Dumbo NYC

Notes from the DUMBO, Brooklyn NY neighborhood


City Council to Vote on Dock Street Dumbo Today (UPDATE: Approved)

June 10th, 2009

 

[UPDATE: The full Council just voted 39-9 in support of the project, with the no-votes from Councilmembers Tony Avella, Charles Barron, Bill DeBlasio, Vincent Gentile, Eric Gioia, John Liu, Peter Vallone, and, of course, David Yassky. More from Sarah Portlock who is live blogging on the Brooklyn Heights Blog.]

Ever since we first announced on this site that the Dock Street Dumbo plans were revealed, there have been heated discussions between supporters and opposition to the project. For two years, we have heard good arguments for and against the proposed rezoning of the Dock Street property, and today, the final decision will be made by a full City Council vote. Today’s vote will likely approve the zoning application as the Land Use City Council Committee and the Zoning and Franchises subcommittee voted to approve the changes last week.

Although the zoning application will likely be approved, the Dumbo Neighborhood Alliance has requested that that New York State Attorney General look at the evidence of “impropriety and possible corruption on Dock Street.” “Land Use Committee Chairwoman Melinda R. Katz and Council Speaker Christine C. Quinn are pressuring the City Council to rush through this project even in the face of hard, irrefutable evidence of impropriety, not only on the part of the developer and the School Construction Authority but, perhaps, the Mayor’s office,” states DNA president Gus Sheha. (See DNA’s letter sent on June 9 (PDF)).

Two Trees Management previously failed to gain approval for rezoning in 2004. The current proposal includes affordable housing, a 45,000 sq ft middle school space, and approximately 400 underground parking spaces.

City Council will vote on the Dock St Dumbo rezoning application today, Wednesday, June 10 at 1:30p, at City Hall in NYC.

{Past Dock Street News}

Filed in Brooklyn Bridge, Dock Street, Real Estate at 11:24 am
Comments
  • @snifter, you won't need to look for new parking for at least another year. see http://dumbonyc.com/2009/06/11/dockst-whatsnext/
  • dumbostreets
    Well, if the city is short on funds they cannot always open Prospect Park up for oil exploration.
  • Carlo Trigiani
    Generally speaking, the DOE has the latitude to structure a sale-leaseback in whatever way best suits their financial needs. Term, rent, TI allowance, renewals, etc. can all be factored into the mix.

    NYC currently has an S&P general obligation rating of AA, that's pretty good.

    You mention an 8% cap rate and annual rents of $2-3 million. Assuming annual rent of $2.5 million and an 8% cap rate, that's $31,250,000 in proceeds.

    It would be interesting to know what a market rent and cap rate would be for a public school lease. Perhaps somebody reading this who deals with these type leases could provide some guidance.
  • SaveTheBridge
    If I had the resources, I'd start buying up land next to/under all sorts of landmarks and hire Fisher to do his thing for me.

    This new precedent shows developers that rezonings to build huge, inappropriate buildings are for sale literally anywhere. Just pony up the price of raw school space ($10M) plus lobbyist fees and city council member payola ($2M).

    $12M for the rights to build 300 luxury rental units 90 feet from and towering over the Brooklyn Bridge? That's dirt cheap guys.

    Developers with half a nose for profit will probably be flocking to this new model of how to cash out on city and national landmarks.
  • dumbostreets
    Yes, exactly... however they get that magically 40 million dollars it seems crazy for it to be tied up in some lease. Someone is going to end up paying a lot of money for a temporary situation.
  • anon
    I think the city needs to own all schools or have super long term leases at token amounts. Otherwise what happens in 20 years.... The whole process starts all over again. It is the least the developers can do for the gift they are getting.
  • anon
    Yes the school would have to own the space. So either 2Trees sells the DOE the school for a token amount or possibly (and I am not sure this is even legal to structure).... 2Trees leases the school to the DOE for $1 per year for 25 or 50 years. Then the DOE signs a lease (with themselves) for a market rate and sells that stream of lease payments for an upfront lump sum.
  • dumbostreets
    Carlo,

    In order for that to work doesn't the DOE need to own the space first? My understanding of that sort of deal is the owner sells the space and then leases it back...
  • anon
    How are they going to get someone to do a sale-leaseback worth $40m without signing a massive lease. They would have to be paying $2-$3 million a year lease for someone to buy that out at a number even close to $40 million. And that is assuming someone would do that deal at around an 8% cap, which in this environment does not seem likely. People in the RE space are looking for 12-15% returns (minimum) these days.
  • Carlo Trigiani
    All due respect DumboStreets but the scenario you describe is not reasonable. The school will be built and the DOE will most probably raise the funds needed to build out the school by entering a sale-leaseback transaction. The $40 million - or whatever that number turns out to be, will be raised by the sale-leaseback.

    Now that the vote is cast and the zoning variance approved, I hope everyone in the community will work together to build a school of which we can all be proud. Let's work together to make this the best middle school in New York.

    A great middle school at Dock Street is in everybody's best interest.

    Sincerely.
  • New Yorker
    This is, hands down, one of the worst decisions that the city of the great state of New York could EVER make.

    Not only will they be completely defacing one of our LAST National monuments but they are putting thousands of people at risk of terrorist attacks. This structure will be aimed at the Brooklyn Bridge people!!! What do you not get.

    Also, for the record, Dumbo has about a dozen kids of age that will go to that "school"... That is the BIGGEST joke ever.

    Pathetic... Time to move. Greedy bastards.
  • dumbostreets
    Jack,

    Unlike TT, the opposition represents many points of view as it not a business but a coalition of individuals against the development for various reasons. TT would have you believe otherwise, of course.

    I think Walentas WILL build the school if the building goes up... and the city WILL pay 40 million dollars for a leased space for 5 years after a no-bid process, with no comparison studies, etc. Is that how you would spend 40 million dollars for a 300 seat school? Wouldn't you, maybe, just look at other sites so you can negotiate a little in the public interest ... instead of not do it and lie about it?

    Is that really so unreasonable????

    Also, the building is too tall, too large, too close to the bridge. It's THE Brooklyn Bridge for godsake!!?? The most iconic bridge in the world, it should have a halo of space around it. It's hallowed ground. Protection should be strict not good-enough.

    The school can be built in many locations but the SCA has systemically undermined our representatives from even looking at other sites...

    It's a bad design pushed through by a corrupt process.
  • davoyager
    The voice of the people.
    Now we have to watch for what the DOE decides to do with the new space. If we are gonna be screwed by somebody it's gonna be the DOE. Make no mistake.
    How much active participation can I expect from the local community with regard to designing this new school? It's your school people. Speak up.
    da
  • jack
    No2, I'm not saying Two Trees are angels, but assuming they do build the school and 'green' affordable housing, a lot of what you've been saying on these boards are essentially Walentas bashing just for the sake of it.

    Publius, thank you for the interesting video. What politicians are we to trust?
  • huh?
    No2Walentas2Trees = T-Bone?
  • BrooklynLove
    for the love of god. it's over, move on to something constructive.
  • No2Walentas2Trees
    jack,

    How about Court st? Has Walentas apologized for breaking the law, no?

    How about the school booted by walentas, has he apologized? NO

    You proponents have been led astray by a developer who's primary motivation is greed. I HAVE NOTHING TO APOLOGIZE FOR. You people do. The school will not get built, watch and learn young jedi.

    Also, I am disgusted at this notion that it takes a greedy developer to build a school. So much for the 'public' education system.
  • Publius
    Just get Chri$tine Quinn out of office. Hopefully her constituents will see that she doesn't represent their interests and is horribly corrupt with her illegal slush fund.

    At must watch 10 minute video by one of her former ardent supporters who's terribly disillusioned by Quinn's corruption: http://www.youtube.com/watch?v=yXoANkQh93I


    Warning: After Bloomie's 3rd term, she's running for mayor.
  • jack
    epc, until politicians stop taking 'donations', what's the point, unless you have money for the 40 politicians?

    No2, what if Two Trees follows through with their promise to the community? Will you then apologize to Walentas?
  • Well, that's 40 politicians I'll be actively campaigning against in some way.
  • No2Walentas2Trees
    Shame on the supporters. They will soon realize how they were duped into being pawns for a greedy developer who has repeatedly broken promises in the past. SHAME!
  • basil
    sigh. sad.
  • snifter
    anyone know when they are going to break ground, i.e., when I am going to have to find a new parking situation?
  • MMT
  • Water St.
    It is increasingly evident that this project was going to happen (in some form or another) no matter what...

    I'm a dumbo resident - and certainly not anti-development - but I'm always disappointed when the short-term benefits to the developer and the long-term benefits to the neighborhood are at odds. It doesn't have to be this way.
  • Publius
    View a damning video of the bought and paid for Speaker Chri$tine Quinn by one of her former supporters:

    http://www.youtube.com/watch?v=yXoANkQh93I
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