THE

OFFICI;

CITY OF' NEW YORK OF' nu; MAYO" Nt:.,., YORK, tII.Y. 10007

May 1,2005 eaker Gifford Mil ... Yark City Council

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"iew York.

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NY 10007

Pfr. GreenpolntlWilliamsburg
Qear Mr. Speaker:

- City Cooncll ULURP Ac:tions

hed to this letter Is • "Points of Agreement" reflec:tlns recent discussions between the Nuradon and the City Council with respect to the consideration by the City Council of

Greenpoint/VVllIlamsburg

zoning and related UlURP actJons.

some of the Items set forth In the Points of Agreement will require t"tWWM to tile zoning re5OIutJon which may be made by the Council now, while other Items y require additional follow-up actlon by the .Admlnlstradon, tile City Council, the PlJnning ommlsslon and other partles. Where follow-up action is needed, such follow-up is subject to 'flW and consideration under applicable procedures, lnc.Juding land use and environmentaJ iew, and the receipt of applicable approvals. We are conftdent that we can ~ontln\Je to work together to achieve the goals stated In the Points of Agreement.

we have discussed,

been extremely vall,Jable. We look forward to working further with ii, as the project progresses,

ooperat1on and input that we have received from members of the City Council thus fir you, and the entire

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Greenpoint Williamsburg Rezoning May 2. 2005 OP!El! SPAtE
1) pupoat Street Site

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Commitment to Open Spo.ce City will build upon a comm,jtment towards building open space on the "Sludge Tank Site" (Block 2494, Lot 6) made by the previous Administration by exchanging the open space planned for Lot 6 for a cormnitment to build significantly more open Space on an adjacent eity--owned waterfront site (Block 2472, u,t 32.)
The

Lot 6 (0.27 ILCICS) is cum.ntIy occupied by a Dcpa.rtmcnt of Environmental Protoction (DEP) sludge stm:age tank, and Lot 32 (2.88 acres), located directly on the waterfront, i3 durrently leased to the Oreenpoint Lumber Exchange and partly occupied 'by a DEP sludge barge loading dock. DBP has pre~ously committed to demolishing the sludge taDk ~ part ofth.e upgrade of the Newtown Creek Water Pollutloo Control Plant, and maintaining Lot 6 as open space. DEP is currently finaliliing plans to relocate the sludge facilities to a location on the Newtown Creek, with cl)Dlpietion expected by 2010.~ ..

The Adlninistration agrees to improve upon the current commitment to provide a small amount of open space 011 Lot 6 by instead providing approximately 2 acres of open space on the waterfront, thereby allowing open space to extend frQm Newtown Barge Park all the way south to Dupont Street. At the same time, the portion of Lot 32 Jocated south of Dupont Street, together with Lot 0, would be available for the development of affordable housing. In order to create open space on this site, the City would punrue tht following actions: • • • Designation of the portion ofLat 32 along the waterfront and north ofPupoo.t Street for improvement as an esplanade and open space, upon expiration or reacquisition of the current leasehold interest Demolition of the sludge tank and relocation of sludge fitcilities from the Site, with projectud completion ill 2010 A capital budget commitment of approximately $7.s million in FY ' 10 for the oreation of
this open spac(I

In addition, modifications to the zODing text for the Waterfront Access to ensure that the public access area provided Oil Lot 32 will not reduce supplemental public access on the adjacent privately owned sites. 2) ~ Commerdal Street (MTA Site)

Plan have been made the requirements for

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Pursuant to the Metropolitan Transit Authority's (MTA) commitment to relocate bus service 811d emergency response unit facilities 110m 6' Commercial Street (see attached Jetter from Rece Cruislik, MT A Director of Real Estate) (:onditioned upon New Yark City's successful identification of an alternate site, tbe Administration commits to the identifYing an alternative looation(5) fOT~ MTA operations at 65 Commereial S'l:n!et.

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Fu"dlng Appropriate Chrts Pertaining to Open Space 2472, Lot 425)
Upon relocation of the MfA facilities, the Administration agrees to dtlsignale the $ite (Block fOl" lInpn:)vement as an esplmad.e and active open space.

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The Adm.i.Distration will include approximately S14 million in capitallmdpt appropriations ~cli¥~!04,~ye Budget forCj~~~~~~~oval for the creation of this open space

~) Feasibility Analysis ofStreel De,nappi11gs The Ad.ministration will fund the Parlcs Department to petform a tmffic feasibility analysis in FY '06 for the potential of demapping the portions ofDrlggs Avenue or Lorimer' 8p'eet that run through McCarren Park. .

~) McCarren Pool
The Administmtion will pursue an interim use for the McCarren Park Pool for spettia1 events such u concerts, festivals and other types of public pcrfonnimces. This will create a useable space for the community &om a currently restrictld ~ of the park. as well as contribute to the n::consln1ction of the fUll facility. The ParlqJDepartment will stabilize the pool building ~/faqade, make su:rf'ace repairs to the pool ~lIld tub wid add ramps, safety rails, and
to

G \lJighting as necessary. The work on the building faQade may also lna.ke it possible
\( the chain link security fence that cummtly surrounds the site.
The Patb Department will work closely with COUIlCilMembers Reyna determine a policy for prog.ram.ming the above space.

remove

and Yassky to
in the FY

"~~~~'"---- Park Soccer Fields f) Lighting/or McCarren

The Administration

will include up to $1 million of capital budget appropriations '06 Bxecutive Budget for City Council approval to achieve these improvements

The Administration will include up to $600,000 of capital budget appropriations inl the FY '06 Executive Budget for City Council approval for the con&tructlon of lighting fOl'fthe McCarren Park soccer fields.
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a) Open Space

The AdII1ini&tration agrees to commit the following city-owned sites as open spac,: Block 246~ Lot 13 (317 Broadway): Approx. 2,500 sf to be provided as passite open space as an addition to. art • Block 2443; Lot 41 (99 . ): Approx. 1,170 sito be provided as passite open space ill conjunction with affordable housing development on City-owned asscjmblage The Administration MlI include capital budget appropriations in the FY '07 ExecUtive Budaet for City Council Approval to develop each of the above sites as passive open space. •
S) [Waterfront Esplanade

~) Transfer of Ownership to City The Greenpoint- Williamsburg Waterfront A~ Plan (W AP) provides for the construction of. esplanade and related Open _ in «>qjunctlon with de.. : waterfi:ont parcels. Under the regulatiOns, the deYeloper/owner constructs the '\VIJ t esplanade and open space in conformity with design regulations set forth in the .g Resolution, and eutm into a Maintenance and Operating Agreement with the :Parks Depart:men.t providitlg for ongoing maInteI:WlCe 1Uld capital repair of the spaces at owner expense, Fulfillment of these requirements is a condition of receipt of Certificates Occupancy for the adjoining development. .

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The WAP provides 8 unique opportunity for the creation of a more than two-mite dontinuous esplanade along the GrnnpoiDt- Williamsburg water:front which can serve as a valuable public open space amenity for the community. as wen as ea.bance the value of wate:rfnmt development The Administration believes that City owncnhip and management of the wat.erfro'* esplana.de and supplemental open space would be in the long-term interests of the d.:mw:umity and of benefit to property owners. This can be accomplished through the voluntary trmsfer of the waterfrwt area to the City, under specified conditions. Tbe Oreenpoint- Williamsburg ct'iZOJlUlg has been modified to allow for a transfer option to facilitate these objectives. Under the transfer mechanism made possible under this modification, Owners could elect to transfer the waterfront espJanade and SUPP1~ open space to the City following CODSUUctiOD completion SDdprior to the issuance ofC 'fioates of Occupancy :furthe development An Owner who transfers would be responsible or funding of ongoing ordinary maintenance and would establish a capitl4l reserve for future capital repair; but these obligations would be fixed (except to account for . 'on) and would not increue in relation to actual City coets, Tho Owner would also be •evcd of liability associated with non-oommercial operation of tile waterfront spaces. The hanism, which the City would encourage all developments to utilize, would faeilitate City management and control of a continuous waterfront esplanade, while relying on for construction. Program features would be as fonows:

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oonnection with a phased implementation plan approved pursuant to the zoning. acceptance of b:anSfer would require consideration of w~ City ~ent and operation of an individual phase is in the interests of the City and the City could require agreement to tra:osrer:future phases lUI a condition of its acceptance of trans~<.'l' f the initial phase. • Owner would commit to fund ongoing operating main'letla.nce through annual :yrnents or creation of an in~-beari:o.g account and to establish a capital reserve for future capital repair costs. These oblisations would be fixed and not subject to in;texcept to account for inflation). • Owner would transfer deed to the City upon completion of the waterfront espl and supplemental open space, upon a determination by DPR that oonstruetion is istent with the design and construction specifications. Transfer would be a condition ~ and must occur prior to issuance of Certificates of Occupancy. • Upon t:rtmsier, the City would be solely responsible for petfOI'1'1'Wlce f operating o · maintenance, repair and capital ROODBt:ruCtion; the City would also assume lial)ility relative to non-commercial use of the spaces. with exceptions relating to negll~ence of
Owner.

Eligibility for transfer would require Owner agreement with respect to, a.mong other things: DPR review and approval of design and const:ruction specifications for the: waterfront public access area proposed. for transf'etj compliance with DPR standards relating to use of materials; and monitoring of construction by DPR resident engineer at Owner expense. Transfer of property for a phase of the waterfrom esplanade would be at the City's diSC'tetion. Where f:nmsfer is proposed fot a phase of required public access iII

• •

Pursuant to a Zoning Lot Development Agreem.en.t_ the Owner would retain all rights to use transfem::d property for pauposes ofbull: and parking computations for the zoning lot Owner may also reserve rights to use the tnmsferred property for open air cafe Dr similar uses allowed on the Waterfront Esplanade under the zoning, subject to appropriat= City· oversight and provisioDs regarding liabillty. substantial up-frotrt payment that would allow DPR to design and construct the esplanade on behalf of the owner. Under such a scenario, the developer would first have lo provide an PIJCl.lnlte assessment of the site couditions so that the City could determine a fair estimate of the cost of the work. lim amount could be agreed upon between the developer and the City, the land would be transferred to the City prior to construction Rnd the developer would be relieved of the obligation to complete 1he esplanade prior to IWeiving Too·s. DPR would design and construct the esplanade through its DOnna! capital development process. All other features of program described above would apply. including the owner's responsibility to fund onsoing ordinary maintenance and. establish a capital reserve fund for future capital repairs. \
AltemativeJy. the City could negotiate with individual developers to have them make a

described above, subject to such changes as ere needed to advance the goal of achil'Winga continuous waterfront esplanade under City management and control.
~) Hours oj Access

The Administration commits to implement this Program consistent with the features

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The Administration commits to pursue is follow-up action to amend the zoning text to require broader eveni.ng hours of access for public access areas required under the Gteeuprint. Williamsburg WM.
Ie) Continuous Wate1:fron; Acce&r

Recognizing that the eaplanad.e will be developed in segments, the Admin:istration'will pursue the achievement of a continuous public access route along the waterfront, l:Joth through mecbanisms to oobieve rile neaHerm development of the esplanade and tl:fe identification of on-stteet links where public access has not yet been dev-eloped. I The AdministratiOIl will provide capital funds for appropriate sigoage and bicycle ~anes along developed sections of the esplanade. I

INl>USTRIAL PRESERVATION 1) jR.fz.onlDl Study of Bushwack Inlet Area a follow~up, the Department of City Planning will conduct a study oftbe industriahml cast f the Busbwiclc Inlet, to be completc:d by February 2006, with the goal of identifying potential , changes; such as increasing permitted density for manufacturing uses, that w~d further elp existing businesses to remain and expand in this area and capitalize on opportuni'$es for the 'on oruew industrial space. An application for zoning changes recommended by this study ill be sponsoI"edjointly by Council Members Yassky and Reyna and the DepartmentjofCity lanning. I
1) ",dustrJal Busmas Zones

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e Administration conuuits to ~8 th~ Bushwick Inlet industrial urea as part qf an dwm:ial BllSmess Zone (IBZ), Businesses moving to this and other IBZs (such as theiNorth rooldyn lJ1dustrial BusiDeu Zone) wOlllcl be eligible for all benefits proposed in the iji.zs, cludin.s 11 tax oredit of one thoussnd dollars pet employee to offset reloeation. costs (pending tate Legislative appro'V&1), These businesses will also be able to avail themselves of other oentives proposed in the Administration's Industrial Policy, such as an enhanced Colll.llleroiaJ pansioo Program which will specifically target manufacturing and industrial firms who fent
irspace.

)'Stem, ac1ively monitor all B5A variance applications for residential uses in these ardas. and ConlIl1Uni',cat¢ the City's industrial land use priorities to the BSA regarding such Vw:1811Ces, any ocumented han8sme:nt of industrial busiaessee, and the potential impacts upon present

e Administration commits that it will not pursue or support rezoning and variance a~1icatioIlS allow residential use in the proposed North Brooklyn mz. whicb will include the BrhwiCk et industriallR\8 as well as the area otzhe East Williamsburg Industrial Park, The f"WJLLW'j u' ttation, through the Mayor's Office ofInclllstrial and Manufiwturing Business s, will red g manufacturin8 ancl incluttrial properties within. the mz.s in the CitYs Building Infij)rrnation

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and cl:taracter of tho areas.

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of the IBZ progra.m. the Office of Industrial and MaIlUfacturing Businesses will market the IBZs to new, expanlfulg or relocating businesses.

IThe City will dedicate DOB persorme1 to work with the mb to monitor potential illegal jCODvtmiions and conduct enforoement in the North Brooklyn mz including the Bushwiek Inlet
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The City will designate an industrial ombudlim8n to work with industrial businesses ill the mi:xed-use districts to facllitale access to programs and address any operational Issues,

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Mayor's industrial policy states that the City will conduct area planning studies to identify ues to strengthen industrial areas through regulatory changes and infrustxucture improvements. mz ~ e City will colIlllrit to mUing the N~ Brooklyn one of the fust areas it studies . Administration will create • $2 million fund under the management of the Office of and Manufacturing Businesses to preserve existing manufacturing businesses" within e North Brooklyn mz. The Mayor's Office will wad:: closely with Council Members Reyna d Yassky to detennine the programming of this fund, !
dustrial

er tho next five yean the Administration is conttibuting $67.7 million to improve :ti'aslru.ctt.n to iJlpport existing and create new industrial space in the Brooklyn Navy Yard. e Brookl)'Il Navy Yard Development CotpOration~ City Council, Community Board 1, and the yOTt$ Office of Industrial and Manufacturing Businesses will ma.ke best efforts to identify and locate industrial companies within the rezoning area that are in need of new space.

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1) ~epordng

DISTRICT 1 NEEDS ASSESSMENT

e Administration agrees to monitor the amount of development in the rezoning area OIl an ua1 basis. Aftet the number of new housing uaits built in the rezoning Ina exceeds~200 ~ 25% of projected develQpment), the Administration agrees to submit to the Council Aieml:)ers I \. or the area by letter an annual report updating needs analysis and pl~edmitii3ti~ where . pplicable, from relevant agencies for schools, day care, bospitalli,'iireprotection. poliee service,
bus and subwlsy service,
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pay Care

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letter)

~OMMUNlTY ADVISORY BOARD The jprecise fOml of the Orccnpoinl~ Willie.rnsburg Colll1lU1trity Advisory Board. has not yet been detcfmined The purpose of the Community Advisory Board will be to monitor adherence to these

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po~' ts of agreement, including, bu.t not limited to, the development of affordable housing unitst the de elopment of open space, the impJemeruation of industrial preservation strategies and the periodic re ew of social i.nfrastruotute needs and mitigatlOllS in the Greenpoint. Williamsburg Community. Th~ Administration agrees that any Community A-dvisorr Boerd will i1lclude a representative of 1. local elected officiaJs, the Departmont ofHousiDg Preservation and ~elOpment. the Departtne:nt of Parks & Recreation, the Department of Small Business Services, theDepartmentof City Plarming. and the Economic Development Corporation~ and at least two entatives from the affe<:.t.ed cOl'mt1J.Urities jointly selected by the Council and the stration. ::

coinmunitY Board

Administration agrees to significantly increase the number of affordable unitl!i to be built in enpoint Williamsburg through a variety Qfmechanisms including inclusionary z.onin.g. cial and tax incentives. and the commitment of public site6. The following table summarizes expected number of affordable units that will be generated:

'MOF AFFORDABLE CPC'proposa1
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Water1'loot Upland Public & Partner sites
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640

1,345
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3,548 (33"10 of total)

1) }\1rordable Housing ProductioD Mecbaalsms
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The Administration will increase the inccmtive to build affordable housing through inclusionary zoning by deepening the density bonus.

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Waterfront: In exchange for au increased density bonus (3.7 FAR to 4.7 FAR or 2.7%) on the Water:6:t:mt:, the Adminitdration agrees to inc",~ the affordability requirements to 20% or2S% of total square footage and agrees to tier the affordability requirement to serve low and moderate income families. as detailed in the modified zoning text.
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For developme:nts not utilizi.ng the inclusionary housing bonus, the Administration agrees reduce permitted tower heights in R8 districts by two stories, to 230 feet and 330 feet

In order to provide in.cre:ascd flexibility for (JIl.si£e affordable housin& the Administration agrees to increase permitted heights to which buildiag,s om lise witho'Ut limitation on floorplate size to 100 feet for buildings containing at least 20 percent affordable housing.
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Upland: In tile Upland the Administration ~s to a 33% density bonus (2.7 FAR to 3.6 FAR in R6A districts and 3.45 to 4.6 in R7A districts) requiring 200/0 of the square footage to serve lower income families.

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These percentages will be the standard fur tho onsite, offsite, and preservation optioos for an mclusionary bonus.

The Administration and the City Council agree to a follow up corrective action to ensure a uniform application oithe reduction of the base FAR to 2.7 with respect to mixed residential community fildlity buildings in the R6A districts. ' Shortly after adoption, the Department of City Planning will commence contextual zoning studies of areas sUITOunding the rezoning area that are predominantly low-rise and CllIT'8DtIy zoned R61 with the goal of establishing appropriate height limits and an Inclusionary Housing bonus for R6A and bigher districts in these areas. Necessary ULURP actions would be taken to implement these zoning changes.
~) Tax incrmtivu The At:hninistration and the Coweil agree to support State ad.1on to limit as-of-right 421-a benefits, OD certain waterfrout parcels only, in order to make the constructiou of affordable housing more likely. Further. the Adminislration agrees to change ibJ rules governin,g the

421·a program to allow inclusionary housing units developed off-site to generate 421a negotiable certificates aDd used them on the compensated waterfront property. HPD will be required to limit this to 200 units thus inBuring that 90 percent of all inclusionary housing is

developed on.site.

Fiually, the Council and the Administration agree that at the 3.7 base FAR any developli1ent done as of right cannot participate in the 421a program by purchuiug negotiable certificates
citywide.

A proposed biU is attached. The Administration and Council fUrther agree that if the State does not pass its proposed bill by June 23, 2005, Council will act to amend the administrative code ofllie City of New York
to limit the 8JJ-of·rigbt 421" benefits.

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c) Sale of Air Rights from MTA. Commercial Street Site

The Administration and Council agree to allow the sale: of air rights from the MT.,. Commercial Street Bile to an adjacent owner. The sale will require a follow up lfflT.J'RP for the disposition of those development rights. 'Ibis disposition will require t.be purchaser to create 200 units of a.tfot'dable housing 18 part of the disposition. The revenue from the sale, projected to be up to $12 million will be used in two ways:
• Waterfront Affordable Housing and

Infrastructure Fund

The Adm.inlstration agrees to create a Gteenpoint Williamsburg A:ffordable Housing and eo $10 million - to be mll.llaged by HPD - using the proceeds received ftom the sale of air rights from the MT A site located on C<.mUIlerCialStreet in Grcenpoint. Proceeds from this fund will only be available to development parcels that make use of tile waterfront inclusionary housing program refereaced in part a of this section and that participate in the esplanade tnmsfe:r program detailed in Point 5 of the Open Space section of this agreenumt Funds will be used to partially offset site-specific infrastruc;tme costa that comply with the rcquitemeats of the waterfront toning text
Infi'astJ:uctw"e Fund ofup

Greenpoinl Williamsburg Tenant Legal Fund
The Administration agree8 to l'lrUte a Tenant Legal Fund of $2 million - to be managed by HPD- using the proceeds received from the sale of air risbts of the MT A site on Commercial Street in Oroenpoint. Tho Fund will prbmuily serve to protect existing tenants from displacement and lwa.ssm.ent

d) . Commitmenl on Public and Pamer Situ

The Administtation commits to developing affordable housing using available public sites and to work with the existing owners to develop atrordable housing on the partDers sites listed below. The Administration anticipates that Chesc sites will generate 1,345 affoniable units. These UDits will target the following iIlcome groups; 200'" between 20-30010 of AMI, 40% between 30-000,4 of AMI, 20% between 60-80% of AMI and 200A between 80-125% of AMI. A detail breakdown of each public or partDer site is attached to this memonw.dum.
3) ADd..Harassment

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The Administration agrees to the anti-harassment provisions provided scplU'll'tely. as follow-up corrective action. 4) Domino Sua.r Property

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The Adrninistnrtion agtW$ to work expeditioU&ly to commence public review of an application for the residential rezoning oftbis propertyy i1leluding completion of appropriate environmental review, located at 264 to 366, and 329 Kent Avenu.e. The Administration and Council will work closely with the property owner's principal. CPC Resources, Ino., to ensure that development facilitated by the application includes a significant affordable housing component In addition,

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the A.d.m:iniBt:mtionagrees to support the inclusion oftbis sile in the above referenced bill
limiting as--of-right 421 a benefits.

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