New Book, Big Box Swindle
Beacon Press has just brought out Stacy Mitchell's book Big Box Swindle. For anyone interested in preserving local commerce, this is a big event.
TO OPPOSE
IKEA-RED HOOK
Red Hook, Brooklyn, is a peninsula reaching into New York Harbor, with spectacular views of the Statue of Liberty and lower Manhattan. Red Hook has no highway, no subway, and narrow cobblestone streets. Opponents say it may be the least appropriate place in New York City for a big box store. For information about the lawsuit that concerned Red Hook residents and businesses brought on February 10, 2005, represented by attorney Antonia Bryson, see this blog.
Here are ten reasons, not all of them included in the Ikea-Red Hook lawsuit, why the far-reaching consequences of Ikea-Red Hook will damage not only Red Hook, Brooklyn, but the City of New York.
1. Ikea – Red Hook will create bad precedent for New York City’s future dealings with big box stores. It will encourage big boxes to pick inappropriate sites and to insist on building blank-walled warehouses, without sidewalk entrances, without show windows, and without any attempt to fit into New York City’s traditional neighborhoods and urban streets.
2. It will introduce a gigantic suburban transplant into the street grid of Red Hook, Brooklyn. It will tilt the balance in Brooklyn away from New York City’s tradition of transit-oriented neighborhoods and towards suburban automobile-dependency. It will lead inevitably to the demand for additional expressways, with additional suburban sprawl, inside New York City.
3. It will cause traffic to back up on the already-overburdened, and soon-to-be-rebuilt, Gowanus Expressway. It will so greatly increase traffic on local streets that it will imperil local businesses whose trucks need to use the streets as well as endangering local residents.
4. It will create bad precedent for New York City’s future treatment of neighborhood planning, encouraging multinational corporations to come into New York City, create their own pressure groups, and use big spending to override community 197-a plans like the Red Hook 197-a plan that the City Planning Commission approved in 1996.
5. It will blight the historic New York City waterfront with a mammoth billboard for Ikea, visible from the Statue of Liberty and lower Manhattan.
6. It will raise real estate values in Red Hook from the modest level for manufacturing, with its high economic multiple, to the level for big retail, which adds little to the local economy, thus increasing demand for re-zoning from manufacturing to retail and driving out manufacturers who lease their space, plus manufacturing jobs. This is just when the Mayor is announcing the importance of manufacturing areas.
7. It will send local income away from New York City to Ikea headquarters, instead of that income’s flowing through New York City’s banks, professional firms, service businesses and suppliers.
8. It will deaden the creative synergy of New York’s manufacturers, suppliers, distributors, and designers. It will substitute an out-of-town formula for local ingenuity.
9. It will force local shopkeepers out of business, deaden local shopping streets, and destroy more jobs in local retail stores and distributorships than it creates.
10. It will tear up cobblestone streets, bulldoze historic structures on the Erie Basin, and incapacitate the historic graving dock. ####
HIGH STREETS,
& THE ECONOMY
All big boxes, including Ikea and Wal-Mart, say that they create jobs and increase tax revenues. These are claims we should not take on faith. I have looked at the evidence. So far as I can see now, the big boxes' promises are largely false: the costs of big boxes to the city, to other businesses and to the environment are huge. They claim to create jobs, but economists' studies show that they actually destroy jobs. I report that research in my Newsday op-ed Superstores Come With Too High a Price.
There has never been a full public debate in New York City about whether we want to let in big box stores and, if so, what they should have to look like and how they should have to pay their employees. There is an urgent need for public discussion. For my reasons for opposing Ikea in Red Hook, see my Brooklyn Papers op-ed, Why Red Hook Ikea Project Should be Rejected. There are considerations in city planning, aesthetics, urbanism, law, historic preservation and economics to think that an Ikea store is not the right use for the Red Hook waterfront. Read Ten (10) Reasons to Oppose Ikea-Red Hook.
This blog aims to paint the whole picture. I will be posting all of the court documents in the litigation.
About me. I am a professional writer and speaker, a business owner and non-practicing lawyer, and I live in Manhattan. I have no personal economic interest in these issues in general or Red Hook in particular. As a citizen, however, I think that we need to constrain the big boxes, make them look like other New York City stores, locate near New York City public transit like other New York City stores, and behave like other New York City employers. Otherwise, I am concerned about what the big boxes will do to our lively New York City high streets and our urban way of life.
Boilerplate. I am delighted if you want to refer to or even use short excerpts from this site, as long as you credit me and link back to this site. If you want to quote a larger chunk of my material, please send me an e-mail.
Peace.
MCG
Mail to: MCG@BigCitiesBigBoxes.com
IKEA LAWSUIT
STARTS (2/10/05)
CONTACT: Antonia Bryson, Esquire
(212) 483-9120
RED HOOK GROUP ALLEGES
IKEA LAND GRAB ILLEGAL
NEW YORK, February 10, 2005. A diverse group of Brooklyn residents and businesses seeking to promote the waterfront has filed suit in New York Supreme Court to stop Scandinavian retailer Ikea from building its proposed 22-acre tax-subsidized suburban-style superstore project on the waterfront in Red Hook, Brooklyn.
According to attorney Antonia Bryson, when the New York City Planning Commission and City Council approved Ikea’s Red Hook superstore project in October 2004, they acted illegally, betraying the commitments they had made to the Red Hook community and to the City--commitments backed up by years of work and planning--to keep the site for maritime use.
City planners have always considered the Red Hook waterfront a critical piece of New York City’s industrial infrastructure. Over a two-year period between 1992 and 1994, with help that the City Planning Department itself provided, people from all parts of the Red Hook community hammered out a plan for developing and re-populating their isolated Brooklyn waterfront neighborhood, which faces the Statue of Liberty and lower Manhattan. The City Planning Commission ("CPC") sponsored, encouraged, and finally approved the Red Hook plan. As reported in The New York Times and other media, the Red Hook community’s plan was one of the first community plans in New York City under section 197-a of the 1989 New York City Charter, designed to give citizens a voice in development.
The Red Hook community plan adopted the recommendations of the City Planning Department’s 1992 Waterfront Plan for the site on which Ikea wants to build. The site has unique maritime features, and the plan recommended that it remain zoned and dedicated to continued maritime activity. It also recommended that commercial activity and public waterfront access be fostered in another area of the peninsula nearby, where in fact a new Fairway is about to open.
In 2001, however, after citizens in both New Rochelle, New York, and nearby Gowanus, Brooklyn, emphatically rejected Ikea’s efforts to build a New York-area superstore in their communities, Ikea next turned its attention to the remote Red Hook peninsula. Although it has no subway, no highway, and narrow cobblestone streets, the Red Hook waterfront will provide tax subsidies to a developer, because it is within a New York State Empire Zone. Such tax subsidies for Ikea are unfair, the petitioners allege, because they come at the expense of local Brooklyn shopping streets and New York City businesses. The City Planning Commission and City Council, however, jumped at this chance to turn the New York City waterfront and the Red Hook community over to Ikea. They examined no alternative uses for this waterfront site.
The lawsuit asserts that the CPC and the Council exceeded their legal powers when they re-zoned the site to allow Ikea to build its gigantic big box store--probably the largest store in the city--with a 1400-car parking lot in a mall-like setting right on the water, destroying a number of historic structures in the process, including one of the few working graving docks in New York harbor, and vandalizing the City’s waterfront.
The lawsuit asserts that in order to justify turning the site over to Ikea, the City Planning Commission and City Council used a manifestly faulty environmental review, and an Environmental Impact Statement ("EIS") that employed unrealistic assumptions and specious reasoning in order to minimize the project’s significant environmental impacts, both on the socioeconomic character of the neighborhood, and on traffic conditions in Red Hook and in greater Brooklyn.
The lawsuit emphasizes that the huge suburban Ikea store will damage the waterfront, bring excessive traffic to Red Hook’s streets, produce gridlock on the major traffic corridors surrounding the neighborhood, including the already-overburdened Gowanus Expressway, and fail to produce any real economic development in Red Hook. The Ikea project will consume 22 acres of industrially-zoned waterfront land that recent trends show is in increasing demand, and that employment trends show will continue to be in demand. On January 19, 2005, in fact, Mayor Bloomberg announced that preserving industrially-zoned land in NewYork City is vitally important.
Among the failures of the EIS with respect to traffic impacts, meanwhile, is the fact that on a typical Saturday there will be almost 2,000 vehicles driving to and from the Ikea store in the peak hour. The EIS the Commission and City Council relied on, however, contends that these automobiles can be squeezed down the funnel of Red Hook’s narrow streets to the waterfront with no disruption to any part of the neighborhood, including a large, heavily-used park and recreation area just across the street and the City’s new Passenger Ship Terminal being built nearby.
The lawsuit seeks to annul and vacate the Environmental Impact Statement and the Planning Commission’s and City Council’s actions with respect to the Red Hook site, and to enjoin Ikea and the other defendants from beginning demolition or construction in connection with the project. Petitioners’ court submissions will be posted on the internet.
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Beacon Press has just brought out Stacy Mitchell's book Big Box Swindle. For anyone interested in preserving local commerce, this is a big event.
Letter to the Honorable Amanda M. Burden, Chairperson, New York City Planning Commission
Dear Chairperson Burden:
I am writing as a concerned citizen with a special interest in New York City's retail stores. I urge the City Planning Commission not to renew the special permits the Commission granted in 1999 to Tiago Holdings for a shopping mall at 116th Street and the East River Drive. That project, East River Plaza, was expected to have as lead tenants two big-box stores, Home Depot and Costco. When East River Plaza (ERP) came before the Commission for zoning changes and special permits on September 7, 1999, you voted against it. In the nearly seven years since, much has changed. Conditions in East Harlem have changed, and Forest City Ratner has joined the original developer, Blumenfeld, as a partner in Tiago Holdings. One fact, however, remains unchanged, namely, that the East River Plaza project is entirely unsuited to the site at 116th Street and the East River Drive.

Continue reading "City Planning Commission Should Deny Permits to
East River Plaza" »
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
The October-November 2005 issue of New Urban News features a story called Targeting Changes in Big Box Stores, reporting on the willingness of Target, if not yet Wal-Mart, to make stores small enough, and close enough to the sidewalk and public transit, so that they fit into urban settings. The New Urban News treats the trend as a good thing. To fit into big cities, the big boxes must give up their standard one-story warehouses with long, blank walls, surrounded by surface parking. The Target store in Brooklyn, in fact, has no parking at all. Another Target store planned for Queens will be beneath 800 housing units.
Elsewhere, as we have reported earlier, city planners both
Speaking about the limits the U.K has placed on the size of stores, Sir Terrence Conran, quoted in the Telegraph, said that he was pleased that the U.K.'s new out-of-town planning laws appeared to have restricted Ikea's growth. The restrictive laws in the U.K., on which we reported here in June,
In a move likely to be imitated by other Long Island towns, North Hempstead has acted to keep the big boxes out by capping size at 85,000 squre feet. Meanwhile, over in Smithtown, residents have been startled to discover that a huge shopping mall has been approved right across the road from their houses. Read about it in the New York Daily News here.
The message of this blog, BigCitiesBigBoxes.com, is that the citizens of New York City need to have a civil conversation about whether we want to allow big box stores into the city and, if so, with what size and site constraints, and with what labor practices. Other localities have forced the big boxes to conform to local size and design standards. On June 23, 2005, Anne D'Innocenzio of the AP reported in
Little England has now stood up to the mighty Ikea on its demands to build gigantic, overscale, automobile-dependent stores, and the British government has won. If only the New York City Planning Commission and the City Council had had the same courage as the British to turn Ikea down when it demanded approval for a huge suburban store with a 1,400-car parking lot on the remote waterfront in Red Hook, Brooklyn.
Continue reading "U.K. Forces Ikea to Build Smaller Stores and Locate Near Transit Hubs" »
The following letter was submitted by email, Tuesday, April 5, 2005:
To the Editor of the New York Post:
Former City Council member Charles E.F. Millard, who was City Economic Development Corporation head under Mayor Giuliani, criticizes Representative Anthony Weiner's attacks on Wal-Mart's labor practices primarily on the grounds that labor unions back Weiner's positions. ("Whiner Weiner Chases Jobs," April 4, 2005). In deciding on zoning policies for big box stores, New Yorkers must demand better information, within a far larger philosophical framework, than Mr. Millard's sneering attack provides.
Contrary to Millard's suggestion, in careful studies all over the country, economists have found that big boxes destroy the small retail businesses that still make New York's 400 neighborhood high streets so lively. In an Iowa study sponsored by the National Trust for Historic Preservation, economists Thomas Muller and Elizabeth Humstone examined seven counties where Wal-Mart built stores. In five out of seven counties, non-retail jobs grew while the retail share of all jobs actually declined. Those jobs come out of the local businesses that the big boxes destroy.
For generations New York City urbanism has meant high density and high use of public transit, with small shops ringing large blocks of apartment buildings in walkable neighborhoods. Big box stores, however, are suburban, not urban. Unless our zoning forces them to conform to New York City's urban patterns, the big boxes will not only destroy jobs and neighborhood shopping streets, they will chop the city into a suburban form, increase the use of automobiles, increase traffic, and cause sprawl. At stake are our small businesses, our neighborhood shopping streets, and a key element of our New York City way of life.
Yours truly,
Mary Campbell Gallagher
Amy Langfield's New York Notebook
Blog On, New York Daily News, Dawn Eden
B61 Productions: News from Red Hook
Eric Darton, Divided We Stand: A Biography of New York's World Trade Center
Photographer Danny Lyons's Images of Lower Manhattan Before the World Trade Center
Develop Don't Destroy Brooklyn
Fans For Fair Play: Challenging Bruce Ratner's Atlantic Yards Project
Franck Lohsen McCrery WTC Proposal
New York Industrial Retention Network
New York Observer: The Politicker
New York Sun: It Shines for All
Municipal Art Society on Ikea-Red Hook Demolition
Julia Vitullo-Martin on Manufacturing in NYC
PlaNYC: Planning Information Portal
Wal-Mart Space: Wal-Mart's Financial Statements and Operations
ArtsJournal: About Last Night, Terry Teachout
RED HOOK
IN THE MEDIA
Index of stories about Ikea-Red Hook,
The Brooklyn Papers
The Village Voice calls Red Hook, Brooklyn, "Best place in New York City not to
put an Ikea."
Litigation