Long-Awaited Final Accord Sets More Aggressive Timetable for Affordable Housing Development
Forest City Enterprises, Inc. and a subsidiary of Shanghai-based Greenland Group Co. announced Tuesday they have closed a joint venture to develop Atlantic Yards, a 22-acre residential and commercial real estate project in Brooklyn.
Gov. Andrew Cuomo unveiled a plan Friday to accelerate development of the 22-acre, 6,430-unit project -- including delivery of 2,250 affordable apartments by 2025, 10 years earlier than originally planned. The city’s Housing Development Corp. will help finance two affordable housing buildings totaling at least 590 units, with construction beginning by December.
The new agreement "is a major breakthrough in the Atlantic Yards project," said Empire State Development President CEO and Commissioner Kenneth Adams.
"The revised plan ensures that the affordable housing at Atlantic Yards will be completed 10 years earlier and the community will have an enhanced role," Adams said.
The two companies last December announced a definitive agreement for the joint venture,
which covers the first two phases of the project, including infrastructure, a permanent MTA rail yard, a platform above the rail yard, future residential units and future commercial high-rise development. During the long process to forge a development agreement, only Barclays Center -- originally the centerpiece of the project -- has been constructed. The arena and the first residential tower, B2 BKLYN, are not part of the joint venture.
The inter-agency U.S. Committee on Foreign Investment and the government of China have approved the joint venture in which Greenland USA acquires 70% of the project and will co-develop the project with Forest City. Both companies will share project costs in proportion to their ownership interests and Greenland will reimburse Forest City for certain costs to date.
New York-based subsidiary Forest City Ratner Companies and Greenland USA will co-manage and develop the project consistent with the approved master plan.
"In particular, we look forward to expediting the construction of the housing component of Atlantic Yards, something that will benefit significantly from this new investment," said David J. LaRue, Forest City President and CEO.