SENATOR AVELLA CALLS ON DEC TO DENY WASTEFUL DEVELOPER APPLICATION FOR TAX CREDITS

FOR IMMEDIATE RELEASE

MONDAY, November 10, 2014

CONTACT: Heather K. Sager

718-357-3094/917-244-7945

SENATOR AVELLA CALLS ON DEC TO
DENY WASTEFUL DEVELOPER APPLICATION FOR TAX CREDITS

(QUEENS, NY) Today, State Senator Tony Avella is calling on the New York State Department of Environmental Conservation (DEC) to deny the Queens Development Group’s (QDG) application for Brownfield Cleanup Program (BCP) tax credits on its Willets Point Phase One property.

Approximately a year ago, QDG entered a contract with the NYC Economic Development Corporation which requires the QDG to clean up the property. As part of this agreement, the QDG received a capital grant commitment of taxpayer funds for $99 million, of which $40 million is intended to pay these cleanup costs. 

However, it was not long after QDG applied to the Brownfield Program, to try to obtain additional tax credits to clean up the property.

The Brownfield Cleanup Program (BCP) provides substantial tax credits to land developers to encourage the remediation and clean up of Brownfield sites. It was developed by the State in order to offset the costs of clean-up of the sites. An example of the amount of previous awards under the BCP is the $44 million awarded to the developers of the East River Plaza in Manhattan. 

After learning of QDG’s application, Senator Avella, along with advocacy group Willets Point United, immediately contacted the DEC to intervene. In a recent response letter, the DEC stated that the agency believes that, "The public interest is served by allowing these properties to participate in the BCP." The DEC also wrote in its response, "The fact that a property may be redeveloped without the incentives of the BCP does not preclude it from being eligible for the program."

“The Queens Development Group has already been promised $40 million in taxpayer funds to offset the costs of cleaning up Willets Point Phase One. Now, the QDG is attempting to take advantage of the BCP tax credit program by trying to apply for millions in tax credits for costs that will already be paid from the taxpayer’s pocket. It’s absolutely disgraceful,” said Senator Avella. “The DEC’s response is alarming, as it completely disregards the fact that the QDG is already required to clean up the site, and will already be receiving taxpayer funds to do so. Wasting taxpayer money by giving funds to developers who are already receiving clean-up related capital grants is not the intention of the Brownfield Credit Program.”

2nd meeting set for CB7 and Queens Development Group

WPU Information for CB7 QDG Meeting 140428

The second quarterly meeting between Queens Community Board 7 ("CB7") and Queens Development Group ("QDG," the designated developer of Willets Point Phase One and the Willets West mega-mall on parkland) will take place on Wednesday, April 30, 2014 at 7:30PM at the Union Plaza Care Center, 33-23 Union Street, 9th Floor, Flushing.

At the prior quarterly meeting last October, Willets Point United Inc. ("WPU") exposed that QDG had already filed a brownfield application with NYSDEC on August 8, 2013, without informing CB7 that it had done so – a direct violation of CB7's first condition to its May 13, 2013 approval of the Willets Point special permit sought by QDG: "The Joint Venture [QDG] agreed to alert CB#7 when all applications are made to NYS DEC."

WPU also exposed that QDG had deliberately omitted from its brownfield application numerous Willets Point properties that, by QDG's own definition, should be most in need of remediation via the brownfield program. Following intervention by WPU and State Senator Tony Avella, QDG recently amended its brownfield application to include the previously omitted properties.

QDG's project is challenged by two pending lawsuits, one of which was filed by Senator Avella, City Club of New York, Queens Civic Congress, Inc., NYC Park Advocates, and interested residents and business owners. A rally held on March 22, 2014 in support of the lawsuit and against QDG's proposed Willets West mall was attended by Petitioners as well as members of the Bay Terrace Community Alliance, Bellerose Commonwealth Civic Association, Bellerose Hillside Civic Association, Communities of Maspeth and Elmhurst Together (COMET), Flushing Meadows Corona Park Conservancy, Flushing on the Hill Civic Association, Greater Whitestone Taxpayers Civic Association, Hillcrest Estates Civic Association, Holly Civic Association, Jackson Heights Beautification Group, Juniper Park Civic Association, Kew Garden Hills Tenant Association, Kissena Park Civic Association, Queens Civic Congress, Queens Community Board 3, Queens Community Board 7, Queens Community Board 8, Queens Community Board 13 and WPU.

Despite such community opposition to QDG's project, elected officials and agencies continue to look the other way. For his part, new Mayor Bill de Blasio has shown no sign that he will prevent QDG from constructing a 1.4 million square foot shopping mall on Flushing Meadows Corona Park property.

Please see the attached information prepared by WPU in advance of Wednesday night's meeting.

Yours truly,

Willets Point United Inc.