Gothamist – By David Brand | Published Jun 3, 2025 | Modified Jun 3, 2025
Brooklyn community leaders and elected officials say the state’s economic development arm had no right to waive millions in monthly penalties over a developer’s failure to complete affordable housing at Brooklyn’s Atlantic Yards complex, and they say they may sue to force the state’s hand.
Several local lawmakers and the community coalition BrooklynSpeaks point to a 2014 agreement that they say prohibits New York’s Empire State Development Corporation from “unilaterally” suspending the $1.75 million-per-month fines they were supposed to collect from developers who failed to complete nearly 900 units of affordable housing by May 31, 2025.
That deadline came and went, with a reprieve from the state. Now, Fifth Avenue Committee Executive Director Michelle de la Uz, who signed the agreement more than a decade ago, said she wants to meet with Empire State Development to hear their rationale.
“If they have some endgame that is actually aligned with the public interest, it would be good to hear that now,” de la Uz said. “Because the longer they take to lay that out, the more likely we are to sue.”
De la Uz, told Gothamist last week that Empire State Development Corporation cannot act “unilaterally” to suspend the penalties without their consent.
Another signee of the agreeement, Prospect Heights Neighborhood Development Council Chair Gib Veconi, said on Tuesday that he and his fellow members may consider legal action if the state doesn’t meet their demands.
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