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The Memorandum of Understanding, or MOU, is the first official statement from the Bloomberg and Pataki administrations in support of the proposed development plan. It calls for the construction of an arena for the New Jersey Nets and 17 high-rises up to 60 stories tall. The MOU says that the city-owned land under the arena site will be leased to the developer, Forest City Ratner, for 99 years at a cost of 1 dollar. But first, the city lands will be turned over to the state, a move that has the effect of exempting the project from city regulations. It also means the City Council will have no input in the process. Councilmember Letitia James represents two of the affected neighborhoods.
TAPE: James: The MOU does not have any local oversight. No oversight on building mass, no oversight on heights, no oversight on environmental issues. No oversight. (11)
The MOU also spells out the first details about the project's financing. The city and state have pledged 100 million dollars each to the development. The developer will be exempt from property taxes and sales taxes on construction materials. The developer will make payments in lieu of taxes, called PILOTS, but these payments will be used to service the bonds that will also fund the project. If the bonds are paid off the Pilots will go to maintenance of the site. Any remaining payments will go to the state.
Some think it will be worth it. Brooklyn Borough President Marty Markowitz told a meeting earlier this month, attended largely by opponents of the project, what he thought the benefits would be.
TAPE: Markowitz: A national sports entertainment and event venue, thousands of new jobs, and thousands of units of affordable housing that Brooklynites desperately need.(11)
Develop Don't Destroy Brooklyn is a group that opposes the arena and has proposed an alternative development plan for the site. Daniel Goldstein is spokesperson.
TAPE: Goldstein: Ratner's plan will have some benefits for the community. But, do the benefits justify the incredible impact and costs of the project or don't they? And that's the discussion that needs to be had. (13)
Last week's meeting aimed at this discussion. The Pratt Institute Center for Community and Economic Development presented the first independent study of the development impacts. Brad Lander, director of the Institute, said that the developer has not yet revealed the real costs of the project.
TAPE: Lander: There's not enough information available yet we think on the two critical features of the project that really could make it a go or a no go: exactly how much subsidy there is and exactly how much traffic there is likely to be. (12)
The Pratt study estimates that Forest City Ratner's subsidy, in the form of tax and land-cost savings, would top over 1 billion dollars. It also raised serious concerns about traffic resulting from arena activities and the impacts of such a large development on schools, police, and fire services.
As for benefits, the MOU states that efforts will be made to provide a reasonable amount of affordable housing but does not provide specific numbers. The agreement also pledges to hire women, minority, and local residents. The Pratt study points out that there will be some good jobs but that the majority of jobs would be low-wage positions without upward mobility.
Forest City Ratner has engaged supporters of the arena in closed-door negotiations for community benefits. Among the parties are The Rev. Herbert Daughtry and two groups called ACORN and BUILD. At the meeting Rev. Daughtry accused the study of being biased and tensions between the two sides occasionally flared.
TAPE: daughtry: All of our surveys, our scientific research, indicate that the community wants the project. Thank you very much. (loud yelling of no's and boos. arguing. fade into narration) 17
Opponents of the project, including those who live around the site are not included in Daughtry's negotiations and say their concerns are not being heard. Goldstein says these divisions are a result of the lack of a public process at the local level.
TAPE: Goldstein: It's creating tensions in the community because we're all basically left to fend for ourselves when there are no public officials involved. (7)
State officials say they will hold public hearings on the project. Based on public input, officials say, the project plan may or may not be amended. Adelia Honeywood, Columbia Radio News.