Photo by Adi Talwar
By DAVID CRUZ
Though developers of the Kingsbridge National Ice Center (KNIC), slated to be built inside the cavernous Kingsbridge Armory, ensure the project is progressing, there are signs it hasn’t churned along as much as it wants the public to think.
Part of what could explain KNIC Partners LLC’s lax movement on building the Armory is the group’s lack of financing. It remains short of the $350 million needed to fully bankroll the project, prompting the New York City Economic Development Corporation (NYCEDC) to place the project’s lease in escrow. KNIC would have to show it has funds needed for the first phase of the project to move forward before the lease is released from escrow.
KNIC is allowed to access the Armory, under a license with the EDC, but it still can’t begin construction until the money is secured.
“The Armory is a unique asset, therefore KNIC is obligated to demonstrate full funding to complete the first phase of the development before they start construction,” said an EDC spokesperson. “Placing the lease in escrow is not uncommon on a large complex project such as this and will help move this important and exciting project forward to the benefit of the Kingsbridge community.”
Under the lease terms, KNIC is mandated to show it has the required funds by March 2016 to begin phase one of the project, which is obligated to be completed by August 2018.
“Our fundraising is on schedule and we are continuing with the forward progress of this transformative project,” said Mark Messier, CEO of KNIC LLC. “We are excited about the support we have received from investors and the community – all partners in helping us make this inspiring project a reality.”
But phase one is just half of the project. Phase one of the agreement requires KNIC to build five rinks, a parking facility with 400 spots and the 50,000 square feet of community space by August 2018. Phase two will contain the last 4 rinks and construction must be complete by August 2019.
The revelations shed light into some behind-the-scenes dealings from KNIC, which for months has insisted the project is in good standing. The New York City Economic Development Corporation, under the Bloomberg Administration, cleared KNIC to lease the building for 99 years, pegged as a global game changer for the Bronx. A Community Benefits Agreement worked out between KNIC and community groups promised the community a total of $1 billion in benefits, living wage jobs and 50,000 square feet of community space.
The news also comes amid KNIC’s consideration of funds from EB5, a program that seeks out foreign investors to provide monies for a project in exchange for fast-tracked legal entry into the U.S. Investment monies by foreign investors are mandated to produce American jobs, according to terms laid out by the U.S. Department of Homeland Security.
Building Permits
With a project in escrow, KNIC is currently barred from repurposing the project, which does require construction permits. As it stands, KNIC has no approved city building permit, which it had initially applied for in July 2013 during the lengthy public review process.
KNIC’s first application for an alteration permit through the New York City Department of Buildings was completed by SCI Architects, P.C., which designed blueprints for Madison Square Garden. The plans were subsequently rejected by DOB, which some developers say is often standard operating procedure, pointing to the inherent bureaucracy within New York City government. A developer is normally rejected, and asked to go before the Board of Standards and Appeals (BSA) to apply for a variance. The BSA eventually changed the zoning status of the Armory from an R6 to a C4, which allows for a “physical and cultural establishment” such as an ice rink.
But DOB objections remain in limbo. Those include an approval by the Landmarks Preservation Commission (LPC), which was required to review KNIC’s alterations to the exterior of the building given the Armory’s landmark status.
“Since being disapproved in 2013, [KNIC] has not remedied objections to their application that must be made to receive construction permits,” said DOB spokesman Alex Schnell in an email. “Applications for permits that are submitted to the Department must be in compliance with all applicable regulations in the building code and zoning resolution to receive approval during a plan exam.”
The permits are critical to KNIC’s alterations of the Armory, which include the installation of a 50’ by 10’ illuminated sign and eight banner signs onto the Armory’s exterior. In 2013, LPC approved KNIC to alter the outside so long as it has an approved permit from DOB. The agency has yet to receive one, according to an LPC spokeswoman.
KNIC was prevented from working on the project for most of last year following several lawsuits between lead developer Kevin Parker and a trio of principals once linked to the project. In lawsuits filed against Parker, plaintiffs had mentioned Parker’s inexperience in getting a project of this size off the ground.
The news adds to the string of delays for the Armory.
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Well that is life of development in NYC… Red tape and more red tape. As to the funding – why is that strange? No one just gives out $350 million. If you are building an office building you often have to get a large amount of it pre-leased in order to get funding from a bank.
I think building an ice complex in the poorest borough of a city where 69% of the people come from the third world is NUTS !!! In 3-5 years it will looks more like a Third World bazaar where fruit and African jewelry will be sold.
Not third world…Latino and African American you idiot. The real third world people were the european interlopers who came to what we now call North America!
The ice rink is NOT for the majority Latino and Black community surrounding the armory. There will be an influx of cops and their families coming for hockey games….WE DON’T WANT IT.
STAY OUT!!
GOD FORBID ANYBODY WANTS TO UPGRADE YOUR SHITTY NEIGHBOR HOOD MORON LIVE IN SQUALOR AND POVERY FOREVER WAIT UNTIL THE GRAVEY TRAIN STOPS WITH FREE EVERYTHING TYPICAL DREGG FEEDING OFF EVERYONE ELSE FUCKING PARASITES
New York City (Bronx) politicos have sold the Bronx residents out. Diaz has sold out. It is up to the PEOPLE to stop the opening of an ice center that is NOT beneficial to the residents and small businesses in the area. It will snarl traffic from the suburbanites, off duty cops etc… coming to hockey games and hockey pratice and ice rinks ONLY THEY will be able to afford.
A few jobs will be doled out to locals. A few “athletic programs” might be created to appease “the natives,” but all in all this project is just another white and money, or, white money driven endeavor in a community that needs something totally different.
STAND UP BRONX!!!!
The same thinking sent the islanders from Nassau the idiots in charge screwed it up royally let the 2 billion dollar light house project go imbeciles jobs will be created refurbishing the facilities and whats wrong with hockey its being built to encourage minorities to come in and learn the sport and have an equal chance to play maybe we should turn it into a mosque maybe you idiots would like that better.
Does anyone remember that the original development plan was to create a shopping mall? But the Bronx politicians and the “neighborhood” activist protested the plan. Then demanded that any business that opens in the mall must pay employees at least $10 an hour? Then the plan was scrapped because the developers pulled out?
That was like 7 years ago. Probably would have taken a year or two to build and open. So the Bronx could have a shopping mall with some employment for the residents (true not the $10 an hour) but some employment. But it would have been nice to have those jobs already available considering that the end of 2016, NYS will raise the minimum wage to $11.00 an hour for all business with 11 employees or more.
I guess lesson learned. First get the jobs, then work on increase wages.