
Borough president backs disputed One45 Harlem project, with option to double affordable units
The controversial One45 for Harlem project, which could bring two towers with nearly 1,000 new apartments to East Harlem, secured the backing of Manhattan Borough President Mark Levine on Tuesday — a symbolic but significant endorsement that bodes well for its success down the line.
Levine and the developer, Bruce Teitelbaum, have struck a tentative deal as part of the rezoning process that could help the project get over the finish line nearly three years after an initial attempt to secure approval spectacularly imploded, causing a political firestorm.
The fact that local Councilmember Yusef Salaam, whose support will essentially make or break the project, has been involved in the negotiations also suggests One45 could be closer to winning favor in the all-important final City Council vote.
The proposed One45 for Harlem development would include a pair of 34-story towers at 145th St. and Lenox Ave. with 968 apartments, including 291 designated affordable, plus a commercial building. The borough president is recommending the project move ahead but with a number of conditions attached, including increasing the size of a planned community space and requiring the use of union construction workers.
But the most significant stipulation is the unusual inclusion of a memorandum of understanding. Signed by both Levine and Teitelbaum, the MOU includes the possibility of an alternative plan that would involve Teitelbaum building the first tower but selling a parcel of the land to a nonprofit affordable housing developer that would construct the second tower as 100% affordable in coordination with the city's Department of Housing Preservation and Development.
HPD spokesperson Fernando Aquino confirmed the agency was been 'in active conversations' with the prospective developer
'We would welcome the opportunity to invest in more affordable housing in the community and are working to define the tools/resources we have available to make it happen,' Aquino said.
The so-called 'Enhanced Affordability Plan Development' could boost the total number of new 'affordable' units up to 591 — but it's far from a done deal.
'Nothing is guaranteed until a sale occurs, but there's active negotiations underway' to sell the parcel, Levine said, adding that they're making 'good progress.'
The project itself still needs to successfully pass the city's land use review process. The next step is review by the City Planning Commission.
Levine, who is running for city comptroller, voted against the original One45 project three years ago, citing concerns around affordability and describing that version as 'unacceptable' at the time.
'There was just no constituency for this project three years ago, and now there really is,' he told The News. 'Adding hundreds of affordable units is just an incredibly valuable addition to the housing landscape, that's what we need. We need to both fight to help longtime residents stay in their homes, and we have a parallel fight to create new affordable homes for people who don't have them. And I'm all in on both fights, and leaving this site as a truck depot doesn't help anybody.'
Levine's endorsement comes as little surprise given his vocal pro-development stance amid the ongoing housing crisis.
While the beep's backing is symbolic, not binding, it's a positive sign for the development team that comes just two weeks after the local community board rejected the proposal in a 19-10 advisory vote with 5 abstentions.
'This is not an affordable housing plan, it's a gentrification plan,' said Delsenia Glover, second vice chairperson of the board, who voted against it.
She echoed longstanding criticisms from Harlemites who have expressed concern about the project's size, affordability levels and potential to displace locals.
The borough president's support is also One45's first formal vote of confidence since a previous iteration of the plan infamously fell apart in 2022. The local councilmember at the time, Kristin Richardson Jordan, pushed for One45 to be fully affordable, leading Teitelbaum to withdraw the proposal and turn the lot into a truck depot in a move widely viewed as spiteful.
Richardson Jordan dropped her reelection bid in the fallout, opening the path for Salaam to take her place. He has expressed more openness to Teitelbaum's plans and worked 'shoulder to shoulder' with Levine in securing the memorandum of understanding, according to the beep.
Salaam's office did not respond to a request for comment.
Salaam's collaboration indicates the new iteration of One45 could be poised to succeed where its predecessor failed, namely in securing the support of the local councilmember, who traditionally dictates whether or not a rezoning passes the City Council thanks to the unofficial practice of member deference.
Levine struck a hopeful tone as One45 works its way through the city's rezoning process, which will continue to play out over the next few months.
'This is really night and day from three years ago, that's why I'm very optimistic,' he said.
For his part, Teitelbaum said he was 'certainly' more optimistic this time around, though largely kept mum when asked about the ongoing negotiations.
'The project speaks for itself,' he told The News. 'We'll let the process play out.'
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36 minutes ago
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Chicago Tribune
2 hours ago
- Chicago Tribune
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The TIF money that the developers plan to use is also to be paid back to the city, in a way. Assuming the project continues, the city would allocate the $1.2 million, which would go toward the purchase of the land set at about $1 million along with soft costs like engineering and architectural plans, according to Buening. The city's approval is conditional on the proposal being taxable, Buening said, and its proposed location is within the city's TIF District 3, meaning it would generate TIF funding. Essentially, a TIF district freezes the amount of property tax revenue each taxing body receives from an area at the point at which the TIF is instituted. The extra or 'increment' taxes created by the development of the property go into a special fund used to pay for costs related to improving the area. The goal is to secure the land by the end of this year and begin construction immediately after, Armstrong said. But whether the project moves forward at all, he said, is contingent on the project being awarded the Low Income Housing Tax Credit developers are applying for. The Low Income Housing Tax Credit is a dollar-for-dollar federal tax credit, according to IHDA's website, that helps move affordable housing projects forward. The maximum rent that can be charged on a property that receives this tax credit is 80% of the AMI — which is why there are no market-rate units in the proposed development. Rents are typically capped for a 30-year period in Illinois. What's next? Armstrong said that Fox River Affordable Housing and Housing Authority of Elgin expect to hear back about whether they've been awarded the tax credit later in June. He said the project would likely not be able to move forward without that funding source. The developers also have to enter into a redevelopment agreement with the city, Buening noted, and go through the zoning process. Should all go as planned, Armstrong said, the project's aim is to close on a deal for the land by the end of the year and immediately begin construction, as long as there are no major obstacles that push back their timeline. There are several factors that can slow down affordable housing projects, Skuzinski noted. In general, gaining public and city support for projects can require overcoming negative perceptions of affordable housing developments. 'There's a perception that property values go down whenever an affordable housing project or even a mixed-income project … go in, and that's just not true,' Skuzinski said. 'It has more to do with the design of the building, sort of what it looks like, how well it's managed.' Additionally, because affordable housing developments tend to have slimmer profit margins and less options for obtaining loans, Skuzinski noted, the loss of one source of funding can slow down or jeopardize the project. Amid discussion of the project at a meeting in May, Malone inquired about the availability of federal funding with regards to the project. Low Income Housing Tax Credit is a federal funding source that's allocated by state agencies, in this case the Illinois Housing Development Authority. But, while President Donald Trump's administration has slashed the budgets of a number of government programs, the housing tax credit appears to be safe for now. It could potentially even see an influx of cash if the Senate leaves that part of the recently passed House of Representatives' budget bill as is. Federal funding aside, Armstrong said the costs of materials and labor and interest rates have all driven up the price of construction since the pandemic, and they've made the Housing Authority of Elgin move more slowly and be more selective with what projects it takes on. And the added uncertainty of possible tariffs could also change their plans or slow progress. And, for the housing authority, unlike developers intending to sell their developments, there's also the added component of managing the property. 'We are generally in it for the … lifespan in the building,' Armstrong said. That's something the Housing Authority of Elgin wants to do more of, he said. It currently manages 164 units of Low Income Housing Tax Credit properties, he noted, but have a third-party entity that manages some of its other properties. They've also co-developed some projects, but intend to be the sole developer on the Batavia units. Armstrong said the authority worked with the city of Batavia to identify this potential project and the proposed location. 'I'm not in the business of going somewhere and telling them what's good for them,' Armstrong said. But the housing authority is willing to work with cities which identify a need for affordable housing, he said. And, with projects like these, he said one of its goals is helping individuals of different income levels live in the same community. 'We're trying to deconcentrate poverty and do this in areas of opportunity,' Armstrong said, 'where people can have pride and lives in areas that provide jobs and education and so on.' These kinds of projects are one way of supporting social mobility for both low-income and working class individuals and families, Skuzinski noted. 'There can be a benefit to allowing for social networking and ties across income classifications,' Skuzinski said. 'One of the best ways to do that is either through affordable housing projects that are in higher-income neighborhoods, or through projects that are themselves mixed-income. And it seems like the one in Batavia's trying to kind of do both.' And, despite the challenges affordable housing projects bring, he said he thinks this project is well-positioned to move forward. 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