Guilty until Proven Innocent!

The Atlantic antics continue! In a most recent debacle with Develop Don't Destroy Brooklyn (DDDB), the outspoken anti-Atlantic Yards blog, the fights spilled over into the courts. DDDB along with 20 other Brooklyn Community groups filed a lawsuit on Oct. 19 against the Empire State Development Corporation, a major player int he Atlantic Yards deal.


ESDC is a a public authority that works in conjunction with the New York State government http://www.empire.state.ny.us/default.asp). It handled many projects over the years, from the construction of housing project to the building of the Apollo Theater. ESDC has been granted a huge wealth of economic and legal power that include the ability to issue its own, tax-free bond, use of eminent domain, and the power to overrule zoning laws. This helps it bypass issues that would impede private development corporations. ESDC has been working with Forest City Ratner, the Yards development group, by providing support int he form of financing and political push.

The recent suit claims misconduct and misguidance on the part of ESDC. It touches on multiple points. Here's a quick summary. A more in-depth look into the suit can be found on DDDB's website (http://dddb.net/php/latestnews_Linked.php?id=2398).

1) "The ESDC Has Abandoned the Legally Mandated Purpose of the Project:"

"The ESDC has designated the entire non-arena portion of the project as a Land Use Improvement Project (LUIP) under the Urban Development Corporation Act (UDCA). But the ESDC's 2009 MGPP fails to meet, and thus violates, the requirements of the UDCA because it does not present a plan to alleviate the alleged blighting and blighted conditions at the project site, and therefore cannot be an LUIP."

When the Atlantic yards deal was made, ESDC aggree to improve the surrounding neighborhood, removing "blight." But a new mandate issued by the ESDC claims that the project may take until 2030 to finish. DDDB claims that "the reality is that, at a minimum, the project area will remain either undeveloped or in a long term construction phase stretching decades that will not alleviate blight but rather exacerbate it and make it a permanent condition. The ESDC has made an illegal determination under the UDCA and, therefore, has no authority to approve or oversee the project."

2) The ESDC's Approval is Inconsistent on Conditions for Affordable Housing

"The ESDC's Modified General Project Plan, approved on September 17, 2009, requires the construction of 2,250 "affordable housing" units within the project. This is an unconditional requirement in the MGPP. But the ESDC is apparently poised to approve a "development agreement" in contradiction with the MGPP, which states that construction of those "affordable" units are "subject to governmental authorities making …affordable housing subsidies" available to Forest City Ratner."

This section deals with the proposed affordable housing. ESDC agreed to construct 2,250 afforable housing units in the vicinity of the Yards. But DDDB claims the corporation has intentions opposite this, and is planning ot revise their plan to construct those units only if the government provides the subsidies.



3)The ESDC Abused Its Discretion When it Failed to Issue a Supplemental Environmental Impact Statement (SEIS)

"The ESDC irrationally and unreasonably maintained that the project would take ten years to construct by ignoring the fundamental changes brought about by the new MTA transaction and other clear, expert evidence that completion of the project would extend decades, if ever completed at all.The new deal with the MTA constituted both a substantial change in the project and in circumstances, which raised new issues concerning both the timing and completion of the project."

When the ESDC originally stated the plan would be completed within about 12 years. But more recently, they've extended that time-frame to somewhere around 2030. This, according to DDDB, makes void their original Environmental Impact statement (a statement which assesses all the impacts, positive and negative, the project would have had on the environment). They've failed to issue a new statement for the new time-frame.

It's the Cold War all over again as Russian billionaire Mikhail Prokhorov has purchased the soul of the Atlantic Yards development deal.

News (or should we say something else) hit the fan amidst support and criticism from all sides of the political spectrum. Mr. Prokhorov has thrown at least $200 million into the Yards, saving the project (and its developer, Bruce Ratner) from financial ruin. But who is this shadowy figure that has purchased a large stake in one of Brooklyn's priciest development deals in centuries?

According to Develop Don't Destroy Brooklyn, a blog that has avidly protested all things Atlantic Yards (with a considerable amount of success), he is not fit to clean up after the stadiums peanut vendors.

"Mr.Prokhorov has been accused of asset stripping, abuse of corporate governance and violations of minority shareholder rights. He was arrested in France in 2007 on suspicion of involvement in a prostitution ring," said the blog [http://www.developdontdestroy.org/php/latestnews_Linked.php?id=2332].

That's quite a resume isn't it? After a considerable amount of research in Mr. Prokhorov's background, Develop Don't Destroy Brooklyn Spokesman Daniel Goldstein stated his blogs official position.

"So much for Ratner’s mantra that this project is ‘about Brooklyn,’" Goldstein said. "We don’t need to be Kremlinologists to know that Mr. Prokhorov doesn’t care one nickel about Brooklyn or know squat about Brooklyn."

On the other hand, Brooklyn's premier Borough President, Mr. Marty Markowitz welcomed the well-to-do investor with open arms.

In a statement to the New York Post, Markowitz had this to say: "Brooklyn is the Russian capital of America, so Mr. Prokhorov will feel right at home here, and I have been assured he will put the interests of Brooklyn first when it comes to making [the planned] Barclays Center and its benefits to Brooklyn a reality."

Out on the street, Atlantic Watchdog got the opinions of a few concerned Brooklynites.

"This is ridiculous!" raved Samantha Mazor, a lifelong resident of the Prospect Heights area. "I mean, I'm a Nets fan, but this is Brooklyn. They can't sell away such an intricate part of our borough. I don't think Russians know much about b-ball anyway. I bet he's looking for the Nets to hit a record number of home runs this year with him at the helm."

Ruth Savela, a employee of a Prospect Heights convenience store, felt differently.

"I think it's good. We've needed something like this in Brooklyn for a while. I don't think it matters where the moneys coming from, as long as it's coming."

Watching the Yards

When Brooklynites think of controversy what do we think of? Our pleasantly plump Borough President. No. Coney Island? Sometimes.

How about the infamous Atlantic Yards? Yes that's it. The controversial Atlantic Yards have been a development plague of sorts in Brooklyn for decades.

A railyard used by the Long Island Railroad, the Yards are located on the intersection of Flatbush Avenue and Atlantic Avenue. While the surrounding areas have been developed over the last 40 years by ATURA (Atlantic Terminal Urban Restoration Assocation) to include buildings (residential and commercial) and a revamping of the Atlantic Avenue transportation hub amongst other things, the Atlantic Yards have been left untouched.

Many plans have been proposed and shot down over the years. However, Brooklyn now seems to be on the verge of an Atlantic Yards plan that will reshape the face of the Prospect Heights and Brooklyn as a whole.

What Atlantic Watchdog strives to do is provide the public with the facts with the hopes of inspiring. As the situation grows more complex, it seems public outspokenness over the issue wanes. We cannot afford this.

It is up to us, the citizens of Brooklyn, to make a stand and ensure we are heard. That all opinions are weighed equally. The plan has moved forward with seemingly little regard for public opinion. It is the personal opinion of this blog that the public is being largely ignored and shafted by project heads.

But that's no excuse to give up. If you knock long enough, eventually someone has to listen. So for our first post let's give the a brief summary of where the situation stands today.

The plan today calls for the construction of a new arena to house the NBA'S New Jersey Net's on the Atlantic Yards site. It also calls for the construction of hotels and housing in surrounding area (see attached picture).

Fears about this plan are unending. Overcrowding, to traffic and safety concerns, to allegations of corporate and governmental misconduct. The expected rewards though, have some seeing dollar signs.

But the project, until recently was stalled due to a huge lack of financing. That when Russian Billionaire Mikhail Prokhorov swept in and invested hundreds of millions in project.

Things became even stickier here as yet another element was thrown in the Yards mix.

So we stand today with a proposed plan that reaches nearly into the billions cost-wise, massive problems including overcrowding and traffic, and a Russian billionaire that owns controlling shares of the N.J. Nets and the Atlantic Yards project. Whew.