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Real Estate Development Scandals/Controversies in NYC

standaman

I'm currently writing a short book, and the current chapter I'm working on involves major NYC real estate development scandals/controversies. I've started with the Trump Soho Tower which made headlines on many news/blogs several years ago, but I'm not limiting myself to developments that had some sort of illegal nature to them. It could also be a completely legitimate instance of development, but one which was controversial due to significant preservational/NIMBY-clash issues. Everything is game as long as it somehow represents the large schism that may exist between the demands of commercial and local entities.

Having only spent so many years in the city, I need some tips from natives who have been closely following such developments. What are some of the most memorable/newsworthy NYC real estate developments that you can remember, historically or in recent years? (Bonus points for stories that involve big name architects, politicians, celebrities or developers.)

 
Jul 22, 09 7:18 am
trace™

Couldn't find more of a mess than the WTC scandal

Jul 22, 09 8:37 am  · 
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Distant Unicorn

I'm not sure where to look but when I was job searching with NYC's planning department... I came across a story about some planner taking kickbacks for trying to fast track a Lowe's being built somewhere around concourse plaza.

There's also a lawyer who I think writes letters to the village voice from time to time concerning ULURP. He's both for and against it... a tough explanation. But one of the things I've picked up is there is more than enough people with deep pockets wanting to build in NYC... but the permitting/review process is so crippled and expensive that it actually turns developers completely off. It's an apparent problem with planners more than developers in this situation.

Jul 22, 09 9:06 am  · 
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eigenvectors

Curbed.com. Will most likely lead you to somethings

Jul 22, 09 10:20 pm  · 
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xacto

what new construction in nyc isnt surrounded by controversy...

recently? jean nouvel's tower verre comes to mind...

http://curbed.com/archives/2009/06/15/moma_mia_nouvels_taller_tower_gets_a_thumbs_up_down.php

or this is always good for a laugh (or cry)...

http://curbed.com/tags/gods-dorm

Jul 22, 09 11:18 pm  · 
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jsoc

I agree curbed.com is a good place to search for this type of information. Here's what comes to mind for me, in no particular order:

- Atlantic Yards
- MAD Columbus Circle
- Greenwich Village, St Vincent Hospital expansions
- Brooklyn Navy Yard, Admiral's Row
- Scarano 'finger-buildings' on Bowery and in Williamsburg

There's also the story I have heard numerous times but have never been able to dig up any detailed information, but it goes like this:

A developer built a tower in lower manhattan. The architect followed the zoning regulations as published in the available zoning text. The community felt the building was too tall and raised a ruckus. The DOB had reviewed and approved the plans. Lawsuits filed and it came out that the zoning text published by City Planning included a typo or other error of some kind. The judge ruled that the architect should have consulted the 'real' zoning articles (ie: went to city hall and asked for the original documents passed by the city council?). The building was overbuilt due to this error in publication of the text. The developer offered the floors to the community for their use or a cash equivalent, which was cheaper than having to remove floors from the top of the completed building. The community refused the offer, and he had to remove the floors. The architect was found at fault by the judge, and apparently had to pay for some or all of this expense. The plan examiner who approved the plans also became a scapegoat and was fired.

Every expeditor I have ever asked knows the story and believes it to be true. Some claim to have known the plan examiner. It's probably true, but I've never had enough details to know for sure.

If you ask me, there's a big untold scandal that's been going on in NYC development for years and was only corrected by DOB in the past year. When a developer files a project for approval, they report the expected construction cost and pay a filing fee based on a percentage of the cost of the project. Until very recently when the DOB overhauled this process, the construction costs were always grossly underestimated- some times ridiculously so. Sometimes these frauds would be caught in an audit, but I never heard anyone tell me of the experience first-hand. Developers would erect new buildings and pay fees equivalent to minor renovation projects. Maybe it's not as sexy a story, but it was egregiously criminal behavior on the part of developers/owners, architects, engineers, and expeditors. Although it felt like normal business-as-usual at the time.



Jul 24, 09 10:05 am  · 
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standaman

Thanks for the tips everyone. I've been reading Curbed.com over the past 4 years or so, but since I can't remember all the names of the projects I read about, I'm currently trying to browse through years and years of archives. It'll help to get specific tips so I can just search for them. I think we're off to a good start though. Keep them coming. Thanks again!

Jul 25, 09 10:25 am  · 
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