receipt. Pincus said the city still has until 2015 to check the receipts for the 2009 season.

“We reserve our ability to request records related to our landlord box in order to assure that payments have been made correctly,” he said.

“At this time, we have no reason to believe that any payment has been made incorrectly.”

A review of records obtained under the Freedom of Information Law shows, with few exceptions, the daily rate charged by the Yankees to rent out the landlord box during the 2013 season was far below what they would normally get.

While a 12-seat box goes for $600,000, the Yankees collected just $100,107 last season. Though hot games like the Red Sox or a Subway Series with the Mets usually go for $9,000 for a one-game rental, the Yankees generally charged much less — $6,700.

And the box remained empty through some hot games. They rented out the landlord box on April 1, an Opening Day game against the Red Sox for $12,859. But on the next day’s matchup with the Sox, the box remained empty.  In fact, it appears the Yankees landlord box remains empty during the vast majority of home games — 67 of 83, records show.

Often the Yankees charged even less — around $2,520 through most of August and into September.  The Yankees did not return several calls seeking comment.

Mets spokesman Harold Kaufman said, “We continue to look for creative ways to fill all of our suites at Citi Field, especially given the changing marketplace for suite and premium seating that is occurring across the industry.”


Read More:



New York Daily News - August 3, 2014 - By Greg B. Smith

Saturday, June 23, 2012

Flushing Meadows Park Alienation Fight-Mayor's Willets Point Plan Uses Parkland For Shopping Center

Willets Point plan raises new issues 1

Alienation Of Parkland? A rendering of 126th Street, with Citi Field on the left and a revitalized Willets Point on the right. The Bloomberg administration's Willets Point plan includes handing over acres of public parkland in Flushing Meadows Corona Park adjacent to Shea Stadium (CitiField) to be developed into a massive shopping mall. The current plan calls for erecting “Willets West” on the existing Citi Field Parks Department owned parking lot and turn it into a million- square-foot retail and entertainment center with more than 200 stores, movie theaters, restaurants, a parking structure and surface spaces for 2,500 cars. The Mayor indicated that the Related Companies, and Sterling Equities, the real estate firm controlled by the owners of the Mets, will develop 23 acres of Phase 1 including Willets West. Officials hope to break ground in three years. It is expected to take up to 15 years. (Rendering courtesy EDC)

Seth Pinsky, president of the city’s Economic Development Corp., claims a 1961 agreement with the Mets allows the parkland to developed. No word yet whether or not the "agreement" was approved by the state legislation which would be required in order to use the public park land for a non-park purpose. - Geoffrey Croft

Queens

At a breakfast meeting of the Queens Chamber of Commerce on Thursday, the mayor confirmed the latest plan for Willets Point which some people are calling a sweetheart deal for the Mets, according to The Queens Chronicle.

In addition, Bloomberg announced a $500 million proposal by the U.S. Tennis Association to update its facilities in Flushing Meadows Park. [See separate story].

Although plans for Willets Point, also known as the Iron Triangle, were leaked last month, Bloomberg outlined a timeline at the Laguardia Marriott Hotel in East Elmhurst for development initially along 126th Street and eventually in the Citi Field parking lot. The first phase of the Willets Point development is expected to take up to 15 years.

“At Willets Point, where others have seen challenges, we have always seen enormous opportunities,” Bloomberg said. “I expect the project to be built.”

He indicated The Related Companies, a developer, and Sterling Equities, the real estate firm controlled by the owners of the Mets, will develop the 23 acres of Phase 1. The project, he said, will “activate significant acreage” on both sides of Citi Field to create “a true center of economic growth for Queens.”

Now home to auto repair shops and located across the street from Citi Field, plans call for transforming 126th Street into an area with a 200-room hotel, 30,000 square feet of retail space and restaurants and an interim 20-acre surface parking area that can be converted to recreational use when the Mets are not playing at home.

Following completion, the developers will erect “Willets West” on the existing Citi Field parking lot and turn it into a million- square-foot retail and entertainment center with more than 200 stores, movie theaters, restaurants, a parking structure and surface spaces for 2,500 cars.

This is the part of the project that has some in the community scratching their heads. Gene Kelty, chairman of Community Board 7, who attended the breakfast, said he isn’t sure of the plan’s legality. Citi Field and its parking lot sit on public parkland, and Kelty doesn’t think putting up a commercial shopping center is the proper usage.

Jack Friedman, executive director of the Queens Chamber of Commerce, who organized the breakfast at the mayor’s urging, thinks such a use of the parking lot could be alienation of parkland.

But Seth Pinsky, president of the city’s Economic Development Corp., said following the mayor’s speech that a 1961 agreement with the Mets allows for development.

Nevertheless, Kelty said, the plan “worries me” and he wants to see the 1961 agreement. In addition, he is concerned that the other three developers who sought the Willets Point contract were in a less favorable position with the city than the winner and could not compete with the Mets parking lot scheme. “The others didn’t get something special like the Mets,” Kelty added.

He also said that The Related Companies, which built the 20th Avenue shopping center in College Point, does not have a good record with the community. “The company does not take care of the local community,” Kelty said, pointing to the 10 years it took for the firm to agree to a cut-through on the property to alleviate traffic, one that it didn’t even have to pay for.

Once the proposed Willets West is complete, Bloomberg said, the city will go ahead with the federally approved construction of new Van Wyck Expressway access ramps.

Chuck Apelian, vice chairman of CB 7 who also attended, said he is concerned about lack of egress to the proposed shopping center. The site borders Northern Boulevard and Roosevelt Avenue, which are already congested on game days.

He noted the plans call for a six-story parking structure on the north end of the Mets parking lot. “That means everyone will be exiting at one point after a game,” Apelian said. “It will have a huge impact.”

He added that when CB 7 approved the Willets Point plan in 2008, “this is not what we bargained for.”

Phase 1 work will conclude with constructing more retail space, offices, 2,500 housing units and a 280-room hotel in Willets Point. The starting date for the residential area is 2025.

Pinsky said he was assured that the city would prevail without resorting to eminent domain for the remaining businesses in Willets Point that do not want to leave.

Later Phase 1 work calls for erecting a small convention center, up to 5,500 housing units and a park, but there is no timetable set. Dropped from the original plans is construction of a public school in Willets Point.

Pinsky said vehemently that there are no plans to erect a casino at Willets Point.

But before any construction can begin, the city is required to conduct a new environmental review, amend the zoning, hold public hearings and get approval from the City Council. That could take three years.

Then the city will pay $100 million for demolition, remediation and other improvements before work can commence. Bloomberg said the city now has agreements with 95 percent of Willets Point landowners to complete Phase 1.

But some of the business owners, who are members of Willets Point United, do not want to leave or be relocated. One of those, Jerry Antonacci, whose family has owned Crown Carting for years, called the plan, “a sham from day 1, all for them ,” meaning the Mets.

“At the last hour, the citypulled out of eminent domain because if the judges found out about this plan, they would never have allowed eminent domain, and what a black eye that would have been,” Antonacci said. “That’s why the city must now pay the $1.1 million legal bill of WPU that we have forwarded to the courts.”

Michael Rikon, an attorney representing WPU, said Friday there are a number of problems with the mayor’s proposal, but the bottom line is “it’s not legal.”

He noted that the city does not have an assembled site, meaning it doesn’t own all the land, and “It won’t pass muster on the environmental review since the added traffic with the shopping center will be explosive. It’s horrendous to put in a mall there.”

He called the proposal “a gift of taxpayers’ money” to the Mets, adding that it’s illegal to build on public parkland.

Rikon expects WPU to file more lawsuits against the city over the latest proposal.

“Of course, the mayor will be out of office before the plan can start and a new mayor can drop the entire thing,” he added.

Read More:

Willets Point plan raises new issues
Queens Chronicle - June 21, 2012 - by Liz Rhoades