{"id":1004480152,"date":"2020-09-25T03:01:47","date_gmt":"2020-09-25T11:01:47","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004480152"},"modified":"2020-09-25T08:02:59","modified_gmt":"2020-09-25T16:02:59","slug":"rezoning-plans-scuttled-for-brooklyns-industry-city","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/rezoning-plans-scuttled-for-brooklyns-industry-city\/","title":{"rendered":"Major NYC Project in Limbo After Rezoning Is Scuttled"},"content":{"rendered":"
\"\"<\/a>

Photo by Epicgenius<\/a> via Wikimedia Commons<\/em><\/p><\/div>\n

The future of one of New York City\u2019s most significant projects is in doubt after the developer responded to political pushback this week by withdrawing its plan to rezone a large swath of Brooklyn waterfront space.<\/p>\n

Industry City\u2019s developers pulled the application that would have rezoned more than 1 million square feet of the 35-acre site due to the \u201ccurrent political environment,\u201d Industry City CEO Andrew Kimball said in a statement Sept. 22. Kimball\u2019s announcement came hours after the release of an open letter from 10 state officials, including two members of Congress, objecting to the plan. The developers\u2019 move came less than two months before the New York City Council was scheduled to vote on the plan.<\/p>\n

\n

READ ALSO: <\/strong>Padres, Tishman Speyer Tapped for $1.4B San Diego Project<\/a><\/p>\n

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“Over and over, we have heard from key decision-makers that while the substance of the project is strong, the politics of the moment do not allow them to support any private development project,” Kimball said in the widely reported statement announcing his decision not to go forward with the plan.<\/p>\n

\u201cEven the historic nature of our commitments \u2014which significantly elevated the bar for future development projects\u2014and a seven-year record of creating jobs and opportunity weren\u2019t enough to overcome purely political considerations.”<\/p>\n

The plan sought to rezone a large swath of the existing 6 million-square-foot site to allow for the addition of new hotels, office space and retail. According to Industry City developers, the plan would create 20,000 jobs.<\/p>\n

Industry City\u2019s plan had been approved by the City Planning Commission and was currently in the city\u2019s land use procedure process, known as ULURP. That process was set to end in mid-November with a City Council vote.<\/p>\n

Located along the East River waterfront in Brooklyn\u2019s Sunset Park neighborhood, the 16-building Industry City contains industrial, retail and commercial space. After being acquired by a joint venture of Jamestown Properties, Belvedere Capital and Angelo Gordon in 2013, the complex has grown to include food halls, restaurants, office space and light industrial use, and has hosted several art fairs, cultural events and entertainment.<\/p>\n

Historic battles<\/strong><\/h2>\n

The decision by Industry City leaders comes a year and a half after Amazon famously backed out of its plans<\/a> to build a 4 million-square-foot HQ2 campus in Long Island City, Queens, following pushback from locals and community leaders.<\/p>\n

New York City has been no stranger to long, drawn-out battles between communities and development projects. In the Upper Manhattan neighborhood of Inwood, a rezoning plan by Mayor de Blasio\u2019s administration has been the subject of battles between the city and locals. The plan was first approved by the city council in 2018 but was annulled by an appeals court after being sued by a group of local business owners and residents. This July, a state appeals court overturned the previous ruling, allowing the plan to go forward.<\/p>\n

City Councilmember Carlos Menchaca, who represents the neighborhood Industry City, has long opposed the rezoning plan on the grounds that it would lead to the displacement of local residents and further gentrification in the area. While Menchaca celebrated Industry City\u2019s decision to withdraw, real estate trade groups were quick to voice their disappointment.  <\/p>\n

REBNY President James Whelan sharply criticized the city\u2019s leadership in a statement released shortly after Industry City\u2019s announced its decision.<\/p>\n

\u201cNew York City has been failed by its political leadership across all levels of government. With unemployment approaching Great Depression levels and private investment and tax revenue dramatically plummeting, now was the time for negotiations to yield a \u2018yes\u2019 on the Industry City rezoning,\u201d Whelan said.<\/p>\n

\u201cOne is left to consider how bad conditions in New York City must get before our political leaders realize that our recovery must be premised on job creation and private investment that will yield the tax revenue to pay for government services.\u201d<\/p>\n

Implications for future projects<\/strong><\/h2>\n

Industry City in its current state first began to take shape back in 2000, when the city of New York planned to convert part of the site formerly known as Bush Terminal into a tech campus as part of its Digital NYC program. The industrial site had formerly served as a rail yard and serviced container ships. During WW1, the site was used as a Navy base. By the 1970s and 80s, it had fallen into disrepair.  <\/p>\n

The project is comparable to another mixed-use waterfront redevelopment project, the 300-acre Brooklyn Navy Yard. The complex has attracted major developments such as Rudin Development and Boston Properties\u2019 Dock 72, a 675,000-square-foot office building currently anchored by WeWork. The site also houses Steiner Studios, more than 400 businesses and a recently opened Wegman\u2019s grocery store.<\/p>\n

Carlo Scissura, president & CEO of The New York Building Congress, a construction industry trade group, said the decision did not come as a shock.  <\/p>\n

\u201cI was clearly very disappointed, but I was not surprised,\u201d Scissura told Commercial Property Executive.<\/em> \u201cI think the writing was on the wall for the developers that this was going to be very, very difficult to pull through. So, I think the question becomes what do we do and what happens next.\u201d<\/p>\n

It was unclear whether Kimball and the developers of Industry City would propose another rezoning application for the site in the future.<\/p>\n

Scissura said he hoped that all parties involved in the contentious debate could eventually unite to create a \u201cgreat project\u201d in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"

Political pressure prompted Industry City\u2019s developers to withdraw the 1 million-square-foot plan, but some local leaders remain hopeful that the Brooklyn waterfront project will eventually move forward.<\/p>\n","protected":false},"author":745,"featured_media":1004480158,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,21748,21752,1600,21742,10],"tags":[50326,45443,45767,35309],"class_list":["post-1004480152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-industrial","category-mixed-use","category-new-york","category-latest","category-northeast","tag-andrew-kimball","tag-carlo-scissura","tag-industry-city","tag-rebny"],"acf":[],"yoast_head":"\nMajor NYC Project in Limbo After Rezoning Is Scuttled - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/rezoning-plans-scuttled-for-brooklyns-industry-city\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Major NYC Project in Limbo After Rezoning Is Scuttled\" \/>\n<meta property=\"og:description\" content=\"Political pressure prompted Industry City\u2019s developers to withdraw the 1 million-square-foot plan, but some local leaders remain hopeful that the Brooklyn waterfront project will eventually move forward.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/rezoning-plans-scuttled-for-brooklyns-industry-city\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-25T11:01:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-09-25T16:02:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/09\/Industry_City_Dec_4_2018_07-e1600997625729.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"599\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Holly Dutton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/rezoning-plans-scuttled-for-brooklyns-industry-city\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/rezoning-plans-scuttled-for-brooklyns-industry-city\\\/\"},\"author\":{\"name\":\"Holly Dutton\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/9259ffaba4775229ae3556b9555e566d\"},\"headline\":\"Major NYC Project in Limbo After Rezoning Is Scuttled\",\"datePublished\":\"2020-09-25T11:01:47+00:00\",\"dateModified\":\"2020-09-25T16:02:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/rezoning-plans-scuttled-for-brooklyns-industry-city\\\/\"},\"wordCount\":923,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/rezoning-plans-scuttled-for-brooklyns-industry-city\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2020\\\/09\\\/Industry_City_Dec_4_2018_07-e1600997625729.jpg\",\"keywords\":[\"Andrew Kimball\",\"Carlo Scissura\",\"Industry City\",\"REBNY\"],\"articleSection\":[\"Development\",\"Featured\",\"Industrial\",\"Mixed Use\",\"New York\",\"News\",\"Northeast\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/rezoning-plans-scuttled-for-brooklyns-industry-city\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/rezoning-plans-scuttled-for-brooklyns-industry-city\\\/\",\"name\":\"Major NYC Project in Limbo After Rezoning Is Scuttled - 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