This week the city will begin discussing how much public financing to award the Related Companies in exchange for buying and renovating the Kingsbridge Armory into a giant shopping mall.

With the inclusion of public financing for the Armory project, community groups believe they will have added leverage to negotiate a substantial community benefits agreement, something they have lobbied for since Related was selected to overhaul the Armory 10 months ago.

On Thursday, March 5, the Industrial Development Agency (IDA), the financing arm of the city’s Economic Development Corporation (EDC), which has shepherded the Armory project since 2006, will have preliminary talks on what kind of financial incentives to provide Related.

The proposal on the table would exempt Related from certain city and state taxes, including a mortgage recording tax, sales and use taxes and property taxes during construction in and around the Armory. EDC spokesperson Janel Patterson said the agency estimates the total tax package to be worth $17.8 million.
“The IDA benefits are necessary to make the project feasible,” Patterson said in an e-mail. “Due to a number of circumstances, the costs associated with the redevelopment of the Armory are significantly higher than with typical developments.”

Patterson said those circumstances included additional time and costs due to building’s landmark status (which requires city and state approvals on all design proposals), extensive testing of the structure because it’s been vacant so long and the fact Related is going to provide below-market community facilities.

Last week, leaders of the Kingsbridge Armory Redevelopment Alliance (KARA), a coalition of community groups, unions and elected officials that has lobbied for the Armory’s responsible development since 2005, invited supporters to join them at Thursday’s meeting to tell the IDA “to postpone a decision on the Related Companies’ request for millions in tax breaks until they have negotiated benefits for the community.”

Those benefits would include a local hiring program, guarantees for living wage and union jobs, free or low-cost recreational facilities and more space designated for community programs.
Related officials have said a community benefits agreement would be part of the equation, but KARA says they have refused to negotiate with them.

Julian Gross, a California lawyer who is advising KARA on its community benefits push, said in the fall that public financing would give the community added leverage to negotiate a substantial benefits agreement.