That was the development team’s response to the Adams administration’s offer to build housing on another city-owned site if the developers dropped their lawsuit over their abandoned Elizabeth Street Garden project.
The government last week demanded that Pennrose, Riseboro and Habitat for Humanity New York City and Westchester drop their legal battle over the garden project, known as Haven Green. In return, the city would appoint the team as the developers of another city site at 22 Suffolk Street.
In a Dec. 26 letter, First Deputy Mayor Randy Mastro gave the development team until Dec. 31 to drop the lawsuit, which alleged the government did not have the legal authority to unilaterally declare Elizabeth Street Garden a city park.
Developers shared a letter with The real deal that they sent to Mastro on Wednesday, stating that the offer made in the “aunty hours of the Adams administration is not sufficient for us to halt the lawsuits that we believe are in the public interest.”
The administration has not issued a request for proposals for the Suffolk Street site, with the intention of selecting Haven Green’s developers using a “sole source” method. City agencies typically offer the opportunity to build on city-owned sites to determine which team is best for the job. (The Pennrose-led team went through a public bidding process to win Haven Green.)
When asked about the rejection, Mastro said, “Shame on you.”
“You can lead a horse to water, but you can’t make him drink,” Mastro said in a statement. “We offered this group of affordable housing developers the opportunity to develop even more affordable housing on a nearby site, but they turned it down because they would rather file a frivolous lawsuit over a site that is already designated as a park area and that they have no chance of reversing.”
The developers want to try their luck in court and with the next mayor, and they believe a number of factors are on their side.
First, they argue that in order to make Elizabeth Street Garden an official park, such a land use change would have to go through the city’s Uniform Land Use Review Procedure (Ulurp). Another factor in their favor is that new mayor Zohran Mamdani planned to clear the garden before Adams declared the site a city park.
“Ultimately, the new government must be given the opportunity to determine whether a designation letter should be issued [for Suffolk Street]how to address the legal issues surrounding the Elizabeth Street site and how best to deliver a viable, sustainable and reliable affordable housing plan for the city,” the letter said.
The last-minute offer and rejection follows years of controversy over the site. In 2017, the city awarded the developers the right to build 123 senior housing units on the garden site. After several years of litigation, the city was given the opportunity to move forward with the eviction of the nonprofit that manages the garden, but when Mastro joined this administration this year, he halted plans for the housing project.
To make up for the abandonment of Haven Green, Mastro said the city would pursue housing projects at three other locations: 22 Suffolk Street, 156-166 Bowery Street and 100 Gold Street. Mastro also received assurances from local council member Chris Marte that he would support the rezonings needed to build thousands of units on these sites.
When Mamdani made it clear that he would vacate the garden as soon as he took office, the Adams government designated the city-owned land as parkland. Mamdani said at the time that reversing that action would prove nearly impossible because it would require support from the state legislature.
But if a court decides the designation isn’t valid, Mamdani’s options could open up.
The developers also note in their letter that the ballot measures approved in November weaken an individual council member’s ability to thwart a rezoning that results in affordable housing.
“While we hope that the councilor will truly support viable additional affordable housing regardless of the outcome of the ongoing litigation, the reality is that the new administration does not need his approval to do so,” the letter said. “By also preserving the Elizabeth Street site, our lawsuit furthers the cause of affordable housing.”
Complicating matters is the fact that the Adams administration has also entered into a licensing agreement with the nonprofit Elizabeth Street Garden to continue operating the park for the next decade, with the option of two five-year extensions. The nonprofit has also agreed to pay $100,000 in back rent for the site in 10 annual installments over the next 10 years.
The developers indicate in their letter that the licensing agreement strengthened their decision to proceed with their lawsuit.
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Developers of Elizabeth Street Garden are suing the city over the mayor’s ‘lawless’ act in declaring the site a park
Affordable housing
New York
Elizabeth Street bargain: Adams administration offers developers an alternative site if they drop lawsuit against city
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