Showing posts with label Seth Pinsky. Show all posts
Showing posts with label Seth Pinsky. Show all posts

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


Friday, March 25, 2011

Yankee Parking Garages Narrowly Avoid Default - Again. Debacle Continues

Bronx Parking Development Company's revenues are so dismal that it will most likely have to dip into its debt reserves for the second time in a year just to pay the interest on its bonds.

Results from Aggressive Yankee Parking Revenue Forecasts Promoted by the City's Economic Development Corporation (EDC) and the Bloomberg Administration Priority To Make A Deal At Any Cost Are Finally Hitting Home For Some. Bronx Parking Development Company's revenues are so dismal that it will have to dip into its debt reserves for the second time in a year just to pay the $ 6.9 interest on its bonds due April 1. Bronx Parking issued $237.6 million of municipal bonds in 2007 through New York City’s Industrial Development Agency to build three parking garages and renovate two others. Last week the debt traded at about 60 cents on the dollar. (Photo: Simmons/NY Daily News)

On top of that, the firm - a nonprofit the Bloomberg administration selected and the state subsidized to operate the stadium garages - owes the city $17 million in back rent and taxes for the 21 acres of public land it uses.

The funds were "supposed to" make up for lost city revenue Bloomberg gave away to the Yankees in their deal to build a new stadium. The City received revenue from owning the old Yankee Stadium.

"The public will never see a dime of rent and taxes from this project as it now exists," one official close to the garage company told the New York Daily News.

The company was thrown a life-line at a Monday night meeting when directors agreed to a set of demands from the bondholders in exchange for a one-year "waiver" from a complete default and takeover.

"The agreement will give BPDC and the bondholders time to evaluate potential remedies to the current shortfall," said Bloomberg head cheerleader for the project EDC's Seth Pinsky.

"Over the next year we will be in discussions with all parties involved to evaluate potential alternatives, and should those parties agree, all options will be considered."

A default could set up a seizure by bondholders and would leave the garages' future in question. For the City and the bondholders this embarrassing and potentially very costly situation could mean attempting to develop one or more of the unprofitable garages into something else.

Apparently not all that concerned about the prospect of facing community wrath over the loss of more than 25 acres of public parkland, one option that Bronx Borough President Ruben Diaz Jr. has been advocating is to tear down one of the big garages and build a new hotel.

The Bloomberg and Pataki administration fought to seize 25.3 acres of public parkland in the South Bronx in order to accommodate the building of a new stadium for the New York Yankees, including the building of thousands of additional parking spaces in the asthma capital of America. The Bloomberg administration selected Bronx Parking in 2007 to build and run the garages after the Yankees demanded a minimum of 9,000 spaces to stay in the Bronx. As predicted the Yankee organization's insistence of building more parking turned into a nightmare for the city's taxpayers and community residents. - Geoffrey Croft

Bronx

The operator of parking garages at the new Yankee Stadium, whose revenue is running 40 percent below projections, will make its April 1 debt payment, according to Nuveen Asset Management, which holds about half of the bonds, according to Bloomberg.

Bronx Parking Development Co., a subsidiary of a non-profit development agency, will make the payment through a combination of operating revenue and a draw on its debt-service reserve fund, John Miller, Nuveen’s chief investment officer, said in an e-mail. According to Bronx Parking’s 2011 budget, it owes $6.9 million on April 1. The reserve fund will decline by a $5.5 million draw, according to the budget.

April 23, 2010 - Parking Lot A- (Former 2.9 acre ball field in Macombs Dam Park) No Surprise. For years critics of the Yankee Stadium redevelopment project have predicted the city's tax-payers would be on the hook for the $340 million parking garage system deal negotiated by the Bloomberg administration. A default could set up a seizure by bondholders and would leave the garages' future in question. Compounding the problem, the administration gave the Yankee organization 600 free spots in the VIP garage. (Photo: Geoffrey Croft/NYC Park Advocates) Click on Image to enlarge.


Bronx Parking issued $237.6 million of municipal bonds in 2007 through New York City’s Industrial Development Agency to build three parking garages and renovate two others at the 50,287-seat stadium, home of the New York Yankees Major League Baseball team. The stadium, which opened in 2009, was built across the street from the original ballpark.

The garages and parking lots managed by the non-profit have generated 39 percent less revenue in the first nine months of 2010 than projected, according to financial statements.

The public financing of the garages, which included $102 million from the city and state, was assailed by neighbors who said the facilities would lead to more traffic congestion and pollution in the South Bronx, while providing no benefit to the community. Labor-backed groups said the city and state shouldn’t subsidize low-wage jobs.

Subway Service

The parking garages face competition from public transportation, as most city dwellers take the subway to games. Fans who live in New York’s Westchester County or Connecticut can take theMetro-North commuter rail.

For the nine months ending Sept. 30, Bronx Parking collected $6.2 million less in revenue and sales taxes than budgeted, according to a financial statement filed on Dec. 30. Bronx Parking plans to charge $35 per car this year, compared with $23 last year.

Nuveen, based in Chicago, owned $116.5 million of the bonds as of the end of February. The debt traded March 17 at about 60 cents on the dollar, according to data compiled by Bloomberg. Bonds maturing in 2037 yield about 10.2 percent.

Bonds Attractive

In a March 18 note, Morgan Stanley said the bonds look attractive and are worth at least 80 cents on the dollar. The start-up parking system hasn’t reached its full potential, wrote Peter Block, a Morgan Stanley executive director, in fixed- income trading.

“Bonds are worth at least 80 to the extent the Yankees continue to draw consistently strong attendance as they have done historically, and Bronx Parking Development Co., the project owner, continually monitors and adjusts parking rates as needed over time,” Block wrote.

The Yankees led all Major League teams in attendance last year at 3.77 million, according to ESPN. The garages and lots have 8,428 spaces available to the public. The Yankee stadium garages had an occupancy rate of 60 percent last year, which will continue in 2011, according to Morgan Stanley.

Bronx Parking’s debt service reserve fund will shrink to $11 million from $16.6 million, according to its 2011 operating budget. The debt-service coverage ratio, or the amount of cash available to meet annual interest and principal payments, is 0.56, according to the budget.

Pricing Power

Morgan Stanley’s Block wrote that he wasn’t concerned about the draw on the debt-service reserve because 63 percent of trips to games at the stadium during weekdays are made by car and drivers have limited parking options, giving the garages “adequate” pricing power to raise rates.

To avoid a default, Bronx Parking would have to raise parking rates to $42 in 2013 and to $55 by 2016, Block wrote. The garages will have enough revenue to fully pay debt service by 2015, Block wrote.

William Loewenstein, president of the Community Initiatives Development Corp., the non-profit parent of Bronx Parking Development Co. based in Hudson, New York, about 100 miles (160 kilometers) north of the Bronx, didn’t return a call seeking comment.

Read More:

Yankee Stadium Parking Garages to Make April 1 Debt Payment, Nuveen Says

Bloomberg - March 23, 2011 - By Martin Z. Braun

New York Daily News - March 25, 2011 - By Juan Gonzalez

A Walk In The Park - March 15, 2011

A Walk In The Park - October 29, 2010

A Walk In The Park - September 10, 2010

A Walk In The Park - June 16, 2010

Field Of Schemes - June 16, 2010 - By Neil deMause


Tuesday, June 29, 2010

Ground Finally Broken at Heritage Field - Spin Continues

Shovel-wielders at Heritage Field include Joba Chamberlain (4th from left), GM Brian Cashman (to right of hurler) and, next to him, Randy Levine and Ruben Diaz Jr. (2nd from r.).
Savulich/News
June 29, 2010. Shovel-wielders at Heritage Field include Joba Chamberlain (4th from left), GM Brian Cashman (to right of hurler) and, next to him, Randy Levine and Ruben Diaz Jr. (2nd from r.). Officials finally broke ground on the long delayed building of Heritage Field. The fields were supposed to be completed by 2010. A recently opened skate park was three years behind schedule. City officials are now claiming they are replacing 32 acres of parkland as part of the building for the New Yankee Stadium, when in fact
only 22 acres are being replaced in the community.


Bronx

City officials on Tuesday participated in the groundbreaking of Heritage Field, the new baseball diamond making up part of the redevelopment of parkland around Yankee Stadium in the South Bronx, according to The Epoch Times.

The field is an 11-acre development, headed by the New York City Economic Development Corporation (NYCEDC) and the city's Department of Parks and Recreation, which follows the year-long deconstruction of the old Yankee Stadium as well as other delays that lasted several years. Heritage Field is expected to be completed by late 2011.

When the project is completed, there will be three baseball fields.

In order for the new Yankee Stadium to be constructed, city officials took over 25 acres of park space in the Bronx and under parks regulations, the city had to provide an equivalent amount of space in return.

The city claims that 32 acres of parkland, which includes Heritage Field, Macombs Dam Park, Mill Pond Park, River Avenue Parks, and Ruppert Plaza, will ultimately be developed.

“Today marks a significant milestone in the ongoing revitalization of the South Bronx,” said NYCEDC President Seth W. Pinsky. “As promised, we completed the demolition of the old stadium in June, safely and on-budget."

City officials say that the new park is a vast improvement over the previous park. Heritage field boasts a state-of-the-art layout and features “three championship grass ballfields for baseball, softball, and little league, along with event space for track and field competition including discus, shot put, and javelin,” said Parks Commissioner Adrian Benepe.

However, Geoffrey Croft, the president of parks watchdog group NYC Park Advocates Inc., said the city isn't being up-front about the parks. According to a
report released by NYCPA several years ago, only 22 acres are being opened in the neighborhood.

“What they're doing now is trying to claim another five acres and from day one they have not been up-front about the project,” Croft said.

June 29, 2010. Officials finally broke ground on the long delayed building of Heritage Field. (Photo: Marla Diamond/WCBS)


Read More:

Ground Broken at Heritage Field Near Yankee Stadium
Epoch Times - June 29, 2010 - By Jack Phillips

WCBS 880 - June 29, 2010 - By Marla Diamond

New York Daily News - June 30, 2010 - By Mike Jaccarino