MTA's Atlantic Yards Bidding Process "A Farce"

hell atlantic yards-tn.jpgArchitecht Douglas Hamilton, RA writes in a release archived on boerumhillbrooklyn.org:

“… After a virtually clandestine announcement in the back pages of the Times, the embattled state transportation agency is allowing only 43 days for potential competitors to prepare bids on a spectacularly valuable and very complicated Greater Downtown Brooklyn site that the State’s preferred developer has been working on for more than a year-and-a-half.”

“The New York business community should be deeply concerned about the message that this kind of backroom deal-making sends to the larger world of commerce. In essence, we are posting signs at all ports of entry to New York saying, “CLOSED FOR BUSINESS (Unless you have inside connections)”. …the ghosts of Tammany Hall and Robert Moses are still lurking in the back corridors of City Hall and the Statehouse.”

Full text of Hamilton’s statement below.

Press Release:
re: Brooklyn Atlantic Yards & the MTA’s Request for Proposals
by Douglas Hamilton
June 9, 2005
“The Farce is With Us”

A new blockbuster sequel opened on May 24th in Brooklyn when the Metropolitan Transportation Authority (MTA) quietly issued its Request for Proposals (RFP) for development of the Brooklyn Atlantic Yards. In this case, the original hit show was the MTA’s tragi-comedic RFP for the Hudson Yards on Manhattan’s westside. In Episode One, the MTA bowed to public pressure for competitive bidding on its West-side property by issuing an RFP heavily slanted towards the Jets’ stadium proposal which enjoyed the advantages of an approximately two-year discussion and design period as well as support from the mayor and governor. The time period allowed for responses was ridiculously short and the only competition came from organizations with obvious political axes to grind. Not surprisingly, their hastily thrown-together submissions were roundly rejected by an MTA board packed with the governor’s appointees. The lack of genuine public debate on budgetary priorities and the site’s future is evidenced by the recent refusal of Democratic Speaker Silver and
Republican Majority Leader Bruno to support the project.

Now in Episode Two, the MTA is following the same tired formula. After a virtually clandestine announcement in the back pages of the Times, the embattled state transportation agency is allowing only 43
days for potential competitors to prepare bids on a spectacularly valuable and very complicated Greater Downtown Brooklyn site that the State’s preferred developer has been working on for more than a year-and-a-half.

For those who have not been following this saga, Forest City Ratner Companies – Brooklyn’s largest developer – has been engaged for the past two years in preparing and promoting a proposal to develop 7.8
million square feet of residential, office, and retail space on the site of the Vanderbilt rail yards at Atlantic Terminal in Brooklyn. At the urging of Brooklyn Borough President Marty Markowitz, Bruce Ratner – CEO of the Forest City Ratner Companies – put together an investment group that bought the New Jersey Nets in 2003 with the express purpose of moving the team to Brooklyn. The real estate deal provides a way for Mr. Ratner to cross-subsidize the arena with profits from Brooklyn’s largest development since FCRC’s MetroTech in the late ‘80s. In addition, New York City will kick in at least $143 million in direct subsidies for the arena as well as unknown millions in tax abatements. New York State, for its part, is adding $100
million to the pot for infrastructure improvements, plus its backing for a $500 million bond to finance arena construction. Finally, since the whole project is outside the Manhattan exclusion zone, it qualifies for 421a property tax abatement for a period of thirty years. The developer will defray some of this expense over
time through Payments-In-Lieu-Of-Taxes (PILOTs), but any way you look at it, the amount of public money involved is huge at a time of city-wide fiscal belt-tightening.

The six-week period that the MTA is allowing for this project is laughably brief, given the size and complexity of the site, and falls seriously short of standard practice. If the MTA was serious about receiving competitive proposals, it would have sent RFP packages to a number of major developers directly and it would have allowed them about three months to prepare submissions. It will be a miracle if any viable developer steps up to the plate given the transparently non-competitive nature of this RFP. Nevertheless, that is what the
community is trying to do. If it can find interested parties, they will at least have the benefit of several months of groundwork by dedicated neighborhood activists, including experienced urban design and transportation professionals.

Another grave shortcoming of this process is the lack of a publicly-approved zoning framework for the Yards site. Currently zoned for manufacturing, our Planning Department has abdicated its responsibility to provide rational land use planning and development guidelines for this site. Consequently, Forest City Ratner has been allowed to set the terms for the debate with a grossly over-scaled proposal. If the chief criterion for a winning bid is the size of its payout, then competitors will likely be forced into the same quality of giantism that has Prospect Heights and Fort Greene up in arms over the Forest City Ratner scheme. The RFP contains some vague language about “taking into account the respective goals and needs of the MTA, the State . . . the City . . and the community . . . “ but what this means is anyone’s guess. Does it mean that unless you have another arena in your back pocket you will not be considered? Does it mean that the community’s quality-of-life concerns will be taken seriously? These issues will not be interpreted by our elected officials because the Mayor has allowed the approvals process to be hijacked by the State, despite the inclusion of several acres of City and private land within the project footprint.

The New York business community should be deeply concerned about the message that this kind of backroom deal-making sends to the larger world of commerce. In essence, we are posting signs at all ports of
entry to New York saying, “CLOSED FOR BUSINESS (Unless you have inside connections)”. A truly free and democratic market is essential to the efficient functioning of our economic system. Unfortunately, the actions of our mayor and governor simply prove that, despite the march of time, the ghosts of Tammany Hall and Robert Moses are still lurking in the back corridors of City Hall and the Statehouse.

R. Douglas Hamilton, RA
Fort Greene resident and Senior Design Strategist, Street-Works LLC

Notice: This work is licensed under a BY-NC-SA. Permalink: MTA's Atlantic Yards Bidding Process "A Farce"