Pacific Park Development Secures New Developers and $12M for Affordable Housing

What's Happening?

Pacific Park, a long-stalled megadevelopment in Brooklyn, is set to move forward after new developers, Cirrus Real Estate and LCOR, acquired the rights to six rail yard sites at a foreclosure auction. This follows Greenland USA's default on nearly $350 million in loans. The new developers have committed $12 million to an affordable housing fund, addressing penalties not enforced against Greenland USA for failing to complete 876 affordable apartments by May 2025. The project, initially proposed in 2003 as Atlantic Yards, has faced numerous delays due to lawsuits, financial crises, and the expiration of tax abatements. The Empire State Development agency has paused fines and set new deadlines, allowing the project to enter its next phase.

Why It's Important?

The development of Pacific Park is significant for Brooklyn's urban landscape and housing market. The commitment to affordable housing addresses a critical need in New York City, where housing costs continue to rise. The project's progress could stimulate local economic activity and provide new residential and commercial spaces. However, the reduced fines and extended deadlines highlight ongoing challenges in balancing development goals with community and legal obligations. Stakeholders, including local residents and businesses, stand to benefit from the project's completion, but must navigate the complexities of urban development and public policy.

What's Next?

The next steps involve public approval and a vote by the Empire State Development board for the proposed two-tower project at Site 5. The developers plan to revise the project, originally calling for 2,400 apartments, including 2,250 below market-rate units. A public engagement process is scheduled to discuss these proposals. The first phase of construction, projected to cost $4 billion, is expected to take five years, with the second phase costing an additional $2 billion. The developers must also manage annual payments to the Metropolitan Transportation Authority for air rights above the railyard.