The city’s decision last month to leave the Elizabeth Street Garden intact has rattled the developers of the proposed housing project.
Over the course of nearly a decade, the development partnership — comprising Habitat for Humanity’s regional affiliate, Pennrose and RiseBoro Community Partnership — overcame numerous legal obstacles to construct Haven Green, a 123-unit affordable senior housing tower on the city-owned Nolita site, only for the city to decide to rezone three other sites to preserve the sculpture garden.
“I think what they did undermines what the City of Yes is all about,” Sabrina Lippman, CEO of Habitat for Humanity’s regional affiliate, told Crain’s. “And it sets a really dangerous precedent for other affordable housing developers.”
City officials brokered a deal with local Councilperson Christopher Marte, who opposed Haven Green. By agreeing to maintain the garden as permanent green space, Marte endorsed three alternative affordable housing developments totaling approximately 600 units across Lower Manhattan locations.
The developers learned of the project’s termination via news reports instead of official city notification, Lippman said; First Deputy Mayor Randy Mastro, who announced the project’s demise last month, claims he informed the development team’s lawyer the morning of the announcement.
Mastro, who orchestrated the reversal after joining Adams’ team in March, defended the decision, saying, “This administration is a more reliable partner than any administration in history.”
The substitute development sites include 156-166 Bowery, which will build 123 units; 22 Suffolk Street, poised to construct 200 units; and 100 Gold Street, which has 300 new units planned. All require zoning changes; developer selection remains incomplete for two locations. Mastro indicated Haven Green could be reconsidered if rezoning efforts fail.
The original development team will not participate in the substitute projects. Their financial exposure remains undetermined, though they had engaged in planning discussions since before their 2017 city selection.
The cancellation of Haven Green could have broad implications for developers considering partnering with the city on projects. The administration’s reversal of course after fighting and winning the ability to move forward with the project could signal a new risk for those sinking time and money into a site.
— Holden Walter-Warner
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What the heck is happening with the Elizabeth Street Garden project?
City abandons Elizabeth Street Garden plans
What the heck is happening with the Elizabeth Street Garden project?