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Tip of the Iceberg: Forest City Ratner Funds BUILD with $5 Million.

Forest City Ratner "Community Benefits Agreement" (CBA)
download the agreement (pdf)


Is it a valid CBA?

Read Section 4.1 of The New York Times and Forest City Ratner's Atlantic Yards

Also note that there are no government signatories on the CBA
(Even though Mayor Bloomberg misled the public into believing that he signed the agreement)

Of the eight signatories to the CBA:
BUILD has been paid $5 million by FCR.
ACORN will receive the housing management conracts.
Four of the groups are unincorporated.
Two were created solely to support the Ratner proposal.
All CBA signers are contractually obliged to promote and support the Ratner proposal both in the media and at public hearings/meetings.


Timeline:
December 10, 2003 -
Bruce Ratner unveils his Brooklyn Atlantic Yards (BAY) Development Proposal

January 23, 2004 Ð Assemblyman Roger Green announces the creation of BUILD

March 4, 2004 Ð BUILD Announces support for Ratner BAY Project

August, 2004 Ð BUILD begins its "CBA" negotiations with FCR

December 20, 2004
Ð BUILD files 1023 form for 501c3 status with IRS, indicating $5 million payment from Ratner

June 27, 2005
Ð BUILD, 7 other groups, and Ratner sign CBA, with Mayor Bloomberg, Assemblyman Green, Public Advocate Gotbaum, Borough President Markowitz, and other elected officials as witnesses. (Nine days before MTA bids were due.)

CBA is held up as historic

The show "BUILDing a CBA" airs on Time Warner channel 56 and Cablevision channel 69

FCR: "We do hope to set a new precedent for development in New York City," said a spokeswoman today for Forest City Ratner Companies, the project's developer. Inspired by an agreement related to the development of Staples Center in downtown Los Angeles, "the Atlantic Yard community benefits agreement is believed to be the first of its kind on the East Coast."

BUILD president: James Caldwell: "Our CBA heralds a long needed change in the paradigm for how development occurs in our community. We believe that Mr. Ratner, his company and this project are gifts from God to our community."
––June 24, 2005, letter of support for FCR, for bid submitted to the MTA.



CBA signing

Attendees: Bloomberg, Markowitz, Roger Green, FCR, Signatories

Opponents, members of the community, forbidden from attending:

The agreement signing ceremoney was hosted underneath the Brooklyn Bridge, nowhere near the Prospect Heights part of Brooklyn where the project would be built.

"It was an effort to keep away the community because the community is not a party to this agreement," said City Councilwoman Letitia James. "This is not a community benefits agreement, this is a private benefits agreement that will benefit a handful of individuals."

"We were not able to go to this community benefits agreement," added another. "The police were threatening us to walk over this line onto public property."

Bloomberg misleadingly claimed to sign the CBA, when he actually did not sign it.

Photographs and coverage:

Photos here and here.


Endorsers of the CBA

The CBA has a large number of community, business and sports organizations "endorsers."

The existence of some of these groups are questionable, whether many of them have even seen the CBA is questionable, and the endorsement of these groups needs to be questioned in light of the information that a $5 million bribe was paid to BUILD months before the CBA was signed.

QUESTION: Do all the endorsers exist? How many of them have not seen the CBA? Were any cash incentives given for endorsement? How many endorsers will withdraw their endorsement in light of this new information?

The CBA also has been "endorsed" by 25 elected officials at the city, state and federal levels.

QUESTION: Will the elected official withdraw their endorsement of the CBA in light of this new information that the CBA negotiations with BUILD were a charade, that there is no real community involement in the CBA and that it is a hoax?

While no new information has been obtained on ACORN, will the CBA endorsers withdraw their support now that the affordable housing component has been reduced from 50% to 31%? In the CBA it is written:
VI.b.(1): The Project Developer will make 50% of the residential units built at the Project affordable
" However, the scoping document released on  September 16, 2005, indicates that only 2,250 out of 7,300 housing units, or 31% will be made affordable.

In particular, the following quotes are noteworthy:

Mayor Bloomberg: At a press conference at Fulton Ferry Landing Monday morning to announce the creation of a community benefits agreement (CBA) between Ratner's Forest City Ratner Companies and a handful of community groups, the mayor interrupted Ratner, who was answering a question about the enforceability of such a non-governmental document.  "I would add something else...even more importantly, you have Bruce Ratner's word," he said.  "That should be enough for you and for everybody else in the community."

Borough President Marty Markowitz: Markowitz praised the CBA and the project, stating, "Once again Brooklyn sets the standard for urban America."

"Other attempts at community benefits agreements have been made in the past, but this agreement is so comprehensive and far-reaching that it puts Brooklyn in a class by itself, at the forefront of the corporate responsibility movement. Since I convened the very first meeting of the CBA coalition at Borough Hall last August, the members have worked tirelessly together, through every disagreement and tough negotiation, keeping their eyes on the greater good. They have created something truly wonderful for their communities by keeping every member at the table to work out their differences."

Public Advocate Betsy Gotbaum: "The [Community Benefits] agreement is ... unprecedented in our city"
–– June 24, 2005, letter of support for FCRC, for bid submitted to the MTA.
(Note: the Public Advocate also believes that Mr. Ratner will not use eminent domain at Atlantic Yards.)

City Comptroller William Thompson: "I also am impressed by the CBA between FCR and numerous community groups... I urge your support of FCR's BAY proposal."
--
July 1, 2005, letter of support for FCR, for bid submitted to the MTA.

Involvement of community boards and borough president's office

The Brooklyn Borough President's Office played a formative role in the development of the agreement and local Community Boards 2, 6 and 8 played an advisory role.

There are also records indicating that FCR spent hundreds of thousands of dollars lobbying Community Boards 2, 6 and 8:

 



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