The Untold Stories Behind Downtown Brooklyn’s Construction Boom
It may sound like a bad dream, but it’s all too familiar for St Joseph High School principal Sister Joan Gallagher. A 3 am call out as debris from neighboring construction sites has tripped the school alarm off.
Construction and new residential buildings as far as the eye can see certainly paints a picture of growth in Downtown Brooklyn. However, behind the mask of this expansion and prosperity, there is a side to the Downtown Brooklyn boom that isn’t sitting well with some.
The long-term economic benefits, effect on the community and a local girls school is putting some perspective on the vibrant picture of Downtown Brooklyn.
In 2004, The Department of City Planning and the New York City Economic Development Corporation signed in the Downtown Brooklyn Plan, which sought to capitalize on the increase in businesses shifting out of Midtown and Downtown Manhattan as commercial office space supply was drying up causing prices to soar.
Downtown Brooklyn’s proximity to Manhattan and its mass transit facilities made it an obvious location for business development.
At the signing of the plan, New York’s Mayor at the time Michael Bloomberg said “The Downtown Brooklyn Plan represents a key part of our strategy to preserve and grow jobs by diversifying our economy and strengthening the City’s business environment,”
Since the plan was signed, local community groups, boards, and schools have expressed their disapproval, believing the implementation has not lived up to its promises.
The immediate plan was for three new commercial office towers providing up to 3 million square feet of office space. However, it has taken eleven years, and Downtown Brooklyn is finally getting its first new, ground-up commercial building as the supply squeeze on commercial property in the area reaches a tipping point.
And this building was not without its controversy.
The building, to be located at 420 Albee Square was scheduled to be a 65-story apartment building. However, a last-minute change came an announcement it was to be solely commercial space. In return, the city agreed to sell JEMB 120,000 square feet of air rights.
JEMB was not available for comment on the air rights agreement.
So why has it taken so long for Brooklyn’s first ground up construction of commercial office space since the Downtown Brooklyn Plan of 2004?
Brooklyn Community Board 2 Director, Robert Perris believes the city gave in to the residential boom, which has been detrimental to the long-term economics of Downtown Brooklyn. “We let the market decide for us and it kind screwed us,” Perris said.
Perris pulls no punches in his criticism of the Plans implementation. “This might be the biggest case of bait-and-switch, well in my professional career, it is,” Perris said, referring to the U-turn on the proposals.
Perris believes the 2004 plan failed, as the city subcommand to residential construction with the majority of new buildings being luxury condos like 388 Bridge Street and Avalon Willoughby West.
The Community Board followed up with the New York Department of City Planning in March 2010 to re-visit the Brooklyn Development Plan as they felt by then the plan was digressing from its original objective.
According to Perris, the response from Amanda Burden, who at the time was the Director of City Planning, was the plan was working fine. Amanda could not be reached for comment.
Despite this, Perris does believe there is value in residential development in Downtown Brooklyn. “You need a 24/7, 365 neighborhood if you are going to attract restaurants.”
The digression from the 2004 plan is where Perris’ frustration lies. He believes it has created an imbalance in the area and as New York City grows, Downtown Brooklyn is not reaping the benefits they had projected.
Alan Washington, Director of Real Estate and Planning at The Downtown Brooklyn Partnership believes the 2008 recession had a significant role in the residential influx. “When you come out of recessions, whether you’re in the recession or not, the economic fundamental’s, unless there is some sort-of incentives programs or other things that are in play, residential development is always going to lead to the highest return, that is where the market is going to go to,” Washington said.
The lack of the commercial development has certainly not been a supply and demand issue.
At the end of 2014 commercial vacancy rates in Downtown Brooklyn were 4.1% compared to 8.8% across New York City. According to Washington, the vacancy rate is now at a staggering 2.8%. The national average is around 11–13%.
This supply vs. demand problem has seen businesses look elsewhere for their growing operations.
This business has been captured by places like Jersey City and Hoboken, which, ironically was one of the reasons behind the Brooklyn Development Plan in 2004.
“In past years, New York has lost business to New Jersey and elsewhere because the City was not doing enough to attract the corporate community,” said Councilmen David Yassky at the opening of the Development Plan.
In the past fifteen years Jersey City has attracted business like ICAP, CNBC, Forbes, JP Morgan Chase to set up large-scale offices. In August JP Morgan announced it was moving 2150 jobs to Jersey City.
Coupled with this, Jersey City has just announced a housing affordable plan that will give tax breaks for construction of affordable housing units in the lower socio-economic areas of the city.
So as Jersey City thrives Downtown Brooklyn continues to lag on economic and social issues despite the demand for commercial office space.
A study released last month by the Brooklyn Chamber of Commerce revealed the borough is missing out on $6 billion in consumer spending. In an interview after the report, Brooklyn Chamber of Commerce CEO, Carlo Scissura, reiterated the housing rezoning issue, “As we do rezoning for housing, let’s not forget about businesses,” Scissura said.
When I spoke to Scissura, I asked him where Downtown Brooklyn’s commercial progress is at compared to the plan he said. “It was zero compared to what they would have hoped.”
Scissura echoed the thoughts of many about the lack of progress made, but he is optimistic that they are heading in the right direction. However, his words would still keep the skeptics weary. “It took longer than planned but we are fine now,” Scissura said.
The economics are not the only issue that has arisen during the Downtown Brooklyn construction boom. There has been condemnation from a local social inequality group and a neighboring girls school.
In 2008, Families Untied for Racial and Economic Equality (FUREE) prepared a report entitled ‘Downtown Brooklyn’s Detour, The Unanticipated Impacts of Rezoning and Development on Residents and Businesses.’
The report’s goal was to tell the ‘untold story of the harmful effects that redevelopment is having.’
FUREE’s main concern was the alarming number of small businesses being driven out of the Fulton Mall area that served as a substantial amount of jobs for the unskilled residents of Downtown Brooklyn.
The report was submitted to the council and according to FUREE organizer member Michael Higgins, when asked about the response was, “for the most part, no.”
Shortly after the plan, FUREE assisted residents of a rent stabilized building on Willoughby and Albee Square West that was housed by Hispanic and Asian families who were forced to move out. The building was rezoned for a car park to cater for the residential tenants.
As the construction is eleven years on Higgins remains frustrated but it seems too late now. “It was a case of this would happen, and this didn’t happen,” Higgins said.
St Joseph High School has also had their issues with the commercial development. School Principal Sister Joan Gallagher has had ongoing issues with the policing of the construction companies.
The construction noise, double-parking of cement trucks outside the school and falling debris have taken its toll on school principal Gallagher. “It’s been a real fight, I have expended a lot of energy,” Gallagher said. “We have found it difficult for the kids to learn with all the noise which is the real sad part.”
Gallagher has raised the issues with the city council and 311 but hasn’t had any help in getting the problem addressed. “Staffing resources don’t allow the school to put the effort into the fight,” Gallagher said.
“Poor people suffer injustices everywhere, this is no different,” Gallagher continued.
As construction around 388 Bridge Street and 100 Willoughby looks to be in its final stages, maybe the wake up calls for Gallagher are coming to an end.
So as passer-byers marvel at the expansion of Downtown Brooklyn skepticism from many circles remain.
When I asked Alan Washington about the plans moving forward to suffice the demand and stop the business leaving the area his response summed up the entire situation. “Good, but not enough,” he said.
