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Thursday, March 28, 2024

DeBlasio Buddy Gets Sweetheart Real Estate Deal

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The Brooklyn Heights Library
Artist’s rendering of the tower that will replace the Brooklyn Heights Library

Hudson Companies, whose principal, David Kramer is a friend of, and avid fundraiser for the Mayor, seemed – to some – to have received a gift-wrapped deal last December.

After three years of debate the New York City Council approved the highly charged and much-criticized deal to sell and demolish the Brooklyn Heights Library and replace it with a swank residential tower. The sale of the library site is to Hudson Companies for the aforementioned $52 million. The developer promises to grace 280 Cadman Plaza West with a 36-story lavishly-appointed residence. Included will be a new Brooklyn Heights mini-branch of the library in the basement and partially on the ground floor.

The vote was 45 to one with a couple of abstentions. The sole “nay” vote was Councilman Chaim Deutsch (D–Sheepshead Bay) who argued that the deal would be followed by a rash of library high-rises, obstructing traffic and making other mischief in what had been a more quiet residential area.

Part of the mystery is the city’s acceptance of Hudson’s bid for $52 million, when it is known that other, rejected offers exceeded that price. One developer beat Hudson’s offer by a million bucks, while another went as high as $58 million, exceeding the winning bid by six million dollars, well over ten percent! Another 11 developers submitted secret bids, some of which may very well have been better deals than Hudson was offering.

In addition to the more meager funding, the deal seems to violate the very principles on which the mayor stands. A year and a half ago, Mayor De Blasio’s office came out harshly against the deplorable practice of building a “poor door,” or separate entrance for low-income residents of the same building! This petty Apartheid is considered a pragmatic, if ugly necessity.

Developers know that to develop a luxury residence that will yield maximum returns, the uber-wealthy would not want to share an elevator or mailroom with people who have only one home.

Even some housing advocates hold their noses and accept this as a necessity in order to assure the construction of more middle-income units.

But not Mayor de Blasio.

Having spoken frequently on income inequality, he has referred to New York as “A Tale of Two Cities.” One for the wealthy and one for the poor and struggling. While New York tax breaks developers who include mid- or low-income housing n their plans predated the present administration. De Blasio, when on the City Council, voted to allow the separate entrance for other units.

As mayor he has publicly declaimed the “poor door” loophole. The Mayor’s office gave this statement: “We fundamentally disagree with that approach, and we are in the process of changing it to reflect our values and priorities. We want to make sure future affordable housing projects treat all families equitably.”

Unequal is a nice way of putting it. Besides having to circumvent the fancier and better-outfitted lobby and entrance; lower-income residents of the same buildings are denied access to gyms, swimming pools and children’s playrooms.

New York and many other municipalities invoke various incentives to get developers to add “affordable housing” into the mix. It’s frequently something between ten and twenty percent of the number of units. Note that the lion’s share of actual square footage goes to the wealthy, who are, after all, paying for it. Very sadly, this deal doesn’t have to worry about the ethics & efficacy of a separate entrance. The Low-Incs in the Brooklyn Heights library takeover are given a separate building.

Councilmember Stephen Levin (Brooklyn Heights/Williamsburg/Greenpoint) was lauded for having extracted through vigorous negotiation agreements and concessions to make the deal more attractive for the city. One of those concessions listed was not shrinking the actual library as much. The total 60,000 square feet (including areas not necessarily considered usable) was cut by nearly two thirds in the initial plan, to 21,500 square feet. After some negotiation, the developer agrees to allow the library to retain another 50×100 feet or so, for a total of 26,620.

A.E.Oirich

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