NEW YORK CITY—With just a few days left until Two Trees Management's ambitious planned redevelopment of the Domino Sugar refinery comes up for a vote by the New York Planning Commission—and after its gone through various changes and prior approvals—a monkey wrench has been thrown at the project.
Mayor Bill de Blasio is urging the developer to add more affordable housing to the site in exchange for zoning rights it needs in order to give the project spectacular views of Manhattan, according to the New York Times. The 2,300-unit complex was slated to include 660 apartments for low- and middle-income tenants.
The demand is untenable, says Jed Walentas, principal at Two Trees and the shepherd of the Domino plan. “Our proposal for the Domino Sugar site was overwhelmingly supported by the Community Board because it is far better than what we can build as of right, delivering more affordable housing, open space, local retail and office space. We share Mayor de Blasio's affordable housing vision and are hopeful we can reach an agreement, but we are very concerned that the demands being imposed by the city will make us unable to finance the project and move forward with it at all—costing working families in Williamsburg badly needed affordable housing, open space and jobs."
But Alicia Glen, deputy mayor for housing and economic development counters, “The administration has been very clear: When the city creates significant additional value for developers through the zoning process, the public should receive its fair share of affordable housing." The Mayor's office did not respond to a request seeking further comment by press time.
For industry watchers who, before the election, feared that de Blasio's progressive agenda might create a difficult climate for developers, this battle is sending up an ominous signal. “This is curtains up on the first act of the real-estate drama for the new administration,” says John Mollenkopf, director of City University's Center for Urban Research.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
