Bloomberg Administration Encourages Corruption With Community Benefits Agreements
Developers' use of so-called Community Benefits Agreements (CBAs) in Bruce Ratner's Atlantic Yards project, the Bronx Terminal Market project, the Yankee Stadium project and, now, it appears, the Shea Stadium project, introduces large-scale pay-offs and public patronage into the development process, in the guise of democracy and doing good, as Crain's New York has finally recognized. Under Mayor Giuliani, agreements that developers who wanted approval under ULURP entered into with either
community boards or the City Council always got the mayoral veto. Giuliani called such agreements zoning for sale. Mayor Bloomberg, by contrast, is sitting back and therefore encouraging such potentially corrupt side-agreements, letting developers buy support by any device they wish. Democracy goes down the tubes, terrible projects get approval, and everyone in New York City is the loser.
The ULURP process is a defective process. But at least it has some shadow of democratic basis. The New York City Charter creates the City Council and the community boards, two of the chief bodies approving projects under ULURP. At least the City Council is elected by the citizens, even if the community boards are appointed. ULURP is ineffective, ULURP enables the Mayor to divide the City and allows the developers to conquer the City one community board at a time--even where projects have Citywide consequences. ULURP's many hearings are usually charades. Nonetheless, for all of that, by contrast with CBAs, ULURP does not pay off small vocal--or politically well-connected--groups, when the rest of us will be suffering the ill effects of these huge projects and of New York City's overdevelopment for years into the future.
I have been criticizing Community Benefits Agreements for a long time. Now, the publisher of Crain's New York Business, Alair Townsend, has come out forcefully against the abuse of CBAs, in an opinion piece called Don't Put Zoning Up for Sale in New York City. [Subscription required.] On April 10, she wrote:
Memo to Mayor Bloomberg and Council Speaker Quinn:Get a grip on this community benefits agreement thing. It's out of control.
So-called community groups have been negotiating commitments for all sorts of things from developers who want their support for projects they want to build. Now, large wads of cash--some $50 million over 20 years from the Yankees for Bronx groups--are being sought and handed over in what looks like bribes for support.
You've been applauding such agreements. Please understand what's at stake and set some ground rules. Stop the appearance--and increasingly the reality--of zoning for sale in New York.
These agreements are a radical departure from the recent past. The city's land-use review procedures were changed in 1976 to provide a standardized and public process, and to end what many saw as the buying of favors by developers. Under the revised process, the City Planning Commission, City Council and mayor must approve projects requiring land-use changes. The community board and the borough president also review them, but have no formal approval power. Developer-funded mitigation measures are supposed to be related to adverse impacts, such as damage to the environment. Deal-making is supposed to be public and conducted by public officials.
The process has been supported and enforced by all mayors since that time. Until now.
Today, developers are being pressured by one and all--including elected officials--to sign community benefits agreements. These packages have less to do with mitigating adverse impacts than with buying off opposition. The rezoning process is now being used as leverage to extract whatever anyone can. . . .
I think that the emergence of Community Benefits Agreements is just a symptom of the fact that New York City is going through too much development, affecting too many poor neighborhoods--and only poor neighborhoods. ULURP cries out for reform. Let's focus our attention there. Let's not just stand aside and put the City up for sale with CBAs.
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