Brooklyn Bridge Park Maintenance Woes/City Secretly Cuts Condo Funding

The city refuses to allocate funds to pay the park's daily upkeep. (Photo By: cbreuk via flickr)

Brooklyn

The city issued a dire warning yesterday that Brooklyn Bridge Park's lush green lawns will soon go brown unless more high-rise condos are built around the public oasis, according to the New York Post.

The news comes as honchos overseeing the 85-acre project said they'll soon begin gathering proposals from developers interested in building 180 condos and a 225-room hotel at Pier 1 in Brooklyn Heights, one of the few finished portions of the waterfront park. The officials said yesterday that without revenues generated by both developments, and potentially hundreds of other condo units planned, the long-delayed park might never be completed, and its existing 20 acres will suffer greatly.

"The lawns look good now, but we have to pick up the work or it will soon be covered in weeds," said city Parks Commissioner Adrian Benepe during a meeting of the city's Brooklyn Bridge Park Corp.

Mean while the city quietly slashed the main source of revenue for Brooklyn Bridge Park, revealing only this week that a luxury condo that funds the park’s maintenance budget is now paying $1 million less — leaving a gaping hole in revenue at a time when planners are struggling to raise even more money for upkeep. One Brooklyn Bridge Park, a high-rise within the park’s footprint, is supposed to pay $3 million annually, but the Department of Finance recently granted the condo’s developer a reduction in those payments, according to The Brooklyn Paper.

Park officials first became aware of the secret payment reduction in October, after the park’s 2011 budget had already been approved, said Brooklyn Bridge Park spokeswoman Ellen Ryan.

But the public — and even elected officials — first became aware of the cut on Tuesday, after it was mentioned at a board of directors meeting.

It was revealed yesterday that the city pulled eleven million dollars in capital funds while elected officials fight over how to pay for the park's maintenance. The city refuses to allocate funds to pay the park's daily upkeep.

Read More:

Bridge Park lawn warn

New York Post - June 15, 2011 - By Rich Calder

The fix is in! City cuts big developer’s taxes in Brooklyn Bridge Park

The Brooklyn Paper - June 15, 2011 - By Kate Briquelet

Brooklyn Bridge Park Loses in $11M In Capital Funds As Pols Fight Over Maintenance Funds

A Walk In The Park - June 14, 2011

Brooklyn Bridge Park Loses in $11M In Capital Funds As Pols Fight Over Maintenance Funds

"To responsibly allocate those capital funds, however, a plan must be in place to ensure the maintenance of these investments for future generations, " said Brooklyn Bridge Park Development spokeswoman Ellen Ryan. One City, One Standard?

The city is still refusing to take responsibility to pay for the maintenance and operation of the Brooklyn Bridge Park. The City chopped $11 million from funds to rebuild Brooklyn Bridge Park as politicians argue over the building of private condos on the property to pay for maintenance. The 20% cut is a blow to plans to build Pier 2, a chunk of the park at John St. and other projects. (Pier 2 Rendering by Michael Van Valkenburgh)

Brooklyn

The City has chopped $11million from the money it pledged to finish building Brooklyn Bridge Park - as a fight over housing threatens to put the rest of the funds in jeopardy, according to the New York Daily News.

When Mayor Bloomberg took over the gleaming waterfront park from the state last year, he promised $55 million to help finish building the long-awaited green space.

But city officials quietly slashed that to $44 million earlier this year. The 20% cut is a blow to plans to build Pier 2, a chunk of the park at John St. and other projects.

The rest of the money could be in danger as well, unless the Bloomberg administration and local politicians can resolve a fight over whether to build more luxury condos in the park.

A new report suggests city officials are sticking with controversial plans to build the condo towers and use their income to pay for the park's upkeep. Local pols could veto that plan, but the city could pull all its promised funding if there's no deal on how to pay for the park's maintenance.

"This funding cut and the results of this report call the city's commitment to completing the park into question," said State Sen. Daniel Squadron (D-Brooklyn Heights), a leading condo foe.

A consultant's report released last week finds the park could raise between $2.4 million and $7million a year - without housing - through new fees, parking and other options.

That's not enough to pay for the park's whopping $16 million annual maintenance budget. Even raising that much money depends on levying a new "park improvement district" fee on local property owners, a plan that lacks political support.

"It seems clear from the final outcome of the report that some residential housing is needed on the site," said Brooklyn Bridge Park Conservancy executive director Nancy Webster.

Park spokeswoman Ellen Ryan said the funding was slashed as part of a citywide cut in capital money for parks.

"The Bloomberg administration is committed to Brooklyn Bridge Park, as demonstrated by its allocation of over $130 million for park construction to date and the additional commitment of capital funds to build more sections of the park, including active recreational amenities," Ryan said.

"To responsibly allocate those capital funds, however, a plan must be in place to ensure the maintenance of these investments for future generations."

But housing opponents were outraged because the report didn't consider using tax revenues from waterfront Watchtower properties the Jehovah's Witnesses expect to sell. "It's unfortunately a political document rather than an impartial analysis," Squadron said.

The park's board, dominated by Bloomberg appointees, is expected to sign off on the report today.

Read More:

Brooklyn Bridge Park loses $11M in funds as pols fight over funding for grounds maintenance

New York Daily News - June 14, 2011 - By Erin Durkin

More Housing Likely For Brooklyn Bridge Park- Report

A Walk In The Park - June 10, 2011

More Housing Likely For Brooklyn Bridge Park- Report

Brooklyn Bridge Park, Phase One, July 11. 2010. The city is still refusing to take responsibility to pay for the maintenance and operation of the park according to a final draft study released last night. (Photo: © Geoffrey Croft/NYC Park Advocates) click on image to enlarge

Brooklyn

If there was any doubt left – all roads now point to the city moving forward with plans to build more controversial high-rise condos at Brooklyn Bridge Park, according to the Brooklyn Blog.

The findings in a final draft of a city-commissioned study by Bay Area Economics released earlier this evening contend there isn’t enough alternative funding opportunities to stop at least some of the new housing set for John Street in DUMBO and by Pier 6 in Brooklyn Heights from being built.

Both developments are slated to bring in $8 million in revenues to help finance the park’s anticipated $16.1 million maintenance budget. The 85-acre park project is being built in segments.

The findings are no shock. They are similar to what BAE’s preliminary report released in February showed: that up to $7 million in annual revenues could be raised through alternatives like selling naming rights and adding additional paid parking spots.

However, $4 million of the $7 million is through a plan to create a Park Improvement District that would raise funds through an additional tax on property and business owners near the park. A PID would need to be approved by the community affected, but such support is dramatically lacking.

Critics say the findings are a sham to push an agenda to build more housing in the park.

Many questioned why the city didn’t study a popular plan to tap into the Jehovah Witnesses’ dozens of properties in Brooklyn Heights and DUMBO, convert them into luxury condos and put tax revenues from the sales toward the parks maintenance costs.

BAE and city officials have said it was because the Witnesses aren’t warm to moving fast enough on the plan to meet construction timetables at the park.

But state Sen. Daniel Squadron (D-Brooklyn) says the city didn’t try hard enough to study the plan.

He said the report “calls the city’s commitment to complete” the 85-acre park project “into question.”

City officials will now consider what to do with the findings during a June 14 meeting at the Brooklyn Public Library, Brooklyn Heights branch, 280 Cadman Plaza West.

Under a 2010 agreement that allowed the city to take control of the park from the state, the city has to explore alternate revenue sources to the luxury condos planned.

Also, under the deal, the city can’t pursue the John Street housing before next month or Pier 6 condos before July 2013. And – most importantly -- both Squadron and Assemblywoman Joan Millman hold veto power over the construction of housing at those sites.

When asked if he would ever block housing with his veto, Squadron said it’s an option that remains on the table.

Judi Francis, who heads a grass-roots group fighting to keep housing out of the park, ripped Mayor Bloomberg for “denying us a true park” by pushing luxury condos.

Brooklyn Bridge Park has been a political hot potato since project planners announced in December 2004 that more than 1,200 luxury condos would have to be included to raise enough money to offset the park's now-estimated $16.1 million annual maintenance costs.

Only one high-rise offering 440 luxury units at Pier 5 has been built; another 780 units are on hold because of the slumping economy.

Read More:

Report shows more housing likely in future for Brooklyn Bridge Park

The Brooklyn Blog - New York Post - June 9 2011 - By Rich Calder

Alternatives To Brooklyn Bridge Park Housing Gaining Traction

A Walk In The Park - April 22, 2011

Alternatives To Brooklyn Bridge Park Housing Gaining Traction

"Brooklyn CB6 believes that until such time as the alternative sources of revenue (without housing), including those additional unstudied sources noted above, are sufficient to fund the operating costs of the park, the Brooklyn Bridge Park Corporation and the City should fund the shortfall."-

Community Board 6 letter,

April 14, 2011.

Brooklyn Bridge Park, Phase One, July 11. 2010. The city still refuses to take responsibility for paying for the maintenance and operation of the park. Photo: © Geoffrey Croft/NYC Park Advocates (click on image to enlarge)

Brooklyn

Could the tide finally be turning for advocates fighting to prevent housing in Brooklyn Bridge Park? On Wednesday night the Mayor-appointed so-called Community Advisory Committee (CAC) to Brooklyn Bridge Park overwhelmingly approved a resolution to explore revenue alternatives to housing in the park.

During a meeting at Long Island College Hospital the committee voted 13-3 with one abstention, to encourage the consultant hired by the BBDC to "aggressively study potential revenue generating ideas" other than housing in the park and explore "expense reduction options."

The vote follows Community Board 2 and 6's similar motions over the last month against park housing and to study additional revenue sources to pay for the operation of park.

"Brooklyn CB6 believes that until such time as the alternative sources of revenue (without housing), including those additional unstudied sources noted above, are sufficient to fund the operating costs of the park, the Brooklyn Bridge Park Corporation and the City should fund the shortfall, " CB 6 wrote to Bay Area Economics on April 14th. (full letter below.)

These turn of events are particularly significant also because the park's pro-housing operators have long claimed unsuccessfully that the citizenry of Brooklyn - those individuals that they had hand picked to be on the Committee - agreed that housing was the only solution to pay for the park's upkeep.

The Mayor and the park's operators failed to influence these critical motions. Opponents of housing believe this is further evidence that the people of Brooklyn do not want housing inside Brooklyn Bridge Park and that there are numerous alternatives to pay for park maintenance without private housing.

"This is a good day for parks throughout the nation if private housing does not go through in this test case in Brooklyn Bridge Park," said Judi Francis of the Brooklyn Bridge Park Defense Fund.

Ellen Ryan, a park spokeswoman, told the NY Post, "copies of all submitted comments will be made available to the Committee on Alternatives to Housing, and the CAH, working with Bay Area Economics, will to decide how to respond to these comments after the comment period closes."

Opponents of housing in the park have demanded alternatives to explored including the Jehovah Witness properties adjacent to the park be utilized for tax revenue; that the city explore a Real Estate Investment fee (used to secure and protect open space in East Hampton) and that all concessions, including the River Cafe inside the park, contribute. Idea also include the combination of off site and on site parking, events and movie shoots can also go a long way to pay for the park without housing.

Critics have also long questioned the park's wildly inflated proposed $ 16 million dollar annual maintenance and operation budget which is seen as a transparent attempt to justify housing in the park. The park's 2009 Financial plan for instance includes a number of Capital expenditures such as maritime bulkhead and pile protection, vehicle replacements, and a capital reserve. Together these add up to more than $ 6 million annually, or roughly 40% of the proposed budget.

So far the City has refused to take responsibly to fund the park's annual upkeep.

"The City does not have the money to have new parks and fund them," Mayor Bloomberg famously said at the opening of Brooklyn Bridge Park on March 22, 2010. - Geoffrey Croft

Read More:

Community advisory council to Brooklyn Bridge Park honchos: reconsider Jehovah Witness properties before building new park housing

New York Post - The Brooklyn Blog - April 22, 2011 - By Rich Calder

Motion passed at April 20, 2011 CAC meeting at LICH:

Maker: Dorothy Siegel, BBPDF
Seconder: Richard Bashner, CB 6

The CAC endorses the positions taken by CB6 and CB2 that encourage the BAE to aggressively study potential revenue generating ideas and expense reduction options, including fundraising/sponsorship opportunities and options involving the Watchtower properties. In addition to the revenue sources mentioned in the CB2 and CB6 resolutions, the CAC urges BAE to consider other potential revenue sources including, but not limited to: a real estate transfer fee; enhanced revenues from parking (specifically, the police garage); alternative approaches to the PID; and potential revenues from the yacht marina. The CAC further urges BAE to provide a point by point analysis of the revenue generators covered in the 1997 Praedium Group study.

Community Board 6 Letter (Below)

April 14, 2011

Ron Golem, Principal

Bay Area Economics

121 West 27th Street, Suite 705

New York, New York 10001

Dear Mr. Golem:

I am writing to advise you that at its April 13, 2011 general meeting Brooklyn Community Board

6 resolved by a vote of 31 in favor, 2 against, with no abstentions, to support the submission of

the following statement as our testimony in response to Bay Area Economics’ (BAE) draft report

prepared for the Brooklyn Bridge Park Corporation’s Committee for Alternatives to Housing

(CAH) entitled, “Study of Alternatives to Housing for the Funding of Brooklyn Bridge Park

Operations.”

Brooklyn Community Board 6 (CB6) truly appreciated the presentation to our Executive

Committee on April 11, 2011 by representatives of the Brooklyn Bridge Park Corporation, as it

gave us, and those in attendance, a much deeper understanding of the challenges and

opportunities related to the revenue potential for the park.

Brooklyn CB6 commends the Brooklyn Bridge Park Corporation, the Committee on Alternatives

to Housing and BAE for finding many ways to pay for the park without the need for more

housing, in keeping with our long-standing position against housing inside this park.

The BAE draft report has already identified millions of dollars in potential revenue that has the

potential, at a minimum, to drastically reduce the need for housing revenue to sustain the

ongoing operations of the park.

Brooklyn CB6 believes that the CAH could go further than it has in identifying revenue.

Specifically, as originally proposed, BAE should analyze the potential revenue opportunities

involving the currently tax-exempt Watchtower Society properties. We call on the CAH to

reconsider its finding that this revenue source does not meet the study threshold parameters and

to consider a fuller range of other revenue opportunities relating to these properties.

Brooklyn CB6 believes that the CAH should also reconsider and study further the fundraising

and sponsorship opportunities for alternative funding, since they have both been proven,

effective strategies for other major urban park-centered organizations like the Prospect Park

Alliance and the Central Park Conservancy.

Brooklyn CB6 also believes that the CAH should investigate design and/or engineering changes,

working within the parameters of the approved General Project Plan, which could substantially

reduce operating expenses. As with the Watchtower properties, we call on the CAH to

reconsider its finding that exploring those opportunities for expense reduction does not meet the

study threshold parameters.

Lastly, Brooklyn CB6 believes that until such time as the alternative sources of revenue (without

housing), including those additional unstudied sources noted above, are sufficient to fund the

operating costs of the park, the Brooklyn Bridge Park Corporation and the City should fund the

shortfall. Such a subsidy would be particularly justified by the fact that this unique location’s

characteristics have already contributed to a vibrant synergy between the park, its surrounding

neighborhoods, the waterfront and New York Harbor. Brooklyn CB6 strongly believes that this

park will eventually become one of the City’s premier destinations, and therefore merits such

support.

Thank you for the opportunity to comment.

Sincerely,

Daniel M. Kummer

Chairperson

cc: Hon. Michael Bloomberg

Hon. Marty Markowitz

Hon. Daniel Squadron

Hon. Joan Millman

Hon. Steven Levin

Hon. Brad Lander

Robert K. Steel, Chairperson, BBPC

Regina Myer, President, BBPC

John Dew, Chairperson, Brooklyn CB2