Gotham Gazette: "Will Derailing a Bad Project Lead to a Good One?"

Today's Gotham Gazette includes an excellent article by Joan Byron recapping the Kingsbridge Armory Redevelopment Alliance's campaign for responsible and accountable development in the Northwest Bronx. When Related Cos. proposed to redevelop the armory as a shopping center, KARA insisted on a CBA with a living wage requirement, and when Related refused to guarantee living wage jobs, KARA succeeded in convincing the city council to reject the project.

And so, Byron asks, will defeating the shopping mall proposal lead to a better development plan?

KARA is ready to go back to the drawing board, with an even clearer understanding of what the Bronx stands to lose, and to gain. Realizing the damage that a mega-mall would inevitably inflict, KARA and its allies are seeking a community-led vision that will maximize local benefits without destroying the neighborhood.

They won’t have to look far for a precedent. Another armory opened its doors to its host community this month, gracefully accommodating a women’s shelter, community space and a YMCA whose gym will also serve local kids during the school day. The redevelopment of Brooklyn’s Park Slope Armory took years to move from vision to reality, but KARA members are already asking "why not here?"

Kingsbridge Armory plans rejected, 45-1

The New York City Council yesterday rejected the Kingsbridge Armory redevelopment plans by a vote of 45 to 1, with one abstention. The vote turned primarily on developer Related's refusal to impose a living wage requirement on retail tenants, a stance that prevented finalization of a CBA between Related and the Kingsbridge Armory Redevelopment Alliance.

The vote was not altogether surprising, as the Bronx delegation to the city council has been actively pushing for the living wage requirement, but it nevertheless comes as a defeat to the Bloomberg administration, which saw the project as a boon to the borough. The rejection comes just about a week after an appellate court threw a wrench into Columbia's plans to build a new campus in West Harlem by holding that the project could not use eminent domain.

Under the New York City Charter section 197-d (available here), Bloomberg has the chance to file a written disapproval of the action, which can only be overturned by a two thirds majority of the city council. Council speaker Christine Quinn has stated that she has the votes to overturn any mayoral veto. If the rejection is sustained, Related will have 30 days to file a complaint for judicial review.

The Kingsbridge impasse continues

The Kingsbridge Armory Redevelopment Alliance is strongly opposing a compromise deal that would have supplemented wages with city money. "This is a bad deal for the Bronx and all New Yorkers and we are calling on the Council to vote it down," said Desiree Pilgrim-Hunter of KARA. "The so-called living wage fund that the Administration is proposing is nothing but a subsidized poverty fund."

Will there be a vote on the Kingsbridge Armory development today?

The New York City Council is scheduled to vote on the Kingsbridge Armory project today, but negotiations on the CBA and its controversial living wage requirement are ongoing. This has led members of the Bronx delegation to seek a postponement of the vote, possibly until Monday.

It seems that the Bronx delegation has proposed to subsidize living wage jobs, initially with the $5 million purchase price for the armory (which itself is an incredible subsidy to the developer), and thereafter through a 5% surcharge on the developer's profits. This way, living wages could be mandated on all retail tenants, but the costs would fall on the city and the developer, negating the developer's argument that the wage requirement would make it difficult to attract tenants.

More support for living wages at the Kingsbridge Armory

If yesterday's city council meeting foreshadows the city's ultimate decision on the Kingsbridge Armory redevelopment plans, the developer may be in for a disappointment. According to one account, "virtually the entire Zoning and Franchising Subcommittee, (which will be the only Council committee to hold a hearing on the project) grilled company representatives on the living wage issue." Another source called it "a major road block." 

The developer, Related Cos., and the Bloomberg administration have been fighting against the living wage requirement for months, but the Kingsbridge Armory Redevelopment Alliance, with strong support from Bronx Borough President Ruben Diaz, seem to have succeeded in persuading city council members not to let the project go forward without a CBA requiring a living wage. At the meeting, city council members contended that not including the wage provision would make the heavily subsidized project into "an economic exploitation project" and would "keep the neighborhood poor." Other council members expressed skepticism at claims that the project wouldn't be commercially feasible with higher wage standards. Diaz declared that "these jobs must be created in the right way. The old model, that any job is better than no job, is no longer acceptable."

The city council put off its decision in order to have more time to question city officials about the project. A public hearing will be held on Nov. 23, and a vote on the project will be made by Dec. 9.

Support growing for the Kingsbridge CBA living wage requirement

The city council is set to vote in December on the Kingsbridge Armory redevelopment proposal, and support seems to be growing for a living wage. In CBA talks between the Kingsbridge Armory Redevelopment Alliance and the Related Cos., the living wage issue has led to an impasse, but enough pressure from city council members might persuade the developer to agree to the living wage requirement or some sort of compromise.


In addition to support from the Bronx city council delegation--and the rest of the city council often votes in accordance with the area's council representatives-- Queens council member and comptroller-elect John Liu has come out in favor of the living wage requirement, emphasizing the inadequacy of low wage jobs and suggesting that Related has no grounds for compliant given the amount of public subsidy it has received.  Brooklyn council member Charles Barron has also said that he supports the CBA and the living wage provision, although he recognizes that this is an improper basis upon which to base his vote on the land use application. (This point was explained by Amanda Burden, chair of the city planning commission, a few weeks ago.)

Kingsbridge Armory plans get approval from the planning commission; still no CBA

In New York, the city planning commission voted 8-4 yesterday to approve the Kingsbridge Armory redevelopment plans, despite Bronx Borough President Ruben Diaz's recommendation to reject the proposal unless the developer entered into a CBA. Amanda Burden, chair of the CPC, explained candidly that the CBA issue was not an appropriate one for the commission to consider: “For this application, as we have consistently held with other applications in the past, the issue of a Community Benefit Agreement including commitment to living wages should not weigh in our consideration of the merits of the land-use application for rezoning, disposition of City-owned property, and changes to the City Map.” The city council now must make a final decision on the project within 50 days.

Crain's bashes CBAs

Crain's New York Business published an article last year calling CBAs "extortion" and "zoning for sale." These criticisms were repeated last week in an article written by the same author, Alair Townsend, this time bashing the Kingsbridge Armory CBA campaign.

Townsend points out that the Bronx has a higher unemployment rate than other parts of New York, and she faults the borough president and CBA supporters for opposing a project that would create hundreds of jobs. But the Kingsbridge Armory Redevelopment Alliance is not opposing development, and it's certainly not opposing new jobs; the coalition, rather, is opposing low road development and dead-end, poverty wage jobs.

Townsend also contends that the city council can't force the developer to pay a living wage or require union neutrality. Such conditions on project approval might be found to be unconstitutional exactions (see here for background), but Townsend oversimplifies the issues. Most importantly, the wages and unionization issues are not the only concerns that have been raised about the project. The borough president cited concerns about the project's impacts on traffic and existing retail establishments, among other things, and similar issues were also discussed in the draft environmental impact statement. It's completely permissible for the city to take these issues into account when deciding whether or not to approve the project. (See sections 2-04 to 2-06 of the city's Uniform Land Use Review Procedure Rules for more on this.)

Supporting a CBA for the armory redevelopment is not "pay to play," as Townsend suggests. The CBA campaign in this case has a wide base of community support, and local politicians would be remiss if they didn't consider the community's needs during the planning review process.

Some Kingsbridge Armory links

For anybody interested in the Kingsbridge Armory redevelopment and possible CBA, it's worth a few minutes to take a look at Bronx Borough President Ruben Diaz Jr.'s recommendation to the planning commission. Regarding the CBA, Diaz states:

The developer has not agreed to a socially equitable Community Benefits Agreement. I cannot understand why the developer would not act in good faith with The Bronx and the City as a whole, by not considering the needs of the community. The provisions in the proposed Community Benefits Agreement are both fair and negotiable. Among the most important disagreements with the developer is their refusal to assure living wage provisions, defined by Local Law 38 adopted in 2002, as $10 per hour with health benefits. [The Economic Development Corporation] made it clear in the site RFP that it would favorably view development plans that maximize the number of jobs meeting the City’s living wage and health benefit standards. All the community wishes to do is to be a participant in what could be its greatest socioeconomic investment for generations to come.

It may be hyperbole to suggest that the developer has not "consider[ed] the needs of the community," but Diaz also explains that his office received "significant correspondence" from residents concerned about the need for a CBA. And as he cogently points out, the goal of the planning review process should be "to assure that development of City-owned property and use of government subsidies benefit surrounding communities on whose patronage the financial feasibility of this project will depend."

Diaz gave a number of other reasons for rejecting the proposal:

• no market study was conducted to determine whether the proposed retail uses will be viable, or to determine what their impacts on existing retail establishments will be. "This is critical in terms of determining the best uses for the community and the impact on the surrounding area."
• there is no need for a new grocery store as there are other super markets within a half mile of the project site
• there has been no assurance that the redevelopment will include the siting of at least one school; nor has the developer agreed to include other education facilities (e.g., space for Lehman College or performance space)
  
• "No identification as to how the City plans to use the $5 million acquisition price or annual taxes, which I feel should go towards the development and maintenance of the community facility, and not to the General Fund."
• there is no assurance that the project's interior designs will be consistent with the armory's Romanesque architecture
  
• several transit, traffic and parking issues have not been adequately addressed
  

Here are some additional links to the project's planning documents:

• Environmental Assessment Statement
• EA Positive Declaration
• Draft Scope of Work
• Final Scope of Work
  
• Draft Environmental Impact Statement
• Notice of Completion for DEIS

The Neighborhood Retail Alliance on Kingsbridge and a living wage

Over at The Neighborhood Retail Alliance, there's some discussion about the Kingsbridge Armory project and the coalition's demand for a living wage. They point out that this is not just about ensuring that local residents can get good jobs and benefit from the development; it's also about safeguarding the local economy and ensuring that taxpayer dollars aren't used to subsidize big business:

That being said, the demand for a living wage remains as a compelling component of any subsidized retail development. In our view, it is always problematic to use tax payer dollars to incentivize new retail projects; since the end result is usually the shifting of retail sales from existing mom and pop stores to national chains, And, as Stacy Mitchel's seminal work in this area underscores, this kind of policy results in a net loss to the locality.

Put simply, local dollars re-circulate at a much more productive rate that those of national chains headquartered elsewhere. Therefore, if we are going to subsidize chain stores that cannibalize existing neighborhood retailers, the least we can insist on is that these entering retail outlets pay the locals at a proper living wage. Anything less is simply cheating both the neighborhoods and the tax payers in general.

Appelbaum gets it right: "I don't buy that assumption," said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union. "It's not a matter of whether it's going to be profitable, but the size of the profit they will make." Living wage advocates point to the $40 million in city taxpayer money subsidizing the armory project in the form of tax breaks and city-funded repairs. "If they are taking from government," said Appelbaum, "they have to give back to the community."

For more on Stacy Mitchell's research supporting local business, visit the New Rules.

Some New York City news

Bronx Borough President Ruben Diaz, Jr. last week received an extension [see correction below] for submitting his recommendation concerning the approval of the Kingsbridge Armory redevelopment so that he can give Related Cos. time to accept a draft CBA. The proposed agreement was drafted by the Kingsbridge Armory Redevelopment Alliance, Diaz, Community Board 7, and local elected officials.

Update and correction 08-27-09: The news that Diaz was granted an extension was not completely accurate. While he does have a de facto extension, Diaz is apparently "being considered non-compliant for not making a recommendation by the land review process' built-in Tuesday, August 25 deadline." Although the influence of community boards and borough presidents during the ULURP process is sometimes described as practically nonexistant (see here, calling ULURP a "horse and pony show"), Diaz is confident that the planning commission will take his opinion into account if no CBA is signed by the real deadline, September, 9. The Bronx News Network has also learned that the CBA includes a living wage requirement, which may throw a wrench in the CBA's gears, as Related Cos. has stated flat out that it will not agree to increased wages

In the first democratic party debates for New York City Comptroller, the candidates weighed in on the Yankee Stadium CBA-like agreement. Melinda Katz raised concerns about the enforceability of CBAs and suggested that the city should develop a standardized method for reviewing stadium developments. David Weprin declared that he would use the Comptroller's audit powers to hold the Yankees and the New York City Economic Development Corp. to the commitments made in the CBA. John Liu also promised to review the Yankee Stadium CBA "intensively," and David Yassky explained that he would pursue fewer large scale developments and seek to use the city's economic development programs to provide the types of amenities that communities in each of the five boroughs need, such as parks and schools.

In the Bronx, the IDA granted subsidies for the Kingsbridge Armory without a CBA

Despite New York City Comptroller and IDA member Bill Thompson supporting a CBA for the Kingsbridge Armory redevelopment and calling for the IDA to hold off on subsidy approvals until one was in place, yesterday the IDA approved tax exempt financing for the $323 million project. The Bronx News Network Live Blog estimates the benefits for the developer, the Related Companies, at about $17.8 million.

Thompson, backed by Manhattan Borough President Scott Stringer, moved to postpone the IDA vote until more information was available about the number of jobs to be created and their likely salaries. He also criticized the IDA and New York City Economic Development Corporation for not supplying him with procurement documents, and he questioned the propriety of the IDA subsidizing this project at all, since it's not an industrial project and it's not located in an empire zone or an empowerment zone. Regarding the uncertainty as to what kind of jobs the project is going to create (and for whom they will be created), Thompson remarked that "a Community Benefits Agreement should be negotiated to resolve these issues before a vote and to ensure adequate community involvement in the process." See Thompson's press release here.

(Update Mar. 13) More commentary from the Bronx News Network is available here.

NYC Comptroller supports a CBA for the Kingsbridge Armory

At a news conference on Thursday, New York City Comptroller William C. Thompson, Jr. joined the Kingsbridge Armory Redevelopment Alliance (KARA) in urging Related Companies to negotiate a CBA. "Related has benefited well from its relationship with the City. It is time that it give back to the residents of the Bronx. A Community Benefits Agreement will ensure that the development of Kingsbridge Armory will be good for both the people and the economy of the Bronx.”

Kingsbridge Armory CBA Campaign update.

For a nice update on the Kingsbridge Armory redevelopment CBA, check out this article from yesterday's Norwood News. The article also gives a good overview of the New York City experience with CBAs.

Kingsbridge Armory CBA campaign

(photo credit- New York Times)

Bettina Damiani of Good Jobs New York reports on the Clawback Blog that the Kingsbridge Armory Redevelopment Alliance (KARA) is seeking to negotiate a CBA over the redevelopment of the Kingsbridge Armory in the Bronx, a 575,000 square foot structure built in 1917 and slated to be turned into a shopping center (see here and here for information about the redevelopment project and here for photos of the existing building).

KARA is part of a larger community alliance, the Northwest Bronx Community and Clergy Coalition (NBCCC), and it's made up of tenant and neighborhood associations, faith based groups, unions, elected officials and other community-based groups. The Alliance is seeking commitments to living wages, union protections, local hiring goals, community space and environmental protections. To achieve these goals, it's seeking to negotiate a CBA, a Labor Peace Agreement and a project labor agreement. KARA was involved in the process of selecting the developer for the project, Related Companies, which is also the developer of the Gateway Center at Bronx Terminal Market.

A New York City Economic Development Corporation press release explains that the project will include between 25 and 35 retail stores as well as an anchor department store, landscaped rooftop space open to the public and a public plaza. It will be built using green design and is expected to attain LEED silver status. Elected officials and Related spokespersons expressed their desire to continue working with the community during the development process.