Community opposition also may affect "whether government agencies are willing to help fund the project," writes Been, a professor of law at New York University. "A developer's ability to secure community acceptance of the project through a CBA accordingly may significantly affect the chances that the project will make it through various regulatory and funding hurdles."

Such was the case when Related Cos.' Kingsbridge plan was defeated last December. Stuart Applebaum, president of the Retail, Wholesale and Department Store Union, said at a press conference following the council vote, "We believe, and I think most New Yorkers believe, that when public dollars are used to promote private development, New Yorkers have the right to expect something in return: that the jobs they're creating will lift workers and their families out of poverty."

However, Mayor Michael Bloomberg declared that adding mandatory wage requirements to the project "was a line we were never going to cross," and a spokeswoman for Related called the vote a result of "outside groups" manipulating the Uniform Land Use Review Procedure. "This was never about the money involved, but about outside groups imposing artificial wage demands that do not exist anywhere else in New York City or New York State that were then adopted by the Bronx borough president and Bronx Council delegation without any independent critical analysis," the spokeswoman said. "These demands simply made the project unviable."

Been's article and a recent New York City Bar Association study also referenced on the web page for Liu's task force, "The Role of Community Benefit Agreements in New York City's Land Use Process," say that land use approvals shouldn't hinge on such demands. On the other hand, Kenneth Fisher, chair of the City Bar's land use planning and zoning committee, says in a statement that "city leaders must establish a policy regarding the use of these agreements. The current ad hoc approach is sending mixed signals to both the community and developers."

On the one hand, says Fisher, "it's good for residents to be engaged in decisions affecting their neighborhood. On the other, there can often be the perception of 'zoning for sale.' The city must take the lead in putting an end to the confusion." Liu's task force is scheduled to make recommendations within the next six months.