Bye Bye Birdie
The Finger Building Gets Chopped
By Nichole Altmix
Aesthetic preference, an individual choice, typically varies in a multicultural group such as the residential community of Greenpoint/Williamsburg. But when it came to developer Mendel Brach’s latest building at 144 North Eighth Street, its neighbors have expressed a unified distaste for the project. In an area where most buildings consist of three and four stories, this luxury building currently towers over the neighborhood at an arrogant one hundred feet and was originally projected to reach two hundred twenty feet, securing it the nickname of the “Finger Building.”
Phil DePaolo, a community activist in Brooklyn, said he was “ecstatic” about the judge’s recent decision to halt any further height developments of the building, which started construction in 2005. Justice Michael Ambrosio of Kings County Supreme Court issued a ruling on February 6, 2007 which indicated that Mendel Brach can keep the construction he completed but cannot go any higher, even though the building is now significantly larger than the current zoning laws allow.
According to the NYC Planning Commission - Zoning Department, a residential building on that plot has a maximum height of fifty feet, which includes the base – but any building that laid its foundation prior to the May 2005 rezoning was technically exempt from the new restrictions. Although Brach can appeal the decision, the process is costly, and the developer refused to comment on his plans. His real estate attorney, Howard Hornstein of Cozen O’Connor, has a reputation of being well-connected given his previous participation in Department of City Planning and on the Board of Standards and Appeals.
Because of his experience, he is acutely aware of the loopholes available for developers, according to DePaolo. Hornstein confirmed that “the judge ruled that no summary judgment will be granted to Brach and it is now essentially in the hands of [Department of] Building, who will resolve it.” Hornstein would not comment on Brach’s future course of action regarding an appeal because “Brach is in negotiations at the moment.”
During construction, overseen by contractor Bob Scarano, the residents complained of weekend work, late night noise and dangerous site conditions for workers. In fact, ninety-six complaints were filed resulting in three stop work orders, one of which was a stop work order violation, according to the New York City Department of Buildings. Both partial and full stop work orders were issued for “unsafe storage of flammable gas and failure to install standpipe for fire department use,” also according to the DOB.
Some residents were even evacuated from their homes in the middle of the night, according to Amy Cleary, Media Coordinator for State Assemblyman Joseph Lentol’s office. Cleary says that Lentol's office has a proposal in the Assembly to add “an insurance requirement for the surrounding buildings during construction” to avoid such evacuations. They are also trying to implement a law that “provides criminal penalties for code violators” and to require more information when the developer and contractor apply for the initial permit to build, said Cleary. The residents were also irritated when Brach claimed he could not price these new luxury apartments as affordable, but “would compensate Williamsburg by erecting community facilities within his building,” says DePaolo. Even though the building is still under construction, residents have yet to see any plans for such a facility, said DePaolo.
Stephanie Thayer, a board member of Neighbors Allied for Good Growth, a community organization allied “to recapture the waterfront, reduce local environmental hazards and advocate for public policies”, is “delighted” regarding the outcome of the court case. Thayer explained that the community “had all cards stacked against us in fighting an as-of-right building (requiring no special building permits) by a well-connected development and legal team,” and describes the outcome as “a sort of David and Goliath” feat.
She says that the fight not only prevented one “absurd” building in the neighborhood, but also had a broader impact on inappropriate, illegal and unsafe developments. NAG has established a system to monitor similar construction projects, and City Planning is looking at rezoning additional parts of Williamsburg/Greenpoint to prevent more “finger buildings.” Because of such violations, for example, Scarano agreed to settle DOB charges against him by opting out of the self-certification program July 2006, due to repeated non-compliance with zoning regulations. The City Council has also recently issued related legislative recommendations.
Regardless of the judge’s decision and the lack of community support, Brach will still, most likely, secure a hefty profit. “Even though this building should have been finished and occupied over a year ago, these apartments, when completed, will sell for a huge amount,” leaving Brach with some nice pocket change, according to DePaolo. HSBC, the bank that financed the project, was questioned about the financial impact of the decision and the effects of the delay it produced. Stephen Cohen, a spokesperson in Media Relations at HSBC, had no comment on the recent decision.
DePaolo and the residents of Williamsburg are currently deciding whether to take legal action to revoke Brach’s vesting. DePaolo claims that this process will cost between $10,000 to $12,000 and could require sponsorship from the community. If the community pursues this legislation, Brach “would have to bring his building back down to sixty feet, due to the down-zoning of the neighborhood’s waterfront.” Since this legislation is an extremely costly and tedious process, and since the recent battle lasted approximately two years, the chances of actually winning, or beginning another lawsuit for that matter, are slim. For now, the community can rest easy that the obtrusive structure on North Eighth Street will not grow any new floors.
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Slam Dunk for Greenpoint?
Magic Johnson’s plan to assist North Brooklyn development
By Nichole Altmix
When Earvin “Magic” Johnson retired from the NBA officially in May of 1996, he started to focus on hobbies other than shooting hoops. Johnson, in conjunction with his partner, Canyon Capital Realty Advisors, developed the Canyon-Johnson Urban Fund (CJUF), which invests housing for urban America. CJUF is dedicated to “providing equity capital for the revitalization and redevelopment of urban neighborhoods to identify worthwhile projects that address the clear shortage of retail, residential and commercial development in those areas.”
Since 1998, CJUF has ventured all over the country trying to “enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically diverse urban communities.” They have invested in areas throughout California, Wisconsin, Illinois, Florida, Georgia, Maryland, Texas, Massachusetts, Washington D.C., Ohio and New York. The most recent project for CJUF will spring up in Greenpoint in the near future. CJUF “will provide $12.4 million to help build a 130-unit condominium project,” according to Crain's. “Green Street Development will use the funding to build a six-story residential building, located two blocks from the Brooklyn waterfront,” also according to Crain's. This project in Greenpoint will be the third in the borough of Brooklyn but the fifth project for CJUF in New York City.
As of late, when a Brooklyn resident hears the word “condo,” s/he immediately thinks of a twenty-five story monster that aims to destroy the very essence of the suburban neighborhood. CJUF claims to be very conscientious when redeveloping an area. Their first project in Brooklyn during 2003, 145 Park Place in Park Slope, “was designed to reflect the character of the neighborhood,” noted the press release on the project. Their second project in Brooklyn during 2005, One Hanson Place in Fort Greene, was to “renovate and convert a landmark.” In a statement released by CJUF, Magic Johnson said, “we are believers in Brooklyn. By bringing high-quality residential space to Greenpoint, Canyon-Johnson is adding to the revitalization of the already vibrant Brooklyn community.” Steve Sugerman, the media contact at CJUF, would not return any messages to discuss what CJUF plans on bringing to the neighborhood by building these condos.
Although the exact price of the new Greenpoint condominiums has not yet been released, www.bloomberg.com points out that “Brooklyn apartment and townhouse prices jumped 16% in 2006 to a median of $570,000 . . . Greenpoint had the biggest increase, with prices there rising 65%.” CJUF claims that “only 2% of US domestic private equity capital is currently targeted toward real estate development and businesses in urban areas,” hence their reason to invest.
What is in store for the non-high-rise areas of Williamsburg and Greenpoint? The rumble is that the Williamsburg Savings Bank will soon be a tower of condos, and perhaps plans for a few areas in Bushwick. The Brooklyn waterfront could definitely use a makeover, but is North Brooklyn becoming Manhattan-ized with condominiums eventually outnumbering family homes?
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And Yet Another Greenpoint Oil Spill Lawsuit
By Adrian MacDonald
On February 8, as Block Magazine’s last issue went to press, New York’s new state attorney general Andrew Cuomo announced his intent to bring legal action against ExxonMobil and four other companies involved in the 17-million gallon, 55-acre oil spill in northeast Greenpoint. Cuomo’s announcement follows on previous negotiations that his predecessor Eliot Spitzer began with Exxon last June.
The attorney general’s lawsuit will differ from the four suits already filed against Exxon [see Representing Greenpoint: The Lawsuits Against Exxon Mobil, Block Magazine 2/13/06] in that it focuses on the company’s cleanup effort with more force than any previous litigation.
In essence, the action would be similar to that filed in 2004 by the environmental non-profit Riverkeeper. However, the attorney general’s case will go much further in indicting the company, invoking at least four federal laws and two state laws and seeking a more comprehensive list of damages on behalf of the state of New York.
“The state can raise certain claims under state and federal law that members of the general public can not raise,” said Basil Seggos, Chief Investigator for Riverkeeper.
In one allegation the state shares with Riverkeeper, Cuomo will make the case that the company has violated the United States Clean Water Act on a near daily basis by allowing unpermitted oil and contaminants into Newtown Creek, and will seek back fines for at least five years totaling as much as $97,500 per day.
In the coming legal firestorm, Exxon could be looking at a financial burden comparable to the one it incurred from the 1989 Exxon Valdez disaster in Alaska. With the state attorney general seeking back pollution fines possibly totaling $178 million for one part of the case alone, and at least one private attorney known for his record award of $333 million in a similar environmental case, legal damages could approach the $1.3 billion the company paid in settlements in the previous case.
By most accounts, the company can probably afford the bill. Thanks to unusually high energy prices in recent years, ExxonMobil’s profits in 2006 totaled $40 billion, the highest of any company in American history. In 2005 it surpassed Wal-Mart as the largest firm in the US.
However, Exxon’s legal defense resources are also formidable. For the last 10 years it has successfully appealed an additional lawsuit in the Valdez case brought by a group of commercial fishermen seeking $5 billion in damages. Last December, a federal appeals court reduced the amount to $2.5 billion.
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The Brooklyn Boom
Prices and population rise
By Megan Battista
While Brooklyn’s real estate boom has been touted as a means to bring city-like amenities such as added storefronts, restaurants and upscale boutiques, experts say such growth will also bring about substantial increases in home and rental prices, as well as overall population.
According to the U.S. Census, since 2005 Brooklyn has had more building permits granted by the city – 9,191 – than any other borough, and that number continues to climb. The areas most affected by this onslaught of new development have been Williamsburg, Greenpoint and parts of Bushwick. Many believe these areas are being targeted due to neighborhoods’ appeal in terms of both diversity and untapped real estate opportunities.
The two-mile rezoning approved by the City Council in 2005 allows for 175 blocks of formerly manufacturing and industrial zones to be used as residential. With the new zoning, the neighborhood is expected to see up to 28 towers between 20 to 40 stories high and add 10,800 new housing units by 2015, along with a 25 percent increase in the population.
Already, the median price for a condominium in Brooklyn has increased 9 percent to near $500,000 and cooperatives have seen an increase of 12 % to about $250,000 in 2006. Overall, Brooklyn apartment and townhouse prices have increased 16 percent to a median price of $570,000. The price of a Brooklyn home rose an average of 8 percent in 2006, according to a February report by HMS Associates, a Brooklyn-based real estate appraisal firm.
While some of this new development promises affordable housing, it only makes up a small percentage of the overall growth for the Williamsburg, Greenpoint and Bushwick areas. There is talk of even more units for low-income tenants, but the decision hinges on rezoning the building that formerly housed the Pfizer plant on Flushing Avenue from manufacturing to residential. Another affordable housing option, already under development, is Palmer’s Dock on Kent Avenue; scheduled to be completed in October, as part of the 900-unit Northside Piers complex.
