Gowanus Developers Have Plenty of Questions on 421-a Replacement as Deadline Nears
Real Estate partner, Brett Gottlieb, was quoted by the Commercial Observer in an article further discussing the challenges created when Gov. Kathy Hochul's administration created a new tax benefit program after the state legislature chose not to renew the existing Affordable New York or 421-a property tax abatement. The new program is limited to the 82-block rezoned area in Gowanus, Brooklyn and designed to match the state's 421-a program.
The article states, "Brett Gottlieb wondered whether ESD’s program requirements would only apply to new trades that have not been awarded, or cover existing jobs. That could force developers to sever contracts even if work on a site is well underway."
Brett adds, "It’s hard to retroactively require someone to do something when they have contracts already, and put it in force on a retroactive basis... When these jobs are already awarded and people are already on the job site, you’d have to pay penalties to cancel the contract."
Click here to read the full article from Commercial Observer. Access may require a subscription.