Public Benefit Agreements

Recommendationsofthe TaskForceonPublicBenefitAgreements
September29,2010 TheHonorableJohnC.Liu ComptrolleroftheCityofNewYork OneCentreStreet NewYork,NewYork10007 ToComptrollerLiu: ItisourgreatpleasuretosubmittoyouthisreportonthefindingsandrecommendationsoftheTask ForceonPublicBenefitAgreements. ThisreportproposesanewframeworkforpublicbenefitagreementsinNewYorkCitybasedonthe principlesofaccountability,transparency,inclusiveness,consistencyandfiscalresponsibility.Weexpect that,ifimplemented,theserecommendationswillcreateamorepredictabledevelopmentprocessthat limitsuncertaintiesfortheCity,thedeveloperandthecommunity. TheTaskForcestudiedpastandpresentbenefitagreementsinNewYorkCityandaroundthecountryin ordertodeviseaprocessthatprovidesclearexpectations,broadbasedparticipationandenforceable benefitsthatcomplywithcurrentlegalstandards.Theresultingrecommendationswillnotapplyto everydevelopmentinNewYorkCity,butrathermajorprojectsthathavethepotentialforsignificant neighborhoodimpacts.Whilethereportincludessuggestionsrelatingtothenegotiationprocess, methodstoincreaseinformedparticipation,andenforcementmechanismsandprotectionsagainst conflictsofinterest,theproposalsdonotaddadditionaltimetoanalreadylengthylanduseprocess. WewouldliketoexpressourgratitudetotheTaskForcememberswhohavemadevaluable contributionstothisproject.Itwastheirthoughtfulquestionsandsuggestionsfromwhichthe substanceofthisreportdrawsitsrecommendations.TheTaskForcelooksforwardtoworkingwithyou toseetheserecommendationsimplementedintheinterestofmoreeffectiveandequitableeconomic development. Respectfullysubmitted, JohnAhern Cochair PriscillaAlmodovar Cochair BarryGosin Cochair JoyceMoy Cochair
TaskForceMembers JohnAhern,CoChair President,NYCCentralLaborCouncil,AFLCIO PriscillaAlmodovar,CoChair ChiefOperatingOfficer,CommunityDevelopmentBanking,JPMorganChase BarryGosin,CoChair ChiefExecutiveOfficer,NewmarkKnightFrank JoyceMoy,CoChair ExecutiveDirector,AsianAmerican/AsianResearchInstitute,CUNY

TomAngotti,CenterforCommunityPlanning,HunterCollege StuartAppelbaum,RWDSU/UFCW BruceBender,ForestCityRatnerCompanies EricBluestone,TheBluestoneOrganization CarltonBrown,FullSpectrumofNewYork DarnellCanada,RealEconomicsBuildingUnityandInnovativeLocalDevelopment(REBUILD) ScottCantone,ForestCityRatnerCompanies BettinaDamiani,GoodJobsNewYork KevinDoyle,SEIU32BJ BenjaminDulchin,AssociationforNeighborhoodandHousingDevelopment(ANHD) AdamFriedman,PrattCenterforCommunityDevelopment RogerGreen,DuBoisBuncheCenterforPublicPolicy ValeryJean,FamiliesUnitedforRacialandEconomicEquality(FUREE) RichardLipsky,NeighborhoodRetailAlliance NickLugo,NYCHispanicChamberofCommerce EdwinLynch,UnitedFoodandCommercialWorkersInternationalUnion TimothyH.Marshall,JamaicaBusinessResourceCenter PatrickPurcellJr.,UFCW1500 DavidReiss,BrooklynLawSchool CyRichardson,Housing&CommunityDevelopment,NationalUrbanLeague AlRodriguez,BronxBoroughPresidentRubenDiaz MattRyan,NewYorkJobswithJustice DeniseScott,LocalInitiativesSupportCorp 1
PaulSonn,NationalEmploymentLawProject PeterWard,NewYorkHotelTradesCouncil
TaskForceStaff
JohnChoe JoshuaGold NancyOzeas SusanScheer ScottSieber MargaretStix SandraUng AlanvanCapelle
TableofContents
I. II.
ExecutiveSummary................................................................................................................. 5 Introduction ............................................................................................................................. 8
III. ConveningtheTaskForce..................................................................................................... 10 a. TaskForceLeadersandMembers b. TaskForceProcess IV. LandUseandEnvironmentalReview................................................................................... 14 a. NewYorkCityDevelopment i. LandUseReview ii. SubsidiesforDevelopment iii. EnvironmentalReview iv. AddressingProjectImpacts b. NewYorkStateAssistedDevelopment V. PublicBenefitAgreements(PBAs)....................................................................................... 18 a. PBAFormation,Implementation,andOversight i. PBAswithoutaformalgovernmentrole ii. PBAswithaformalgovernmentrole b. IssuesRaisedbyExistingPBAs i. LackofAccountability ii. LackofFairness iii. LackofTransparency iv. LackofFeasibility v. LackofEnforceability VI. Recommendations................................................................................................................ 24 a. PrinciplesofthePBAProcess i. Accountability ii. Fairness iii. Transparency iv. Feasibility v. Enforceability b. ImplementationofthePBAProcess c. MonitoringofImplementation d. LegislativeRecommendations e. LongTermRecommendations
VII. Appendices............................................................................................................................ 34 AppendixA:CommunityBenefitAgreementsinNewYorkCity AppendixB:CommunityBenefitAgreementsNegotiatedOutsideNewYorkCity AppendixC:NewYorkCityLandUseApprovals AppendixD:NewYorkCitySubsidizedDevelopment20062009
I. ExecutiveSummary
Municipalitiescommonlyfacilitatedevelopmentoflargecommercialprojectstoencouragejob developmentandincreasetheirtaxbase.Buttoresidentswhoshouldertheconsequentialsocio economicandenvironmentalimpacts,thereputedbenefitsmayhavelittlevalue.In2001,acoalitionof organizationsandlocalresidentsnegotiatedanagreementdesignedtobalancetheburdensofan enormoussportsandentertainmentcomplexwithcommensuratesocialandeconomicbenefitsforthe community.ThelandmarkCommunityBenefitsAgreement(CBA)thatwasstruckwiththedevelopers oftheLosAngelesStaplesCenterprojecthascatalyzedanationalmovement. Sincethen,similaragreementshavebeennegotiatedbygroupsincitiesasdiverseasAtlanta, Philadelphia,Denver,Milwaukee,Minneapolis,Seattle,Washington,D.C.,Syracuse,NewHavenand Wilmington,aswellasinNewYorkCity.InatypicalCBA,adeveloperseekingmunicipalassistance and/orachangeinzoningwillagreetoprovideaffordablehousing,localhiring,orenvironmental mitigationstoanaffectedcommunityinexchangeforapromiseofsupport.Theagreementisusually enshrinedinawrittencontractexecutedbythedeveloperandrepresentativesofanegotiatingcoalition thatcanincludelocalresidents,communitybasedorganizations,laborunions,religiousinstitutions,and environmentalorganizations. AlthoughCBAscanseemlikeawinwintothecoalitionsthatinitiatethemandtodeveloperswhose projectapprovalandsubsidypackagesaretherebyfacilitated,theseagreementsandthenegotiations leadinguptothemhavebecomelightningrodsforcontroversy.Criticschargethattheyadd unpredictabilityanddelay,increaseprojectcosts,andarepossiblyillegalexactions.InMarch2010,the NewYorkCityBarAssociationrecommendedthattheCityofNewYorkeitherrefusetoconsiderCBAsin thelanduseapprovalprocessorconsideronlythoseCBAsthatconformtoclearanduniformstandards. Concludingthatitwasunrealistictothinktheywoulddisappear,CityComptrollerJohnC.Liuresolvedto ensurethatfutureCBAsconformedtoclearstandardsandwereguidedbytheprinciplesof accountability,transparencyandenforceability.Todevelopsuchstandards,aswellastosketcha processthatisfairandequitable,ComptrollerLiuformedaTaskForceofcitywideleadersrepresentinga widerangeofperspectivesandexperiences.CochairsJohnJackAhearn,PresidentoftheNYC CentralLaborCouncil(AFLCIO);PriscillaAlmodovar,ChiefOperatingOfficerfortheCommunity DevelopmentBankingGroupatJPMorganChase;BarryGosin,ChiefExecutiveOfficerofNewmark KnightFrankandProfessorJoyceMoy,ExecutiveDirectorofCUNYsAsianAmerican/AsianResearch InstitutewereselectedtoheadtheTaskForce. TheTaskForcefirstmetonMarch19,2010,andcontinuedtomeetuntilSeptember2010toreviewbest practicesofagreementsnegotiatedinothermunicipalitiesandtoevaluatetheirapplicabilitytoNew YorkCity.Wedeterminedtoincludeagreementsstruckbyoneormoreelectedofficialswithanagency orauthorityconcerninglargescaleplans,aswellasthemoretypicalprojectspecificbenefitagreements withinthescopeofourdeliberationsandtocointhetermPublicBenefitAgreement(PBA)todescribe themintheaggregate. Duringourdeliberations,theTaskForceevaluatedtheoutcomesoffourmajoragreementsnegotiated inconnectionwithNewYorkCitydevelopmentprojects,1aswellthoseoffourteenagreements
1
ThesearetheCBAsnegotiatedinconnectionwiththeprojectsatAtlanticYards,Brooklyn;YankeeStadiumandGatewayCenterintheBronx; andColumbiasManhattanvilleexpansion.SummariesoftheseagreementsareannexedasAppendixA.
negotiatedoutsideNewYorkforprojectsthathavebeencompletedorareunderdevelopment.2The TaskForcefoundthataccountabilityandpotentialconflictsofinterestareanissueformanyoftheCBAs outsideNewYorkCitybecausetheyareoftennegotiatedbyacoalitionoforganizationslocatedoutside theprojectarea.Thereisnowaytodeterminehowtheseselfselectedgroupsareaccountabletolocal residentswhodidnotappointorelectacoalitiontorepresentthem.InNewYorkCity,electedofficials playedamajorroleinnegotiatingthefourmajorCBAsandso,accountabilityhasnotbeenanissuein thisregard.Greateraccountabilityleadstoagreementsthataddresslocalneedsasinthe comprehensiveenvironmentalandnoisemitigationsprovidedbytheLAXAirportCBA,thechildasthma screeningprovidedthroughtheYaleNewHavenHospitalagreement,andthehotlineforreporting complaintsabouttrucktrafficorodorsprovidedbyaCBAconcerningaWilmington,Delawareorganic wastecompostingfacility. TechnicalassistancewasfoundtobeanessentialelementofaneffectivePBAprocess.Nearlyevery agreementexecutedoutsideNewYorkwasfacilitatedbynonprofitorganizations,suchastheLos AngelesAllianceforaNewEconomy(LAANE)orthePartnershipforWorkingFamilies,thatbroughtin experiencedattorneys,planners,andotherexperts.Thegroupsorganizedlocalcoalitions,developed negotiatingterms,draftedagreements,andlednegotiationswithdevelopers. Municipalredevelopmentagenciesalsoplayacriticalroleinthemajorityofagreementsnegotiated outsideNewYorkCity,particularlyforthoseCBAsthatarebeingimplemented.Intencases,terms developedbyacommunityweresubsequentlyincorporatedintoafranchiseagreementora developmentagreementwiththelocalredevelopmentagency.3Eightagreements,includingthefour negotiatedinNewYorkCity,havenoroleforagovernmentalorquasigovernmentalagencyinthe executionoftheircommitments.Thisisimportantbecause,althoughthevalidityofsuchprivate agreementshasnotbeentestedbythecourts,areviewofcaselawsuggeststhattheymaynotbe enforceableinNewYork. Otherissuesareraisedbyagreementsthataddressconcernsthatareunrelatedtoaprojectsdirect physicalandenvironmentalimpacts.Requiringadevelopertoprovideunrelatedbenefitsinexchange forazoningapprovalviolatestheessentialnexusandproportionalitystrictureslaiddownbythe SupremeCourtintwolandmarkdecisions,NollanandDolan. Basedontheseandotherfindings,theTaskForceproposesstandardsthatpromotegreater accountability,transparency,andenforceabilityintheprocessleadingtoPBAs.Theframeworkwe proposewillcreateclearexpectations,encouragebroadbasedparticipation,andresultinenforceable publicbenefitsthatcomplywithlegalstrictures. Atimelimitedplanningandnegotiationprocesswouldbeginwiththeonsetofenvironmentalreview. Tomakepublicbenefitagreementsmoreaccountableandmoreresponsivetocommunityneedsand potentialprojectimpacts,vigorousandinformedcommunityparticipationwillbeencouraged.An independentconsultantwillelicitandcoordinatepublicparticipationunderdirectionofcommunity boardsandelectedofficials,aswellasprovidetheresearchforacommunityassessmentthatformsthe basisofthePBAnegotiation.Becausetheprimarypurposeofabenefitagreementistomitigate projectrelatedimpacts,thetotalvalueofanegotiatedpackageofbenefitsshouldbeproportionalto thesizeofthesubjectdevelopment.ThecostofdeliveringPBAtermswillbequantifiedandcalculated inrelationtothevalueofpublicassistancesoughtbythedeveloperincludingthelotareasecured
2
SeeCBAsOutsideNewYorkCity,annexedasAppendixB.
throughlanduseapprovalsandsubsidiesadministeredthroughtheEconomicDevelopment Corporation,theEmpireStateDevelopmentCorporation,oranothergovernmentagency. Anegotiatingteamwillbeselectedfromamongtheparticipantsintheplanningprocesstorepresent thecommunitystakeholders.Tominimizepotentialconflictsofinterest,teammembersshallagreeto neithersolicitnoracceptdirectfundsfromdevelopersandbebarredfromfuturecontracts implementingthebenefitagreement.Signatoriesshallliveorworkinthecommunity.Executed agreementsmustbemadepublictofacilitatemonitoringofimplementation,discourageconflictsof interest,andtoinformresidentsofpotentialemploymentopportunitiesandothernegotiatedbenefits. Importantly,PBAtermswillbemadeenforceablebyintegratingthemwithinprojectrestrictive declarationsanddevelopmentagreements,asiscommonlythecaseinLosAngelesandother municipalities.Thisway,insteadofrelyingonorganizationsorprivateindividualswhomaylack standing,implementationcanbemonitoredandenforcedbytheCity.Becausethetermsofrestrictive declarationsrunwiththelandandapplytoallsuccessorsininterest,performanceoftheterms continuesevenifownershipistransferred. TheComptrollerisempoweredbytheNewYorkCityChartertoinvestigateallmattersrelatingtoor affectingthefinancesoftheCity.Basedonthismandate,werecommendthathemonitorallbenefit agreements,relatedrestrictivedeclarationsanddevelopmentagreements,andissueanannualPBA compliancereportcard.Assumingthatbenefitagreementsmeetthestandardsdiscussedinthisreport andwilldeliverservicesthataredeservedorconstructfacilitiesthataremerited,itisintheCitys interesttomakecertainthatthoseservicesorfacilitiesareimplemented. Itisclearlyinthepublicsinteresttoreplaceaprocesswidelyacknowledgedtobeunsatisfactorywith onethatismoreaccountable,transparent,andenforceable.Themosteffectivewaytoensurelongterm compliancewiththisnewprocessisbyadoptingitintolaw.Inthemeantime,werecommendthatthe EconomicDevelopmentCorporationvoluntarilyimplementtheproposedprocessbyenablingtechnical assistancetobeprovidedtocommunitycoalitionsandincludingPBAtermswithindevelopment agreements.BecausethedesirabilityofadoptingbenefitagreementstandardsforNewYorkCity assistedprojectsappliesequallytoNewYorkStateassisteddevelopments,wecommendtheEmpire StateDevelopmentCorporationtodolikewise. BenefitagreementsareanunfortunatebyproductoftheCitysfailuretodevelopsolutionsforproblems thatdemandacomprehensivecitywideapproach.BenefitagreementsalsoarisebecausetheCitydoes noteffectivelyplanforitsneighborhoodsandinsufficientlyconsiderscommunityneeds.Rezoning applicationsthatsupportmajornewdevelopmentsmoveforwardwithoutadequateprovisionforpublic schools,transit,andotheressentialsupportsandneglecttotakeaccountoformitigatenegative economicimpactsonexistingbusinesses.Butaprojectbasedarrangementthattiesbenefitstoa particularneighborhoodisnosubstituteforacitywideprocessthatevaluatescurrentandprospective demandsforbetterhousing,jobs,healthcare,childcareandschools,openspace,andtransit.
II.
Introduction
Municipalitiescommonlyfacilitatedevelopmentofindividualprojectsthroughfinancialincentivesand selectiverezonings.Thesegovernmentactionsarebasedonthepremisethatcertainprojectsbring importantbenefitstothepublicintheformofjobgrowth,increasedtaxrevenue,orimprovedphysical surroundingsthatwouldnotbepossibleotherwise.However,benefitslikeabiggertaxbasegenerally inuretothegreatermunicipality,whilelocalneighborhoodsoftenshouldertheburdenofincreased traffic,environmentalimpacts,andpotentialdisplacementofexistingbusinessesandresidents.Thereis agrowingsensethatpublicreviewofsignificantdevelopmentprojectsshouldtakeintoaccountthe prioritiesofneighborhoodsandseektobalancetheburdensimposedbysuchprojectswith commensuratesocioeconomicandphysicalbenefits. ThisconvictionledtoalandmarkCommunityBenefitsAgreement(CBA)negotiatedin2001bya coalitionoforganizationsandthedevelopersoftheStaplesCenterSportsArenainLosAngeles.Since then,similaragreementshavebeennegotiatedincitiesasdiverseasAtlanta,Philadelphia,Denver, Milwaukee,Minneapolis,Seattle,Washington,D.C.,Syracuse,NewHaven,andWilmington,aswellasin NewYorkCity. InatypicalCBA,thedeveloperofaprojectseekingmunicipalassistanceand/orachangeinzoningwill agreetoprovidebenefitssuchasaffordablehousing,localhiring,andenvironmentalimprovementsto anaffectedcommunityinexchangeforapromiseofsupportfortheprojectbythenegotiatingcoalition. Thefinalagreementisusuallyenshrinedinawrittencontractexecutedbythedeveloperandcoalition representatives.Whiletheseprivateagreementsareconsideredbysometobeenforceablebythe signatoriesalone,CBAtermsarefrequentlyincorporatedintodevelopmentagreementsbetween municipalitiesanddevelopers.Andevenwheretermsarenotincorporatedwithinadevelopment agreement,publicsectoractors,includingelectedofficials,economicdevelopmentcorporations, housingdepartments,workforcedevelopmentagencies,andparksdepartments,canbecomeimplicit partiestobenefitagreementsandplaysignificantrolesimplementingthem.4Forexample,elected officialswereinvolvedinthenegotiationsoverthefourmajorCBAsadoptedbetween2005and2008in NewYorkCity,andCouncilmembersweresignatoriestotheCBAnegotiatedinconnectionwiththe developmentofthenewYankeesStadium. AlthoughCBAscanseemlikeawinwinforgroupsthathavesignedthem,andbydeveloperswhose projectapprovalandsubsidypackagesarefacilitatedbycommunitysupport,5CBAsandthenegotiations leadinguptothemhavebecomelightningrodsforcontroversy.NegotiationsoveraCBAcanadd unpredictabilityanddelay,increaseprojectcosts,andevenkillaproject.Someseethemasillegal exactions.Othershavecondemnedthemasshamagreementsthatlacktransparency,accountability, andinclusiveness.6AlthoughMayorMichaelBloomberginitiallyendorsedtheAtlanticYardsand GatewayCenterCBAs7andtheNewYorkCityEconomicDevelopmentCorporationreportedlyprovided
4
LauraWolfPowers,CommunityBenefitsAgreementsandLocalGovernment:AReviewofRecentEvidence,JournaloftheAmerican PlanningAssociation(February2010),availableathttp://dx.doi.org/10.1080/0194436090349023.Anexampleoftheseinterrelationshipsis theAtlanticYardsCBA,inwhichtermsrelatingtoaffordablehousingdependontheprovisionofsubsidiesobtainedfromtheStateandCity. 5 ForestCityRatnerCompaniesExecutiveVicePresidentJamesStuckeycalledtheAtlanticYardsCBAavehicleforpositivechange.See DevelopersDealMakingEscalates,CrainsNYBusiness,(March27,2006).Inthesamearticle,RaymondLevin,ofCounseltoWachtel& Masyr,LLP,attorneysforTheRelatedCompany,statedthatdevelopersseeCBAsasacostofdoingbusiness. 6 Seee.g.,PatriciaSalkin&AmyLavine,CommunityBenefitsAgreementsandComprehensivePlanning:BalancingCommunityEmpowerment andthePolicePower,JournalofLawandPolicy(forthcoming),ALSResearchPaper1003,AvailableatSSRN: http://SSRN.com/abstract=1597275. 7 MayorBloombergpraisedtheCBAforGatewayCenterasa"sweeping[agreement]thatwillgoalongwaytowardmeetingthecommunity's needs."(ErikEngquist,DevelopersDealMakingEscalates:CommunityBenefitAgreementsBecomeCostlyasBloombergEndorses Concept,CrainsNYBus.(Mar.27,2006)).AndtheMayorsignedtheAtlanticYardsCBAasawitness.
$350,000andrecruitedamediatortofacilitatenegotiationoftheManhattanvilleCBA,the AdministrationnowopposesCBAsasamatterofgeneralprinciple.8 CBAsalsoraiseavarietyoflegalquestions.Forexample,requiringadevelopertoprovideunrelated benefitsinexchangeforazoningapprovalpotentiallyraisesconstitutionalconcernsunderthetakings clauseoftheU.S.Constitution.9Ontheotherhand,whenaCBAismadeaconditionofaproject receivingapublicsubsidyasisthecaseinmostlargedevelopmentprojectscitieshavebroadlatitude tonegotiateawiderangeofpublicbenefitsinexchangeforprovidingthetaxpayerfundedassistance. InMarch2010,theNewYorkCityBarAssociationaddedtothegrowingchorusofcriticismwithits issuanceofareportcataloginglegalandpolicyissuesraisedbytheagreements,includingconcerns abouttheadequacyofrepresentationbyresidents,thelackofsafeguardstoprotectagainstconflictsof interest,theunevenbargainingpoweroftheparties,andthegenerallackoftransparencysurrounding theirnegotiations.10Basedontheseconcernsandtheirperceivedpotentialtocompromisesound planningandlanduseregulations,theBarAssociationconcludedthattheCityofNewYorkshouldeither refusetoconsiderCBAsinthelanduseapprovalprocessorconsideronlythoseCBAsthatconformto clearstandards.11 AstheBarAssociationreportacknowledges,CBAsareessentiallyoldwineinnewbottles, representingthelatestefforttogeneratesupportforlargescaleprojectsthatrequirediscretionaryCity approvalsbypromisingbenefitstocommunities.Becausethestakesaresohigh,andthepotential impactsaresogreat,communitiesareunlikelytoresistseekingconcessions,anddeveloperswouldbe unwillingtoceasetryingtoattracttheirsupport.Therefore,evenifitweredesirablefortheCityCouncil toignoreaCBAforaprojectcalendaredforavote,itissimplynotreasonableorrealistictoexpectitto happen.12Accordingly,theresponsiblecourseofactionistoensurethatCBAsconformtoclear standardsandareguidedbytheprinciplesofaccountability,transparencyandenforceability.The recommendationsinthisreportrepresentanefforttodevelopsuchstandards,aswellastosketcha processthatisfairandequitable.
8 9
Mr.BollingersBattle,MaththewSchuerman,TheNewYorkObserver(Feb.18,2007),availableathttp://www.observer.com/node/36744. SeeNollanv.CaliforniaCoastalCommission483U.S.825(1987)andDolanv.CityofTigard,512U.S.374(1994). 10 TheAssociationoftheBaroftheCityofNewYork,TheRoleofCommunityBenefitAgreementsinNewYorkCitysLandUseProcess,March 8,2010. 11 Id.at4647. 12 TheRelatedCompaniesandtheYankeesexecutedtheirCBAhoursbeforetheCityCouncilvotedonthelanduseplanbecausetheCouncil waswaitingtoseethattheaffectedneighborhoodsgotsomethingfortheirpain,seeMr.BollingersBattle,supra.CityCouncilapproval ofColumbiasManhattanvilleplancloselyfollowedagreementonamemorandumofunderstandingbetweenColumbiaandtheWestHarlem LocalDevelopmentCorporation,andtheCouncilvoteddownredevelopmentoftheKingsbridgeArmoryimmediatelyafternegotiationsona CBAbrokedown.
III. ConveningtheTaskForce
OnJune27,2005,eightcommunityorganizationsenteredintoa54pageagreementwithForestCity RatnerCompanies(FCRC)inwhichthedeveloperagreedtoprovide3,000unitsofaffordablehousing, jobtraining,schools,ahealthcenter,aseniorcenter,parksandopenspaceinconnectionwith developmentoftheAtlanticYardsProject,a$5billion,22acremixeduseprojectinBrooklyn.13 TheAtlanticYardsCBAwasalandmarknodeveloperinNewYorkCityhadeveragreedtoasimilar packageofconcessions.14Sinceitsexecution,agreementshavebeenstruckinconnectionwiththree othermajorprojects:constructionofanewstadiumfortheYankees;developmentofashoppingmall (GatewayCenter)atthesiteoftheBronxTerminalMarket;andtheexpansionofColumbiaUniversity intoanewcampusinWestHarlem(Manhattanville).15Alltheseagreementswerenegotiatedina contextwherenoclearandgenerallyacceptedstandardsexisted,whichallowedcriticsoftheprojects toquestiontheircredibility.ThenegotiationaroundtheCBAforYankeeStadium,forexample,hasbeen criticizedasbeingunrepresentativeandinsufficientlyinclusiveandtransparent.16AlthoughtheCity CouncilcannotbeapartytoaCBA,evidenceofcommunitysupportisnaturallyanimportantfactorto beconsideredwhenapprovalsarebeforeit.Therefore,questionsaboutthevalidityofanagreement andtheextentofcommunitysupportforitcancomplicatedeliberationsonlandusechanges.17 Whileacknowledgingboththestrengthsandlimitationsofpastagreements,CityComptrollerJohnC.Liu concludedthatstandardswerenecessarytomaketheprocessofreachingfutureagreementsin connectionwithCityassisteddevelopmentmoreaccountable,transparent,andequitable.OnFebruary 17,2010,hecitedtheneedforgreateroversightoveragreementsmeanttomitigatetheimpactsof development,statingthat: [t]hepublichasseenaseriesofmajorpromisestocommunitiesinexchangeforpublicsubsidies. Alayerofunpredictabilityconfrontsdeveloperswhentheyengageinprivatenegotiationsover benefitsassociatedwiththeirprojects.Infact,studieshavesingledoutNewYorkCitys communitybenefitagreementsasexamplesofwhatnottodo.Itistimeforthis embarrassmenttoend.
TASKFORCELEADERSANDMEMBERS
CityComptrollerJohnC.LiucalledfortheformationofaTaskForceofexpertsandstakeholdersto examinetheprocessbywhichbenefitagreementsforpubliclysubsidizeddevelopmentprojectsare developedandtoproposereformsthatensuregreateraccountability,transparency,andenforceability. NewYorkerswithawiderangeofperspectivesandexperiencesansweredtheComptrollerscall, includingpublic,businessandlaborrepresentatives.
13 14
Forasummaryprojectdescription,seeNewYorkCityCommunityBenefitAgreements,annexedasAppendixA. AtlanticYardsisthefirstCBAnegotiatedforaNewYorkCitymegaproject,butitisnotthefirstCBA.Agreementsbetweendevelopersand communitygroupshavebeenpartofthedevelopmentlandscapefordecades,mostcommonlynegotiatedwithrespecttothedevelopment ofaffordablehousing. 15 SeeAppendixA.ReportedlyaCBAwasalsonegotiatedinconnectionwithanewTargetstoreinEastHarlem. 16 SeeCommunityBenefitsAgreementsandComprehensivePlanning:BalancingCommunityEmpowermentandthePolicePower,surpra. Seealso,CommunityBenefitsAgreementsandLocalGovernment,JournaloftheAmericanPlanningAssociation,(February23,2010),in whichauthorLauraWolfPowerspointsoutthattheYankeesStadiumCBAwasnegotiatedbetweentheteamandelectedofficialswithout participationbylocalresidents,wasnotpubliclyreleased,andthattheYankeeStadiumCommunityBenefitsfund,anonprofitcharity createdtodistributedeveloperfundstocommunitygroups,lacksaccountabilityandtransparency. 17 SeeCongrats,KingsbridgeArmoryOpponents,RobertKnakal,TheCommercialObserver(April15,2010)availableat http://www.observer.com/2010/commercialobserver/congrats_kingsbridge_armory_opponents.
10
Fourcochairs,eachofwhomhaveimplementedinnovativesolutionstotheCitysoftenintractable economicdevelopmentproblems,wereselectedtoleadtheTaskForce: JOHN"JACK"AHERN JackAhernhasbeenaunionleaderformorethan35yearsandcurrentlyrepresentsover1.4million workersasPresidentoftheNYCCentralLaborCouncil(AFLCIO),thenationslargestregionallabor council.Mr.AhernisalsotheBusinessManagerandFinancialSecretaryoftheInternationalUnion ofOperatingEngineersLocal30. PRISCILLAALMODOVAR PriscillaAlmodovarisChiefOperatingOfficerfortheCommunityDevelopmentBankingGroupatJP MorganChase.SheistheformerPresidentandChiefExecutiveOfficerofNewYorkState'sHousing FinanceAgencyandtheStateofNewYorkMortgageAgency. BARRYGOSIN BarryGosinhasbeenChiefExecutiveOfficerofNewmarkKnightFranksince1979.Employing6,300 worldwide,thefirmnowoperatesfrommorethan200officesthroughouttheUnitedStates, Canada,LatinAmerica,Europe,Asia,AfricaandtheMiddleEast. JOYCEMOY JoyceMoyisProfessorofSmallBusinessManagementandEntrepreneurshipattheCityUniversity ofNewYorks(CUNY)andExecutiveDirectorofCUNYsAsianAmerican/AsianResearchInstitute. Shehasextensiveexperiencedevelopingprogramsthatsupportimmigrant,women,andminority businessownersthroughoutNewYorkCity.
TASKFORCEPROCESS
AtthefirstmeetingonMarch19,2010,CityComptrollerJohnC.LiuchargedtheTaskForcewith draftingaframeworkforamoreeffectiveandequitableprocesstoguidepubliclysubsidizedeconomic developmentprojectsinNewYorkCity.ComptrollerLiuurgedmemberstoevaluatethelegaland implementationissuesarisingfromagreementsnegotiatedbetweendevelopersandcommunitygroups, aswellasthosebetweenelectedofficialsandgovernmentagencies,andtoreviewbestpracticesof othermunicipalities.ThefullTaskForcemetsixtimesbetweenMarchandSeptember2010.Between meetings,thecochairsmettorefinethegoalsandresearchagenda. Atthefirstmeeting,somemembersexpressedtheviewthatlocalCBAshadsprunguptofillthevoid createdbytheCitysfailuretoassesstheimpactoflargeprojectsonsurroundingneighborhoodsorto proactivelyandcomprehensivelyplanforNewYorkCitysoverallgrowth.Thesememberscontended thatCBAswoulddisappearorfadeinimportanceiftheCitysUniformLandUseReviewProcedure (ULURP)andtheoverallplanningprocesswerereformed.Untilsuchreformwasadopted,however,we resolvedthatanynewagreementsshouldbemadeaccountable,transparent,inclusive,consistent, fiscallyresponsible,andenforceable. Indiscussingpossiblerecommendations,TaskForcemembersraisedthefollowingquestions: 1. WhatkindsofprojectsshouldbesubjecttoaCBAnegotiation? 2. Howcantheprocessbemademoreequitable? 3. Howcantheprocessbemademoreconsistentandpredictable? 4. Whoshouldberepresented? 11
5. 6. 7. 8. 9. 10. 11. 12.
Whoshouldconveneandfacilitatediscussions? Whenintheprocessshoulddiscussionstakeplaceandforhowlong? Whichbenefitsoughttobenegotiableandwhichshouldnot? Whowouldberesponsibleforimplementingagreementterms? Whatarecommunityimpactsandhowshouldtheybemeasured? Whatisthevalueofcommunitybenefitsandhowshouldtheybemeasured? Aresuchagreementsenforceableandwhoshouldoverseeandenforcethem? Canagreementsbemodified?
AtitssecondmeetingonApril20,2010,theTaskForceresolvedtoalsoincludeconsiderationofpublic benefitagreementswithinitspurview,definedasagreementsthat: [S]eektomaximizepositivecommunityimpactsandfacilitateprivatedevelopmentprojects receivingpublicresources,including,butnotlimitedto,taxbenefits,rezonings,IDA/CRC financing,andeminentdomainproceedings.Partiestotheseagreementsmayincludeprivate developers,governmentalagencies,electedofficials,and/ormembersofthepublic. TheTaskForcecoinedthetermPublicBenefitAgreementstoalsoencompasslargescaleplans undertakenbytheDepartmentofCityPlanningortheEconomicDevelopmentCorporationforwhichno developerhasyetbeendesignated,inadditiontothoseprojectsforwhichadeveloperisalready attached,whicharemorecommonlythoughtofastypicalCBAcandidates.ApplyingaCBAtypeprocess tolargeredevelopmentplanswasthoughttohelpensurethattheultimatedevelopmentreflectsthefull rangeofneighborhoodneeds,includingthephysicalandsocialinfrastructurenecessarytosupportthe projectedresidentialandcommercialdevelopmentandthatprojectimpactsaresufficientlymitigated. Theproposedrecommendationsinthisreportwouldmakethenegotiationprocessforbothtypesof agreementsmoreaccountableandtransparent.Furthermore,agreementsthataddressissuesand concernsdefinedbyaneighborhoodcenteredneedsassessmentwouldbemosteffectiveand consistentwithlegalstrictures,whilepolicyissuesthatcrossedcommunitylines,suchastheneedfora comprehensivecitywideplanningprocessorforcitywidelaborstandards,wouldbebetteraddressed legislatively. TheTaskForcewassuppliedwithrelevantbackgroundmaterialsandheardpresentationsbyexpertsin landuseandplanningaswellaspractitionerswithrelevantexpertiseandvaryingperspectives.Among themwereVickiBeen,FacultyDirectoroftheNYUFurmanCenterforRealEstateandPublicPolicy.18 ProfessorBeenprovidedanoverviewoftheCityslandusereviewprocessinthecontextofpublicly subsidizeddevelopmentprojectsandpastcommunitybenefitagreements. Twopaneldiscussionswereconvened.Thefirstdiscussion,whichfocusedonstakeholderperspectives onhowbenefitagreementsarecurrentlynegotiatedandimplemented,wasledbyLouisJ.Coletti, PresidentandChiefExecutiveOfficeroftheBuildingTradesEmployersAssociation;BettinaDamiani, ProjectDirectoratGoodJobsNewYork;and,PaulSonn,LegalCoDirectoroftheNationalEmployment LawProject. Inasecondpaneldiscussion,negotiatorsofbenefitagreementsinLosAngelesandMilwaukeeshared theirexperiences.Thepanelistsincluded:JulianGross,DirectoroftheCommunityBenefitsLawCenter; LillianBurkenheim,ProjectManagerattheCommunityRedevelopmentAgencyofLosAngeles;Roxana
18
ProfessorBeenisalsotheBoxerFamilyProfessorofLawatNewYorkUniversity(NYU)LawSchoolandAffiliatedProfessorofPublicPolicyat NYUsRobertF.WagnerGraduateSchoolofPublicService.
12
Tynan,DeputyDirectorofLosAngelesAllianceforaNewEconomy(LAANE);PaulinaGonzalez,Executive DirectoroftheStrategicActionforaJustEconomy(SAJE);and,KathleenMulliganHansel,Deputy DirectorofthePartnershipforWorkingFamilies. Duringthenextphase,individualinterviewsandsmallgroupdiscussionswereconductedtosolicit specificideasandrecommendationsformakingprospectivebenefitagreementsmoreaccountable, transparent,andenforceable.Proposalswerethenincorporatedintoasetofdraftrecommendations thatwasthenpresentedtotheTaskForceasawholeforreviewandcomment.
13
IV. LandUseandEnvironmentalReview
PubliclyassistedrealestatedevelopmentinNewYorkCitytakesplacewithinanelaboratestatutory regimewithrequiredoutletsforpublicreviewandcomment.ThedevelopmentofalargeprojectinNew YorkCityoftencannotbeundertakenwithoutarezoningthatpermitsgreaterbulkanddensity,ora changeinthepermitteduse.Publichearingsairconcernsabouttheseproposedzoningchangesand theirpotentialenvironmentalimpactsbeforetheyarepresentedtotheCityCouncilforavote.Inorder toestablishabetterframeworkforfuturebenefitagreementsinNewYorkCity,itisnecessaryto understandtheoperationofourcurrentlanduseapprovalprocess. TheCityandStatealsofacilitatecertainlargescaledevelopmentsperceivedtoprovidelongterm economicadvantagesthroughjobcreationandincreasedtaxrevenue.BecausetheStateandCityof NewYorkareprohibitedfromdirectlysubsidizingprivatedevelopers,financialassistanceisoften providedthroughtheNYCEconomicDevelopmentCorporation(EDC)ortheEmpireStateDevelopment Corporation(ESDC).Subsidypackagescanincludeavarietyoftaxabatementsandcredits,lowcost bondfinancing,andthesaleofCityownedlandatbelowmarketrates.
NEWYORKCITYDEVELOPMENT
LandUseReview
NewYorkCitysZoningResolutiongenerallydoesnotpermitasofrightdevelopmentofsignificant projects.Asaresult,relaxationofrequirementslimitingtheuse,bulk,height,parkingordensity permittedisoftennecessarybeforeaprojectcanbedeveloped.DesignationsofSpecialDistricts, developmentplans,andcomprehensiverezoningplans,dispositionsofCityownedproperty,andsite selectionsforCityfacilitiesandsubsidizedhousingprojectsalsorequireCitylanduseapprovalsbefore theycanproceed. TheseactionsareallsubjecttotheCitysUniformLandUseReviewProcedure(ULURP),apublicreview processthatendswithavotebytheNewYorkCityCouncil.19ULURPapplicationsforzoningchanges, forexample,aresubmittedfirsttotheDepartmentofCityPlanningtoreviewforcompletenesswith therequirementsofSection197coftheZoningResolution.OncetheCityPlanningDepartment certifiesaSection197cplanascomplete,theaffectedcommunityboardhasa60dayperiodtoholda publichearingandvoteontheapplication.Thecommunityboardthenfilesitsrecommendationswith theNewYorkCityPlanningCommissionandtheaffectedboroughpresident.Theboroughpresident thenmustfilehisorherrecommendationswiththecommissionwithin30days.Within60daysofits receipt,theNewYorkCityPlanningCommissionmusthearandtakeactionontheapplication.Ifthe CityPlanningCommissionapprovestheapplication,theCityCouncilmustthenhearandtakeaction within50daysoftheCommissionsdecision,witha15dayextensionifitproposesmodifications.The CommissionmustfirstconsiderthosemodificationsbeforetheCityCouncilactsonthem.IftheCity Counciladoptstheaction,thenitgoestotheMayorforreview.IftheMayorvetoestheapplication, thentheCityCouncilmayoverridethevetobyatwothirdsmajorityvote.Therecommendationsbythe communityboardandtheboroughpresidentareadvisory. Duringtheperiodfrom2006to2009,theDepartmentofCityPlanningcertifiedmorethan1,000land useapplicationsforULURP.Theseincludedapplicationsforalargescaledevelopmentontheeastside
19
SeeRULESOFTHECITYOFNEWYORK,TITLE62,2;TheUniformLandUseReviewProcedure(ULURP),NewYorkCityDepartmentof Planning.http://www.nyc.gov/html/dcp/html/lucproc/ulrpo.shtml.
14
ofManhattanonthesiteofaformerConEdisonsteampowerplant,aswellasthedesignationofseven specialdistrictsanddevelopmentplansforareasgreaterthan27acres.20
SubsidiesforDevelopment
TheCityofNewYorkprovidesawiderangeofassistancetolargescaledevelopmentprojects.Subsidies cantaketheformoftaxincentivesorabatements,lowcostfinancing,infrastructureimprovementsand thesaleofCityownedlandatabelowmarketprice.21Assemblingthepackageofdevelopment subsidiesisthejoboftheNewYorkCityEconomicDevelopmentCorporation(EDC),anonprofitlocal developmentcorporationcontractedbytheCitytopromoteeconomicgrowth,manageCityowned properties,administerloansandfinancing,andfacilitatecommercialandindustrialdevelopment.Both thePresidentofEDCandacontrollingmajorityofitsBoardareappointedbytheMayor. EDCstaffstheIndustrialDevelopmentAuthority(IDA),apublicbenefitcorporation,andtheCapital ResourceCorporation(CRC),alocaldevelopmentcorporation.TheIDAprovidescorporationswith accesstobondfinancingandCityandStatetaxbenefitstoacquire,buildorrenovatepropertyorto purchaseequipment.TheCRCprovideslowercostfinancingforprojectdevelopment.TheMayor appointsacontrollingmajorityofmemberstotheIDAandCRCboardsofdirectors. Between2006and2009,theEDCassembledfinancingandincentivepackagesinexcessof$75million forsevendevelopments.22
EnvironmentalReview
CityEnvironmentalQualityReview(CEQR)isNewYorkCitysprocessforimplementingtheState EnvironmentalQualityReviewAct(SEQRA).SEQRArequiresstateandlocalgovernmentagenciesto assesstheenvironmentaleffectsofadiscretionaryactionunlesstheactionisexemptedfromreviewby specificstatutesorregulations.23TheCEQRprocessrequirescityagenciestoassess,discloseand mitigatetothegreatestextentpracticablethesignificantenvironmentalconsequencesoftheirdecisions tofundorapproveaproject.Theenvironmentalassessmentanalyzestheprojectthatisfacilitatedby theaction(i.e.,approvalorfunding).EnvironmentalreviewmustbecompletedbeforetheCitymay fundorapproveaproject. ForprojectsthataresubjecttoCEQR,aleadagencyistheagencyconsideredprincipallyresponsible forcarryingoutfundingorapprovinganactionandforoverseeingenvironmentalreview.Thelead agencymustassessareassuchasairquality,noise,trafficandsocioeconomicconditionstodetermine whethersignificantadverseimpactontheenvironmentcouldoccurasaresultoftheprojectandifso, whatalternativeswouldavoidorminimizesuchimpactstothemaximumextentpossible.EDCisthe leadagencyforprojectsinvolvingCityfinancialassistance,24whiletheDepartmentofCityPlanning actsastheleadagencyforprojectsrequiringzoningactions.
20 21
SeeNewYorkCityLandUseApprovals,20062009,annexedasAppendixC. Rezoningsarenotgenerallyconsideredasubsidy.However,manyrezoningspermitsubstantialincreasesindevelopablefloorareaover whathadbeenpermittedasofright.Forthepurposesofthisreport,thatadditionalfloorareaisconsideredtobeaformofpublic assistance,tantamounttoasubsidyinlightoftheconsequentialincreaseinthemarketvalueoftherezonedsite. 22 SeeNewYorkCitySubsidizedDevelopments20062009,annexedasAppendixD. 23 SeeECLSection80101etseq.;seealso6NYCRR617andCEQRTechnicalManual2010. 24 Technically,theOfficeoftheDeputyMayorforEconomicDevelopmentservesastheleadagency,butEDCactsasstaffforthepurposeof applicationpreparation.
15
Thestudyareaforanassessmentofenvironmentalimpactgenerallyincludestheprojectsiteandthe areawithin400feetoftheprojectsiteboundaries.Largerstudyareasmaybeevaluatedforprojects whicharelargeinscale.25
AddressingProjectImpacts
A. EnvironmentalImpacts
Environmentalreviewandtheconcomitantmitigationofidentifiedenvironmentalimpactsisan essentialelementoftheCitylanduseapprovalprocess.Thenotionofbalancinggreaterbulkordensity withpublicimprovementssuchasplazas,transitimprovements,andaffordablehousingisinfactbuilt intomanyprovisionsofthecitysZoningResolution. NewYorkCityhasusedavarietyofagreementsovertheyearstomitigatetheimpactsoflargescale developmentsfacilitatedbyrezoningactions.Forexample,mitigationstoimpactsidentifiedintheland useprocessfortheRiversideSouthDevelopmentweresetforthina238pagerestrictivedeclaration thatincludedcommitmentstoprovideaffordablehousingandopenspaceandtopay$10million towardsimprovementstotwosubwaystations.26 Arestrictivedeclarationisaninstrumentthatdescribesaproposeddevelopment,themethodbywhich itistobecompleted,andsetsforthprotocolsforenvironmentalremediation.AftertheULURPprocess hasbeencompletedandaproposedprojecthasbeenapproved,thedeclarationisfiledintheofficeof theCountyClerkandbecomesapublicdocumentofrecordandacovenantrunningwiththelandthat bindspropertyownersandtheirsuccessors.Generally,asaconditionofcertainspecialpermits,an applicantmayberequiredtosignandrecordarestrictivedeclarationthatplacesconditionsonthe furtheruseanddevelopmentoftheproperty. Becauserestrictivedeclarationsareexecutedaspartofthelanduseregulatoryprocess,theyaresubject totherequirementsofdueprocess,equalprotectionandtheFifthAmendmentstakingclause,aswell asnexusandproportionalityrequirements.TheSupremeCourt,initsNollanandDolanlandmark decisions,hasimposedarequirementthatthebenefitagovernmentseekstogainfromadeveloper musthaveanessentialnexustothelegitimatestateinterestthatthegovernmentwouldhaveinvoked tojustifyrejectingtheproposeddevelopment.27Further,theamountofbenefitthegovernmentseeks hastoberoughlyproportionaltotheimpactthattheparticulardevelopmentwouldimpose.28Within thosestrictures,governmentsareallowedtoimposeexactionsupondeveloperstooffsetthe environmentalandlanduseimpactsthattheproposeddevelopmentwillhaveonthelocalcommunity.
25 26
CEQRTechnicalManual,Section310,p.212(May2010). th st Similarly,inconnectionwitharezoningofthe9.7acreformerConEdsiteatFirstAvenuebetween35 and41 Streetstopermitthe developmentofapproximatelyfivemillionsquarefeetoffloorareainsixresidentialtowerswith4,137dwellingunitsandonecommercial towerof1.37millionsquarefeetoffloorarea,morethan70,000squarefeetofretailspaceand1,557parkingspaces,theCityimposedfour mainobligationsinarestrictivedeclaration:(1)themitigationofunavoidableenvironmentalimpacts;(2)theinclusionofopenspace;(3)the developmentofapublicschool;and(4)adoptionofaconstructionprotectionplantoprotect5TudorCityPlace,partofTudorCity,a designatedcitylandmark.Thedevelopermustalsoprovidenoisecontrolandairqualitycontrolmeasuresduringconstruction. 27 Nollanv.CaliforniaCoastalCommunity,483U.S.825(1987).Nollaninvolvedarequirementthatconditionedabuildingpermitonthe dedicationofapathacrossthehomeownerspropertytoreachthebeachbehindthehome.TheCourtheldthattherewasnonexus betweentherequirementandtheenvironmentalimpactsofthehouse. 28 Dolanv.CityofTigard,512U.S.374(1994).InDolan,theCourtadoptedathreeparttest:(i)doesthepermitconditionseektopromotea legitimatestateinterest?;(ii)doesanessentialnexusexistbetweenthelegitimatestateinterestandthepermitcondition?;and(iii)doesa requireddegreeofconnectionexistbetweentheexactionsandtheproposedimpactofthedevelopment?
16
B. SocioEconomicImpacts
NollanDolanjurisprudenceprohibitslocalgovernmentsfromexactingapaymentfromadeveloperin connectionwithaprojectunlessthereisaclearandproportionalconnectionbetweenthedevelopment andthefee.However,PBAtermsnegotiatedasaconditionforthereceiptofgovernmentsubsidiesare treatedverydifferentlythanthosenegotiatedaspartoftheprocessoflandusereview.Whenalocal governmentoraredevelopmentagency,suchasEDC,choosestoprovidesubsidiestodevelopers,it mayconditionthosesubsidiesinanywayitthinksappropriate,withinlegalrequirements.Developers whoobjecttotheconditionsimposedarefreetodeclinetobeinvolved.29Therefore,itispossiblefor agreementsnegotiatedwithredevelopmentagenciestoincluderequirementstoaddressexistingsocio economicconditionsandothernonphysicalprojectimpactsortointegratesuchtermsaftertheyhave beenenshrinedinabenefitsagreement.
NEWYORKSTATEASSISTEDDEVELOPMENT
ThevehicleforNewYorkStatesubsidizeddevelopmentistheUrbanDevelopmentCorporation(UDC), doingbusinessastheEmpireStateDevelopmentCorporation(ESDC).UDCisaNewYorkStatepublic benefitcorporationcreatedin1968tobuildsubsidizedhousing,whichnowengagesineconomicand realestatedevelopment.Tobeabletoovercomeobstacleswithoutdelay,itwasgivenunprecedented legalandeconomicpowers,includingthepowertoseizeandcondemnpropertybyeminentdomain, theabilitytoissueitsownbondswithoutlimitandgranttaxabatements,andimmunityfromzoning requirements.30AmongitspastandcurrentprojectsareconstructionoftheJacobK.JavitsConvention Center,therevitalizationof42ndStreet,theconstructionofBatteryParkCity,thedevelopmentof RooseveltIsland,andtheAtlanticYardsproject.TheESDCiscontrolledbyaninememberboard appointedbytheGovernor. Duetoitsimmunityfromlocalzoningstatutes,projectsofESDCanditssubsidiaries(suchastheLower ManhattanDevelopmentCorporation)arenotsubjecttoULURPrequirements.Forexample,onMarch 3,2005,theCityandtheESDCsignedaMemorandumofUnderstanding(MOU)withForestCityRatner CompaniesthatrecognizedtheESDCspowertooverrideULURP,31therebyeliminatinganyformalrole intheprojectapprovalprocessforBrooklynCommunityBoards2,6,and8,theBrooklynBorough President,theCityPlanningCommission(CPC),ortheCityCouncil.OnlyonepublichearingofESDC projectsisrequired.ESDCprojectsaresubjecttoSEQRAreview.
29
UnconstitutionalLandDevelopmentConditionsandtheDevelopmentAgreementSolution:BargainingforPublicFacilitiesafterNollanand Dolan,DavidL.CalliesandJulieTappendorf,51CaseW.Res.663(2001). 30 UrbanDevelopmentCorporationAct174/68. 31 SeePressRelease,StateofN.Y.ExecutiveChamber,GovernorPatakiandMayorBloombergAnnounceMemorandumofUnderstandingfor AtlanticYardsProjectinBrooklyn(Mar.4,2005),availableathttp://www.nylovesbiz.com/press/press_display.asp?id=556.
17
V. PublicBenefitAgreements(PBAs)
TheTaskForcewasabletoidentify27benefitagreementsnegotiatedbetween1998and2008;23were negotiatedincitiesacrossthecountryincludingAtlanta,Denver,Pittsburgh,Minneapolis,Milwaukee, SeattleandWashington,D.C.,andfourpertainedtoNewYorkCityprojects.Thedownturninthereal estatemarkethastakenitstollatleastnineprojectshavestalledorbeenabandonedaltogether,32 whileothershavebeenreducedinscale,buteighteenagreementshaveeitherbeenimplementedorare expectedtobeimplementedwithinthenextseveralyears.33Severalmajordevelopmentshavebeen successfullybuiltwithbenefitagreements,including"LALive,"amassivesportsandentertainment projectadjacenttotheStaplesCenterintheCityofLosAngeles. NewYorkCitysfirstbenefitagreementwasexecutedin2005betweenForestCityRatnerCompanies andacoalitionofeightorganizationsinconnectionwithalargemixedusedevelopmentatAtlantic Yards.Sincethen,localbenefitagreementshavebeennegotiatedinconnectionwithmajor developmentsattheBronxsYankeeStadium,theformersiteoftheBronxTerminalMarket(Gateway Center),andwithColumbiaUniversitysManhattanvilleexpansion.34 InatypicalCBA,adeveloperagreestoprovideasetofbenefitsinexchangeforanagreementbya communitycoalitiontosupporttheprojectduringtheapprovalprocess.Thecoalitioncanincludelocal residentsandbusinessesaswellascommunitybasedorganizations,laborunions,environmental advocates,andreligiousorganizations.Thebenefitscanincludearangeofitems,withthemost commonbeing: Jobrelatedbenefitsforthecommunitywheretheprojectwouldbelocated,suchas:local hiringpreferences,jobtrainingrequirements,andresponsiblecontractorrequirements; Affordableorlowincomehousingmandates,usuallysetasapercentageofunitssetaside forhouseholdsatstipulatedincomelevels; Environmentalrequirements,includingbrownfieldremediation,smartgrowthbuilding principles,developmentofopenspaceandrecreationalfacilities,andgreenbuilding standards;and Childcarecenters. Advocatesconsiderbenefitagreementstobeavaluableandeffectivetooltoaddresscommunityneeds. Thedevelopmentcommunityisdividedontheirmeritssomefindthemadvantageoustosecuring projectapprovalsandsubsidies,whileothersdecrythemasexactionsthataddtotheriskof developmentandjeopardizeprojectfinancing.35 Thusfar,benefitagreementshavenotbeenamajorfactorinNewYorkCitydevelopment.Between 2006and2009,36theCityPlanningCommissionapprovedoneprojectwithfloorareainexcessof 500,000squarefeetoverthatpermittedasofrightandsevenspecialzoningdistrictsandlargescale developmentplanswithlotareasinexcessof27acres.TheEDCapprovedsubsidizedfinancingfor
32
TheseincludeMarltonSquare,LosAngeles,CA;DearbornProject,Seattle,WA;SunQuestindustrialPark,LosAngeles,CA;BallparkVillage, SanDiego,CA;GatesRubberCompany,Denver,CO;OaktoNinth,OaklandCA;GrandAvenue,LosAngeles,CA;AtlantaBeltlineauthorizing legislation,GA;andParkEastRedevelopmentCompact,Milwaukee,WI. 33 Theseinclude14agreementsnegotiatedoutsideNewYorkCitydescribedinAppendixBandfouragreementsinNewYorkCitysummarized inAppendixA. 34 SeeAppendixA. 35 UnderstandingCommunityBenefits,PatriciaE.SalkinandAmyLavine,ThePracticalRealEstateLawyer(July2008),availableat http;//ssrn.com/abstract=1157613. 36 SeeAppendixC.Thechartillustratesaproposedprojectthatsoughtmorethan500,000squarefeetoffloorareaoverthatpermittedasof right,aswellasrezoningsthataffectedmorethan27acresinlotarea.
18
anothersixprojectsinexcessof$75million.37Onlytwooftheseprojectswerethesubjectofbenefit agreements.
PBAFORMATION,IMPLEMENTATION,ANDOVERSIGHT
Negotiation,implementationandoversightofbenefitagreementshavetakenanumberofdifferent forms.Typically,eitheracommunitygroupwillidentifyitsneedsandinitiatenegotiatewiththe developer,oracitywideorganizationsuchastheLosAngelesAllianceforaNewEconomy(LAANE),or nationalorganizationsuchasthePartnershipforWorkingFamilies,mayorganizeacommunitycoalition andhelpittonegotiateabenefitagreement.Negotiationsinseveralcaseswereinitiatedbya developer. Afteritsexecution,termsofabenefitagreementcanbeintegratedintotheregulatoryagreements betweenlocaldevelopmentagenciesorcontractswithaCity,ortheycanremainstandalone agreementsbetweenthenegotiatingparties.Inthecaseoftheformer,theyareenforceablethrough remediescontainedintheregulatoryagreementorcontract.Inthelattercase,performanceis monitoredbythecommunitysignatoriesandanenforcementactioncouldbebroughtinacourtoflaw. Thedifferingorganizingandimplementationstructuresarediscussedbelow.
PublicversusPrivatePBAs
Municipalagenciesareresponsibleforoverseeingimplementationofelevenagreementsnegotiated elsewhereinthecountrybetween1990and2008.Infourcases,termsnegotiatedbyacommunity coalitionweresubsequentlyintegratedintoadevelopmentagreementexecutedbythedeveloperwith thelocalredevelopmentagency38and,inonecaseinvolvingacitywideWiFicontract,thetermswere integratedintoafranchiseagreement.39Inanotherfivecases,agreementswerenegotiatedby communitycoalitionsandthenformallyincorporatedintodevelopmentagreements.40 Sevenagreementslackaformalgovernmentrole.Theseprivateagreementsincludethreeprojects outsideNewYorkLongfellowStation,Minneapolis,MN;PeninsulaCompostCompany,Wilmington, DE,andSugarHouseCasinoinPittsburgh,PA.TheremainingfouragreementsconcernNewYorkCity projects(althoughtheCityprovidedfundingandmediationservicestothepartiesduringthe negotiationprocessoftheManhattanvilleCBA).
ISSUESRAISEDBYEXISTINGPBAs
Pastbenefitagreementshavebeencitedaslackingaccountabilityandtransparency,aswellasbeing badbargainsstruckbygroupsdisadvantagedbyalackofknowledgeandnegotiatingpower.They characteristicallyhaveweakmechanismstomonitorandenforcethem.Atthesametime,some developershavecometofearthatcommunitydemandswilldelayconstruction,jeopardizefinancing,or makeprojectsunprofitable.
37 38
SeeAppendixD. SeesummarydescriptionsoftheHollywood&Highland,BroadcastCenterPartnersShawdistrict,YaleNewHaven,andPenguins agreementsinAppendixB. 39 SeesummarydescriptionoftheMinneapolisDigitalInclusionagreementinAppendixB. 40 SeesummarydescriptionsoftheHollywood&Vine,LosAngeles,CA;L.ALive:LosAngelesSports&EntertainmentDistrict,LosAngeles,CA; NoHoCommons,LosAngeles,CA;CIMproject,SanJose,CA;andLAXAirportExpansion,LosAngeles,CAinAppendixB.
19
LackofAccountability
Thereisacleartensionarisingoutofthequestionofwhorepresentsthecommunity.Whilegroups negotiatingbenefitagreementsmaytakecaretoinvolvecommunityresidentsandlocalbusinesses, protectagainstconflictsofinterest,andensureaninclusivebargainingprocess,atbottom,thereisno consensusastowhatthecommunityiswhetheritistheimmediateneighborhoodsurroundinga proposedproject,alargerarea,oranadvocacygroup.Inaddition,thereisnoconsensusonhowa negotiatingprocesscanbemademoreaccountable.Thisissueishighlychargedbecausethe negotiatorswillnaturallybeperceivedtobemotivatedbytheirownagendasandindividualsorgroups thatarenotatthetablewillpresumethattheirinterestsareignored.Asonecommentatorputit: [t]herearenosafeguardsinplaceotherthanthosethegroupsimposeonthemselves;no mechanismforensuringthatthosewhoclaimtospeakforthecommunityactuallydoso;no guaranteedforumthroughwhichthecommunitycanexpressitsviewsaboutthesubstanceof theCBAorthewisdomofenteringintoaCBA;andnoformalmeansbywhichthecommunity canholdnegotiatorsaccountableforthesuccessorfailureofaCBA.41 Strictlyspeaking,thereisnowaytodeterminehowcoalitionsofcitywideenvironmental,labor, religious,andevenneighborhoodbasedorganizationsareaccountabletolocalresidents.These coalitionsarelargelyselfselectinganddonotdependonaformalvotefromlocalresidentsand businessestorepresentthem.Someagreementscontainsignificantconcessionsconcerningpurelylocal issuesordirectprojectimpacts.Examplesincludethecomprehensiveenvironmentalandnoise mitigationsprovidedbytheLAXAirportCBA,thechildasthmascreeningprovidedthroughtheYaleNew HavenHospitalagreement,andthehotlineforreportingcomplaintsabouttrucktrafficorodors providedbyaCBAconcerningaWilmington,Delawareorganicwastecompostingfacility.However, manyotherslargelyreflectbroadcitywideconcernssuchasaccesstoconstructionjobs,laborstandards, andtheprovisionofaffordablehousing.Localresidentsandbusinessescareabouttheseissuesaswell, butmayhavedifferentpriorities.Theagreementsraiseaquestionastowhomthenegotiatingparties wereaccountable. ThefourmajorbenefitagreementssignedinNewYorkCityallproceededwithahighdegreeof accountabilitytothecommunitiesinwhichtheseprojectswereproposedinasmuchaselectedofficials lednegotiationsfortwoGatewayCenterandYankeeStadiumandwereinstrumentalintheprocess leadingtotheAtlanticYardsandManhattanvilleCBAs.However,althoughelectedofficialsaredirectly accountabletothecommunitiestheyrepresent,theprocessesleadingtosomeoftheseagreements havebeencriticizedforaperceivedlackofparticipationbyindividualneighborhoodresidentsand businesses.Forexample,onlyonepublicmeetingwasheldconcerningtheYankeeStadiumproject, afterwhichcloseddoornegotiationswereheldbetweentheYankees,theOfficeofBronxBorough President,andthelocalCityCouncilmembers. Totheextentthatimportantconstituenciesandcriticalinterestsareabsentfromthenegotiation process,thelegitimacyoftheagreementwillsuffer,atleastamongthosewhoperceivethattheir interestsarenotrepresented.Forexample,somelocalresidentswhobemoandelaysinthe replacementofMacombsDamParkblametheYankeeStadiumCBAforprioritizingBronxwidebusiness developmentovertherecreationneedsofthelocalcommunity.
CommunityBenefitAgreements:ANewLocalGovernmentToolorAnotherVariationontheExactionsTheme?ProfessorVickiBeen, WorkingPaper2010,NYUFurmanCenterforRealEstateandUrbanPolicy.
41
20
LackofFairness
TechnicalassistancewasfoundtobeanessentialelementofaneffectivePBAprocess.TheTaskForce foundthatnineofthe14agreementsexecutedoutsideNewYorkwerefacilitatedbysophisticated organizationssuchastheLosAngelesAllianceforaNewEconomy(LAANE)orthePartnershipfor WorkingFamilies,whichhelpedorganizelocalcoalitions,developnegotiatingterms,draftagreements andnegotiatewithdevelopers.Theagreementstheycontributedtocharacteristicallyhavetermsthat aremoreenforceableandremediesfornoncompliance. Withoutoutsidehelp,communitycoalitionsaregenerallynotwellmatchedinanegotiationwitha developmentteam,whichcanincludeacadreoflawyersandconsultants.Localresidents,small businesses,andcommunitygroupsoftenlackaccesstotheinformationorexpertisenecessaryto thoroughlyevaluateprojectimpactsandtodevisemitigations.Theymaylackexperiencewiththereal estatedevelopmentandcontractnegotiationsandgenerallyhavelimitedornoresourcestohire consultantswhocanadviseandguidethemthroughtheprocess. Attheveryleast,theinexperienceofthecommunitybasedpartiescancausemajorheadachesfor developers,butatitsworst,itcanprecipitatefinancialdisaster.Negotiationofabenefitagreementcan takeayearormoreandaddunpredictabilitytothedevelopmenttimetable,whichcanjeopardize financinganddelayconstruction.Moreover,communitygroupsmaymakeexcessiveandunreasonable demandsthataredifficult,ifnotimpossibletomeet,andproposewellintentionedtermsthatare inordinatelycomplicatedtoimplement.
LackofTransparency
CBAshavebeenassailedbothforalackoftransparencyintheirnegotiationaswellasforthefailureof thesignatoriestomakethempublic.Althoughsomebenefitagreementshavebeenmadepublic,others arenotreadilyavailable.WhileagreementsnegotiatedbyLAANEcanbedownloadedfromthe organizationswebsite,securingotheragreementsresemblesascavengerhunt.Withoutpublic disclosureofthetermsofabenefitagreement,independentmonitoringorassessmentofthe commitmentsisnotpossible.
LackofFeasibility
TheManhattanvilleCBAandseveralbenefitagreementsoutsideNewYorkdependonthecreationofa newnotforprofittoimplementthetermsoftheagreement.Typically,thecommunitycoalitionand thedeveloperwillagreeonasumofmoneythatwilleitherpayforthedeliveryofservicesdirectlyby thenewlycreatedorganizationorthroughacontractbetweenoneormoreexistingorganizationsand theneworganization. Thereareanumberofpotentialpitfallstothisarrangement,nottheleastofwhichrelatestotimingof servicedeliveryandadditionaloverheadcosts.Developmentofanorganizationrequiresrecruitmentof agoverningbody,incorporation,rentingofficespace,establishingaccountingsystems,creating organizationalpolicies,andhiringstaff.Theprocesscantakeonetotwoyears,andgenerallywillnot startuntilafterprojectapprovalandsecuringoffundsfromthedeveloper.Duringthattime,noneof theservicesexpectedfromthebenefitagreementwillbedelivered.
21
LackofEnforceability
A. ManyofthePotentialSignatoriestoaPBALackaLegalBasistoEnforcetheAgreement.
ThevalidityoftraditionalCBAshasnotyetbeentestedbythecourts,eithernationallyorinNewYork, buttherearequestionsastowhethertheseprivatebenefitagreementscouldsurvivealegalchallenge. Privateagreementsgenerallydependonatheoryofcontractsinwhichtheagreementbysignatoriesto supportaprojectisconstruedtorepresenttheconsiderationrequiredtobevalidandenforceable.42 However,itisunclearwhethersuchapromisecanserveasconsiderationforanenforceablecontract becauseacitizencannotbargaintovoteortorefrainfromvotinginreturnforaprivatebenefit.43 Andevenifacourtfoundsuchapromisetobevalid,theimbalancebetweenwhatispromisedby nonprofitsignatoriesandthepromisesmadebyadevelopercouldrenderthecommunitysignatories considerationinsufficient.Anexceptionispossiblewheretheorganizationscommittoprovidespecific servicesastheirpartoftheexchange.44 Inaddition,manypotentialpartiesclearlylackthelegalcapacitytoenforceabenefitagreementunder NewYorklaw.Forexample,measurespromisedinabenefitagreementmaybeunenforceablebynot forprofitsignatoriesunlesstheyareclearlyconsistentwiththeirmission.Alsobenefitagreements cannotbeenforcedbycommunityresidentsandbusinessownerswhomaybetheintended beneficiariesoftheagreements,45orbycommunityboardsorelectedofficialsactingintheirofficial capacity.Ascreaturesofstatutes,neitheracommunityboardnoranelectedofficialhasaninherentor commonlawrighttosue,whichmustbederivedfromrelevantenablinglegislation.46
B. PBAtermsmaylacksufficientspecificity.
Anotherbartoenforceabilityisthatbenefitagreementsareoftencharacterizedbytermsthatarevague andtimeframesthatlackthespecificityrequiredtodemonstrateameetingoftheminds.For example,manybenefitagreementscontaintermsthatshowintentratherthanfixedobligations.Parties tosuchagreementshavesimplyignoredtheirobligations.

C. PBAslackenforcementstructures.
Characteristically,agreementslackreportingrequirementsbydevelopersandongoingmonitoring mechanisms.Theygenerallyfailtoincludeanoperatingagreementthatspecifiesresponsibilityfor
42
See,e.g.,CommunityBenefitsAgreements:Definitions,Values,andLegalEnforceability,JulianGross,JournalofAffordableHousing,p.39 (Fall2007/Winter2008). 43 RESTATEMENTOFCONTRACTS567cmt.a(1932). 44 StrategiesandLessonsfromtheLosAngelesCommunityBenefitsExperience,BenjaminS.Beach,JournalofAffordableHousing.,p.105 (Fall2007/Winter2008).Beachcitestheexampleofanorganizationwhichenteredintoafirstsourcehiringagreementwitharestaurantin whichitagreedtoprovideoutreach,intake,screeningandreferralservicestopotentialjobapplicants. 45 st SeeBranchv.RiversideParkCommunityLLC,2010NYSlipOp.5472(1 Dept2010)(dismissalofcomplaintbyMitchellLamatenants challengingthemodificationofgroundleasewhichdeletedtheprovisionrequiringthatthebuildingbemaintainedforpersonsoflowand moderateincomebecausetheycouldnotshowthattheleasewasintendedfortheirbenefit).Apartyseekingtoenforceacontractasa thirdpartybeneficiaryhastheburdenofdemonstratingthatthecontracttermsgrantitanenforceableright.SeealsoFourthOceanPutnam Corp.v.interstateWreckingCo,Inc.66NY2d38(1985).Alocalresidentwhowasnotspecificallynamedbytheagreementwouldbe unabletoestablish(1)theexistenceofavalidcontractbetweenotherparties;(2)thatthecontractwasintendedforhisorherbenefit;and (3)thatthebenefittohimissufficientlyimmediate,ratherthanincidental,toindicatetheassumptionbythecontractingpartiesto nd st compensatehimifthebenefitislost.Aliceav.CityofNewYork,145A.D.2 315,317(1 Dept1988).Intenttobenefitathirdpartycan alsobefoundwhennooneotherthanthethirdpartycanrecoverifthepromissorybreachesthecontractorthelanguageofthecontract otherwiseclearlyevidencesintenttopermitenforcementbythethirdparty.Id. 46 NYCChartersection2800doesnotexpresslyauthorizecommunityboardstobringsuitundertheNYPublicOfficerLaw,Section8490.Such authoritycannotbeconstruedasanecessaryimplicationofalocalcommunityboardsotherpowers,sincethereareclearindicationsinthe nd legislationthatnoauthoritytosuewasintended.CommunityBoard7v.Shaffer,84N.Y.2 148(1994).
22
executionandenforcement.47Becauseofthelackofspecificreportingrequirementsandmonitoring structures,theTaskForcewasunabletocategoricallyverifythatanyCBAwasimplementedin conformancewiththeagreementsrequirements.Thereweremyriadreasonseitherthecommunity coalitionmembersnolongerexistorcannotbelocated,orthestafferassignedtotrackprogressleftand wasnotreplaced,orthestaffresourcessimplyarenotthere.RoxanaTynan,DeputyDirectorofLAANE toldTaskForcestaffthatmonitoringanagreementisafulltimejob.Asimilarstoryistrueforthe governmentagencieschargedwithoverseeingdevelopmentagreements.CatherineSettanni,a memberoftheMinneapolisDigitalInclusionTaskForcereportedthatimplementationofsomeofthe keycommunitybenefitssecuredbythatcitysdigitaldivideagreementhadstalledbecauseofthelack ofresourcesforcitystaffersoroutsideorganizationstoperformthisjob.48
47 48
Forexample,theManhattanvilleProjectCBAsetsaside$76millionforimplementation,butcontainsnospendingprotocols. DiscussionsandemailcorrespondencewiththeTaskForcestaff,September15,2010andSeptember21,2010.
23
VI. Recommendations
NewYorkCityneedsaframeworkthatprovidesgreateraccountability,transparency,andenforceability intheprocessleadingtobenefitagreementsforlargepubliclyassisteddevelopmentprojects.The frameworkweproposecreatesclearexpectations,encouragesbroadbasedparticipation,andresultsin enforceablepublicbenefitsthatcomplywithlegalstandards. AsaTaskForceofstakeholdersinNewYorkCitysfuture,webelieveitisintheinterestsofCity governmenttoadoptstandardsthatintroducecredibilityandpredictabilitytoaprocessthathasbeen proceedingwithoutgenerallyacceptedguidelines.Doingsowillgoalongwaytowardpreventingfuture projectsfrombeingdelayedorderailedbydeadlockednegotiations.Thethirdpartytechnical assistanceweproposewillhelpresidentsdeveloptermsthatresultinrealbenefitsandthattarget investmenttocommunitiesthatneedit. Whiletheprinciplesofaccountabilityandtransparencyshouldapplytoallpublicbenefitagreements, thestandardsweproposearedesignedspecificallyformajorprojects,whichwedefineas developments: (i) seekingfloorareaof500,000squarefeetinexcessofwhatispermittedasofright;and/or (ii) withpubliclysubsidizedfinancingvaluedat$75millionormore;and/or (iii)generatedthroughlargescaleplansandSpecialDistrictdesignationsinexcessof27acres. Aplanningandnegotiationprocessassistedbyprofessionalswouldbeginwiththeonsetof environmentalreviewandendwithcertificationofzoningapplicationsbytheDepartmentofCity Planning,therebyallowingbenefitmeasurestobeconsideredinconjunctionwithlandusereview. Toimposelastingreformonthedevelopmentprocess,theTaskForcerecommendsadoptinglegislation codifyingthesestandards.Mandatingofstandardswillensurethatfuturebenefitagreementsare consistentlyresponsivetoidentifiedcommunityneedsandareenforceablebyCitygovernment.
PRINCIPLESOFTHEPBAPROCESS
Accountability
Publicbenefitagreementscanbemademoreaccountablewithguidelinesthatensurebroadbasedand informedcommunityparticipation.
A. EncourageInformedCommunityParticipationEarlyintheDevelopmentProcess.
Agreementslargelydefinedbycommunitymemberswillmoreeffectivelyidentifylocalneedsand developsolutionsthatoffsettheimpactsandburdensofaprojectonthesurroundingarea.Forthis reason,localresidentsandbusinessesshouldformthenucleusofanegotiatingteamassistedbyelected officialsandotheradvisors. Theprocessofbuildingabroadbasedgroupofengagedstakeholdersoughttobeginimmediatelyafter submissionofanEnvironmentalAssessmentStatement(EAS)totheleadgovernmentagency.49This pointisearlyenoughinthedevelopmentprocessthatmitigationtermscanbereflectedintheCEQR

49
EithertheDepartmentofCityPlanningortheNYCEDCwouldactasleadagency.
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process,butisfarenoughalongthattheprojectiswelldefined.50AfterreceiptoftheEAS,thelead agencywouldsendaprojectdescriptiontotheboroughpresidentandtheCityCouncilmember51 representingthedistrictinwhichtheprojectisproposed. TheCityCouncilmember(orstatelegislatoriftheprojectrequiresstateapproval)andborough presidentwouldthenjointlyconveneaforumorsetofforumswiththeaffectedcommunityboard(s)to discusstheproposedprojectandestablishanegotiationteam.TheTaskForcerecommendsthat meetingnotificationbeprovidedto: (i) allresidentsandbusinesseswithina400footradiusoftheproject;52 (ii) membersoftheaffectedcommunityboard(s); (iii) communityboardmailinglists; (iv) localdevelopmentcorporations(LDCs)andbusinessimprovementdistricts(BIDs)servingthe affectedarea;aswellas (v) postingsinatleastonecitywidenewspaperandonecommunitynewspaperorlocalblog. Projectnotificationwouldincludeaninvitationtooneormorecommunityforumstodiscusstheproject anditspotentialimpacts.Stakeholderswouldbeinvitedtoparticipateinaplanningprocesstoidentify andevaluatecommunityneeds,whichwouldbethebasisforprioritizingandselectingthepublic benefitspackagefortheproject.Electedofficialsandthecommunityboardwouldformanegotiation teamfromtheparticipantsinthisplanningprocessandmeetwiththedeveloper.53Alldecisionsinthis processwouldbereachedbyconsensusinpublicmeetings.
Fairness
Fairnessmeansthatthetermsofabenefitagreementshouldclearlyreflectcommunityneedsandbe proportionaltotheimpactscreatedbytheproject,andthatthenegotiatingprocessshouldbeas balancedaspossibleandavoidunduecostanddelays.Thenegotiationprocessshouldbetimelimited andtheoutcomesmustbewithinthecapacityofthesignatoriestoimplement.
A. IdentifyingandQuantifyingCommunityNeedsandPotentialEnvironmentImpactsShouldBetheBasis oftheNegotiatedBenefitAgreement.
TheSupremeCourthasheldthatthevalidityofexactionsarisingoutofthelanduseprocessdependson theirnexustotheproposedprojectandtheirproportionalitymeaningthatcommunitybenefitssought inconnectionwithazoningapprovalmustdirectlyrelatetotheimpactscreatedbythatrezoningandbe proportionaltothoseimpacts.Althoughmostbenefitagreementsareprivatecontractsoutsidethe ambitoftheNollanDolandecisionsdiscussedabove,theTaskForcerecommendsthattheirterms shouldnonethelessoriginatewithaplanningprocessthatassessesafullrangeofexistingconditionsand projectedimpactsoftheproposeddevelopment.Thiswouldincludeanevaluationofsocioeconomic andenvironmentalconditionssurroundingtheproject,includinglocalhousing,transportation, education,healthcare,parksandrecreation,workforceandbusinessdevelopment,andretailshopping needs.
50
Currently,thepublicwouldnotbeawareofthescopeofaproposedprojectuntilaftertheprojectswerecertifiedbytheDepartmentofCity Planning,whichcouldoccurmuchfurtherinthefuture. 51 Ifaprojectoverlappedtwodistricts,bothCouncilMemberswouldbenotified. 52 CEQRTechnicalManual,Section310,p.212(May2010). 53 Ifanymemberofthecommunitycoalitionbecameaplaintiffinalawsuitchallengingtheproposedproject,theywouldnecessarilyhaveto beprecludedfromfurthernegotiationsonthePBA.
25
ThisprocesswouldcovermanyoftheissuesaddressedinaSection197aplan,inwhichcommunity boards,theCityPlanningCommission,andboroughpresidentsprepareplansforthedevelopment, growth,andimprovementofthecityandofitsboroughs.Thecomprehensiveplanningprocess involvedinthepreparationofa197aplangenerallyincludesrobustpublicparticipationandprovidesa frameworkforfuturechangesbasedonanassessmentofpresentandfutureconditionsandneeds.For example,the197aplansforMorrisaniaintheBronxandChelseainManhattanhelpedshapefuture planning,zoning,anddevelopmentdecisionsinthoselocalneighborhoods.Whereacommunityhas undertakena197aprocess,itmaybepossibletorelyonthealreadycollectedinformation,aswellas oncommunityboarddistrictneedsstatements. Thecommunityneedsidentifiedthroughtheplanningprocessshouldformthebasisforallfuture benefitagreements.Forexample,ifitisfoundthatrecreationalspaceintheonemileareasurrounding theproposeddevelopmentislowerthanthecitywideaverage,thenegotiatingteammaydecidetoseek acommitmentfromthedeveloperorCitytosetasidelandforalocalpark.Similarly,datashowingthat schoolovercrowdingintheareawouldworsenaftercompletionoftheproposedprojectcouldbuttress thecaseforbuildinganewpublicschoolintheagreement.
B. PBADevelopmentShouldBeFacilitated.
Developmentofagoodbenefitagreementdemandsawiderangeofexpertise.Forexample, assessmentofcommunityneedsrequiresexpertiseinplanning,research,anddataanalysis.Negotiating anenforceablebargainandmanaginganegotiatingteammayrequireconsultantsandadvisorswhocan guidecommunitymembersthroughtheprocess. Anindependentconsultantshouldbedesignatedtohelpelicitandcoordinatepublicparticipation,as wellastostafftheplanningprocessandmediatenegotiations.Theprocessofdeployingtheconsultant couldproceedasfollows:aftertheEASissubmitted,theleadagencywouldnotifytheCityCouncil memberandboroughpresident,whowouldthenrequestconsultantdesignationbytheleadagency. AnotheroptioncouldutilizetheexistingCityChartermandateforcommunityboardstohireplanners, whocouldbefundedonanadhocbasistoconsultonlargedevelopmentprojects.Theconsultantcould bedrawnfromaprequalifiedpoolselectedbyapanelmodeledonthatforthePercentforArt Program54afteranRequestforQualifications(RFQ)wasissuedbyaCityagencyinconsultationwith thelocalcommunityboard.55Thecommunityboardshouldalsoplayaroleinselectingtheconsultant, whowouldberesponsibleforprovidingacommunityneedsassessmentaswellasmanagingtheprocess leadingtoanagreement.Theconsultantcouldbepaidfromaportionofthedevelopmentfees currentlycollectedbyEDCorfromaPublicPurposeFundadministeredbyEDCoranotherCityagency.
C. TheCostofDeliveringPBATermsMustBeQuantifiedandBeProportionaltothePublicAssistance ProvidedtotheProject.
Attheendoftheplanningprocess,thecommunitynegotiatorswillprioritizethebenefitstheyintendto seekinconnectionwiththeproposedproject.Bythen,theconsultantwillhavepricedtheprojects (providingconstructioncostestimatesforcapitalprojects;projectedwageandadministrativeexpenses forsocioeconomicprograms,etc.).Afterthecostoftheitemsonthecommunitywishlistare

54
PercentforArtrequiresthatonepercentofthebudgetforeligibleCityfundedconstructionprojectsbespentonartworkforCityfacilities. Artistsareselectedbyapanelthatincludesartprofessionals,representativesofcityagenciessponsoringthecapitalproject,aswellas representativesoftheboroughpresident,CityCouncilMemberandcommunityboard. 55 PotentialplanningconsultantscouldincludePrattCenterforCommunityDevelopment,firmssuchasHamilton,Rabinovitz&Alschuler,Inc., andtheLocalInitiativesSupportCorporation,whichplayedaninstrumentalroleintheplanningprocessleadinguptotheManhattanville PBA.Thecostofplanningandtechnicalassistanceconsultingisestimatedatbetween$10,000and$30,000permonth,dependingonthe sizeandscopeoftheproposeddevelopmentprojectaswellasdurationofthenegotiations.
26
calculated,theprojectswouldbeprioritizedbythecoalition.Thecosttodelivertheproposedbenefit agreementcommitmentsmustbequantifiedbeforenegotiationsbegin. Largerprojectscanbeexpectedtoimposegreaterimpactsonneighborhoodsthansmallerprojects. Becausetheprimarypurposeofabenefitagreementistomitigateprojectrelatedimpacts,thetotal valueofanegotiatedpackageofbenefitsshouldbeproportionaltothesizeofthesubjectdevelopment andtothetotalvalueofthepublicassistancesoughtbythedeveloperincludingthevalueofthelot areasecuredthroughlanduseapprovalsandofanysubsidypackageadministeredthroughthe EconomicDevelopmentCorporation,theEmpireStateDevelopmentCorporation,oranother governmentagency.56

D. TheProcessMustBePredictableandTimeLimited.
Realestatedevelopmentisahighriskbusiness.Developmentcanbeprofitableduringaboomperiod, butabustcanprecipitatebankruptcy.Forexample,atleastnineofthebenefitagreementsnegotiated intheUnitedStatesbetween2003and2008werenotimplementedorwerescaledbackduetothe economicdownturnineachcase,prospectivetenantspulledoutandcouldnotbereplaced,financing disappeared,orthedeveloperwentbankrupt.Furthermore,thestateoftheeconomyhasmadebanks morewaryandriskaverse.Lendinginstitutionsmaybeunwillingtomaintainafundingcommitmentif projecttimetableschangeorthecostofaprojectincreasesunpredictably. Forthesamereason,itisimportantthatthenegotiatingprocessoccuroverafiniteperiodoftimeand becompletedbeforeaprojectrequiringlanduseapprovalsiscertifiedbytheDepartmentofCity Planning.Inthisway,thebenefitagreementtermscanbeconsideredduringtheULURPprocess.
Transparency
A. PotentialConflictsofInterestShouldBeAvoided.
Theroleofthenegotiatingteamistorepresentthecommunityandtostrikeanagreementthat representscommunitystakeholders.Tominimizepotentialconflictsofinterest,membersofthe negotiationteamshouldagreetoneithersolicitnoracceptdirectfundsfromdevelopersandtobe barredfromfuturecontractsimplementingthebenefitagreement.Signatoriesshouldliveorworkinthe community.

B. ExecutedAgreementsMustBeMadePublic.
Makingbenefitagreementsavailableonlinewouldincreaseopportunitiestomonitorthe implementationofterms.Havingagreementspubliclyavailablewouldalsoallowcommunityresidents whoaretheintendedbeneficiariestobecomeawareofpotentialemploymentopportunitiesandother negotiatedbenefits.Doingsoalsohelpsreducethepotentialforconflictsofinterest.
56
AsindicatedbyAppendixCandAppendixD,oneprojectandsevenspecialzoningdistrictsanddevelopmentplansapprovedbytheCity PlanningCommissionbetween2006and2009,andsevenprojectsapprovedbyEDCduringthesameperiodwouldhavemettheproposed PBAthresholds.
27
Feasibility
A. ImplementationShouldRelyonExistingStructuresRatherThanCreatingNewOnes.
Ratherthanreinventingthewheeltothelargestextentpossible,implementationofbargainedfor termsshouldrelyonexistingstructuresratherthancreatingnewones.Doingsowouldreduce administrativeoverheadandotherexpenses,expeditethedeliveryofcommunitybenefits,limit potentialconflictsofinterestandbemorecosteffective.Forexample,arecentcasestudy demonstratesthatimplementationoflocalhiringrequirementsinbenefitagreementswasmost effectivewhenitreliedonexistingworkforcedevelopmentorganizations.57 TheDepartmentofSmallBusinessServiceshasdevelopedastructuretofacilitatelocalhiringbyprojects subsidizedbyEDCthathassuccessfullyfilledjobscreatedbythedevelopmentoftheTimeWarner Center.APBAaimedatencouraginglocalhiringcouldpotentiallybuildontheSBSmodelandtheCitys existingworkforcedevelopmentinfrastructure,thussavingtimeandmoneyindeliveringthisimportant benefit.58
B. ThereMustBeCapacitytoImplementtheProposedTerms.
ProposedtermsthatrelyonunsecuredappropriationsbytheCityorStateorfurtherlegislativeor administrativeactionsshouldbeavoided.Bargainedfortermsshouldbesusceptibleofbeingprovided withoutadditionalorongoingsubsidiesfromtheCityorState.
Enforceability
A. AllPBATermsMustBeClear,ConcreteandHaveaScheduleForImplementation.
AstheBarAssociationsreportpointsout,benefitagreementsphrasedinaspirationaltermsmakeit hardtodetermineexactlywhatisbeingpromised.Phrasingadevelopersobligationsintermssuchas thedevelopersagreetowork...towardsthecreationofa[h]igh[s]choolorthedeveloperswillseek toandintendtoperformvariousactions,donotactuallycommitthedeveloperstodoso.Thesame istrueforprovisionsthatdeferspecifics,suchasthedeveloperwillprovidespaceforadaycarecenter atrentandtermstobeagreedupon.Werecommendreviewbyanexperiencedattorneytoensure thattermsaresufficientlyprecise.
57
MakingDevelopmentWorkforLocalResidents:LocalHireProjectsandImplementationStrategiesthatServeLowIncomeCommunities, KathleenMulliganHansel,PhD,PartnershipforWorkingFamilies(July2008).HansellnotesthatTrizecHahn,developeroftheLosAngeles HollywoodandHighlandproject,wasrequiredbythePBAtousebesteffortstocreate323fulltimeequivalentjobs,with165jobstobe availabletoLowandModerateIncomepersonswithin36months.TrizecHahnsucceededincreatingatotalof656fulltimeequivalent positionswith235filledbylowandmoderateincome(LMI)workers,afteranexperiencedworkforcedevelopmentconsultantconvenedan implementationteamthatincludedworkforcecenters,communitybasedorganizations,andthetenantbusinesses.Communitybased organizationsrecruitedjobseekers,workforcecentersdidinitialprescreeningandidentifiedworkersforthejobs,localjobtrainingagencies preparedcandidatesthroughpreinterviewsandtrainingandthenreferredthoseworkerstoemployers. 58 ApplicantsforCityassistanceshouldberequiredtoidentifythenumberofjobstobecreated,thejobtitlesandskillsrequiredforthe projectednewjobsandtodevelopahiringandrecruitmentplaninconjunctionwiththeDepartmentofSmallBusinessServices(DSBS). Workforcedevelopmentorganizationslocatedwithinaonemileradiusoftheproposeddevelopmentshouldbenotifiedoftheproject developmenttimetable.Threemonthsbeforetheopeningoftheproject,thedevelopershouldprovidehumanresources(HR)contact informationforeachprojecttenanttoDSBS.DSBSshould,inturn,identifythenumberofopeningsandtheirjobtitlesandskills requirementsforeachtenant,thehiringprocessandtransmitthisinformationtolocalworkforcedevelopmentorganizationsandtothe relevantWorkforce1Center.JobdevelopersatbothwillberesponsibleforprescreeningandreferringqualifiedapplicantstotheHR representatives.Prescreeningofapplicantsisamajorboontoemployersandcanbearealinducementtolocalhiring.
28
B. AllPBAsShouldSetForthanAccountableEnforcementStructureThatIncludesReportingRequirements ForTerms,CureAndRemedyProvisions,andIsNotOverlyBurdensome.
Benefitagreementsmustassignresponsibilityforperformancemonitoring,specifyhowandwhen performancereportswillbecomeavailable,andwhatwillhappenifcommitmentsarenotfulfilled.At thesametime,caremustbetakentopreventcompliancefrombeingundulyburdensome.Termsthat requireongoingmonitoringoveraperiodofyearscanpresentpracticaladministrativechallengesand becostlytoadminister.Successfulbenefitagreementshaveestablishedcommunityadvisoryboards wherethosewhonegotiatedwiththedevelopermeetonaregularbasistoidentifyandresolveissues.

C. WherePossible,PBATermsShouldBeMadeEnforceablebytheCityandEDC.
AsdiscussedinSectionV.,privatebenefitagreementsappeartobeunenforceableinNewYork. Therefore,itmakessensetofollowthemodeladoptedbyothermunicipalitiesforbenefitagreements thatmeettheTaskForcesstandardsandtoincorporateCBAtermsintotheCitysdevelopment documents.Forexample,forprojectssubsidizedthroughEDC,thetermsofthebenefitagreement negotiatedwiththecommunityshouldbeintegratedintotheregulatoryagreementwiththedeveloper, therebyallowingenforcementbyEDC,insteadofrelyingonlegalenforcementbyprivateindividualsor organizationsthatmaylackstandinginthecourts.Incorporatingcommunitybenefitsintoaregulatory agreementwillallowtheimplementationofthosebenefitstobemonitoredandenforcedbyCity governmentaswellasbythecommunity.

D. PhysicalProjectImpactsShouldBeAddressedinaRestrictiveDeclaration.
Enforcementoftermsconcerningphysicalbenefitscanbeaddressedthrougharestrictivedeclaration executedandrecordedbythedeveloperthatplacesconditionsonthefutureuseanddevelopmentof herproperty.Restrictivedeclarationsarecommonlyusedtobinddeveloperstocommitmentsfor physicalimprovementsthatmitigateprojectimpactsandsoareconsistentwiththeNollan/Dolannexus requirements.59Becausethetermsrunwiththelandandapplytoallsuccessorsininterest, performanceofthetermsisrequiredeveniftheownershipistransferred.Thedraftrestrictive declarationcanbereviewedbytheCityCouncilbeforeapprovaloflandusechangesandcanbe modifiedbytheCityCounciltotakeintoaccountchangedbusinessconditionsafterapproval. RestrictivedeclarationsareenforceablebytheCity.60 Significantprojectimpactscanbeaddressedinarestrictivedeclaration.Forexample,whentheLincoln WestprojectwasinitiallyproposedfortheWestSideRailYards,communityactivistsdocumentedthe numberofridersthatwouldbeaddedtothealreadydangerouslyovercrowdedplatformsatthe72nd StreetSubwayStation.Theywonconcessionsfromthedeveloperincludingexpandingthesubway platformsbenefitsthatwerememorializedinarestrictivedeclaration.
59
IntheEastRiverRealtyCompanydevelopmentonthesiteofaformerConEdisonsteamplant,arestrictivedeclarationcommitsthe developertobuildapublicschool,affordablehousing,and$10millionwaterfrontparkwithperformingartsspaceinconnectionwithalarge mixedusedevelopment.WithrespecttoRiversideSouth,a238pagerestrictivedeclarationcontainstermscallingforparkdevelopment, subwayimprovements,etc. 60 SeeMiddleland,Inc.v.CityCounciloftheCityofNewYork14Misc.3d1223A,2006SlipOp.52546U(Sup.Ct.2006).Middlelandchallenged theCityCouncilsrefusaltocancelarestrictivedeclarationlimitingtheuseofthesubjectpropertytoaccessoryparkingforIBM.Thecourt found(i)thattherestrictivedeclarationwasinvalidbecauseitunlawfullyrestrictedpropertybasedontheidentityoftheuser;and(ii)that CityCouncilsrefusaltocanceltherestrictivedeclarationamountedtoanunconstitutionalregulatorytakingbecauseitleftpetitioner withoutalegalusefortheproperty,asIBMnolongerownedtheadjacentproperty.
29
IMPLEMENTATIONOFTHEPBAPROCESS
Implementationoftheprinciplesabovewillvarydependingontheidentityoftheleadagencyandhow theprojectorplanisinitiated.
A. DiscreteDevelopmentsRequiringNYCLandUseApproval(s)inWhichEDCistheLeadAgency.
ThismodelwouldapplytoproposedprojectsthatmeetthestatedthresholdsforCityassistance.As discussedabove,commitmentsforphysicalimprovements(negotiatedinabenefitagreement)wouldbe incorporatedintotheprojectsrestrictivedeclaration,whileallothercommitmentswouldbereflected inthedevelopmentagreement.Anyprojectfundswouldbeadministeredbytheleadagencyand/or theDepartmentofSmallBusinessServices(inthecaseofworkforcedevelopmentfunding),as applicable.

B. LargeScaleProposedPlansinWhichEDCistheLeadAgency.
HuntsPoint,WilletsPoint,andotherlargescaleredevelopmentplanshavethepotentialtoradically alterandtransformneighborhoods.Forthisreason,evaluationofcommunityimpactsiscritical. However,thelackofaspecificdevelopertonegotiatewithmeansthattheprocessofidentifyingand mitigatingthoseimpactswillnecessarilybedifferent.Thecommunityplanningprocesswouldbemore akintoa197aplanningprocess.Insteadofadeveloper,negotiationsconcerningprojectimpactswould beconductedwithaleadagencylikeEDC,theMayorsOfficeofEconomicDevelopment,orthe DepartmentofCityPlanning.TheOfficeofManagementandBudget(OMB)wouldlikelybeinvolvedat alaterstage,inthatthecostofcommunitybenefitswouldinvolveanappropriationofCitycapital funding.

C. DiscreteDevelopmentsNotRequiringNYCLandUseApprovalinWhichEDCorESDCistheLeadAgency.
IftheEDCistheleadagencyforaproposeddevelopmentthatdoesnotrequirelanduseapprovalsor ESDCisfinancingthedevelopment,thentherewillbearestricteddeclarationcarryingforwardthe benefitagreementterms.Insuchacase,termswillbeenforceablebyEDCorESDCiftheyareincluded intheregulatoryagreementexecutedbetweentheagencyandthedeveloper.61
MONITORINGOFIMPLEMENTATION
A. TheTaskForceRecommendsThataCommunityAdvisoryBoardBeEstablishedForEachAgreement.
Manyoftheagreementswherebenefitshavebeensuccessfullyimplementedhaveestablisheda CommunityAdvisoryBoardmadeupofthesignatories.Werecommendthatasimilarbodybe createdforallfutureagreementsinconjunctionwiththelocalcommunityboardtomeetwiththe developeronaregularbasisandresolveanyissuesthatcomeupduringtheimplementationperiod. Localcommunityboardsshouldplayakeyroleinmonitoringtheimplementationoffuturebenefit agreementsbecausetheyareanestablishedgovernmentalbodyandoftenhavealonginstitutional memorywhenitcomestolocaldevelopmentprojects.
61
ThereisaprecedentforthisintheManhattanvilleCBAwherethetermswereincorporatedintotheGeneralProjectPlanexecutedby ColumbiaUniversitywithESDC.
30
B. TheTaskForceRecommendsThattheNewYorkCityComptrollerMonitortheImplementationofPBAs.
Benefitagreementsaroundthecountryhavemixedrecordsintermsofdeliveringonthepromisesmade intheheatofnegotiations.Afterthedustsettlesandinterestamongcommunitymemberswanes, implementationcanoftendependonthegoodfaithofadeveloper.Benefitsincorporatedinto developeragreementsexecutedbyredevelopmentauthoritiesmostnotablythosewiththe CommunityRedevelopmentAgencyofLosAngelesapparentlyhaveabettertrackrecordthan agreementsthatdependonprivateindividualsforenforcement.Therefore,totheextentthatabenefit agreementmeetsthestandardsdiscussedherein,andwilldeliverservicesthataredeservedor constructfacilitiesthataremerited,itisintheinterestoftheCitytomakecertainthatthoseservicesor facilitiesareimplemented. Furthermore,nearlyeveryprojectthatrequiresCitylanduseapprovalsisaccompaniedbyapackageof benefitsforthecommunityinwhichtheprojectwillbesited.Aninitialpackagemaybeofferedduring theperiodwhentheprojectisbeingheardbythecommunityboardwithadditionalbenefitsaddedto thepackagewhenapprovaloftheprojectisbeforetheCityCouncil.Becauseitissocustomaryand predictable,thecostofthebenefitstobeprofferedislikelytobeincludedintheprojectsdevelopment, sothataportionofanyCityassistanceultimatelygrantediseffectivelypayingforthebenefitsofferedto thedeveloper.Reportedly,membersoftheCityCouncilcloselyfollowedthestatusofnegotiations concerningtheCBAsfortheManhattanvilleandBronxTerminalGatewayprojectsandthevoteson theseprojectsfollowedimmediatelyaftertheconsummationoftheCBAs.Becausethebenefits negotiatedinabenefitagreementdo,albeitindirectly,haveafinancialimpactontheCity,webelieveit iscriticalfortheCityComptrollertooverseeandmonitorfutureagreements. TheNewYorkCityCharterempowerstheComptrollertoinvestigateallmattersrelatingtooraffecting thefinancesoftheCity,includingwithoutlimitationtheperformanceofcontractsandthereceiptand expenditureofCityfunds.62Basedonthisexistingmandate,theComptrollershouldmonitorthe implementationofbenefitagreements.
C. TheComptrollerShouldMaintainaDigitalRepositoryofallBenefitAgreements,RelatedRestrictive DeclarationsandDevelopmentAgreements,andPBARelatedResources.
Asdiscussedabove,thereisnocentralrepositoryforbenefitagreementsandrelateddocumentsthat currentlyallowthepubliceasyaccess.Thishampersmonitoringandenforcementeffortsofexecuted agreements,aswellasforcingwouldbenegotiatorstoworkfromscratch.

D. TheComptrollerShouldReview,onaRegularBasis,ComplianceWithRestrictiveDeclarationsand RegulatoryAgreementsOriginatingWithPBAsEstablishedinthePreviousFiveYearsandIssuean AnnualPBAComplianceReportCard.
LEGISLATIVERECOMMENDATIONS
A. TheComptrollerShouldRecommendLegislationtotheNewYorkCityCouncilCodifyingtheTaskForces
PBARecommendations.
Asnumerouscommentatorshavepointedout,themannerinwhichpastbenefitagreementshavebeen effectuatedinNewYorkCityhasthepotentialtobeunaccountable,unpredictable,andunenforceable. However,whileitisclearlyinthepublicsinteresttoreplaceaprocesswidelyacknowledgedtobe

62
NYCChartersection93(b).
31
unsatisfactorywithonethatismoreaccountable,transparent,andenforceable,itsimplementation dependsonactionsundertakenbyanumberofdifferentinstitutions,including:theEconomic DevelopmentCorporation,theDepartmentofCityPlanning,andelectedofficials.Ifoneormorefailto act,ourproposedprocesswillbreakdown.Themosteffectivewaytoensurelongtermcompliance withthenewprocessisbyadoptingitintolaw. TheComptrollerisempoweredbytheNewYorkCityChartertomakesuchrecommendations, commentsandcriticismoftheCityasheorshemaydeemadvisableinthepublicinterest.63This Chartermandategiveshimthelegalbasistoproposelegislationcodifyingtheserecommendations. Furthermore,Statelawprovidesthestatutoryframeworkforthecodificationofbenefitagreement standards.64 Asaninterimstep,theComptrollershouldsecureacommitmentbyEDCtovoluntarilyadoptthe policiesandpracticesdescribedhereinbyprovidingtechnicalassistance,communitynotification,and includingPBAtermswithindevelopmentagreements.
B. TheComptrollerShouldRecommendAdoptionofaPolicyandProcedureBytheEmpireState
DevelopmentCorporation.
ESDChasplayedandcontinuestoplayamajorroleinthedevelopmentofprojectswithinNewYorkCity thatpresenttremendouscommunityimpacts.Thedesirabilityofadoptingbenefitagreementstandards forNewYorkCityassistedprojectsappliesequallytoESDCassisteddevelopments.Therefore,we commendESDCtoadoptsimilarstandardsandproceduresandsuggestthattheAuthorityplayarole similartothatsketchedforEDC,byprovidingtechnicalassistance,communitynotification,and enshriningagreedupontermswithindevelopmentagreements.IfESDCrefusestocooperate,we recommendthattheComptrollerworkwiththeGovernor,theStateLegislature,andthePublic AuthoritiesControlBoardtoreformthepoliciesandproceduresoftheEmpireStateDevelopment Corporationanditssubsidiaries.
LONGTERMRECOMMENDATIONS
A. TheNextCharterRevisionCommissionShouldModifytheOperationsofEDCandtheDepartmentofCity Planning.
TheproliferationofbenefitagreementscanbeseenasabyproductoftheCitysfailuretoeffectively planforneighborhoodgrowthandtodevelopsolutionsforproblemsthatrequireacomprehensive citywideapproach.BenefitagreementshavebecomenecessarypreciselybecausetheDepartmentof CityPlanningseldomexaminescitywideneedsinacomprehensiveandinclusivemanner,leavingitto theCityCounciltoaddressthemonapiecemealbasis.Butaprojectbasedarrangementthatties benefitstoaparticularneighborhoodisnosubstituteforacitywideprocessthatevaluatescurrentand prospectivedemandsforbetterhousing,jobs,healthcare,childcareandschools,openspace,and transit.

63 64
NYCChartersection93(a). NYCLSGeneralCitySection81d(3)(e)authorizestheCityCounciltosetforththeprocedurebywhichincentivesareprovidedtospecific properties.Accordingtothestatute,theproceduremustdescribe:1)theincentivesorbonusesthatmaybegrantedtotheapplicantbythe City;2)thecommunitybenefitsthatmaybeacceptedbytheCityfromtheapplicant;3)thecriteriaforapproval,includingthemethods requiredfordeterminingtheadequacyofcommunityamenitiestobeacceptedfromtheapplicantinexchangefortheparticularbonusor incentivetobegrantedtotheapplicantbytheCity;4)theprocedureforobtainingbonuses,includingapplicationsandthereviewprocess, andthetermsandconditionsattachedtoanyapproval;and5)provisionforapublichearing,ifsuchpublichearingisrequiredaspartofa zoningordinance,locallaworregulation.TheguidelinessetforthbySection81d(3)(e)oftheGeneralCityLawareconsistentwiththe benefitagreementstandardsrecommendedbytheTaskForce.
32
NewYorkCityneedscomprehensivelanduseandeconomicdevelopmentplanningthatproactively shapesourfuture.AccordingtoPlaNYC2030,amillionadditionalhousingunitsareneededto accommodatethe10millionresidentsprojectedtoliveinourCitytwentyyearsfromnow.However, insteadofplanningfornewhousingorinfrastructure,CityPlanninghasinitiatedmorethan100 rezoningsthatprimarilyservetomaintaintheexistingbuiltenvironmentinmuchoftheCity. BenefitagreementsalsoarisebecauseCitylandusedecisionsarebeingmadewithlittleconsiderationof communityneeds.Rezoningapplicationsthatsupportmajornewdevelopmentsmoveforwardwithout adequateprovisionforpublicschools,transit,andotheressentialsupports.Theyalsoneglecttotake accountoformitigatenegativeeconomicimpactsonexistingbusinesses. TheChartershouldberevisedtoupdatethemissionofCityPlanningaccordingly,aswellasgive communityboardsamoresignificantroleinULURP.Asdiscussedabove,currently,communityboards holdapublichearingandthensubmitrecommendationstotheboroughpresidentandtheCityPlanning CommissionthatarepurelyadvisoryinULURP.RequiringasupermajorityofthePlanningCommission whenoverturningcommunityboardrecommendations65wouldempowerlocalresidentsandbusinesses tomeaningfullyparticipateinplanningdecisionsthatimpacttheirneighborhoods.Acitywideplanning frameworkwithamandatetotakeintoaccountneighborhoodneedswouldgoalongwaytoward renderingsideagreementsunnecessary. TheChartershouldalsoreplacetheCityseconomicdevelopmentprioritiesandexecutionwitha processthatisinclusiveandachieveslongtermCityneedsforjobs.EDCshouldberequiredtoprovide subsidydisclosuresonitswebsite,inamannerthatisclearandcomprehensible.
65
ThisispresentlythecasewhenaboroughpresidenthasrejectedthesitingofaCityfacilityinhis/herborough.
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II. Appendices
AppendixA: CommunityBenefitAgreementsinNewYorkCity
Between2005and2008,communitybenefitagreementswerenegotiatedinconnectionwithfourmajor developmentprojectsinNewYorkCity.Theseagreementsaresummarizedbelow:
AtlanticYards(2005)
A. Summary
ThefirstCommunityBenefitsAgreement(CBA)inNewYorkCitywasexecutedinconnectionwiththe 22acredevelopmentoftheLongIslandVanderbiltRailroadyards.InDecember2003,ForestCityRatner Companies(FCRC)announcedplanstoconstructa19,000seatsportsandentertainmentarenathatwill bethehometotheNBA'sNewJerseyNets,alongwith6,430unitsofhousing,officeandretailspace,a hotelandparkingonthesite.Theproposed$4.9billionprojectwouldbethelargestNYCdevelopment outsideManhattaninmorethan25years. InJuly2004,FCRCconvenedameetingofcommunitygroups,includingtheNewYorkchapterofthe AssociationofCommunityOrganizationsforReformNow(ACORN),BrooklynUnitedforInnovative LocalDevelopment(BUILD),theDowntownBrooklynOversightandAdvisoryCommittee(DBOAC),as wellasmembersofCommunityBoards2,6and8todiscussacommunitybenefitsagreement.Regular meetingscontinueduntilJune27,2005,whenFCRCsignedaCBAwitheightorganizations(the Coalition)inexchangefortheirpublicsupportfortheproject.66Undertheagreement,FCRC committedtoprovideanarrayofbenefits,including: intenttoawardatleast20percentofthetotalconstructioncontractdollarstoqualified minorityownedbusinesses(MBEs)andatleasttenpercentofthetotalconstructioncontract dollarstoqualifiedwomenownedbusinesses(WBEs); goodfaitheffortstoensurethatatleast35percentoftheconstructionworkersarepeopleof colorand10percentarefemale; leasingofatleast15percentofthegrossretailspacetoqualifiedcommunitybasedbusinesses; apromisetomake50percentofthe4,500residentialrentalunitsaffordabletolowand moderateincomefamiliespursuanttoaseparateMemorandumofUnderstandingwithACORN; communityamenities,includingahealthcenter,IntergenerationalCenter,andatleastsixacres ofparksandopenspaces; environmentalmitigations; arenarelatedprograms,includingseatsforcommunityusegroupsatleasttentimesperyear; developmentoffourschoolsandthefundingofcapitalimprovementstolibrariesand recreationalcentersatNYCHAproperties.
66
Thesignatoriesare:AllFaithCouncilofBrooklyn(AFCB);AssociationofCommunityOrganizationsforReformNow(ACORN);BrooklynUnited forInnovativeLocalDevelopment(BUILD);DowntownBrooklynNeighborhoodAlliance(DBNA);DowntownBrooklynEducationalConsortium (DBEC);FirstAtlanticTerminalHousingCommittee(FATHC);NewYorkStateAssociationofMinorityContractors(NYSAMC);andPublic HousingCommunities(PHC).TheAtlanticYardsCBAisavailableathttp://www.buildbrooklyn.org/pr/cba.pdf.
34
TheCBAsetsforthadetailedstructurefortheimplementationoftheagreement'sprovisions.To overseeoverallimplementation,anExecutiveCommitteecomposedofrepresentativesoftheCoalition andFCRCistomeetbimonthly.Theagreementalsoestablisheseightcouncilstobeheadedbya Coalitionmembertoaddresseachmajorsubjectarea.InadditiontoparticipatingintheExecutive CommitteeandheadingitsrespectiveCouncil,specificresponsibilitiesarealsodelegatedtoeach Coalitionmember.Forexample,BUILDisresponsibleforcoordination,management,implementation andinitialoversightofworkforcedevelopmentandsmallbusinessinitiatives.

B. Reporting,MonitoringandEnforcement
TheAtlanticYardsCBAcontainsclearreportingprovisionswithrespecttotheworkforceandcontracting requirements.Within30daysaftertheendofeachquarter,FCRCisrequiredtoreportontheactions takentofulfilltheagreement,includingthe: numberofcommunityresidentsenrolledinthepreapprenticetraininginitiative,the percentageofminorityandwomenworkers,thenumberwhocompletedtrainingandwere hired,thelengthoftimetheywereemployed; numberofpersonsplacedthroughtheCLEprogram; totalnumberofconstructionworkersandjourneylevelworkers,thepercentageofthemthat areminorityandwomenworkers; totalnonconstructionandconstructioncontractsawardandthepercentageawardedto communitybased,minorityorwomenownedbusinesses;and statusofjobfairs,includingthenumberofemployersparticipating,thenumberofattendees andthestatusofanyapplicantsfiledbythemwithFCRCoraffiliates. Specificimplementationtimeframesandreportingrequirementsareabsentwithrespecttotheother CBAterms. IntheeventFCRCfailstoperformatermorprovision,theCoalitionmustprovidewrittennotice documentingtheallegeddefaultandoffertomeettoresolvetheissue.FCRCthenhas60daystocure theallegeddefault.Ifthepartiesareunabletoresolvethedisagreement,theymayrequestassignment ofanindependentmediatoratFCRCsexpense.TheCoalitionmayalsoelecttowaivethedefaultto pursuebindingarbitrationorjudicialremedies.Therearealsosimilarprovisionsintheagreementto addressdefaultbyaCoalitionmember.
C. Implementation
TheAtlanticYardsprojectsecuredapprovalfromtheEmpireStateDevelopmentCorporationinearly December2006andthePublicAuthoritiesControlBoardinmidDecember2006.Theproject experiencedaseriesofdelaysduetoprolongedlitigation.Theproject'sofficialgroundbreaking occurredinMarch2010andthearenaisprojectedtobecompletedinthesummerof2012with residentialandcommercialcomponentstofollow.
35
DelaysinstartingtheprojectpushedbackimplementationoftheCBAsterms,butprogresshasbeen madeinsomekeyareas:67 Duringtheinitialphasesofdemolitionandconstruction,FCRCexceededthetotalM/WBEprime contractandtotalcontractdollargoals; 35residentsfromthelocalcommunityhavebeenplacedthroughFCRCsCommunityLabor Exchange(exceedingtheCBAs1to4requirement); AProjectLaborAgreementhasbeennegotiatedandexecutedwiththeconstructiontrade unionsandthusfarFCRChassecured200slotsfromtheconstructiontradeunionpre apprenticeshipprogramsforBUILDgraduates; BUILDhasrecentlycommenceditspreapprenticeshipprogramandtrainingisunderwayfor30 individuals;and, DiscussionsareunderwaywithFCRCandtheCoalitiontoimplementtheaffordablehousing componentoftheprojectsfirstresidentialbuilding,theestablishmentofacommunity charitablefoundation,andanewcharterschoolaswellasothertermsoftheCBA.
YankeeStadium(2006)
A. Summary
In2004,theNewYorkYankeesproposedtoconstructanewstadiumacrossthestreetfromtheir existingballparkonspaceoccupiedbytwopublicparks.Theteamsoughtextensivepublicassistance, ultimatelysecuringmorethan$1.2billioninfinancingforthestadiumandapproximately$238million foraparkinggarage.Afterconcernswereraisedconcerninglostparkland,increasedairpollutionand theextentofproposedsubsidies,theYankeessignedaCBAwiththenBoroughPresidentCarrionand BronxCityCouncilMembersBaez,ArroyoandMajorityLeaderRivera,whichpromises: toawardofatleast25percentofconstructioncontractstoBronxbasedbusinessesofwhich atleasthalfwouldbequalifiedminorityandwomenownedbusinesses; tohireandemployBronxresidentsforatleast25percentofthejobforce; technicalassistancetoBronxbasedcontractors; $1milliontofundjobtrainingprograms; environmentalmonitoringandremediationbytheYankees; acommunitybenefitsfundthatwillannuallydistributeuntil2046:(i)$800,000toBronxnot forprofitorganizations;(ii)equipmentandmerchandisewithaminimumvalueof$100,000; and(iii)15,000ticketswithanaveragepriceof$25;and tohireaprogramadministratorwithexperienceinconstruction,MWLBEprogramsandBronx communityaffairstoimplementtheCBAtermswithanannualbudgetof$450,000anda liaisonat$35,000peryear. TheprogramadministratoristobeselectedbyaFundAdvisoryPanelappointedbythesignatoriesin consultationwiththeNewYorkCityCouncilBronxDelegation.Aconstructionadvisorycommittee composedYankeesrepresentatives,theBronxBoroughPresidentandanotherBronxelectedofficial (notspecificallyidentified)willmonitorandprovideinputontheplanningandconstructionofthe projectandwillmeetmonthlywiththeYankees,theconstructionmanager,andthedeveloper.
67
BasedoninformationprovidedbyScottCantone,FCRCsSeniorVicePresidentforGovernmentandPublicAffairs,inatelephonediscussion withTaskForcestaffonSeptember21,2010andinwrittencommentssubmittedonSeptember23,2010.
36
B. Reporting,MonitoringandEnforcement
TheProgramAdministratorisresponsibleformonitoringtheprogramandforreportingtothe Yankees,theFundAdvisoryPanelandtheDeveloper.TheProgramAdministratorisalsorequiredto provideamonthlywrittenreportdetailingthestatusofprogramcompliancetotheConstruction AdvisoryCommitteeandtorecommendandimplementremedialmeasuresifprogramrequirements arenotmet. C. Implementation MichaelDrezin,washiredtoincorporateandadministerthefundinDecember2006buttheFund AdvisoryPanelwasnotconveneduntilthefallof2007.NofundsweredisburseduntilApril2008, whengrantsof$500weremadeto24BronxLittleLeagueteams.68Anadditional60grantsand15,000 ticketsweredisbursedtolocalgroupsbytheendof2008;and102grantsand15,000ticketsbytheend of2009.69In2009,theAdministratorfiledapendinglawsuitagainsttheChairmancharging mismanagementoftheFoundationsaccount.70 TherehasbeennoindependentmonitoringoftheYankeesCBAandthereforenodataisavailableon theimplementationofjobandcontractingrequirements.TheYankeeshavebeenusingtheBronx OverallEconomicDevelopmentCorporation(BOEDC)forjobapplicantreferrals,butfurther informationwasunavailableasofthedateofthisreport.71
GatewayCenter(2006)
A. Summary In2004,TheRelatedCompaniesenteredintoanagreementwiththeNewYorkCityEconomic DevelopmentCorporationtodevelopGatewayCenteratBronxTerminalMarket,a$500million shoppingmallwithonemillionsquarefeetofretailspace,2,600parkingspots,aswellasspaceforlocal businessesandapossiblehotel.Inlate2005,formerBronxBoroughPresidentAdolfoCarrionandthe CityCouncilsBronxDelegationconvenedan18memberCBATaskForcetoaddressconcernsraisedby localorganizationsandlaborunions.ACBAwasexecutedbyHostosCommunityCollege,theNewBronx ChamberofCommerce,andtheMountHopeHousingCompany(theCoalition)andBTMDevelopment Partners,LLC,anaffiliateofTheRelatedCompaniesonedaybeforetheNewYorkCityCouncilapproved arezoningtofacilitatetheprojectsdevelopment.ThroughtheCBA,thedeveloperagreedto communitybenefitsincluding: afirstsourcelocalhiringprogramusinglocallybasedorganizationstoscreenandmake referralsofBronxresidents,particularlyspecialneedspopulations(definedtoincludepersons onpublicassistance,personswithdisabilities,andexoffenders); onsitespaceforjobrecruitmentandprescreeningservices; atrainingandapprenticeshipprogramforconstructionjobs; reservationof18,000squarefeetofretailspaceforexistingsmallandlocalbusinesses; $3milliontofundbusinessdevelopment,localhiringandjobtrainingprograms;
68 69
LittleLeagueReapsaWindfallfromNewYankeeStadiumFoundation,BillEgbert,NYDailyNews(May5,2008). 2008and2009YearEndReports,NewYankeesStadiumCommunityBenefitsFundInc.(http://http://www.bronxyankeefund.org/). 70 FormerAdministratorSuestheYankeesBronxcommunityCharity,FernandaSantos,TheNewYorkTimes(April1,2009) 71 InformationprovidedbyAlRodriguez,CounseltotheBronxBoroughPresident,inatelephoneconversationwithTaskForcestaffon September22,2010andwrittencommentsonSeptember23,2010.
37
commitmentsconcerningpurchasingandcontractingwithBronxbasedbusinesses; offeringof2,000reducedpricememberships(at$20)forlowincomeBronxresidents;and thesetasideof3,500squarefeetforchildcareservices,tobeleasedatabelowmarketrent.
TheBronxOverallEconomicDevelopmentCorporation(BOEDC)wasawarded$3milliontoadminister hiringandjobtrainingprograms. B. Reporting,MonitoringandEnforcement TheDevelopermustreportquarterlytotheCoalitiononimplementationuntiloneyearafterthe issuanceofatemporarycertificateofoccupancyfortheretailportionofthedevelopment,andannually thereafter. TheenforcementtermsaresimilartothoseoftheAtlanticTerminalCBAinwhichtheDeveloperhasa 60dayrighttocureafterwrittennoticeofafailuretoperform.Thecureperiodisextendedaslongas thedeveloperismakingdiligenteffortstocuretheallegeddefaultingoodfaith.Afterexpirationofthe cureperiod,theCoalitionmaypursuebindingarbitrationorajudicialremedytoremedythealleged default,solongasamajorityagrees.Injunctivereliefisbarredbytheagreement,whichstipulatesthat iffoundtobeindefault,thedeveloperisliableforamaximumpenaltyof$60,000foreachviolation withalifetimecapof$600,000. C. Implementation GatewayCenteropenedonSeptember21,2009.Reportedly,atleast90percentoftheretailspace wasleasedatopening,withleasesfortheremainingtenpercentinnegotiation.Nearly54,000square feetwasleasedtolocalbusinessesandleasingofanother16,000squarefeetwasundernegotiation. Nearly40percentoftheconstructioncontractswereawardedtoBronxbasedfirms,and approximately1,100Bronxresidentshadbeenhiredforpermanentpositions(67percentofthetotal). BJsWholesaleClubheldalotterytodistributethe2,000reducedpricememberships.72 InJuly2009,alawsuitwasfiledbytheCBAAdministratorchargingtheBronxOverallEconomic DevelopmentCorporation(BOEDC)withdiverting$1.6millionpromisedintheCBAforjob developmenttowardsBOEDCsalaries.TheBronxBoroughPresidentinitiatedaninvestigation September2009,whichdeterminedthatBOEDChadusedthefundsforpayrollexpensesforitsFast Trackprogram.However,accordingtoBOEDC,therequirementsoftheGatewayCBAarebeingmet orexceeded:73 ABronxCountyvendordatabaseofover500firmsresultingfromextensiveoutreachtoBronx basedfirmsandM/WBEs; AMWBEprogramthathasresultedin39contractsawardedtoBronxbasedfirms(38.2%)and fifteencontractsawardedtoM/WBEs(14.7%)outofatotal102contractsawardedasofApril 17,2009; Environmentalimprovements,includingparticulateemissionsmonitoring,treeplantings,and rodentcontrolinthelocalneighborhood; Anutritionprogramwherethedeveloperagreedtohelp2,000localfamilies,whoreceivefood stampsandareeligibleforWIC,securehalfpricemembershipstoanywarehouseshoppingclub attheGatewayCenter;
72 73
NYCsLargestNewRetailCenterin30YearsOpensintheSouthBronx,RealEstateChannel(Sept.21,2009). BronxOverallEconomicDevelopmentCorporation(BOEDC)ProgressReportontheGatewayFastTrackUnitatBOEDC(July17,2009).
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Adaycarecenterinwhichthedevelopersetaside3,500squarefeetofspacetoaqualified, licensedchilddaycareproviderat35%belowmarketrates; Asmallbusinessleasingprograminwhichthedevelopersetaside18,000squarefeetofretail spaceforlocalbusinesses(3,557squarefeethasalreadybeenleased);and, A$175,000jobprogramrunbyProjectH.I.R.E.,whichconductedfreetrainingfromFebruary1, 2007toJune29,2007.45studentswereacceptedand25studentsgraduatedfromthe program.NineteenofthesegraduatesareemployedwithunionpositionsinLocals79(Mason Tenders),Local8(Roofers)andLocal731(Laborers),withatleasttwograduatesengagedatthe GatewayCentersite.
WestHarlem(2007)
A. Summary
Inthefallof2002,ColumbiaUniversityannouncedplanstoexpanditscampusbynearlysevenmillion squarefeetinanareaofWestHarlemknownasManhattanville.Thenewcampuswouldbebuiltovera 25yearperiodintheareagenerallyboundedby133rdStreetonthenorth,125thStreetonthesouth, fromBroadwaywesttotheHudsonRiver. In2006,theChairpersonofCommunityBoard9approachedaColumbiaofficialandproposedthata CBAbenegotiatedinconnectionwiththedevelopment.TheBoardthenestablishedtheWestHarlem LocalDevelopmentCorporation(WHLDC)withthesupportofCouncilMemberRobertJackson.Efforts weremadetosolicittheparticipationofarepresentativesampleofthesurroundingneighborhoods includingresidentsofnearbyhousingprojects,localbusinessowners,andcommercialpropertyowners. AsrepresentativesoftheManhattanBorough,PresidentStringer,CongressmanRangel,NYS AssemblymanWrightandCityCouncilmanJacksonlaterjoinedthe20memberWHLDCboard. ParticipantsmetweeklybeginninginSeptember2006andformedelevenworkinggroupsfocusingon issuesofhousing,businessandeconomicdevelopment,employmentandjobs,education,historic preservation,communityfacilitiesandsocialservices,artsandculture,environmentalstewardship, transportation,researchandlaboratoryactivities,andgreenspaces.TheWHLDCandColumbiathen negotiatedamemorandumofunderstanding(MOU)justbeforetheCityPlanningCommissionsvoteon theexpansionplan.TheMOUcontainsacommitmentbytheUniversitytoprovide$150millionin benefits,including$20milliontofundaffordablehousing,$30millioninservicesforauniversityrun publicschool,accesstoColumbiafacilities,servicesandamenitiesvaluedat$20million,$4millionfor tenantlegalassistance,and$76millionforcommunityprogramstobeimplementedovera16year period.OnMay18,2009,theWHLDCandColumbiaconsummatedaCBAthatprovidesastructureto implementtheMOU.AmongtheotherCBAprovisions: $3millionofthebenefitsfundwillbeusedforcapitalandprogramneedsfortheNYCHA developmentsGrantHousesandManhattanvilleHouses; commitmentstopayallColumbiaUniversityprojectemployeesalivingwage; goodfaithcommitmenttohaveminority,womenandlocalresidentscompose50percentofits constructionworkforceforthelifeoftheprojectandtopurchase35percentofthetotaldollar valueofnonconstructiongoodsandservicesfromminority,women,orlocalvendors; $750,000forskillsbasedandworkforcedevelopmenttraining; creationofacenterwhereresidentscanreceiveinformationaboutColumbiascommunity programsandprojectcommitments; 39
TheCBAincludesascheduleforthepaymentofbenefitsinspecifiedinstallments.Incertaincases, paymentisconditionedonmeetingcertaincampusconstructionmilestonesandonthedevelopmentof organizationalstructures.Forexample,paymentofthefirst$10millioninstallmentofaffordable housingistriggeredbytheissuanceofabuildingpermitforthefirstPhase1newbuilding.CBAterms respectinginkindbenefitsandthepublicschoolremainineffecttoDecember31,2040andterms pertainingtominority/women/localhiringandcontractingapplyuntilDecember31,2045. B. MonitoringandEnforcement ColumbiaistoprovideWHLDCwithanannualreportthatincludes:(i)asummaryofthepaymentsto theBenefitFundduringtheyearandcumulatively;(ii)anannualsummaryoftheinkindbenefits provided;(iii)publiclyavailablereportsprovidedtotheCityorStateregardingimplementation;and(iv) reportsonM/W/LBEhiringandcontracting,inadditiontoreportingrequirementsspecifictothevarious commitments. IntheeventthatColumbiafailstotimelymakearequiredpayment,WHLDCmaybringalegalaction. Uponadeterminationagainstitthatisnotappealable,Columbiawillmakeanypaymentsowedplus reasonableattorneysfees.TheCBAalsosetsforthadisputeresolutionprocessandprovidesfor mediationintheeventthattheprocessisineffectiveinresolvingthedispute.Theagreementalso providesforanindependentmonitorwhowillreviewandtakestepstoensurethatColumbiacomplies withtheCBA. Inaddition,theagreementstermswereincorporatedintothedetailsoftheGeneralProjectPlan executedbyColumbiaUniversitywiththeEmpireStateDevelopmentCorporation. C. Implementation InSeptember2009,Columbiaprovidedinitialbenefitfundingintheamountof$500,000totheWHLDC. However,inMay2010,itwasreportedthattheWHLDChadnotsecuredtaxexemptstatusnor establishedspendingguidelinesoraformalapplicationprocess.74Sincethen,anewWHLDCpresident andconsultanthavebeenselectedtoimplementthebenefits.Todate,Columbiahascontributed$1.55 milliontothebenefitsfundinconformancewiththeagreeduponschedule.75
fifteensummerinternshipsforhighschoolstudentslivinginthecommunityorattendingthe Math,ScienceandEngineeringHighSchool;and subwayimprovements.
74 75
HarlemGroupsChaosEndangers$76MGift,IsabelVincentandMelissaKlein,NewYorkPost(May9,2010). InformationwasprovidedtoTaskForcestaffbyEricKuofromColumbiaUniversityinatelephonediscussionwithTaskForcestaffon September21,2010andinwrittencommentssubmittedSeptember22,2010.
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AppendixB: CommunityBenefitAgreementsNegotiatedOutsideNYC
TheTaskForcehasidentifiedfourteencommunitybenefitagreementsnegotiatedbetween1998and 2008inconnectionwithdevelopmentsoutsideNewYorkCitythathavebeencompletedorare underway.Thebasictermsoftheseagreementsandtheiroutcomesaresummarizedbelow.Another nineagreementswerenegotiatedforprojectsthatarenotcurrentlyproceeding,76eitherbecauseofthe nationaleconomicdownturn,developerbankruptcyorlitigation.Informationregardingthetermsof theseagreementsisavailablefrom:http://communitybenefits.blogspot.com.77
HollywoodandHighlandCenter,LosAngeles,CA(1998)
A. Summary ThefirstCBAwasnegotiatedin1998inconnectionwiththedevelopmentofthe$388millionHollywood andHighlandCenter,nowhometothe4,000seatKodakTheater,hotelsand1.2millionsquarefeetof retailspace.Inexchangeforsupportbycommunitygroupswhofearedincreasedtrafficandcrime,the developerofferedtofinancetrafficimprovements,implementafirstsourcehiringplan,andensurethat workersatthecenterwerepaidalivingwage.78Communitysupportofthedevelopmenthelpedthe developertoobtain$90millioninlocalsubsidies.TheagreementwasnegotiatedbyLosAngeles CouncilMemberJackieGoldbergandtheLosAngelesAllianceforaNewEconomy(LAANE). B. Reporting,MonitoringandEnforcement TheCommunityRedevelopmentAgencyofLosAngeles(CRA/LA)ischargedwithmonitoringlocalhiring butdoesnotpublishstatusreports. C. Implementation Approximately19percentofconstructionworkerhourswerecompletedbylocalresidents, primarilyachievedthroughzipcoding; About68percentofthehoteljobsatopeningwereheldbylocalresidents;and Approximatelyhalfofthepermanentpositionsattheprojectsopeningprovidedlivingwages,andthe percentageoflivingwagejobsiscurrentlyestimatedtobe40percent.Allhotel,maintenance,parking lot,andsecurityjobsallpaylivingwages.
76
TheseincludethedevelopmentsslatedforMilwaukeeParkEast,SeattlesDearbornStreet,DenversCherokeeGatescommunity,San DiegosBallparkVillageandredevelopmentoftheSunQuestIndustrialParkandMarltonSquareareaofLosAngelesandtheOaktoNinth CBAinOakland.AsofAugust26,2010,thedeveloperoftheLAGrandAvenuehotel,condoandshoppingcomplexwasrequestingatwo yearextensionofitscurrentFebruary2011deadlinetobeginconstruction.IfthenewdealisapprovedbyCityandCountyofficials, groundbreakingwouldnotstartuntil2013. 77 Thisblog,producedbyAmyLavine,StaffAttorneyattheGovernmentLawCenterofAlbanyLawSchool,istheprimarysourceofinformation fortheagreementssummarizedbythisAppendix 78 InformationwasprovidedbyRoxanaTynan,DeputyDirector,LAANE,inatelephoneconversationwithTaskForcestaffonSeptember21, 2010.Asofthedateofpublication,acopyoftheCBAwasunavailable.
41
L.A.LiveStaplesCenter,LosAngeles,CA(2001)
A. Summary ThefirstmajorCBAinvolvedtheconstructionofL.A.Live,a5.6millionsquarefoot,$4.2billionsports andentertainmentcomplexincludinga54storyhotelandcondominiumtower,the7,100seatNokia Theatre,a3,770seatmoviecomplex,the2,300seatNokiaClub,theGRAMMYMuseum,andaretail complex.79Rezoningofthe27acreprojectsite,atleast$150millioninpublicsubsidiesandtheuseof eminentdomainwassoughtfromtheCityofLosAngelesbydevelopersAnschutzEntertainmentGroup (AEG),WachoviaCorporationandMacFarlanePartners(collectively,thedeveloper). NegotiationswereheldbetweenthedeveloperandtheFigueroaCorridorCoalitionforEconomicJustice, acoalitionofmorethan30communityorganizations.StrategicActionforaJustEconomy(SAJE)and theLosAngelesAllianceforaNewEconomy(LAANE)providedorganizationalandpoliticalsupportto thecoalitionandcommunitymembers.Afterfivemonths,thepartiesinkedanagreementinwhichthe developeragreedto:commit$1millionforparkandrecreationalfacilities;adoptafirstsourcehiring programandprioritizehiringofpersonsdisplacedbytheprojectandlowincomeindividuals;setaside 20percentoftheresidentialunitsasaffordablehousing;andprovide$650,000ininterestfreeloansfor thedevelopmentofadditionalaffordableunitsbynonprofithousingdevelopers. OnNovember11,2009,AEGannouncedplanstoexpandL.A.Livetoinclude332,618squarefeetof officespace,a269,182squarefootbroadcaststudio,a275roomhotelanda25storyresidential building. B. Reporting,MonitoringandEnforcement TheCBAincludesreportingrequirementsandestablishesanadvisorycommitteeofrepresentativesof thedeveloperandtheCoalitiontomeetquarterlytomonitorandenforcetheagreementandmaintaina dialogue.TheCBAincludesprovisionstoassesstheagreementsimplementationatfiveandtenyear benchmarksafteritscompletion.Compliancewithlivingwagerequirementsisestablishedthrough annualreportsdetailingtheproportionoflivingwagejobscreatedbytheproject.Ifthedeveloper performslessthan80percentoftheCBAsgoalsfortwoconsecutiveyears,theCoalitionandthe developermustmeettoformulateamutuallyacceptedplantoreachthosegoals.Thepartieshavealso modifiedtheCBAattheirowninstancetorespondtothechangingneedsofboththedeveloperandthe community. TheCBAwasapprovedbytheCityofLosAngelesandtheCRA/LAanditstermswereintegratedintothe developmentagreementbetweenthedeveloperandtheCRA/LA,makingitenforceablebyboththecity andcommunitygroups.
79
AcopyoftheCBAisavailableat:www.comptroller.nyc.gov/pba.
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C. Implementation80 $1millionhasbeenspentonparkswithprioritiesforthefundingdeterminedthroughaseriesof communitymeetingsandworkshops; About300unitsofinclusionaryaffordablehousinghavebeenfinanced,andarevolvingloan fundforlocalbusinesseshasrevolvedseveraltimes;and FromSeptember2007throughDecember2007,338localworkershadbeenplacedinjobs onsite.
NorthHollywoodCommons,LosAngeles,CA(2001)
A. Summary
The60,000squarefootNorthHollywood(NoHo)Commonsmixedusedevelopmentincludesresidential, retailandofficespace,aschool,andchildcarecenter.LAANEorganizedacoalitiontonegotiateaCBA withthedeveloper,J.H.SnyderCo.Thedealsecuredpromisesofaffordablehousing,firstsourcehiring forpermanentjobs,andpaymentoflivingwagesforatleast75percentofthejobs.81Thedeveloperin returngotabout$44millioninCitysubsidies,anincreaseoverthe$33millionsubsidyoriginally proposed. B. Reporting,MonitoringandEnforcement Participationinfirstsourcehiringprogramisvoluntaryonthepartoftenants.Thedeveloperisrequired toreportbienniallytotheCRA/LAonthenumberandpercentageofjobsthatarelivingwagejobs,using projectwidedataaswellasdataregardingeachemployerinthedevelopment. C. Implementation Reportedly,duringthefirstyear(2007)onlyasupermarketonthesiteusedthefirstsourcesystem, hiring42entrylevelworkersandthreeseniorpositionsfromthelocalcommunity.82
CIMGroupProject,SanJose,CA(2002)
A. Summary Inconnectionwiththedevelopmentofa$189millionresidentialretailandentertainmentcomplexin downtownSanJoseforwhich$47millioninsubsidieswassought,communitybenefitswerenegotiated betweenWorkingPartnershipsUSA(WPUSA)andacoalitionof27electedofficials,unionsand communitygroupsandthedeveloper,CIMCaliforniaUrbanRealEstateFund,L.P.Thesenegotiations establishedpolicyprioritiesthatwereincorporatedintotheDispositionandDevelopmentAgreement (DDA)approvedbytheSanJoseRedevelopmentAgency(SJRA)in2002.Benefitsincluded:livingwage protectionsforparkinggarageemployees,anagreementtouseunionizedlaborduringconstruction, affordablehousingrequirements,acommitmenttohelpsetupadaycarefacility,apromisetosetaside spaceforlocallyownedsmallbusinessesonsite,andtoseektenantswhowouldpaylivingwagesfor employeesofthegrocery,retailandhoteltenants.A2003amendmenttotheDDAdeepenedthe
80
InformationwasprovidedbyRoxanaTynan,DeputyDirector,LAANE,inatelephoneconversationwithTaskForcestaffonSeptember21, 2010. 81 AcopyoftheCBAisavailableat:www.comptroller.nyc.gov/pba. 82 MakingDevelopmentWorkforLocalResidents:LocalHireProjectsandImplementationStrategiesthatServelowIncomeCommunities, KathleenMulliganHansel,PhD,PartnershipforWorkingFamilies(July2008).
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affordablehousingrequirementsbyincreasingthenumberofunitssetasideforextremelylowincome tenants,basedupontheavailabilityofCitysubsidies.83 B. Reporting,MonitoringandEnforcement MonitoringandenforcementweretheresponsibilityoftheSJRA.WPUSAandthecommunitycoalition monitoredcompliancewithconstructionrelatedrequirementsduringdevelopmentand,onanongoing basis,informallysoughtcommunityfeedbackonaspectsoftheagreement. C. Implementation Theprojectwascompletedin2009.AccordingtoWPUSA,theprojectwasscaledbackfromthreesites totwoduetofundingconstraints.Theplansforahotelandadaycarefacilitydidnotcometofruition. Allotherdevelopercommitmentswerefulfilled.84
HollywoodandVine,LosAngeles,CA(2004)
A. Summary LAANEhelpedorganizetheCoalitionandnegotiateseparateagreementswithdevelopersLegacy PartnersandGatehouseCapitalconcerningdevelopmentofa4.6acre,$326millionprojectatthe cornerofHollywoodandVineinLosAngeles(oneblockfromtheHollywoodandHighlanddevelopment discussedabove).85Theprojectwasproposedtoincludea300roomhotel,anestimated500housing units,67,000squarefeetofretailspaceandmorethan1,000parkingspaces.Thedevelopersagreedto providelivingwagesforalloftheirdirectemployees,useafirstsourcehiringprogram,setaside20 percentoftheunitsonsiteor15percentofthetotalunitsonsiteandontheGatehouseportionofthe mixedusedevelopmentasaffordable,contribute$100,000foracareerladdertrainingprograminthe culinaryarts,provide$500,000forartsprogramsatHollywoodHighSchool,andfund$30,000tosignup employeesandneighborsforlowcosthealthcare.Thehotelalsoreachedaseparateagreementwith thehotelworkers'union.86 B. Reporting,MonitoringandEnforcement Accordingtothecommunitybenefitagreement,theCity,theCRA/LA,andthecommunitycoalitionare intendedthirdpartybeneficiariesofanyagreementsconcerningtheprojectandmayeachenforcethe agreements.Theagreementsallowforarequestforinjunctivereliefwithrespecttoperformanceofany terms.Exceptasspecified,neithertheCRA/LAnortheCoalitionisentitledtomonetarydamages.The agreementisbindinguponsuccessorsandtheprovisionsoftheagreementsarecovenantsthatrunwith theland.87
83 84
AcopyoftheCBAisavailableat:www.comptroller.nyc.gov/pba. EmailandtelephonecommunicationsbyTaskForcestaffwithSarahMuller,DirectorofHealthPolicyandCommunityDevelopmentat WorkingPartnershipsUSA,September20,2010. 85 GatehouseCapitalwasthehoteldeveloperandLegacyPartnersdevelopedmostoftheretailandhousingsquarefootage.Eachagreement hastwoparts:amainCBA,andacontractorandtenantattachmentcoveringlocalhirerequirementswhichdeveloperssecurefromtheir tenantsandcontractors.EmailcorrespondencefromRoxanaTynan,LAANEDeputyDirectortoTaskForcestaff,September20,2010. 86 TheinformationwasprovidedbyRoxanaTynan,DeputyDirector,LAANE,inatelephoneconversationwithTaskForcestaff,September21, 2010. 87 AcopyoftheLegacyPartnersandGatehouseCapitalCBAsisavailableat:www.comptroller.nyc.gov/pba.
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C. Implementation Seventyeightaffordableunitshavebeenbuilt,andfundshavebeendistributedfortrainingandarts programs,andforoutreachconcerninglowcosthealthcare.Thereare350livingwagejobsattheon sitehotelandapproximatelyhalfofthejobsataTraderJoeretailmarketarelivingwagejobs.The developerhiredastaffpersontoimplementthelocalhiringprogram.88
LAXAirportExpansion,LosAngeles,CA(2004)
A. Summary AfterLosAngelesWorldAirports(LAWA)proposedan$11billionairportoverhaul,acoalitionof22 communitygroups,environmentalgroups,andlaborunionsmetwiththeairportofficialsoveraten monthperiodtonegotiateaCBAaddressingarangeoflegal,policyandhealthrelatedconcerns.In December2004,theLosAngelesCityCouncilapprovedtheCBA,whichprovidesmorethan$500million incommunitybenefits.89 TheCBArequireslocalhiringforallnonconstructionjobsotherthanthosecoveredbycollective bargainingagreements.Theseincludebaggagehandlingandotherjobsonthetarmacaswellas positionswithapproximately300retailandfoodservicevendorsandservicecontractors.Inadditionto provisionscoveringjobtraining,firstsourcehiring,andlivingwagerequirements,theCBAalsodevotes substantialresourcestowardmitigatingtheenvironmentalimpactsoftheairport,including: morethan$8.5millionannuallyfornoisemitigationoflocalschools,Citybuildings,placesof worshipandhomes; economicdevelopmentbenefits; communityairqualityandhealthstudies; airqualitymeasuresandemissionreductionscontrols,suchaselectrificationofpassenger gatesandcargoareastoreducetheneedforengineidlingandtheconversionofairport vehiclestoalternativefuels;and environmentalmitigationmeasuresrelatedtoconstruction. B. Reporting,MonitoringandEnforcement TheCBAispartofalargerpackagethatalsoincludesaCooperationAgreementsettingoutthelegal frameworkoftheAgreement,includingconditions,commitments,obligations,andenforcement;italso includesasettlementagreementwiththetwoneighboringschooldistricts.Localhirerequirementsare incorporatedintoallairportcontracts,leaseagreements,andlicensingorpermittingagreementsand areappliedtorenewalsasexistingagreementsexpire,thusensuringthatsuccessorcontractorsand tenantsoftheairportareheldtoitsterms.
88
TheinformationwasprovidedbyRoxanaTynan,DeputyDirector,LAANE,inatelephoneconversationwithTaskForcestaff,September21, 2010. 89 AcopyoftheCBAisavailableat:www.comptroller.nyc.gov/pba.
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C. Implementation ImplementationoftheLAXAgreementbeganinOctober2006.Subsequenttotheexecutionofthe CBA,acoalitionoflocalmunicipalgovernmentsandcivicgroupsthathadnotbeenapartofthe negotiationssuedtostoptheLAXexpansion.90Irrespectiveofthelawsuit,theMasterPlanforthe expansionwasshelvedinlate2005andonlyamodernizationoftheairportrunwaysisproceeding. TheCBAisineffectforthatpartoftheproject. Allnoisemitigationmeasuresarebeingimplemented;2000homesintheairportsflightpathhave beensoundproofedand,insummer2010,LAWAsentthefirstportionofa$200millionoverall commitmenttothefirstoftwolocalschooldistrictsforsoundproofing.Inaddition,100percentof thegateshavebeenelectrifiedtoeliminatepollutionfromdieselenginesandmostairport equipmenthasbeenswitchedovertoloweremissionenergysources.LAWAhasprovided$15 millionforjobtraining.Themoneyhasnotbeenspent,however,becauseofadisputeoverwhich positionswillbeeligibleforthefunding. Theairqualityandhealthimpactstudieshavenotyetbeenundertaken.91
BroadcastCenterPartnersShawDistrict,WashingtonD.C.(2005)
A. Summary In2005,OneDC,acommunityorganizationbasedinthepredominatelylowincomeShawneighborhood negotiatedaCBAwiththeNationalCapitalRevitalizationCorporation(NCRC),adevelopment corporationcreatedbytheCitygovernmenttoredeveloptheCitysabandonedandvacantproperties, andBroadcastCenterPartners,LLC,aprivatedeveloperselectedbyNCRCtodevelopalargemixeduse projectconsistingofapproximately100,000squarefeetofcommercialofficespaceforRadioOne, 25,000squarefeetofretailspaceand200condominiumunits.Thetermsoftheinitialagreement providedforjobtraining,employmentopportunities,localbusinessspace,acommunitydevelopment fundandasetasideofaffordablehousing. In2007,theCBAwasamendedtoreflectthechangingrealestatemarket.Thecondominiumunitswere convertedtorentalhousingwithatleast25percentoftheunitsdesignedtobeaffordableto householdswithincomesrangingfrom31percentto120percentoftheareamedianincome.92The developerandleadtenantsubsequentlydroppedoutandtheprojectisnowknownastheUNCF(United NegroCollegeFund)HeadquartersProject. B. Reporting,MonitoringandEnforcement Theagreementspecificallydisclaimsanyobligationsonthepartoftheanchortenantandfailstospecify thedutiesandobligationsofthecontractingparties.Theagreementfurtherlacksexplicitschedules, procedures,orbenchmarksformeasuringperformanceorfulfillmentofpromises.TheNCRCwasa partytotheagreementtoensureenforcementbytheCity,butwasdisbandedaftertheelectionofa newMayor,andtheCityregainedthesubjectsite.Althoughthecommunitycoalitionwasableto
90
ImplementationandtheUnpredictabilityofGovernmentPlanning,availableat http://www.westernjustice.org/Pdf_files/Collaborative_Politics_in_Action.pdf.PlaintiffsincludedCulverCityandtheCityofInglewoodas wellasahomeownersalliancethathadcomplainedaboutbeingexcludedfromtheLAXcoalition. 91 TheinformationwasprovidedbyRoxanaTynan,DeputyDirector,LAANE,inatelephoneconversationwithTaskForcestaff,September21, 2010. 92 TheamendedShawDistrictCBAisavailableat:www.comptroller.nyc.gov/pba.
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secureacommitmentfromthenewadministrationtoabidebytheCBA,theagreementdoesnotbind anysuccessordevelopertoitsterms. C. Implementation AsofSeptember2010,constructionhadnotyetbegun.
YaleNewHavenHospitalDevelopmentAgreement,NewHaven,CT(2006)
A. Summary Acoalitionof22communitygroups,faithbasedorganizationsandlocalunionsrepresentedby ConnecticutCenterforaNewEconomy(CCNE)andCommunityOrganizedforResponsibleDevelopment (CORD)identifiedimpactsandnegotiatedanoralcommunitybenefitsagreementinconjunctionwith YaleUniversitysplannedconstructionofanewcancercenter.Termsreflectingtheseconcernswere incorporatedintothedevelopmentagreementbetweentheCityofNewHavenandtheUniversity.The agreementrequiredYaleto: contribute$1.2millionforhousingandeconomicdevelopmentintheneighborhood surroundingthecenterandtomakevoluntarytaxpaymentstotheCityforaperiodof5years; provideatleast$500,000toestablishcareerladderprogramstoallowYaleNewHaven employeesemployedinentrylevelnonhealthcarepositionsand100nearbyresidentstoenter thehealthcarefield; provideanadditional$500,000toexpanditsexistingcareerladdertrainingtoservean additional50Cityresidentsemployedatthehospitalasnurses; hire100NewHavenresidentsannuallyforaperiodoffiveyearscommencingin2006; fundanasthmaoutreachcoordinator,anuninsuredchildren'soutreachcoordinator,and contributeatleast$500,000overfiveyearstotheMayor'sYouthInitiative;and 93 makespecifiedtrafficandparkingimprovements.
B. Reporting,MonitoringandEnforcement TheCenterwascompletedinfall2009.YaleUniversityissupposedtoreportannuallytotheCityofNew Havenoncompliancewiththecareerladderprograms,includingdataonenrollment,salaries, promotions,andhiring.Theagreementcontainsaprovisionforadisputeresolutionprocessinthe eventthatapartyallegesdefaultintheagreement. C. Implementation Fundingfortheasthmacoordinatoranduninsuredchildrensoutreachcoordinatorpositionswas provided94butmoneypledgedtoacommunitycollegeforjobtrainingwasninemonthslate.CORDhas petitionedtheCityofNewHaventoenforcethehiringprovisionsoftheCBA.
93 94
Acopyofthefinaldevelopmentagreementisavailableat:www.comptroller.nyc.gov/pba. InformationonimplementationwasprovidedbyAndreavandenHeever,formerPresidentofConnecticutCenterforaNewEconomy,inan interviewonSeptember8,2010withTaskForcestaff.
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ChristinaAvenueCompostingFacility,Wilmington,DE(2008)
A. Summary ThefirstCBAinthestateofDelawarewasnegotiatedbya14membercommunitycoalition95ledbythe SouthbridgeCivicAssociationandNeighborhoodHouseInc.withthedeveloperoftheWilmington OrganicRecyclingCenter,an18,000squarefoot,stateoftheartorganicwastecompostingfacilityona 27acresiteinalargelylowincomeneighborhood. Theagreementcommittedthedevelopertoa20percentgoalforminorityandlocalhiringandrequired thatlocalresidentsbenotifiedofopeningsaftertheprojectiscompleted.96Thedeveloperalsoagreed tobypassresidentialareastothegreatestextentpossible,tooperatea24hourhotlinewhereresidents canreportcomplaintsabouttrucktrafficorodors,andtoprovideupto1,000tonsofcompostto communitygroupsandresidents. B. Reporting,MonitoringandEnforcement Theagreementspecifiesnoreportingrequirements.Intheeventofanallegeddefault,writtennoticeis requiredtotheallegedlydefaultingparty.Ameetingtoresolvethedisputeistotakeplacewithin20 daysofthenoticereceipt.Ifthepartiescannotachievearesolutionwithin15daysofthefirstmeeting, theaggrievedpartymayselectoneofthreepossibleremedies:mediation,bindingarbitration,or litigation.Thepartiesagreethatinjunctiverelieforderingspecificperformanceistheonlyremedyifa courtfindsthepartytobeindefault. C. Implementation ThefacilityopenedonDecember1,2009.AccordingtoNelsonWidell,apartnerinPeninsulaCompost, LLC,thecompanyhasmetorexceededthe20percentminorityandlocalhiringrequirementsandmade freecompostavailabletothecommunity.97MarvinThomasoftheSouthbridgeCivicAssociation confirmedthatthehotlineisoperational,andreportedthatcommunityresidentshaverequestedthe numberfromhisorganization.98
LongfellowStation,Minneapolis,MN(2008)
A. Summary TheLongfellowStationprojectinvolvestheredevelopmentofaformerPurinafactoryintoa sustainablemixedusetransitorienteddevelopment.Theprojectislocatedadjacenttoalightrailline andwillfeaturegreenroofsandonsitestormwaterretention.ACBAnegotiatedbytheLongfellow CommunityCouncil(LCC)anddeveloperCapitalGrowthRealEstaterequired30to60percentofthe housingunitsbeaffordable,afirstmonthfreetransitpasswitheachresidentialrental,greenbuilding certification,andcompliancewiththeCity'spoliciesonprevailingwages,livingwages,MWBE contracting,apprenticeshiptrainingandaccessibilitystandardsthatwouldotherwisenotapplytoa
95
OthermembersincludedtheHenriettaJohnsonMedicalCenter,GlobalSolutions,NewMillenniumCDC,BeReadyCDC,Southbridge ResidenceCouncil,WilmingtonHousingAuthority,LaborUnionLocal199,InternationalLongshoremanAssociation,MartinLutherKing Center,NewCalvaryBaptistChurch,andMt.JoyMethodistChurch. 96 TheCBAisavailableatwww.comptroller.nyc.gov/pba. 97 TelephoneconversationwithNelsonWidellandTaskForcestaff,September16,2010. 98 BasedonemailcorrespondencefromMarvinThomastoTaskForcestaff,September21,2010.
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projectthatwasnotCityassisted.99Thedeveloperalsoagreedtogivepreferenceinspaceleasingto smallgrocerystores,retail,healthcare,restaurantsandcafes,smallhotels,music/entertainment venues,offices,andlightmanufacturers.Localandregionalbusinessesweretobegivenpriorityover nationalchains.Atleast10percentofthefloorareamustbereservedforcommunitybasedsmall businessesandnationalretailersarelimitedto70percentofthecommercialfloorarea.The maximumallowablesquarefootageforanysinglecommercial/retailspaceis30,000squarefeet. B. Reporting,MonitoringandEnforcement Thedeveloperisrequiredtoprovidetheimplementationcommitteewithregularupdatesrelatedtothe designandconstructionoftheproject.Theagreementincludesa60dayrighttocure.Inthecaseof allegeddefault,remediesincludemediationorlegalaction.Allrelevantrequirementsareimposedupon subcontractorsandLCCisanintendedthirdpartybeneficiarywithenforcementrights.Allpartiesare requiredtoproviderecordsorinformationneededtomonitorcompliancewiththeCBA. C. Implementation SitepreparationdidnotbeginuntilJune2010duetochangesinthenationaleconomy,whichdelayed theprojectandrequireditsmodification.Aretailcomponentwasreducedfrom40,000squarefeetto 10,000squarefeetandthenumberandaffordabilityoftheprojectedhousingunitswasalsocutback. Thedevelopmentnowconsistsof196housingunits,ofwhich74areaffordable.Fortyunitswillbe offeredtofamiliesearning$40,450orlessand34unitswillbeavailableforfamiliesearning$48,540or less.ImplementationoftheCBAistheresponsibilityofacommitteecomposedofstafffromthe LongfellowCommunityCouncilandthedeveloperaswellasarepresentativeselectedbyeach.
MinneapolisDigitalInclusion,Minneapolis,MN(2008)
A. Summary Anagreementdevelopedbya20membercoalitioncomposedofcommunitybasedorganizationsand informationtechnologyexpertsinconnectionwiththecreationofacitywideWiFinetworkisdesigned tomaketheCitysinternetservicemoreaccessibletolowincomeresidents.100Asaresult,theCity Councilauthorizedtheformationofa35memberDigitalInclusionTaskForce101toassessthe communitysdigitalneedsandtoincorporatetheresultsoftheassessmentintotheWiFiproposal. Ultimately,theCityamendeditsrequestforvendorproposalstorequireinternetproviderstoaddress thedigitaldivideandtheMinneapolisCityCouncilvotedtoadoptcontracttermsthatprovideformore than$11millionindigitalinclusionfundingoverthenextseventotenyears.Theagreementbetween vendorUSIWirelessandtheCityofMinneapolisisahybridofcommonCBAelementsandmunicipal cablefranchiseagreementsandprovidesthefollowingcommunitybenefits: $500,000inupfrontmonies,fivepercentannuallyinongoingpretaxnetworkrevenues,and twopercentofadditionalprofitsfromadjacentcommunitycontractstoanewdigitalinclusion fund;
99
TheLongfellowStationCBAisavailableatwww.comptroller.nyc.gov/pba. BasedonemailcorrespondencefromCatherineSettanni,FounderofDigitalAccessonSeptember14and15,2010.Additionalinformationis availablefromhttp://www.ci.minneapolis.mn.us/council/2006meetings/20060901/Docs/WirelessBroadbandTermSheet.pdf;thewebsiteof theDigitalAccessProjectathttp://www:digitalaccess.org/;athttp://digitalaccessproject.blogspot.com/; http://www.digitalaccess.org/documents/wireless_contract.pdfandhttp://www.ci.minneapolis.mn.us/wirelessminneapolis/ 101 Thedigitalinclusiontaskforceincludedcommunitybasedorganizations,schools,libraries,institutionsofhighereducation,technology focusedfoundations,andmembersofthecommunitycoalition.

100
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subsidizedservicestoover100CommunityTechnologyCenters(CTCs)andvouchersfortrial accountstoCTCstodistributetovolunteers; afree"walledgarden"ofcontent,availabletoeveryonewhocanaccessthesignal,thatincludes neighborhoodportalpages,citywebsites,andpublicsafetyinformation; 100percentofportalpageadvertisingrevenuewillbedirectedtothedigitalinclusionfund; acontentmanagementsystemandcommunityserverforusebyneighborhoodsandcommunity groups;and aguaranteeofnetworkneutrality. B. Reporting,MonitoringandEnforcement Thereisnoindependentagreementbetweenthevendorandthecommunitycoalitionandneitherthe communitycoalitionnorthetaskforcehasassumedavigorousandconsistentoversightrole.Therefore soleresponsibilityformonitoringandenforcementlieswiththeCityofMinneapolis.Thecontract containsnospecificschedules,proceduresorbenchmarksfordeliveryofthebenefitprovisions,or reportingrequirements. C. Implementation TheCityappointedtheMinneapolisFoundationtoadministerthedigitalinclusionfund,andtheCityis responsibleforimplementingtheremainderofthetermswithitsexistingresources.NospecificCity agencywasmaderesponsibleforenforcementormanagementofCBAbenefits,althoughtheCitys communicationsandcommunityengagementofficeshaveensuredthatinitialcashpaymentswere madebythevendor,theportalpageisoperativeandfreeaccountshavebeendistributed.102
PenguinsArenaHillDistrict,Pittsburgh,PA(2008)
A. Summary AnagreementwasnegotiatedoverthecourseofayearbytheOneHillNeighborhoodCoalition, PittsburghUnited,thePittsburghPenguins,thePittsburghSportsandExhibitionAuthority(SEA),the PittsburghUrbanRedevelopmentAuthority(URA),theCityofPittsburghandAlleghenyCountyin connectionwiththepubliclyfinanceddevelopmentofanewPenguinsArenaandthesurrounding28 acresite.The$8.3millionagreementaddressesarangeofemployment,planningandsocialservice needsintheHillDistrictofPittsburgh.103 B. Employmentrelatedcommitments JointfundingbytheCityandCountyof$150,000peryearfortwoyearsforaFirstSource EmploymentCentertofacilitatehiringofneighborhoodresidentsandanagreementbythe PenguinstogiveHillDistrictresidentsfirstpriorityfornewlycreatedjobs;and AgreementbythePenguinstocreatejobsatwagesof$12to$30perhourplusbenefitsandto honorunionneutrality.
102 103
BasedonemailcorrespondencefromCatherineSettanni,FounderofDigitalAccessonSeptember15,2010. ThePenguinHillDistrictCBAisavailableatwww.comptroller.nyc.gov/pba.
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C. Planningrelatedcommitments FundingbytheURAfordraftingofaMasterDevelopmentPlanthatwouldbeusedbytheCity andtheCountytoguidefuturedevelopmentoftheHillDistrict; AgreementbythePenguinsthattheClubsdevelopmentplanswillbeconsistentwiththe principlesoutlinedintheMasterPlanandthatOneHillwillbeprovidedwithcopiesofall developmentplansbeforetheyaresubmittedforpublicapproval;and CommitmentbythePenguinstocontribute$1million(matchedbytheCitysUrban RedevelopmentAuthority)forasupermarketintheaffectedneighborhoodandtostructurethe contributionsuchthatitleveragesadditionaldevelopmentandpredevelopmentfunds.
D. SocialServicesandHealthRelatedcommitments AgreementbytheCountytoconductatwoyearassessmentofsocialservicesintheHillDistrict, toidentifyandprioritizeneeds.Theneedsassessmentwillbeusedtocreatenewinitiatives and/orimprovingthequalityofexistingprogramsandservices; AssistancebytheCity,CountyandURAtothePittsburghYMCAtodevelopandsustainamulti purposecenterforyouth,familiesandseniors; PaymentbytheCity,CountyandURAof$500,000peryearforsixto12yearstosupport communityandeconomicdevelopment,educationandyouthservices,preservationandgreen spacesanddrug,alcoholandmentalhealthservicesintheHillDistrict(Neighborhood PartnershipProgram);and CommitmentbySEA,CityandCountytostrictlyenforceordinances,regulationsandlaws controllingdieselfuelemissions. E. Reporting,MonitoringandEnforcement ThePenguinsandthedeveloperagreetoreportonprogressmadetowardhiringneighborhood residentsandmeetingMBE/WBEcontractinggoalsandhiringHillDistrictresidents.Theagreement providesfora60dayrighttocureafternoticeofanallegeddefault.Ifthepartiesareunabletoresolve theallegeddefaultthroughmeetings,anypartymayrequestmediationofthedisputeatitsown expense.Afterexhaustionofthe60daycureperiod,thepartyallegingdefaultmaypursuelegalaction seekingspecificperformanceoftheagreement.Thepartiesagreethatthecourtshallhavethepower toorderequitable/injunctiverelief. F. Implementation TheHillDistrictFirstSourceEmploymentCenterisoperating,aswellastheNeighborhoodPartnership Program.InJuly2010,itwasannouncedthata29,500squarefootfullservicesupermarketwouldopen onCityownedlandinlate2011.ConstructiondocumentsfortheYMCAwerecompletedinMarch2010 andconstructionisexpectedtobeginontheYMCAinfall2010.Themasterplanwasnotcompletedby theFebruary19,2010deadline.
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SugarHouseCasino,Philadelphia,PA(2008)
A. Summary SugarHouseCasinoisa1.3millionsquarefootgamingcomplexunderconstructionona22acresite formerlyoccupiedbytheJackFrostSugarRefinery.PhaseI,estimatedat$550million,includesacasino with3,000slotmachines,retailanddiningoutlets,anda3,000cargarage.Futureprojectphases includea500roomhoteland30,000squarefootconferencecenter,andexpandeddiningandretail facilities.ThecasinoopenedonSeptember23,2010. UnderaCBAnegotiatedbetweenlocalorganizationsFishtownAction,theNewKensingtonCDCandHSP Gaming,SugarHouseagreedtoprovide$175,000annuallybetweentheprojectsapprovalandits openingand$1millionannuallyforfifteenyearstoanewlycreatedtaxexemptorganizationfor administrationofcommunityprograms(referredtoaSpecialServicesDistrictorSSD).104OtherCBA termsinclude: Establishmentofapubliccomplainthotlineforresidents; Useofunionlaborforconstructionofthefirstconstructionphaseandanagreementonapolicy ofunionneutrality; CreationofaninternshipandjobtrainingprogramandjobcounselingbySugarHouse;and Goodfaitheffortstohirelocalvendors,contractorsandsuppliers. B. Reporting,MonitoringandEnforcement TheSSDiscontrolledbyasevenmemberboardofdirectorswhoservewithoutcompensationandmay notholdpublicoffices.Theseboardmembersareelectedbyresidentsoftheneighborhoods surroundingtheproject.Thereisalsoanonvotingadvisoryboardcomposedoflocalofficials.The agreementprovidesnoguidelinesforexpendingthedeveloperscontributionandisexplicitlynot enforceablebythesignatories.105IfSugarHousedecidednottomakeitsannualpayments,the organizationcreatedundertheCBAwouldhavetotakelegalaction. C. Implementation Thefirstcheckfor$175,000waspaidoutinOctober2009.106
BayviewHuntersPoint,SanFrancisco,CA(2008)
A. Summary LennarCorporationproposestobuildan$8billion,3.6millionsquarefootmixedusedevelopment projectwith10,000residentialunits,3.5millionsquarefeetofcommercialspace,800,000squarefeetof retailspace,asportsandperformancearena,320acresofparkandopenspace,includingrestored wetlandsandsevenmilesofwaterfrontwalkways,andapotentialnewstadiumforthe49ersfootball
104 105
TheSugarHouseCBAisavailableatwww.comptroller.nyc.gov/pba. TheexistenceofagenuineSSDwouldrequireactionbytheStateLegislatureandtheCityCouncil.SuchanSSDwouldhavemuchbroader powersthantheSugarHouseSSD,includingtheabilitytoplacealienagainstabusinessthatdoesnotmakeitsrequiredcontributions. 106 SugarHouseMoneytobeDoledOut,RonniePolaneczky,PhiladelphiaDailyNews(January15,2010)availableat http://www.philly.com/philly/blogs/what_happened_/sugarhouse_money_to_be_doled_...
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teamona721acreformershipyardsite.107InMay2008,theSanFranciscoLaborCouncil,the AssociationofCommunitiesOrganizationsforReformNow(ACORN),andtheSanFranciscoOrganizing ProjectexecutedaCBA.108 TheCBAanticipatesthatthepartieswillcontinuetoworkwiththeHuntersPointShipyardCitizens AdvisoryCommitteeandtheBayviewHuntersPointProjectAreaCommittee,theRedevelopment AgencyoftheCityandCountyofSanFranciscoandtheCitytoadvocatefortheinclusionofthe commitmentsoftheCBAintheTermSheet,theDDAandotheroperativeagreementsrelatedtothe developmentoftheproject.UndertheCBA,thedeveloperwould: ensurethat32%ofhousingunitsbuiltwithintheprojectareaffordableatarangeof specifiedincomelevels109; provideover$27millioninhousingassistancefundstargetedtoneighborhoodresidents, includingdownpaymentassistance; provideover$8.5millioninjobtrainingfundstargetedtoneighborhoodresidents; ensureallprojectemployersparticipateinthespecifiedlocalhiringprogram; ensureprojectemployerscomplywithSanFranciscosCitycardcheckpolicy,asapplicable, sothatworkershavetherighttounionize;and renovateadeterioratedpublichousingdevelopment. B. Reporting,MonitoringandEnforcement Thedeveloperoritssuccessorsisrequiredtoensurecompliancewithrelevantrequirementsby contractedentitiesthatarenotpartiestotheCBAifneededtocarryoutthetermsoftheagreement andtoacknowledgethattheLeadOrganizations,theCityandtheRedevelopmentAgencyareintended thirdpartybeneficiarieswithenforcementrights.TheDeveloperisrequiredtoprovideevidenceof compliancewiththetermsoftheagreement.Theagreementprovidesfora60daycureperiod,binding arbitrationand/orlegalaction.Monetarydamagesarenotavailableasaremedy. C. Implementation TheCBAcallsforthecreationofanImplementationCommitteebythedeveloperandthethreelead organizationstoestablishprocessesandprioritiesfortheexpendituresoftheWorkforceDevelopment andHousingFunds,whichwillbeheldbyamutuallyagreeduponfoundation.TheSanFranciscoBoard ofSupervisorsvotedtoapprovetheenvironmentalreviewonJuly14,2010.Homeconstructionis projectedtobeginin2010.
107
SanFranciscoSupervisorsApproveHuntersPointEIR,J.K.Dineen,SFBusinessTimes.(July14,2010)availableat http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/07/12/daily32.html 108 TheBayviewHuntersPointCBAisavailableatwww.comptroller.nyc.gov/pba. 109 1600unitswillberentalunitsreservedforhouseholdswhoseincomeisequaltoorlessthan60%oftheareamedianincomeof$64,267for afamilyoffour.
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AppendixC: NewYorkCityLandUseApprovals
Duringtheperiodfrom2006to2009,theDepartmentofCityPlanningcertified1,000landuse applications.Asindicatedbelow,theseapplicationsincludedarezoningwhichpermittedtheadditionof morethan500,000squarefeetoffloorarea,andsixdevelopmentplans,comprehensiverezoningsand specialdistrictsexceeding27acres. APPROVALSPERMITTINGFLOORAREAINCREASESOF500,000S.F.ORMORE(20062009):
Applicant Project
Address Block/Lot
LotArea
Permitted Zoning&Floor Area

C19(FARof10) 806,770s.f M32(max.FARof 2.0)544,290s.f.
Approved Zoning& FloorArea Ratio

C52(FARof10) 2,759,481s.f.
Net Additional FloorArea

1,418,421s.f.
City Council Approval

3/26/08
EastRiver Realty Company
ConEdison Site
ZoningLotA(685 FirstAvenue), Manhattan. ParcelB (708First Avenue), Manhattan.
80,677s.f. 277,145s.f
APPROVALSOFDEVELOPMENTPLANSANDSPECIALDISTRICTSEXCEEDING27ACRES(20062009):
Project
Location
ExistingZoning
ApprovedZoningand FloorAreaRatio
C64andestablishmentofSpecial Districttopermitmixeduse developmentwithapproximately 5,000DU,commercial,retailand communityfacilityusesand5.45 acresofopenspace. ConeyEastSubdistrict:FARof2.6 to4.5;ConeyWestSubdistrict: Max.FARof5.8

12/21/09
SpecialHudson YardsDistrict
25blockareaboundedgenerally th st th by11 Avenue,41 Street,8 st Avenueand31 Street.
M23
ConeyIsland Comprehensive RezoningPlan
19blockareaboundedbythe nd Aquarium,W.24 Street,the BoardwalkandMermaidAvenue, Brooklyn. Siteisatriangular61acrearea boundedonthenorthby NorthernBoulevard,onthewest th by126 Streetandonthesouth byWilletsPointRoad. 70blocksintheHuntsPoint Peninsulawithinthearea boundedbytheEastRiver,Bronx RiverandBrucknerExpressway. 35blockarealocatedgenerally th withinWest135 Streetonthe th north,West125 Streetonthe south,thepierheadlineonthe westandBroadwayontheeast.
WilletsPoint DevelopmentPlan
14blocksandportionsof3 blockszonedC7(2.0FAR);2 blocksandportionsof3 blockszoned R6/C12(FARof2.43) M31andR32,Max.FARof 2.0ispermitted
7/29/09
SpecialHuntsPoint District
M12,M21andM31,Max. FARof2.0ispermitted
Special Manhattanville MixedUseDistrict
M12,M23,andM31 Max.FARof2.0ispermitted
C44,MaxFARof3.4is permitted.Proposed developmentplancontemplates: 5,500DU,1.7millions.f.ofretail, 500,000s.fofcommercialspace, andaschool. M12,Max.FARof2.0is permitted.Newzoningprevents developmentofheavy manufacturinguses. C61,C62,R8A Forproposeddevelopmentof17 acreacademicmixeduse developmentofapproximately 6.8millions.f.
11/13/08
7/23/08
12/19/07
Continuedonthenextpage.
54
APPROVALSOFDEVELOPMENTPLANSANDSPECIALDISTRICTSEXCEEDING27ACRES(20062009):
[Continuedfromabove.] Project Location ExistingZoning ApprovedZoningand FloorAreaRatio
C62andC63districts Downtownbuildingbulksofupto 12.0FARconcentrateshigher densitiesalongthetransit infrastructure:fromthe AirTrain/LIRRJamaicaStationon thewestto168thStreetand JamaicaAvenuetotheeast. C42A;Max.commercialFARof 3.0(R6Aequivalent)

9/10/07
SpecialDowntown JamaicaDistrict
368blocksblockareagenerally boundedbytheVanWyck Expresswayonthewest,Highland th Avenue/87 Roadonthenorth, FarmersBoulevardontheeast th and108 Roadonthesouth.
SpecialStapleton WaterfrontDistrict
35+acreHomeportSiterunning eastfromtheStateIslandrapid Transiteightofway,westfrom thepierheadlinefromapoint 560feetsouthofHannahStreet toGreenfieldAvenue.
M21andM31
10/25/06
55
AppendixD: NewYorkCitySubsidizedDevelopment20062009
DEVELOPMENTSWITHSUBSIDIZEDFUNDINGINEXCESSOF$75MILLION ProjectName Location Block/Lot Subsidies

YankeeStadiumGarage YankeeStadium PolytechnicUniversity SiteA,Bronx 1East161 Street,Bronx 5and6MetrotechCenter, Brooklyn AREEastRiverScience Park MetsStadium NewYorkLawSchool East28 toEast30 St.andFirst Avenue,Manhattan 12301RooseveltAve.,Queens 40LeonardStreet,Manhattan 1787/20 176/18 CommercialGrowthProject NotForProfitBondFinancing $650,267,088 $135,000,000
th th st
Total110
$237,635,000 $1,201,554,944 $103,700,000
2499/100 2493/1 142/1
NotForProfitBondFinancing CommercialGrowthProject NotForProfitBondFinancing
962/99
IndustrialIncentive
$556,389,672
110
Thisdoesnotincludeanypropertypilotsavings,mortgagerecordingtaxexemptions,salestaxexemptions,orenergytaxsavingsinuringto theproject.
56

Public Benefit Agreements

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ExecutiveSummary................................................................................................................. 5 Introduction ............................................................................................................................. 8

5. 6. 7. 8. 9. 10. 11. 12.

Thestudyareaforanassessmentofenvironmentalimpactgenerallyincludestheprojectsiteandthe areawithin400feetoftheprojectsiteboundaries.Largerstudyareasmaybeevaluatedforprojects whicharelargeinscale.25

AsindicatedbyAppendixCandAppendixD,oneprojectandsevenspecialzoningdistrictsanddevelopmentplansapprovedbytheCity PlanningCommissionbetween2006and2009,andsevenprojectsapprovedbyEDCduringthesameperiodwouldhavemettheproposed PBAthresholds.

ProposedtermsthatrelyonunsecuredappropriationsbytheCityorStateorfurtherlegislativeor administrativeactionsshouldbeavoided.Bargainedfortermsshouldbesusceptibleofbeingprovided withoutadditionalorongoingsubsidiesfromtheCityorState.

Asdiscussedabove,thereisnocentralrepositoryforbenefitagreementsandrelateddocumentsthat currentlyallowthepubliceasyaccess.Thishampersmonitoringandenforcementeffortsofexecuted agreements,aswellasforcingwouldbenegotiatorstoworkfromscratch.

Asnumerouscommentatorshavepointedout,themannerinwhichpastbenefitagreementshavebeen effectuatedinNewYorkCityhasthepotentialtobeunaccountable,unpredictable,andunenforceable. However,whileitisclearlyinthepublicsinteresttoreplaceaprocesswidelyacknowledgedtobe

commitmentsconcerningpurchasingandcontractingwithBronxbasedbusinesses; offeringof2,000reducedpricememberships(at$20)forlowincomeBronxresidents;and thesetasideof3,500squarefeetforchildcareservices,tobeleasedatabelowmarketrent.

fifteensummerinternshipsforhighschoolstudentslivinginthecommunityorattendingthe Math,ScienceandEngineeringHighSchool;and subwayimprovements.

HarlemGroupsChaosEndangers$76MGift,IsabelVincentandMelissaKlein,NewYorkPost(May9,2010). InformationwasprovidedtoTaskForcestaffbyEricKuofromColumbiaUniversityinatelephonediscussionwithTaskForcestaffon September21,2010andinwrittencommentssubmittedSeptember22,2010.

TheinformationwasprovidedbyRoxanaTynan,DeputyDirector,LAANE,inatelephoneconversationwithTaskForcestaff,September21, 2010. 89 AcopyoftheCBAisavailableat:www.comptroller.nyc.gov/pba.

secureacommitmentfromthenewadministrationtoabidebytheCBA,theagreementdoesnotbind anysuccessordevelopertoitsterms. C. Implementation AsofSeptember2010,constructionhadnotyetbegun.

Acopyofthefinaldevelopmentagreementisavailableat:www.comptroller.nyc.gov/pba. InformationonimplementationwasprovidedbyAndreavandenHeever,formerPresidentofConnecticutCenterforaNewEconomy,inan interviewonSeptember8,2010withTaskForcestaff.

Permitted Zoning&Floor Area

Approved Zoning& FloorArea Ratio

Net Additional FloorArea

City Council Approval

EastRiver Realty Company

ZoningLotA(685 FirstAvenue), Manhattan. ParcelB (708First Avenue), Manhattan.

City Council Approval

25blockareaboundedgenerally th st th by11 Avenue,41 Street,8 st Avenueand31 Street.

ConeyIsland Comprehensive RezoningPlan

14blocksandportionsof3 blockszonedC7(2.0FAR);2 blocksandportionsof3 blockszoned R6/C12(FARof2.43) M31andR32,Max.FARof 2.0ispermitted

Special Manhattanville MixedUseDistrict

City Council Approval

368blocksblockareagenerally boundedbytheVanWyck Expresswayonthewest,Highland th Avenue/87 Roadonthenorth, FarmersBoulevardontheeast th and108 Roadonthesouth.

35+acreHomeportSiterunning eastfromtheStateIslandrapid Transiteightofway,westfrom thepierheadlinefromapoint 560feetsouthofHannahStreet toGreenfieldAvenue.

DEVELOPMENTSWITHSUBSIDIZEDFUNDINGINEXCESSOF$75MILLION ProjectName Location Block/Lot Subsidies

2499/100 2493/1 142/1

NotForProfitBondFinancing CommercialGrowthProject NotForProfitBondFinancing

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