August 28, 2020
CONTACT: Gib Veconi, (917) 881-0401
Elie Pariente, (917) 774-6676
Brooklyn Community Board 8 and EMP Capital announce agreement for arts, community facility and light industrial use at Crown Heights site
Deal is the first of its kind in New York City negotiated by a Community Board during rezoning
Brooklyn, August 28, 2020: Representatives of Brooklyn Community Board 8 and EMP Capital today announced an agreement to dedicate commercial floor area in a building to be constructed in a rezoned area of northwestern Crown Heights to job-intensive uses prioritized by the Community Board and elected officials. Zoning of the site at 985 Pacific Street was recently changed to allow for residential and commercial use. The site is within an area currently zoned for manufacturing use that has been the focus of a Community Board initiative known as M-CROWN aimed at creating affordable housing and encouraging the creation of accessible, living wage jobs.
“This agreement demonstrates that it is possible for a community vision to be adopted by private developers,” said Ethel Tyus, Chair of Brooklyn Community Board 8. “Not only was EMP willing to dedicate commercial space to the uses defined in the M-CROWN plan, the developers agreed to ongoing monitoring and enforcement that will ensure the commitment continues to be met in the years ahead.
“Our project was proposed in response to a detailed community plan that has been years in the making,” said Elie Pariente, principal of EMP Capital. “We’re glad for the opportunity to work with Community Board 8 to realize the vision with a building that will be an asset to the neighborhood.”
Because 985 Pacific Street will be developed under the City’s Mandatory Inclusionary Housing policy, 25% of the residential units will be affordable to tenants earning an average of 60% AMI, or $61,440 for a family of three, comparable to the median income of $57,281 in Community District 8. The monthly rent for an affordable two-bedroom apartment according to the NYC Department of Housing Preservation and Development would range between $854 and $2,723. In addition, under the agreement, 25% of the building’s ground floor will be required to be occupied by a use identified by the Community Board as desirable for its potential for job creation.
As part of the agreement, EMP filed a restrictive declaration that requires the floor area designated for the defined light industrial, arts and community facility uses to be labeled on plans filed with the Department of Buildings. Further, liquidated damages will apply in the event there is a failure to meet those requirements. Damages also apply in the event of an extended vacancy of the space. Any amounts paid will be received by the Friends of Brooklyn Community Board 8, Inc., a supporting not-for-profit organization, into a fund to subsidize manufacturing uses in Community District 8. “This agreement may be a model for other communities looking to engage with and hold developers accountable for commitments to affordable manufacturing space,” said Ben Margolis, Executive Director of Southwest Brooklyn Industrial Development Corporation.
“Brooklyn’s real estate market continues to put pressure not just on working people in need of housing, but also on artisan and creative sector businesses who are now facing unprecedented stress due to COVID-19” said City Council Majority Leader Laurie Cumbo, who represents the 35th City Council District that includes the M-CROWN area. “We rely on these creative sector businesses not only to ensure New York City remains our country’s center of arts and culture, but also to provide a range of employment opportunities for a diverse population in a gentrifying neighborhood. Light manufacturing and creative businesses not only provide essential support to our city’s economy but creates strong career pathways for residents, especially those facing barriers to employment. I support the community’s goals for diverse economic development in the M-CROWN district and applaud Community Board 8 for its tireless advocacy.”