New Partners for Community Reviatilization

New Partners for Community Revitalization

ATLANTIC TERRACE, BROOKLYN, NEW YORK

The Project

On October 22, 2007, the not-for-profit Fifth Avenue Committee (FAC) will celebrate the groundbreaking for the largest affordable green building in Brooklyn, Atlantic Terrace. Atlantic Terrace is a mixed-use, mixed income homeownership development at 669 Atlantic Avenue in Brooklyn that is being built by FAC and its partners, MAP Development and Line Development. This tri-venture was awarded the Cornerstone site in 2003 through a competitive bidding process conducted by the City’s Department of Housing Preservation and Development. The project will have 80 homeownership units, 50% will be affordable to low income families and 25% will be affordable to middle income families. The building will feature 12,000 square feet of ground floor retail and space and 87 subgrade parking spaces. Moreover, Atlantic Terrace will be a Leadership in Energy and Environmental Design (LEED) Gold Building, achieving the development team’s goal of producing high quality sustainable affordable housing. Given the tremendous need for and nature of this project, it is no surprise that it was recently featured in the Mayor’s PlaNYC:2030 A Greener, Greater New York.

NPCR Gets Involved

The ground breaking has, however, been some time in coming. Soon after winning the development rights to the site through a highly competitive RFP process, FAC learned that the Atlantic Terrace property was the site of several former gas stations and manufacturing businesses as well as the site of historic fill. During pre-development, FAC obtained a number of environmental reports showing that at least seven underground gasoline tanks had been present on-site and although the tanks had been removed, the sampling data indicated the tanks had leaked and contaminated soil and ground water at the site. While FAC is a very experienced affordable housing developer, they had not worked on a site with contamination and turned to NPCR for assistance through the START-UP Pool program. The first step was for NPCR to review the available environmental reports to ascertain the extent of the problem and the plans for development to see whether remediation could be integrated into construction. Then, NPCR met with FAC and HPD. NPCR assisted FAC in developing a strategy for managing the environmental issues (contaminated soil, soil vapor and groundwater) at the site that provided FAC with flexibility as they moved forward with development. NPCR also provided financial assistance to FAC, including a forgivable loan and a predevelopment loan that would be repaid upon construction financing.

Atlantic Terrace, Brooklyn, New York Michelle de la Uz, of FAC, told NPCR that “your assistance on the project was invaluable: NPCR was able to provide a strategy to manage the environmental contamination and expertise to guide FAC through the process while teaching the staff some of the rudiments of soil and groundwater contamination. We also appreciated the financial assistance which eased some of the burden of having to deal with the environmental issues. There is no question that NPCR’s guidance and support helped us to get to closing faster so that we can provide much needed affordable housing.”

Investigation and Cleanup

NPCR encouraged FAC to apply to the New York State Department of Environmental Conservation Brownfields Cleanup Program (BCP). Despite some shortcomings, the BCP was developed precisely for sites like Atlantic Terrace where on-site soil and groundwater contamination is complicating redevelopment by a party who is not responsible for the contamination. The program provides substantial benefits in the form of tax credits and liability protection, but can be time-consuming. FAC opted to pursue application into the BCP program. FAC and NPCR met with NYSDEC to discuss the environmental issues at the site, the proposed approach to investigation and remediation and FAC’s proposed project. With a regulatory framework established, NPCR helped FAC to develop a scope of work for investigating the soil and ground water at the site and prepare an RFP to solicit proposals and costs from environmental consulting firms. Once received, NPCR also assisted FAC in reviewing the RFP responses and selecting a consulting firm. NPCR continued to provide assistance to FAC as the consulting firm conducted investigative work at the site, prepared the BCP application and developed a remediation plan, helping to refine the remedial strategy and ensuring that the appropriate documentation was prepared and forwarded to the appropriate agencies.

Atlantic Terrace Groundbreaking Although FAC was accepted into the BCP program, they ultimately decided not to participate because the BCP timetable did not fit their construction schedule. Instead, they decided to move forward with remediation under the DEP’s regulatory authority. FAC’s relationship with the consulting firm selected in consultation with NPCR was so successful that FAC subsequently used that firm to oversee the excavation at the site, make arrangements for off-site soil disposal and to build the necessary systems at the site to ensure that it would be safe for its occupants. It was fortuitous that the firm monitored the contractors because, as frequently happens at such sites, more underground storage tanks were found during excavation and the consulting firm was able to manage their removal and disposal without causing any delays. Two years after applying to the START-UP Pool, the excavation is almost complete, the site has a monitoring plan in place and Atlantic Terrace is now ready for the groundbreaking ceremony.

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