NEW YORK | Domino Sugar Plant | 181m | 598ft | 60 fl | 157m | 520ft | 48 fl | Pro

[desertpunk]

Someone even made a new documentary about this whole mishegoss:

The documentary "The Domino Effect" may be the greatest beneficiary of the problems that Williamsburg's "New Domino" redevelopment project have encountered, including the near collapse of the Community Preservation Corp. The feature length documentary's creators write that the film "digs deep to uncover the complex networks of banks, developers, politicians, and non-profit organization that shape our cities." Regular readers of Curbed NY know that one doesn't have to dig very deep to uncover this information. Politicians, developers, and banks tend to be fairly unapologetic and public about development plans. "The Domino Effect" holds that projects like "New Domino" are responsible for the loss of industrial jobs and the displacement of communities. Now that the site developer, Community Preservation Corp., defaulted on a $120 million loan this month, the filmmakers may have a new surprise ending as they are finishing up their film.

[kingsc]

Maybe CPC should have got everything in order, before taking on a project of these size.

[yankeesfan1000]

Or maybe that movie should talk about the 5000 apartment complex being built a mile or so south that is right on East River and that is majority affordable housing. Or the fact that construction costs have gotten high in NYC, that developers who build rental buildings HAVE to use the 80-20 program which offers developers tax breaks for providing 20% of the buildings units as affordable housing, and the remaining 80% as market rate. Or Bloomberg's 10 year $7.5B plan to ensure at least 165,000 affordable housing units, the largest such program in US history. Sounds like a movie for NIMBYs, by NIMBYs.

[desertpunk]

Originally Posted by yankeesfan1000

Or maybe that movie should talk about the 5000 apartment complex being built a mile or so south that is right on East River and that is majority affordable housing. Or the fact that construction costs have gotten high in NYC, that developers who build rental buildings HAVE to use the 80-20 program which offers developers tax breaks for providing 20% of the buildings units as affordable housing, and the remaining 80% as market rate. Or Bloomberg's 10 year $7.5B plan to ensure at least 165,000 affordable housing units, the largest such program in US history. Sounds like a movie for NIMBYs, by NIMBYs.

Just screen it along with the Atlantic Yards documentary for a nice NIMBY film festival!

[yankeesfan1000]

Originally Posted by desertpunk

Just screen it along with the Atlantic Yards documentary for a nice NIMBY film festival!

Ha. A SSC forumers worst nightmare!

[desertpunk]

brooklynpaper

Domino Sugar development isn't for sale, Community Preservation Corporation Resources claims
March 22



Community Preservation Corporation Resources vice president Susan Pollock dismissed reports that her company is trying to unload the Williamsburg plot after an historic rezoning drastically increased its worth, claiming that she wants to refinance the mortgage within the next six months and bring in another developer to help fund the build-out.

Real estate insiders told The Brooklyn Paper earlier this month that Pollock’s company was going to cash out, but the developer insists she’s simply working with commercial brokers to recruit new investors.

“Our strategy is not to sell, our strategy is to enter into a joint venture, bring in a reputable developer, and get to work on the upland parcel across from Kent Avenue soon thereafter,” Pollock said in an interview on Wednesday. “Our interest is seeing the property get developed according to our vision.”


Pollock hopes to find another investor and start construction on the first portion of the project, about 300 below-market-rate units, by the end of 2013. She also wants to renegotiate her company’s mortgage with lender Pacific Coast Capital Project to eliminate nearly $125 million in debt from the property.

But the plan to bring high-rises containing 2,200 units of housing to the Southside waterfront might have hit another snag on March 5, when Community Preservation Corporation’s minority partner, developer Isaac Katan, sued the company in an attempt to prevent the lender from buying up the Domino debt.

[...]

[desertpunk]

Domino Developer In Need Of $50 Million, Development Partner

Nearly two years ago, Community Preservation Corp. won a hard-fought battle for city approvals to build 2,200 apartments on the site of the former Domino Sugar factory on a sprawling site on the Brooklyn waterfront.

But work never started, and now it's in a fight to keep a hold on the project, after defaulting on its debt late last year.

Having hit financial troubles brought about by its heavy investment in condo projects, the developer is trying to finalize a deal to give a creditor a majority stake in the property, and it's also looking for a new partner for the Domino site to cover infrastructure costs and co-develop the Williamsburg project.

"We are seeking a development partner whose expertise can help us carry out this development in a way that is consistent how the community and city would expect," says Rafael Cestero, CPC's new chief executive.

The financial woes are the latest turn for a high-profile project that attracted attention and controversy grounded in broader tensions over the future of the onetime industrial Brooklyn waterfront.

[desertpunk]

BrooklynPaper

Domino developer: New sugar daddy will save project
April 9, 2012



A part-owner of the former Domino Sugar factory claims he recruited an unnamed investor to buy up his partner’s massive debt and salvage an ambitious plan to bring 2,200 units of housing to the Williamsburg waterfront.

Developer Isaac Katan, who owns half of the proposed project, has a “white knight” capable of saving the financially troubled $1.2 billion development from foreclosure after Domino partner Community Preservation Corporation Resources defaulted on a $120 million loan, Katan spokesman Alan Segan said in court on Thursday. “This represents an opportunity for the Katan Group to come to the table with an alternative,” said Segan, who would not disclose the identity of the outside investor.

Katan sued his development partner last month in an attempt to prevent the ailing housing financier from renegotiating the loan it took out in 2007 with a third-party lender — claiming Community Preservation Corporation Resources committed fraud and breach of contract in its dealings with the backer.

Katan is seeking an injunction to halt the refinancing, which is only the latest problem for a beleaguered development that ran into trouble after the city signed off on a controversial plan to allow residential development on the site nearly two years ago. Real estate insiders say the 11-acre site is on the market, but Community Preservation Corporation Resources claims that it only wants to sell off a part of the giant waterfront project.

As Community Preservation Corporation Resources’s debt — and Katan’s consternation — grew, the company sought a slew of investors to help stabilize the project, court documents indicate. Last year, Katan submitted several potential bidders, which Community Preservation Corporation Resources vice president Susan Pollock vetted, only to have each deal fizzle out, according to Pollock’s affidavit.

Both partners have said publicly they want to stick to stick to their Domino plan, but real estate sources say flipping the site could prove to be extremely lucrative.

[...]

[desertpunk]

Domino Developer Loses Lawsuit Over Site Ownership


http://archpaper.com/news/articles.asp?id=5474

As promised, the court has handed down a ruling in the latest Domino lawsuit, developer Isaac Katan's attempt to stop a restructuring deal at the site. And? No injunction, according to the Commercial Observer. Which means joint site owner the Community Preservation Corporation is free to give the majority stake in the project to its lender. Both Katan and CPC will hold much-reduced stakes in Domino as a result. Of course, Katan hasn't given up the fight yet: his attorneys say Katan has a "newly-inked white-knight offer" in hand to bring "an experienced real estate developer" into the Domino mix.

Not looking good at all for this project as condos. As rentals, it might stand a chance but without Vinoly's overpriced designs...

[kingsc]

The design isn't even nice. I don't like the fact all the building look the same.

[desertpunk]

More Lawsuits


.

[desertpunk]

Two Trees In Contract For Domino Sugar Factory

Two Trees Management is in talks to purchase the Domino Sugar Factory site on the Williamsburg waterfront for $160 million, the New York Daily News reported. The property’s owners, Community Preservation Corp. and the Katan Group, have engaged in a legal battle over development plans in recent months, and Katan is planning to block a sale to Two Trees.

The site was first reported to be hitting the sales block in March as CPC faced financial difficulties on the site, in part because of rampant real estate speculation during the boom. Consequently, Katan Group filed suit against CPC alleging mismanagement of the property.

The plan for the sugar factory calls for the $2 billion development of 2,200 housing units, including 600 affordable ones, on the waterfront. Katan and CPC acquired the development site for $55 million in 2005 and spent years clearing development hurdles at the property. Katan believes CPC is undervaluing the asset and that it should get $200 million in a sale.

Crain’s reported that Two Trees has already signed a preliminary term sheet for the purchase. “Two Trees understands waterfront development, is well-capitalized and is the best chance for this site to get developed into the mixed-income, mixed-use community it was intended to be,” said CPC CEO Rafael Cestero, who added that proceeds from the sale will enable CPC to fund affordable projects elsewhere.

[desertpunk]

Domino Plan May Not Include Affordable Housing


Jed Walentas of Two Trees Management and the Domino site.

Jed Walentas of Two Trees, which last week signed a $185 million contract to buy the Domino Sugar Factory plant in Williamsburg, told the New York Observer that there may not be affordable housing at the waterfront development.

“I know there is a lot of interest in affordable housing in the community,” Walentas told the Observer. “If we can reach a broad level of support for more, and it is buildable, that is something we would consider.” The property’s former owner and developer CPC Resources had promised to make 30 percent of the 2,200 units affordable, though zoning did not mandate it. The promise was made official in a CPC-signed memorandum of understanding.

“That MOU was not signed by us and the zoning is what it is,” Walentas told the Observer.

However, Walentas said he still has no idea what Two Trees will do with the site. He said that affordable housing is not at the top of his list, but there are also other features the site can provide, such as schools or community space.

[desertpunk]

Two Trees Begins Redesign Of Domino Project

image hosted on flickr

http://www.flickriver.com/photos/johnsen/tags/newyork/

During our conversation with Two Trees managing director Asher Abehsera on the success of the firm’s massive Mercedes House project, we turned briefly to the topic of the Domino sugar refinery in Williamsburg.

As we previously reported, Two Trees is rethinking the entire Domino project, including the controversial move of how much affordable housing to include. We asked Mr. Abeshsera how things are progressing. According to him, the planning process is just getting under way.

Should be an interesting one to watch.

[desertpunk]

CPC Resources escapes ex-partner’s lawsuit over Domino sale

Katan Group has lost another battle in its war to block partner CPC Resources from selling the Domino Sugar factory site to Two Trees Management.

Katan claims CPC failed to find the best buyer or a high enough price for the project, but last week a New York State judge dismissed the company’s lawsuit alleging CPC breached their contract, Crain’s reported. The ruling found that Katan “did not have [the] right of first refusal on the property.”

A separate lawsuit Katan filed seeking a preliminary injunction to halt the sale is still pending.

Earlier this year, CPC signed a deal to sell the site to Two Trees for about $180 million, and the transaction is slated to close in mid-October. CPC and Katan had originally partnered to transform the 11.2-acre industrial site into a $2 billion mixed-use development with 2,200 units of housing along the Williamsburg waterfront.

Katan’s attorney declined to comment, but Crain’s said that Katan could appeal the decision.

CPC said in a statement to Crain’s that it is “extremely pleased that the court has once again found Katan’s allegations meritless, and looks forward to closing the transaction with Two Trees.”

Good news for the advancement of the Domino Project!

[desertpunk]

Domino Suit Thrown Out, Clearing Way For Sale To Two Trees


Raphael Vinoly plan for the Domino Refinery: here's hoping!

The State Appellate Court has thrown out a lawsuit seeking to block the sale of the Domino Sugar factory, paving the way for the real estate firm Two Trees to close on a $180 million acquisition of the property later this month.

The Katan Group, which owns the site in a joint venture with the Community Preservation Corporation Resources, launched the suit during the summer, alleging CPCR had ignored higher bids for the 11-acre parcel and therefore had not acted in the best interest of the partnership to try to maximize profits in a sale.

CPCR reached a deal in June to sell the sugar factory, long a landmark of Williamsburg’s waterfront, initially for $160 million. Two Trees raised its bid to $180 million after the Katan Group balked at the price, claiming it had better offers from a host of other prospective buyers, including Joe Chetrit, lawyers for the Katan Group told The Commercial Observer.

The Katan Group’s suit, which began in August, was struck down in September, but on September 28, the appeals court granted a temporary injunction in order to review the case, giving the plaintiff temporary hope that it might be able to break up the sale or force Two Trees to again up its bid.

With the Appellate Court’s decision today however, the sale can now close. Two Trees is scheduled to complete its acquisition of the Domino site on October 15. CPCR had imagined building up to $2 billion of market rate and affordable housing on the site, which has sweeping views of Manhattan, while preserving the old refinery building that has become an icon of Williamsburg’s industrial past. Two Trees has not yet revealed whether its plans for the site will follow CPCR’s vision.

[desertpunk]

Two Trees Seeks Design Changes To Domino Site

Now that Two Trees Management has closed on the $185 million purchase of the Domino Sugar factory site on the Williamsburg waterfront, the company hopes to change significantly the current design of the project, the Wall Street Journal reported.

Two Trees seeks to include office space and an improved open-space plan, according to unnamed sources. The site’s previous developers had vowed that 30 percent of housing built at the site would be affordable; however, the 30 percent figure might not be possible, Two Trees said.

The design changes would require new approvals.

The original plan for the site called for 2,200 residential units, two 34-story buildings, two other buildings rising up to 30 stories and the restoration of Domino’s building, according to Curbed.

More delays and maybe the loss of Raphael Vinoly's designs. Gaah!

[dexter2]

Really bad news. That was one of the best looking projects in NYC.

[ThatOneGuy]

Not a loss, in my opinion. They looked too much like 60s lower class housing, if you asked me.

[desertpunk]

Thus far Two Trees has only confirmed that they're reworking the various housing and office components of the Domino. Nothing as yet to confirm that they want a new architect. In a way, saying that they can't abide by the 30% affordable housing agreement in the original scheme may mean they're sticking with Vinoly. Either way, more approval hearings, more delays, more controversy...