Clinton Green in New York (Manhattan), NY: Mixed Income Housing Replaces Blighted City-Acquired Parcel
Developer: The Dermot Company
Owner: Avalon Bay Communities, Inc.
PROJECT DESCRIPTION – Mercedes House (f/k/a Clinton Park - 80/20 project), located at the western edge of Midtown Manhattan and bounded by W. 51st to W. 53rd Streets between 10th and 11th Avenues, is a 1.3 million sf mixed-use residential/commercial development on 1.5 acres. It contains 695 mixed-income rental units and 170 condo units in two 27- to 30-story towers, a 55,000 sf auto showroom, 37,000 sf of community space including retail and three theaters, a 28,000 sf health club, 15,000 sf of open space and a subsurface parking garage with 200 parking spaces. The unique design of this LEED-certified development earned it accolades. The project’s overall massing is reduced as it slopes up and away from Clinton Park and transitions to high-rise development that allows light and air to filter into the majority of the apartments. Each floor steps up from the one below that allows unobstructed views of the Hudson River as well as private roof terraces and green roofs on every floor. The Developer completed the project in 2011. The developer just completed another brownfield project in Brooklyn on Flatbush Avenue.
SITE HISTORY – Open-air Railroad tracks, underutilized industrial buildings and a former Exxon Mobil gas station occupied the long-abandoned site in the Hell’s Kitchen En-Zone. New York City had acquired the under-utilized, blighted property – consequently, it yielded no property tax revenue prior to redevelopment. On- and off-site petroleum impacted the soil and groundwater.
REMEDIATION – The 1.5-acre tract has been cleaned up to Track 1, Un-restricted use standards. Remediation involved demolition and removal of all buildings, excavation of soil to the top of bedrock and site dewatering. All on-site exposures have been mitigated. The Certificate of Completion was issued for the Clinton green Project on October 20, 2006.
DEVELOPMENT COST – The total project cost of Clinton Park was nearly $305 million. Remediation accounted for approximately $11.6 million (4%). The Developer financed the project with 88% debt and 12% equity. Through a public/private partnership with the New York City Department of Housing Preservation and Development, the project was allocated significant New York State Housing Finance Agency tax-exempt bond financing. Key project financing came from the BCP Tangible Property Tax Credit: $47,396,344, the federal section 198 brownfields tax incentive, as well as Federal Low Income Housing Tax Credits.