The long-delayed Pacific Park project in Brooklyn may be moving forward as new developers take over. Cirrus Real Estate and LCOR, operating as Brooklyn Ascending Land Co., have acquired development rights for the site, signaling potential progress for a project that has faced criticism and setbacks for more than 20 years. According to 6sqft, the development companies won the rights at a foreclosure auction after the previous developer, Greenland USA defaulted on its substantial loans.
The transaction brings a new financial commitment from the developers, who have agreed to contribute $12 million to an affordable housing fund. This payment addresses, in part, unpaid penalties previously owed by Greenland USA, which could have reached up to $42 million. However, the amount remains below the potential fines outlined in a 2014 agreement with the city. As detailed in a meeting covered by Gothamist, Empire State Development has decided to pause these $2,000-per-month fines intended for developers who failed to meet the housing deadline.
The original Atlantic Yards project, which has since been rebranded to Pacific Park, was a grand scheme including thousands of apartment units, particularly affordable ones, and the Barclays Center, which is the home of the Brooklyn Nets and New York Liberty teams. It faced numerous setbacks including public opposition, financial downturns, and the COVID-19 pandemic. Despite these hurdles, some development has pushed through, most notably the construction of the Barclays Center and several high-rises dotting the Brooklyn skyline.
The new plan involves constructing a platform over the train tracks before developing residential towers, which was a stipulation of the original Atlantic Yards blueprint. The details of constructing such a platform carry a hefty price tag, one estimated to be much higher than the $200 million quoted in 2019. According to Gothamist, similar construction efforts at Hudson Yards had received as much as $2 billion in aid from the city for a related project. Empire State Development has set a new deadline for a detailed proposal by the end of March 2026 and has suspended any financial penalties for at least two years until the state delivers formal approval of the revised proposal.
The new funding, although welcomed by state officials and developers, has drawn criticism and concern from community leaders and activists. Michelle de la Uz from the Fifth Avenue Committee pointed out to Gothamist, "While I think we all share the goal of a project that is feasible and that addresses current and future public needs, it doesn't erase the fact that we don't have 877 units of affordable housing today that can address the affordable housing needs of communities." The acknowledgment of the project's intent does not mitigate concerns about the shortfall of affordable housing that the delay has augmented.
As the Pacific Park project moves forward, the partnership between Cirrus and LCOR marks a new phase for the previously stalled development. Nick Mastroianni of the United States Immigration Fund described the development as prepared to proceed.
