Downtown Rising: Rising: 02.2016 02.2016 Howhow Brooklyn Brooklyn Became Became a Model a Model for for Urbanurban Development Development

Home , Downtown Brooklyn

DowntownDowntown Rising: Rising: 02.2016 02.2016 HowHow Brooklyn Brooklyn became became a model a model for for urbanurban development development

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Downtown Rising: How Brooklyn became a model for urban development Downtown Rising: How Brooklyn became a model for urban development Report prepared by: Introduction

During the past thirty years, the The transformation of Downtown Brooklyn Downtown Brooklyn Community has been from laggard to leader is not traceable to transformed in ways and to an extent that any single cause. Key factors that played a role include the growth of the innovation recent history. Since 2004 the area has economy, continued collaboration among With support from: experienced a surge of new development, local institutions of higher education, and with nearly 41 million square feet of the development of the area as a major residential, commercial, and institutional center for arts and culture. These local space completed, under construction, or milestones were supported by the public in the pipeline. Downtown Brooklyn has sector through zoning, land-use, and seen strong gains in population and development policies; and through employment. And more than $10 billion targeted investments in commercial dollars of private investment have been development projects and world-class public spaces like Brooklyn Bridge Park. staggering amount of private dollars for an Table of Contents often overlooked outer borough The result is a central business district in 2 Part One: destination. Downtown Brooklyn that can serve as a 11 model for the 21st century, set an Part Two: This leveraged return for the City is the ambitious pace for the rest of the city, and Why it happene 19 19 result of targeted public capital spent on provide a roadmap for other burgeoning 26 infrastructure, undertaken in concert with business hubs across the region and the 45 smart land-use policy and sustained local world. Part Three: advocacy, and shows just how far strong 57 57 62 by wise public investment. 64 66 Part Four: Conclusion and key recommendations 71

1 Report prepared by: Introduction

1 Executive Summary

Of the many changes that have reshaped This work took on new urgency after New York City during the past fifteen September 11, 2001 and the economic years, few have been as dramatic and as dislocation that followed. The Bloomberg consequential as the emergence of administration responded with an Downtown Brooklyn as a major center of innovation, economic growth, and cultural adoption of the Downtown Brooklyn development. This report examines the Development Plan in 2004, accompanied ongoing transformation of Downtown by a major rezoning of the Special Brooklyn, why and how it has happened, Downtown Brooklyn District. and its implications for the borough and the city. In the twelve years since, the transformation of Downtown Brooklyn has only accelerated. Envisioning a new future for Downtown Brooklyn

Starting in the early 1980s, a number of local institutions, organizations, and developers undertook efforts to revitalize the greater Downtown Brooklyn area. They produced important results, including the creation of MetroTech service hotel in decades, new commercial development at Atlantic Terminal, and the initial development of what was then known as the BAM Cultural District.

2 3 Executive Summary

2 3 A note on geography

For purposes of this report, we have defined the broader Downtown Brooklyn area as Williamsburg Bridge including three areas:

The Special Downtown Brooklyn District created in 2001 and modified in 2004; Manhattan Bridge

Brooklyn Bridge immediately east of the Special District, Fulton Landing, Brooklyn Bridge Park,

DUMBO, Vinegar Hill, and the Brooklyn Navy Yard; and VINEGAR HILL Kent Ave Adjoining residential neighborhoods, including Brooklyn Heights, Cobble Hill, DUMBO GREATER Boerum Hill, Prospect Heights, and Fort Greene. DOWNTOWN NAVY YARD East BROOKLYN River BQE Flushing Ave BROOKLYN We refer to these three areas collectively as the Downtown Brooklyn Community. HEIGHTS Cadman Plaza E Tillary St

FORT

Jay St CLINTON HILL GREENE SPECIAL Myrtle Ave Brooklyn Bridge Park DOWNTOWN Why it happened Fort BROOKLYN Greene Park DISTRICT Livingston St The transformation of Downtown Brooklyn cannot be attributed to any single factor. It has Washington Ave Flatbush Ave instead resulted from the confluence of a series of changes in three areas. Atlantic Ave COBBLE HILL Fulton St Changes in underlying economic and social conditions: BOERUM HILL

4th Ave Brooklyn serving as both a major contributor and beneficiary of that growth; RESIDENTIAL Union St CARROLL AREA GARDENS PROSPECT business district, both as an office location and as a place to live; and HEIGHTS

A dramatic reduction in crime in Downtown Brooklyn between 1990 and 2014. PARK SLOPE RED HOOK

Prospect Park

Figure 1: The Downtown Brooklyn Community

4 5 A note on geography

For purposes of this report, we have defined the broader Downtown Brooklyn area as Williamsburg Bridge including three areas:

The Special Downtown Brooklyn District created in 2001 and modified in 2004; Manhattan Bridge

Brooklyn Bridge immediately east of the Special District, Fulton Landing, Brooklyn Bridge Park,

FORT

A dramatic reduction in crime in Downtown Brooklyn between 1990 and 2014. PARK SLOPE RED HOOK

Prospect Park

Figure 1: The Downtown Brooklyn Community

4 5 The transformation of Downtown Brooklyn by the numbers

Local trends, developments, and initiatives within the Downtown Brooklyn As a result of the factors described above, the Greater Downtown Brooklyn area Community: has seen a major surge in new development since 2004, including:

innovation economy; Completion of 14.3 million square feet of new or rehabilitated residential, commercial, and institutional space; of new types of commercial space particularly suited to the needs of startups and An additional 11.5 million square feet under construction as of the summer of 2015; other small companies, entrepreneurs, and artisans; 14.9 million square feet in various stages of planning. The emergence of Brooklyn as a uniquely powerful global brand; The Downtown Brooklyn C for cultural organizations, artists, and arts enterprises; and Downtown Brooklyn has also experienced significant demographic change. For example: The continued development of a cluster of colleges, universities, and professional schools, combined with new forms of collaboration among those institutions. The population of the Greater Downtown Brooklyn area grew by 17 percent between 2000 and 2013. During the same period, the number of younger adults (ages 18-44) living in Actions by City and State governments: Greater Downtown Brooklyn rose by nearly 29 percent. Changes and flexibility in zoning, land use, and development policies that have The percentage of all residents of the area having at least a four-year college allowed the private sector to respond effectively to previously-unmet demand for degree rose from 35 to 55 percent. new development in the Downtown Brooklyn Community; and Investments in public infrastructure, open space, cultural facilities, and industrial As a result of all of the factors discussed above, private-sector employment in Greater and commercial development projects. We estimate that since 2002, City and Downtown Brooklyn rose by nearly one-third between 2002 and 2013, an increase of State investments in the Downtown Brooklyn Community in these areas alone 17,078 jobs. Growth was especially strong in several key sectors of the local economy, have totaled more than $1.5 billion. including professional and technical services, media and information services, retailing, restaurants, hotels, the arts and entertainment.

6 7 The transformation of Downtown Brooklyn by the numbers

6 7 The way forward: Recommendations for continued growth

This assessment of the transformation of Downtown Brooklyn suggests several

to the Brooklyn Navy Yard, difficulties in getting between the core of Downtown Brooklyn and the waterfront, and the scarcity of good options for travel between existing and new waterfront neighborhoods and growing concentrations of jobs from Sunset Park in Brooklyn to Astoria in Queens. There is no single solution to all these needs; they will require action on multiple fronts at once. Business leaders, local officials and community groups need to ensure local

economic transformation.

8 9 The way forward: Recommendations for continued growth

This assessment of the transformation of Downtown Brooklyn suggests several

Greater Downtown Brooklyn has shown that it is a good location for launching and developing innovative new businesses. To maintain its momentum, however, Greater Downtown Brooklyn and the City need to ensure that these companies also have room to grow. The surge in development in Downtown Brooklyn following the 2004 rezoning highlights the value of flexible permissive zoning and land use policies. The City should avoid trying to achieve narrowly defined policy objectives by enacting overly-detailed zoning restrictions and prescriptions. The City should continue to invest in public space improvements that make Downtown Brooklyn (and other areas in the City) a more attractive place to live, work, invest, do business, and visit. Developers and property owners, non-profit organizations, and the City need to work together to ensure that cultural institutions, arts groups, and artists can continue to play a vital role in the ongoing transformation of Downtown Brooklyn. Continued growth in Downtown Brooklyn heightened the need to address long- to the Brooklyn Navy Yard, difficulties in getting between the core of Downtown Brooklyn and the waterfront, and the scarcity of good options for travel between existing and new waterfront neighborhoods and growing concentrations of jobs from Sunset Park in Brooklyn to Astoria in Queens. There is no single solution to all these needs; they will require action on multiple fronts at once. Business leaders, local officials and community groups need to ensure local economic transformation.

8 9 Part One: Envisioning a new future for Downtown Brooklyn

In 2004 the New York City Economic Development Corporation and the Department of City Planning published the Downtown Brooklyn Development Plan, a broad-based

the downtown area, transit and streetscape investments, and new public investments in parking facilities and public open space.

The Downtown Brooklyn Development Plan recognized and sought to build on

An existing core of commercial office space and retail facilities; A concentration of colleges, universities, and cultural institutions; Excellent access by mass transit from most neighborhoods in Brooklyn and Manhattan and some in Queens, and by commuter rail from Long Island; Greater availability of developable sites than in most of Manhattan; Proximity to Manhattan, combined with significantly lower costs; and Several attractive residential neighborhoods bordering the Downtown area.

underperforming asset.

10 11 Part One: Envisioning a new future for Downtown Brooklyn

In 2004 the New York City Economic Development Corporation and the Department of City Planning published the Downtown Brooklyn Development Plan, a broad-based

the downtown area, transit and streetscape investments, and new public investments in parking facilities and public open space.

The Downtown Brooklyn Development Plan recognized and sought to build on

underperforming asset.

10 11 Before the Downtown Brooklyn Plan: From MetroTech to the Group of 35

cost office buildings then being developed Starting in 1994 the Giuliani administration In collaboration with the staff of the City effort to revive Downtown Brooklyn. In the along the Hudson River waterfront in early 1980s, Dr. George Bugliarello, Jersey City. developing new commercial office space, the Council began to explore ways to President of the Polytechnic Institute of concentrating instead on moving New stimulate private development. New York, had sought City and State In 1988, Forest City Ratner Companies York City government facilities and offices assistance for development of what he (FCRC) was designated as the lead to MetroTech and the surrounding area. developer at MetroTech. (Notably, FCRC Agencies that moved into the area in 2000, when Senator Charles Schumer university-industry research campus, to be was also the developer of what had been included the Fire Department, the NYPD, convened a task force that became known located in an area bounded by Jay Street, the first new commercial office building in as the Group of 35 to explore means to Flatbush Avenue, Tillary Street, and of Information Technology and facilitate and stimulate the development of Willoughby Street. Bugliarello won the Pierrepont Plaza, a 659,000-square-foot Telecommunications. This shift culminated commercial office space in New York City. support of Brooklyn Borough President building completed in 1988 that became a at the end of the Giuliani administration in A central element of the strategy Howard Golden and other local elected a decision to use the last remaining recommended by the Group in its 2001 officials, who played a key role in securing office operations.) FCRC moved quickly; development site at MetroTech for a new, report was for the City to support the City and State support. by 1991 four buildings with a total of 1.1 million-square-foot courthouse. development of new office buildings in nearly 3.4 million square feet had been By the mid-1980s, Mayor Edward Koch completed at MetroTech, housing the While the Giuliani administration was Downtown Brooklyn, Long Island City, and had signed on to the concept, but with one offices of Keyspan (now National Grid), emphasizing development of space for the Far West Side of Manhattan, along important change. Instead of a center for the Securities Industry Automation public agencies, local business groups corporate research, development, and Corporation (SIAC), and back offices for began to envision an alternative cultural amenities in order to create a full- technology, the Koch administration Chase Manhattan Bank. approach. In 1998 the Brooklyn Chamber service, 24/7 environment for businesses, envisioned MetroTech as a location for the of Commerce, led by Kenneth Adams, 1 back-office operations of Manhattan- After this initial success, however, the created the Downtown Brooklyn Council, called for the development of 60 million based financial services companies. The project slowed almost to a halt. The charged with formulating a new strategy square feet of new office space by 2020, administration saw MetroTech as an recession of the early 1990s hit New York for redeveloping the area. The Council of which 12 million square feet would be was chaired by Don Elliott, a Brooklyn developed in Downtown Brooklyn. resident who had led the City Planning institutions to keep their back offices in the demand for back office space. Commission during the Lindsay era. 1 Group of 35, Preparing for the Future: A Commercial City, rather than moving them to lower- Development Strategy for New York City, June 11 2001, p. 30 12 13 Before the Downtown Brooklyn Plan: From MetroTech to the Group of 35 cost office buildings then being developed Starting in 1994 the Giuliani administration In collaboration with the staff of the City effort to revive Downtown Brooklyn. In the along the Hudson River waterfront in early 1980s, Dr. George Bugliarello, Jersey City. developing new commercial office space, the Council began to explore ways to President of the Polytechnic Institute of concentrating instead on moving New stimulate private development. New York, had sought City and State In 1988, Forest City Ratner Companies York City government facilities and offices assistance for development of what he (FCRC) was designated as the lead to MetroTech and the surrounding area. developer at MetroTech. (Notably, FCRC Agencies that moved into the area in 2000, when Senator Charles Schumer university-industry research campus, to be was also the developer of what had been included the Fire Department, the NYPD, convened a task force that became known located in an area bounded by Jay Street, the first new commercial office building in as the Group of 35 to explore means to Flatbush Avenue, Tillary Street, and of Information Technology and facilitate and stimulate the development of Willoughby Street. Bugliarello won the Pierrepont Plaza, a 659,000-square-foot Telecommunications. This shift culminated commercial office space in New York City. support of Brooklyn Borough President building completed in 1988 that became a at the end of the Giuliani administration in A central element of the strategy Howard Golden and other local elected a decision to use the last remaining recommended by the Group in its 2001 officials, who played a key role in securing office operations.) FCRC moved quickly; development site at MetroTech for a new, report was for the City to support the City and State support. by 1991 four buildings with a total of 1.1 million-square-foot courthouse. development of new office buildings in nearly 3.4 million square feet had been By the mid-1980s, Mayor Edward Koch completed at MetroTech, housing the While the Giuliani administration was Downtown Brooklyn, Long Island City, and had signed on to the concept, but with one offices of Keyspan (now National Grid), emphasizing development of space for the Far West Side of Manhattan, along important change. Instead of a center for the Securities Industry Automation public agencies, local business groups corporate research, development, and Corporation (SIAC), and back offices for began to envision an alternative cultural amenities in order to create a full- technology, the Koch administration Chase Manhattan Bank. approach. In 1998 the Brooklyn Chamber service, 24/7 environment for businesses, envisioned MetroTech as a location for the of Commerce, led by Kenneth Adams, 1 back-office operations of Manhattan- After this initial success, however, the created the Downtown Brooklyn Council, called for the development of 60 million based financial services companies. The project slowed almost to a halt. The charged with formulating a new strategy square feet of new office space by 2020, administration saw MetroTech as an recession of the early 1990s hit New York for redeveloping the area. The Council of which 12 million square feet would be was chaired by Don Elliott, a Brooklyn developed in Downtown Brooklyn. resident who had led the City Planning institutions to keep their back offices in the demand for back office space. Commission during the Lindsay era. 1 Group of 35, Preparing for the Future: A Commercial City, rather than moving them to lower- Development Strategy for New York City, June 11 2001, p. 30 12 13 Progress toward the development of a full- of 35 led to the creation of a Special fledged district was slow at first, but had Downtown Brooklyn District, approved by begun to pick up momentum by the late the City Planning Commission in July 1990s. In 1998 the Mark Morris Dance 2001. Group opened a new dance complex at 3 Lafayette Avenue, with seven studios and Relaxation of some height restrictions and a school; and in 1999 Lichtenstein retired setback requirements, along with up- as president of BAM and began to devote zoning of some areas, was intended to himself full-time to the BAM Local allow higher-density development and Development Corporation, an organization make the District more attractive to private that had been created to guide developers. These changes were only part development of the district.

were a start. Forest City Ratner Companies had meanwhile begun to focus on At the same time, other planning and redevelopment of the area around Atlantic development efforts were under way in Terminal, opening in 1996 Atlantic Center, and around the Downtown area. Harvey a 393,000-square-foot enclosed mall Lichtenstein, President of the Brooklyn immediately adjacent to the Terminal. Academy of Music (BAM), had been FCRC also began planning for advocating since the early 1980s for the construction of retail space and an office development of a new, multi-institutional building directly above the Terminal. cultural district on what was then largely- vacant land around BAM. An important Together, the work of the Downtown first step had been taken in 1986 with the Brooklyn Council, City Planning, the renovation and reopening of the long- Group of 35, BAM Local Development abandoned Majestic Theatre at 651 Fulton Corporation, and FCRC had by the Street (now the BAM Harvey Theater). summer of 2001 begun to suggest the outlines of a different future for the area.

14 15 Progress toward the development of a full- of 35 led to the creation of a Special fledged district was slow at first, but had Downtown Brooklyn District, approved by begun to pick up momentum by the late the City Planning Commission in July 1990s. In 1998 the Mark Morris Dance 2001. Group opened a new dance complex at 3 Lafayette Avenue, with seven studios and Relaxation of some height restrictions and a school; and in 1999 Lichtenstein retired setback requirements, along with up- as president of BAM and began to devote zoning of some areas, was intended to himself full-time to the BAM Local allow higher-density development and Development Corporation, an organization make the District more attractive to private that had been created to guide developers. These changes were only part development of the district. were a start. Forest City Ratner Companies had meanwhile begun to focus on At the same time, other planning and redevelopment of the area around Atlantic development efforts were under way in Terminal, opening in 1996 Atlantic Center, and around the Downtown area. Harvey a 393,000-square-foot enclosed mall Lichtenstein, President of the Brooklyn immediately adjacent to the Terminal. Academy of Music (BAM), had been FCRC also began planning for advocating since the early 1980s for the construction of retail space and an office development of a new, multi-institutional building directly above the Terminal. cultural district on what was then largely- vacant land around BAM. An important Together, the work of the Downtown first step had been taken in 1986 with the Brooklyn Council, City Planning, the renovation and reopening of the long- Group of 35, BAM Local Development abandoned Majestic Theatre at 651 Fulton Corporation, and FCRC had by the Street (now the BAM Harvey Theater). summer of 2001 begun to suggest the outlines of a different future for the area.

14 15 After September 11: A new era

Only two months after the City Planning In November 2001, Empire Blue Cross- The plan also called for new public Commission approved creation of the Blue Shield, which had been map and zoning text changes, new public investments in open space, off-street Special District, the terrorist attack on the headquartered at the World Trade Center, open spaces, pedestrian and transit parking, streetscape and subway station World Trade Center changed dramatically announced that it would move its improvements, urban renewal, street improvements; and committed the City to headquarters (and 1,500 jobs) to a new mappings and other actions that would supporting the continued development of the development of Downtown Brooklyn. FCRC office building then under foster a multi-use urban environment to the BAM Cultural District. NYCEDC and construction at MetroTech; and in 2002, serve the residents, businesses, City Planning projected that the proposed The destruction of more than 13 million the Bank of New York announced that it academic institutions and cultural zoning changes and public investments square feet of office space immediately would move 1,500 employees from Lower institutions of Downtown Brooklyn and its would lead to the construction of 4.5 made the development of new commercial Manhattan to the new office building then surrounding communities. Building on the million square feet of new commercial office space a higher priority for the being developed by FCRC above Atlantic success of previous development efforts office space and about 1,000 new administration of Mayor Michael Terminal. that have retained and attracted residential units. Bloomberg. Moreover, as federal companies in New York, the plan would regulatory agencies began to focus on the Both Bloomberg and Doctoroff create new retail and housing, and would In 2004, the City Planning Commission risks associated with geographic nevertheless realized that to succeed in foster expanded academic and cultural and the City Council approved the concentration of major financial the long run, a redeveloped Downtown 2 changes proposed in the Downtown Brooklyn would need to offer more than Brooklyn Plan. In order to provide a new ability to offer locations outside of new office space. In 2002 the New York The proposed plan called for extensive focal point for implementation of the Plan Manhattan for back-office and middle- City Economic Development Corporation up-zoning throughout the Downtown area, and for other efforts to revitalize office facilities became a central element (NYCEDC), the Department of City with floor area ratios (FAR) that had Downtown Brooklyn, the Downtown Planning, and the Council launched an generally ranged between 2.0 and 6.0 Brooklyn Council, the MetroTech Business these operations in the City. intensive planning effort, coupled with being increased to 10 to 12; increased Improvement District, and the BAM LDC extensive outreach to and engagement FAR for community facilities to support were merged in 2006 into a new As a result, Mayor Bloomberg and Deputy with local business and community development of new facilities for the Mayor Dan Doctoroff quickly embraced interests. A presentation prepared by the Partnership. two City agencies in 2003 stated concisely and the inclusion of ground-floor retail in higher-density development in the area, what this effort was intended to achieve: new office and residential buildings. which had already shown it could provide office-based businesses with a viable alternative to the Manhattan CBD. 2 New York City Department of City Planning and New York City Economic Development Corporation, Downtown Brooklyn Development Plan Summary, p.1, 2003.

16 17 After September 11: A new era

16 17 Part Two: Why it happened

The extent of the transformation of Greater Downtown Brooklyn during the past 15 years has few parallels in New

cumulative result of three key factors: changes in citywide economic and social conditions that helped create new

opportunities; trends and developments Changes in Trends and emerging from the local community; and citywide developments economic emerging in public policy changes and investments and social Downtown Transforming conditions Brooklyn Downtown growth potential. Brooklyn

Changes in public policy and Changes in economic and investments social conditions at the City level

Changes in economic and social Figure 2: Factors in the transformation of conditions in New York City over the last Downtown Brooklyn two decades helped set the stage for revitalization of Downtown Brooklyn,

economy, the rising cost of office space and housing in Manhattan, and a sharp decline in crime.

18 19 Part Two: Why it happened

The extent of the transformation of Greater Downtown Brooklyn during the past 15 years has few parallels in New

cumulative result of three key factors: changes in citywide economic and social conditions that helped create new

Changes in public policy and Changes in economic and investments social conditions at the City level

economy, the rising cost of office space and housing in Manhattan, and a sharp decline in crime.

18 19 economy

In the years since the Downtown Brooklyn The years 2004 through 2008 saw

3,016,645 2,895,093 3,296,647 3,020,144 3,434,472 Plan was approved in 2004, New York 3,500,000 that of the City as a whole. However, overall, despite the impact of the 2008 Figure 4 indicates the strong upward trend financial crisis and the severe recession of private payroll employment in the that followed. borough since 2001, with only a slight dip from 2008 to 2009, the worst year of the At that time, the City had only just begun recession. Brooklyn outperformed the City to recover from the dot-com collapse and overall by a fairly wide margin from 2008 economic dislocation wrought by the September 11th attack on the World Trade and recovery. 2001 2004 2008 2009 2014 Center. However, as shown in Figure 3,

Figure 3: Average annual private payroll employment in NYC In 2008 Brooklyn accounted for 14.2 Source: U.S. Bureau of Labor Statistics, Quarterly Census of next several years, increasing private Employment and Wages percent of all private payroll jobs in New payroll job 8.1 percent in four years. York City; but from 2008 through 2014, the Though the financial crisis of 2008 and the borough accounted for 29.0 percent of accompanying recession wiped out nearly total City-wide growth in private payroll employment. 406,918 412,413 443,935 441,943 532,457 half of those gains, since then the City has 600,000 enjoyed a strong (and prolonged) recovery, with private payroll employment increasing by 13.7 percent. By 2014, stability during the recession and strong private payroll employment in the City was growth since 2009, the number of private 9.7 percent higher than it had been in payroll jobs in Brooklyn in 2014 was 29.1 percent higher than it had been in 2004. had been in 2004.

Brooklyn has been simultaneously a major 2001 2004 2008 2009 2014 beneficiary of and contributor to the

Figure 4: Average annual private payroll employment in Brooklyn Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages

20 21 economy

In the years since the Downtown Brooklyn The years 2004 through 2008 saw

Brooklyn has been simultaneously a major 2001 2004 2008 2009 2014 beneficiary of and contributor to the

Figure 4: Average annual private payroll employment in Brooklyn Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages

20 21 Lower costs for office space and housing

creative sectors. Between the first quarter the median in Lower Manhattan, SoHo, $35.0 of 2004 and the third quarter of 2015, the and Greenwich Village.

office vacancy rate in Midtown South $17.5 (defined for purposes of this analysis as Special Downtown Brooklyn District the area between 34th Street and neighborhoods outside the Downtown

Houston Street) fell from 8.6 to 6.4 Brooklyn Community, but close enough to 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 percent, while office rents more than doubled. the median rent increased 184 percent. Figure 5: Midtown South and Special Downtown Brooklyn District ten year office rent history Nevertheless, the median rent in this area By comparison, during the same period, Source: CoStar Group, www.costar.com was still about 45 percent lower in average rents were lower in the Special absolute dollar terms than it was in Downtown Brooklyn District; and in the decade that followed, the gap between cost advantage was even greater in Midtown South and Downtown Brooklyn Median Monthly Rent Bushwick, where the median monthly rent grew larger. Especially for young Community District in 2011-13 was 49 percent lower than it 1996 2000 2005-07 2011-13 technology, media, and creative service was in Lower Manhattan, Greenwich Village, and SoHo. Lower Manhattan, Greenwich Village, SoHo $900 $1,330 $2,092 $2,375 than established businesses to the need Greenpoint & Williamsburg $457 $665 $1,052 $1,297 Thus, the lower cost of both residential Brooklyn became an attractive option. Fort Greene & Brooklyn Heights $600 $726 $1,125 $1,498 space for young workers and for Bushwick $500 $689 $982 $1,208 the residential market. Between 1996 and helped make the Greater Downtown 2011-13, the median monthly rent in Figure 6: Median rents in selected PUMAs in Manhattan and Brooklyn Source: NYU Furman Center Lower Manhattan, SoHo, and Greenwich centers for both population and economic Village increased 164 percent. growth.

22 23 Lower costs for office space and housing

While rents rose almost as rapidly in the stoked demand for space in a number of Brooklyn Heights-Downtown-Fort Greene $70.0 areas in Manhattan that had proven to be area during the same period (a 150 Midtown South especially attractive to companies in the percent increase), the median rent was $52.5 still 37 percent lower in 2011-2013 than creative sectors. Between the first quarter the median in Lower Manhattan, SoHo, $35.0 of 2004 and the third quarter of 2015, the and Greenwich Village. office vacancy rate in Midtown South $17.5 (defined for purposes of this analysis as Special Downtown Brooklyn District the area between 34th Street and neighborhoods outside the Downtown

22 23 A sharp decline in crime

In the 1980s and into the early 1990s, By 2001, Downtown Brooklyn had 7,000 become a much safer place to live and attractiveness as both as a business work than it had been just a decade location and a place to live. But as the earlier, and since then it has become safer 5,250 2,156 1990s progressed, crime rates dropped still. While it is difficult to measure directly dramatically. As shown in Figures 7 and 8, the impact of lower crime rates on the 3,500 the incidence of seven major types of economy, it is clear that both the reality 6,535 crime in the 84th Precinct (which covers and the perception of Downtown Brooklyn 4,468 1,684 most of Greater Downtown Brooklyn) fell and the surrounding neighborhoods as a 1,750 by more than 74 percent between 1990 much safer place has been a major 1,045 and 2001. transformation. The incidence of major crimes continued 1990 1993 1998 2001 2014 to decline thereafter. By 2014, the total Figure 7: Total number of reported crimes in the 84th Precinct number of reported crimes in the 84th Source: City of New York Police Department Precinct in the seven categories listed in Figure 8 had declined by 84 percent from the levels reported in 2014. Most strikingly, the number of murders in the % Change, % Change, 84th Precinct declined during this 24-year 1990 1993 1998 2001 2014 1990-2001 1990-2014 period by more than 94 percent, and the Murder 18 11 1 3 1 -83.3% -94.4% number of robberies and burglaries by Rape 27 22 16 5 6 -81.5% -77.8% nearly 93 percent. Robbery 1,908 1,314 462 279 142 -85.4% -92.6% Felony Assault 384 432 280 200 135 -47.9% -64.8% Burglary 1,563 820 392 312 115 -80.0% -92.6% Grand Larceny 1,715 1,136 732 736 604 -57.1% -64.8% Grand Larceny Auto 920 733 273 149 42 -83.8% -95.4%

TOTAL 6,535 4,468 2,156 1,684 1,045 -74.2% -84.0%

Figure 8: Crime in the 84th Precinct, and percent change Source: City of New York Police Department

24 25 A sharp decline in crime

TOTAL 6,535 4,468 2,156 1,684 1,045 -74.2% -84.0%

Figure 8: Crime in the 84th Precinct, and percent change Source: City of New York Police Department

24 25 Local trends and developments in Downtown Brooklyn

Citywide economic growth, enduring cost advantages relative to Manhattan, and declining crime rates have all had a part in the transformation of Downtown Brooklyn, but they are not sufficient in and of themselves to explain either the scale or the particular character of that transformation. Many other commercial districts and neighborhoods in New York City, for example, have experienced dramatic declines in crime since the 1990s. Some have even greater cost advantages relative to the Manhattan central business district, yet have not experienced anything like the kind of growth and development that has occurred in the Downtown Brooklyn Community.

We need therefore to identify the particular local conditions, trends, and developments that enabled the Downtown Brooklyn Community to capitalize so successfully on the changes occurring citywide. Here we highlight five such factors:

The emergence of Brooklyn as a global brand; The development of the Downtown Brooklyn Community as a major center for culture and the arts; and

Karen Brooks Hopkins, former president of the Brooklyn Academy of Music

26 27 Local trends and developments in Downtown Brooklyn

The emergence of Brooklyn as a global brand; The development of the Downtown Brooklyn Community as a major center for culture and the arts; and

Karen Brooks Hopkins, former president of the Brooklyn Academy of Music

26 27 innovation economy

as freelance game designers, app estimates that in just three years (from developers or other IT professionals, 2012 to 2015) the number of innovation- independent artists or artisans or other economy companies located in the Tech solo entrepreneurs. Since 2006, the Triangle grew from about 1,100 to 1,350; Industry 2006 2013 Change % Change and that the number of people employed Manufacturing 3,286 2,995 (291) (8.9%) Survey (ACS) has provided data on self- by these companies grew from about Information 4,063 5,987 1,924 47.4% employment by industry. The industry 12,000 to 17,300.3 The updated strategic Professional, scientific and technical services 11,983 17,623 5,640 47.1% breakdown used by ACS in reporting on plan further estimates that this strong Arts, entertainment & recreation 7,491 10,687 3,196 42.7% self-employment is too broad to allow us growth is likely to continue during the next to say definitively how many self- five years. TOTAL 26,823 37,292 10,469 39.0% employed Brooklynites are working in the Figure 10: Growth in self-employment in Brooklyn in selected industry sectors Source: U.S. Census Bureau, American Community Survey 2013 nevertheless offer some insight into the growth of self-employment in several 3 Downtown Brooklyn Partnership, Brooklyn Tech sectors often associated with the Triangle: A Look Ahead, 2015 p. 1 innovation economy.

28 29 innovation economy

The growth of what has been called Self-employment in these four sectors Industry 2001 2014 Change % Change grew by 39 percent between 2006 and Non-store retail 1,662 3,538 1,876 112.9% played a key role in the transformation of Publishing (other than Internet) 806 1,092 286 35.5% the Downtown Brooklyn area. The percent per year. Internet publishing ND 521 521 NA borough has experienced strong growth Other information services ND 1,366 1,366 NA (although in most cases from a relatively Architecture and engineering 601 1,386 785 130.6% small base) in private payroll employment joint initiative of the Downtown Brooklyn 408 1,118 710 174.0% in a number of industries that are often Partnership, DUMBO Business Specialized design services associated with the innovation economy. Improvement District (BID), and Brooklyn Computer systems design 1,656 3,309 1,653 99.8% Navy Yard Development Corporation Scientific research & development 1,444 1,685 241 16.7% Because the data shown in Figure 9 Advertising, marketing & public relations 694 1,590 896 129.1% include only wage-and-salary jobs, Arts, entertainment & recreation 3,314 7,275 3,961 119.5% however, they capture only part of the innovation economy is having in the area TOTAL 10,585 22,880 12,295 116.2% defined by Downtown Brooklyn, DUMBO, innovation economy. The data do not and the Navy Yard. A recent update to the Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages as freelance game designers, app estimates that in just three years (from developers or other IT professionals, 2012 to 2015) the number of innovation- independent artists or artisans or other economy companies located in the Tech solo entrepreneurs. Since 2006, the Triangle grew from about 1,100 to 1,350; Industry 2006 2013 Change % Change and that the number of people employed Manufacturing 3,286 2,995 (291) (8.9%) Survey (ACS) has provided data on self- by these companies grew from about Information 4,063 5,987 1,924 47.4% employment by industry. The industry 12,000 to 17,300.3 The updated strategic Professional, scientific and technical services 11,983 17,623 5,640 47.1% breakdown used by ACS in reporting on plan further estimates that this strong Arts, entertainment & recreation 7,491 10,687 3,196 42.7% self-employment is too broad to allow us growth is likely to continue during the next to say definitively how many self- five years. TOTAL 26,823 37,292 10,469 39.0% employed Brooklynites are working in the Figure 10: Growth in self-employment in Brooklyn in selected industry sectors Source: U.S. Census Bureau, American Community Survey 2013 nevertheless offer some insight into the growth of self-employment in several 3 Downtown Brooklyn Partnership, Brooklyn Tech sectors often associated with the Triangle: A Look Ahead, 2015 p. 1 innovation economy.

28 29 Two location choices exemplify this change:

moving its headquarters and development center to 1 MetroTech Center. When

have MakerBot as

Three years later, leading digital media company, The Slate Group, announced that it was moving from the West Village to MetroTech. Explaining its choice, a

gone on to make the neighborhood what it is today. It is the influx and growth of creative

Joseph Chan, EVP, Empire State Development Corporation

30 31 Two location choices exemplify this change:

moving its headquarters and development center to 1 MetroTech Center. When have MakerBot as

Three years later, leading digital media company, The Slate Group, announced that it was moving from the West Village to MetroTech. Explaining its choice, a

gone on to make the neighborhood what it is today. It is the influx and growth of creative

Joseph Chan, EVP, Empire State Development Corporation

30 31 response to the growth of MANHATTAN BRIDGE 1. The Digital Zone 1. 1000 Dean 2. 2. the innovation economy 4 DUMBO Startup Lab Alpha One Labs John St 3. Green Desk 3. The Bakery 5 4. 4. Plymouth St 3 IFP Made in New York Media Bat House Cowering Center 5. Blue Ridge Labs Development of new commercial office Piecing together information from a variety 3 5. 6. 1 3 Water St NYU Tandon Incubators Brooklyn Creative League 7. Brooklyn Desks Main St 2 space was perhaps the single most of sources, we estimate that as of the Front St 8. Brooklyn Fashion + Design Pearl St DUMBO INSET Accelerator Pratt Institute important objective of the 2004 rezoning summer of 2015, there were 56 locations 9. Brooklyn Metal Works Square Feet 10. Brooklyn Research of Downtown Brooklyn. Nevertheless, no in western Brooklyn at which space for 11. Brooklyn Works at 159 < 5,000 12. Brooklyn Writers space new office buildings (other than medical startups and small ventures was being 13. 5,000 - 9,999 Chashama Artist Studios at Brooklyn Army Terminal office space) were constructed in the offered, under construction, or planned. 14. 10,000 - 24,999 The Commons 21 15. The Compound Cowork Special Downtown Brooklyn District in the These locations range from co-working 36 GREENPOINT 16. Confluence Coworking 25,000 - 49,000 27 17. Cowork|rs decade after the rezoning. Strong demand facilities occupying a few thousand square 2 18. 51 CUNY Fuse Lab > 50,000 19. Dean Machine for new housing, combined with the feet to the 225,000 square feet that 20. Dittos Workspace 21. Type of Space 39 52 39 Double 6 Studio flexibility the new zoning provided, drove WeWork is planning to develop and 27 22. Freecandy Creative Space General coworking space 39 41 39 4 29 7 23. Friends Work Here developers to build residential instead. operate as part of a 675,000-square-foot Coworking for artists & makers 32 WILLIAMSBURG 39 24. Genspace Incubators & accelerators 3 34 25. Gowanus Print Lab office new building to be constructed in Other shared space BUSHWICK 26. The Gowanus Studio Space 27. 8 Green Desk This does not mean, however, that the the Brooklyn Navy Yard. 53 10 28. Industrious 16 29. Makeshift Society real estate industry was ignoring the 53 35 30. Manufacturing Innovation Hub DOWNTOWN for Apparel, Textiles & Wearable demand for commercial space. Below the We estimate that to date nearly 1 million BEDFORD STUYVESANT Tech 18 40 44 27 31. The Metropolitan Exchange radar, a diverse group of developers square feet of such space has been FORT GREENE 32. Mica Studios 31 33. Milk Studios 5 14 24 37 began during this period to focus on the completed (most of it during the past ten 23 22 19 34. Myrtle Light Studios 38 28 1 35. New Lab - BNY green 12 BOERUM HILL 9 years), and about 400,000 square feet is CROWN HEIGHTS manufacturing center 47 6 36. No Space 50 PROSPECT HEIGHTS through conversion of obsolete industrial under construction or planned. 17 37. Nowhere Studios 12 42 38. NYC Resistor buildings or by repositioning older, 45 25 12 39. NY Studio Factory 26 43 PROSPECT LEFFERTS 40. 15 GARDENS NYU Tanden Incubators GOWANUS 41. OfficeOps 48 42. Old Can Factory 11 43. Prospect Commons 30 44. Regus - Brooklyn Heights - Metrotech 46 45. SHARED Brooklyn 33 46. SPark Workshop Brooklyn 47. 48. SUNY Downstate Medical 20 Center Biotechnology Incubator SUNSET PARK 49. The WorkAround (Location TBD) DITMAS PARK 50. The Works 13 51. The Yard 52. Figure 11: Co-working sites, shared space, and other space 53. WeWork (Open in 2017) for startups, 2015 Source: Appleseed research MaryAnne Gilmartin, President and CEO, Forest City Ratner Companies

32 33 MANHATTAN BRIDGE MANHATTAN BRIDGE

1. 1. 1. The Digital Zone 1. 1000 Dean 2. The Digital Zone 2. 1000 Dean 4 2. DUMBO Startup Lab 2. Alpha One Labs 4 John St 3. GreenDUMBO Desk Startup Lab 3. TheAlpha Bakery One Labs 5 John St 3. 3. 5 4. Green Desk 4. The Bakery 3 4. IFP Made in New York Media 4. Bat House Cowering Plymouth St 3 IFP Made in New York Media Bat House Cowering Plymouth St Center 5.5. Blue Ridge Labs Piecing together information from a variety 3 5. NYUCenter Tandon Incubators 6. BrooklynBlue Ridge Creative Labs League Piecing together information from a variety 1 3 3 Water St 5. 6. 1 3 Water St NYU Tandon Incubators 7. BrooklynBrooklyn Desks Creative League Main St 2 7. Brooklyn Desks Main St 2Front St 8. Brooklyn Fashion + Design Front St 8. Brooklyn Fashion + Design DUMBO INSET Pearl St

Pearl St DUMBO INSET Accelerator Pratt Institute Accelerator Pratt Institute summer of 2015, there were 56 locations 9.9. Brooklyn Metal Works 10. BrooklynBrooklyn Research Metal Works SquareSquare Feet Feet 10. Brooklyn Research 11. Brooklyn Works at 159 11. Brooklyn Works at 159 < 5,000 12. Brooklyn Writers space < 5,000 12. Brooklyn Writers space 13. Chashama Artist Studios at 13. Chashama Artist Studios at 5,0005,000 - 9,999 - 9,999 Brooklyn Army Terminal Brooklyn Army Terminal 14. The Commons 10,000 - 24,999 14. The Commons 10,000 - 24,999 15. The Compound Cowork 2121 15. The Compound Cowork 36 16. Confluence Coworking 36 GREENPOINTGREENPOINT 16. Confluence Coworking 25,00025,000 - 49,000 - 49,000 17. 2727 17. Cowork|rsCowork|rs facilities occupying a few thousand square 2 2 18. facilities occupying a few thousand square 18. CUNYCUNY Fuse Fuse Lab Lab 5151 19. > 50,000> 50,000 19. DeanDean Machine Machine 20. 20. DittosDittos Workspace Workspace 21.21. Double 6 Studio Type of Space 39 5252 3939 Double 6 Studio Type of Space 2727 39 22. 39 4 22. FreecandyFreecandy Creative Creative Space Space GeneralGeneral coworking coworking space space 3939 4141 39 4 2929 77 23.23. FriendsFriends Work Work Here Here Coworking for artists & makers 39 operate as part of a 675,000-square-foot Coworking for artists & makers 3232WILLIAMSBURGWILLIAMSBURG 39 24.24. GenspaceGenspace Incubators & accelerators 34 Incubators & accelerators 3 3 34 25.25. GowanusGowanus Print Print Lab Lab BUSHWICK OtherOther shared shared space space BUSHWICK 26.26. TheThe Gowanus Gowanus Studio Studio Space Space 27.27. Green Desk 8 8 Green Desk 5353 1010 28.28. IndustriousIndustrious 1616 29.29. MakeshiftMakeshift Society Society 5353 3535 30.30. ManufacturingManufacturing Innovation Innovation Hub Hub for Apparel, Textiles & Wearable DOWNTOWNDOWNTOWN for Apparel, Textiles & Wearable BEDFORDBEDFORD STUYVESANT STUYVESANT TechTech 18184040 4444 2727 31.31. TheThe Metropolitan Metropolitan Exchange Exchange FORTFORT GREENE GREENE 32.32. MicaMica Studios Studios 3131 33.33. MilkMilk Studios Studios 5 5 1414 2424 3737 2323 2222 1919 34.34. MyrtleMyrtle Light Light Studios Studios 3838 2828 1 1 35.35. NewNew Lab Lab - -BNY BNY green green 1212 BOERUM HILL 9 9 years), and about 400,000 square feet is BOERUM HILL CROWNCROWN HEIGHTS HEIGHTS manufacturingmanufacturing center center 4747 6 6 36.36. NoNo Space Space 5050 PROSPECTPROSPECT HEIGHTS HEIGHTS 1717 37.37. NowhereNowhere Studios Studios 12 424212 38.38. NYCNYC Resistor Resistor 4545 2525 12 39.39. NYNY Studio Studio Factory Factory 262612 43 PROSPECT LEFFERTS 43 PROSPECT LEFFERTS 40.40. NYUNYU Tandon Tanden Incubators Incubators 1515 GARDENSGARDENS GOWANUSGOWANUS 41.41. OfficeOpsOfficeOps 4848 42.42. OldOld Can Can Factory Factory 11 11 43.43. ProspectProspect Commons Commons 3030 44.44. RegusRegus - -Brooklyn Brooklyn Heights Heights - - MetroTechMetrotech 4646 45.45. SHAREDSHARED Brooklyn Brooklyn 46. 3333 46. SParkSPark Workshop Workshop Brooklyn Brooklyn 47.47. 48.48. SUNYSUNY Downstate Downstate Medical Medical CenterCenter Biotechnology Biotechnology Incubator Incubator 2020 SUNSETSUNSET PARK PARK 49.49. TheThe WorkAround WorkAround (Location (Location TBD) TBD) 50. DITMASDITMAS PARK PARK 50. TheThe Works Works 1313 51.51. TheThe Yard Yard 52. Figure 11: Co-working sites, shared space, and other space 52. Figure 11: Coworking sites, shared space, and other space 53.53. WeWorkWeWork (Open (Open in in 2017) 2017) forfor startups, startups, 2015 2015 Source:Source: Appleseed Appleseed research research MaryAnne Gilmartin, President and CEO, Forest City Ratner Companies

3333 The emergence of Brooklyn as a global brand

Less easily quantifiable than the growth of Just as the Brooklyn brand helps local the innovation economy or the businesses sell their products and development of new types of commercial services worldwide, it has also helped space, but just as critical to the Downtown attract foreign investment. Probably the most visible example has been the emergence of Brooklyn as a global brand. investment by Onexim Group in the There are undoubtedly many factors that Brooklyn Nets and Barclays Center. have contributed to this phenomenon, the Owned by Russian entrepreneur Mikhail growth of immigrant communities that Prokhorov, Onexim is now the principal have created connections between owner of both the team and the facility. Brooklyn and scores of countries around based, government-owned real estate locale in movies, television shows, and developer, has acquired a 70 percent literature; and its place in the history of hip interest in Atlantic Yards (excluding hop, to name just a few. Barclays Center and the B2 apartment tower). Perhaps no other enterprise has been as emblematic of a borough gone global as Brooklyn is a magnet not just for financial Brooklyn Brewery. Founded in capital but also human capital as well. It is Williamsburg in the 1980s, the company increasingly a place where bright, has grown to be one of the largest craft ambitious young people from all over the U.S. and the world want to live and work. most international, with exports accounting for 40 percent of its sales. It has simultaneously been a major contributor to and a beneficiary of

success has inspired dozens of other Brooklyn businesses to incorporate their home borough into their identity.

34 35 The emergence of Brooklyn as a global brand

34 35 The role of cultural institutions, organizations, and artists Manhattan Bridge

The important role that artists and the arts These institutions have traditionally

play in the revitalization of urban areas is provided a base on which to build the Space Minus VINEGAR Smack Mellon Gallery East Rabbithole ProjectsAsian-AmericanHILL Arts Alliance River now widely recognized. Nowhere is this A.I.R. Gallery Kent Ave

more apparent than in Downtown the arts. As discussed in Part One, BAM Galleries Klompching NAVY

neighborhoods with lower, more Growth accelerated most significantly BROOKLYN Cadman Plaza E Tillary St BQE affordable rents, their presence inherently during the last twelve years, with HEIGHTS FORT increases the value of the property they particular emphasis on the last decade Brooklyn Historical Society GREENE

inhabit. As a result, it has been a since the BAM Local Development Myrtle Ave combination of an established arts Corporation was merged into the CLINTON

Jay St HILL

community and committed local Downtown Brooklyn Partnership in 2006. Fulton St ISSUE Project Room Arts Performing the for Theater Kumbe leadership that has allowed Downtown

Brooklyn Youth Chorus DOWNTOWN BRIC Studio

Livingston St Dekalb Ave New York Transit Museum Emmanuel Baptist Church Jazz Vespers Urban Glass Urban

Brooklyn to flourish. BROOKLYN BRIC Arts | Media House

651 ARTS / BAM Harvey Theater Brooklyn Ballet Lafayette Ave Irondale Ensemble Project

Brooklyn Academy of Music Today, Downtown Brooklyn is home to Audience New a for Theater Atlantic Ave Brooklyn Music School

Invisible Dog Art Center Mark Morris Dance Group Dance Morris Mark

80 Arts - The James E. Davis Arts Center New Brooklyn Theater the Brooklyn Academy of Music (BAM), BAM Fisher Bang on a Can BOMB Magazine A.R.T. South Oxford Space Creative Outlet Brooklyn Historical Society, and Issue Encompass New Opera Theatre Museum of Contemporary African Diasporan Art Modern Day Griot Theater New York Writers Coalition BOERUM Nia Theatrical Production Co. HILL Shadow Box Theater Gallim DanceJack

million annual visitors and pump over Dancewave Target Margin Theater The Civilians Urban Bush Women White Bird Productions

The groups form the creative backbone of CARROLL

what is now the Brooklyn Cultural District, GARDENS 4th Ave PROSPECT Brooklyn PublicHEIGHTS Library which is centered on the three blocks Figure 12: Selected cultural institutions and organizations in the Downtown Brooklyn Community surrounding BAM, BRIC, Theatre for a New Audience, and Mark Morris Dance Group. 36 37 The role of cultural institutions, organizations, and artists Manhattan Bridge

The important role that artists and the arts These institutions have traditionally

more apparent than in Downtown the arts. As discussed in Part One, BAM Galleries Klompching NAVY

DUMBOIndustries Photo United Creative Bloch GAIA Gallery UB Arts Center DUMBO YARD Brooklyn. in particular has supported the New Brooklyn Theater development of new cultural facilities and While artists and non-profit cultural organizations. Brooklyn Navy Yard Building 92 organizations are initially drawn to Flushing Ave neighborhoods with lower, more Growth accelerated most significantly BROOKLYN Cadman Plaza E Tillary St BQE affordable rents, their presence inherently during the last twelve years, with HEIGHTS FORT increases the value of the property they particular emphasis on the last decade Brooklyn Historical Society GREENE inhabit. As a result, it has been a since the BAM Local Development Myrtle Ave combination of an established arts Corporation was merged into the CLINTON

Jay St HILL

community and committed local Downtown Brooklyn Partnership in 2006. Fulton St ISSUE Project Room Arts Performing the for Theater Kumbe leadership that has allowed Downtown

Brooklyn Youth Chorus Emmanuel Baptist Church Jazz Vespers Livingston St Dekalb Ave

New York Transit Museum Brooklyn to flourish. UrbanGlass BRIC House 651 ARTS / BAM Harvey Theater Brooklyn Ballet Lafayette Ave Irondale Ensemble Project

Brooklyn Academy of Music Today, Downtown Brooklyn is home to Audience New a for Theater Atlantic Ave Brooklyn Music School

Invisible Dog Art Center Mark Morris Dance Group Dance Morris Mark

80 Arts - The James E. Davis Arts Building New Brooklyn Theater Bang on a Can the Brooklyn Academy of Music (BAM), BAM Fisher BOMB Magazine A.R.T. CoolSouth Culture Oxford Space Brooklyn Historical Society, and Issue Encompass NewMuseum Opera of TheatreContemporary African Diasporan Art Modern Day Griot TheaterNY Writers Coalition BOERUM Nia Theatrical ProductionScenarios Co. USA HILL Shadow Box Theater StoryCorps Jack million annual visitors and pump over Dancewave Target Margin Theater WITNESSGallim Dance The Civilians Urban Bush Women White Bird Productions

The groups form the creative backbone of CARROLL what is now the Brooklyn Cultural District, GARDENS 4th Ave PROSPECT Brooklyn PublicHEIGHTS Library which is centered on the three blocks Figure 12: Selected cultural institutions and organizations in the Downtown Brooklyn Community surrounding BAM, BRIC, Theatre for a New Audience, and Mark Morris Dance Group. 36 37 Notable developments include: into a Two Trees building at 38 Water Street in 2001 and paid no rent for nine years. St. 2004 building that provides office space for non-profit arts organizations and ground-floor gallery space for the Museum of Contemporary African Diasporan Arts (MoCADA). cultural draw. 2008 Irondale Center for Theater, Education, and Outreach is set in a former Sunday By 2008, The New York Times estimated that there were about 1,000 artists and arts school space at the historic Lafayette Avenue Presbyterian Church. groups working in DUMBO. That total has no doubt since declined with rising rents, 2011 Roulette Intermedium on Atlantic Avenue, an experimental arts organization with a though Two Trees is still providing low- or no-cost space to emerging artists and 400-seat theater, is one of several innovative cultural organizations that has organizations. They are also currently developing a 32-story building in the Brooklyn relocated from Manhattan to Downtown Brooklyn in recent years. Cultural District that will include 384 apartments (20 percent of which will be affordable), 2013 The BAM Fisher building at 321 Ashland Place includes a 250-seat theater and 15,000 square feet of retail space, a 16,000-square-foot public plaza, and 50,000 square feet of cultural space for BAM Cinema, MoCADA, 651 Arts, and the Brooklyn Public flexible space for rehearsals, exhibitions, and other programming. Library. 2013

In fact, developers throughout Downtown Brooklyn are increasingly recognizing the value unique mixed media center offering performance, exhibition, and educational of providing cultural spaces in residential and commercial buildings, as evident in the space and state-of-the-art television production studios. following examples: 2013 Theatre for a New Audience presents Shakespearean and other classical works at its permanent home, the Polonsky Shakespeare Center, located on Ashland Place. The Schermerhorn, a residential building developed by Common Ground, provided a new home for Brooklyn Ballet. Even as Harvey Lichtenstein was formulating his vision for the then-named BAM Cultural The Gotham Organization is developing a building at Fulton Street, Rockwell District, individual artists were already moving into DUMBO, then a largely derelict Place, and Ashland Place, that will include 586 residential units (50 percent collection of industrial loft buildings and warehouses. David Walentas, whose Two Trees affordable) and 8,000 square feet of cultural office space. Management Company was gradually redeveloping acquired properties throughout the Jonathan Rose is developing a project that will include 42 units of affordable area, saw artists as a key asset to create a new image for the area to market it to housing, a restaurant, and 27,000 square feet for cultural use on a site adjacent to prospective tenants. Artists were offered discounted rents and flexible, short-term leases the Mark Morris Dance Center.

38 39 Notable developments include: into a Two Trees building at 38 Water Street in 2001 and paid no rent for nine years. St. 2004 building that provides office space for non-profit arts organizations and ground-floor gallery space for the Museum of Contemporary African Diasporan Arts (MoCADA). cultural draw. 2008 Irondale Center for Theater, Education, and Outreach is set in a former Sunday By 2008, The New York Times estimated that there were about 1,000 artists and arts school space at the historic Lafayette Avenue Presbyterian Church. groups working in DUMBO. That total has no doubt since declined with rising rents, 2011 Roulette Intermedium on Atlantic Avenue, an experimental arts organization with a though Two Trees is still providing low- or no-cost space to emerging artists and 400-seat theater, is one of several innovative cultural organizations that has organizations. They are also currently developing a 32-story building in the Brooklyn relocated from Manhattan to Downtown Brooklyn in recent years. Cultural District that will include 384 apartments (20 percent of which will be affordable), 2013 The BAM Fisher building at 321 Ashland Place includes a 250-seat theater and 15,000 square feet of retail space, a 16,000-square-foot public plaza, and 50,000 square feet of cultural space for BAM Cinema, MoCADA, 651 Arts, and the Brooklyn Public flexible space for rehearsals, exhibitions, and other programming. Library. 2013

38 39 Continued growth of educational institutions in Downtown Brooklyn

Manhattan Bridge

Groups such as the Downtown Brooklyn Council and the Downtown Brooklyn Partnership

Brooklyn

supporting the local economy. Not only are the 11 colleges represented in Greater Bridge East Downtown Brooklyn significant enterprises in their own right, together employing River VINEGAR Kent Ave DUMBO thousands of workers, they also serve as centers of intellectual discourse, HILL NAVY experimentation, and research that position them as magnets to draw talent to the area. YARD

During the past few years several new developments have increased the value of these BROOKLYN HEIGHTS

Flushing Ave Carnegie Mellon Integrative Media Program Media Integrative Mellon Carnegie value as a source of future economic growth: Cinema of School Graduate Feirstein

Cadman Plaza E Tillary St BQE NYC College of Technology

NYU Tandon School of Engineering

St Francis College Myrtle Ave

television and movie studio. NYU Center for Urban Science and Progress (CUSP) CLINTON Fort HILL

Fulton St Greene Park Institute Pratt Brooklyn Law School

Berkeley CollegeLIU Brooklyn Empire State College Dekalb Ave Livingston St and information technology. Lafayette Ave Atlantic Ave

Applied Sciences Initiative, CMU announced the creation of a new program to be

to enroll in August 2016, working in industries integrating technology and the arts. New York City College of Technology: A new, 360,000-square-foot building is now BOERUM HILL under construction at 300 Jay Street, and is scheduled to be completed in 2017. NYU Center for Urban Science and Progress (CUSP):

CARROLL PROSPECT address some of the greatest challenges facing urban communities and offers a GARDENS 4th Ave HEIGHTS Figure 13: Higher education institutions in Downtown Brooklyn Street is now being redeveloped, and is scheduled to be completed in 2017.

40 41 Continued growth of educational institutions in Downtown Brooklyn

Manhattan Bridge

Groups such as the Downtown Brooklyn Council and the Downtown Brooklyn Partnership

Brooklyn supporting the local economy. Not only are the 11 colleges represented in Greater Bridge East Downtown Brooklyn significant enterprises in their own right, together employing River VINEGAR Kent Ave DUMBO thousands of workers, they also serve as centers of intellectual discourse, HILL NAVY experimentation, and research that position them as magnets to draw talent to the area. YARD

During the past few years several new developments have increased the value of these BROOKLYN HEIGHTS

Flushing Ave Carnegie Mellon Integrative Media Program Media Integrative Mellon Carnegie value as a source of future economic growth: Cinema of School Graduate Feirstein

Cadman Plaza E Tillary St BQE NYC College of Technology

NYU Tandon School of Engineering

St Francis College Myrtle Ave television and movie studio. NYU Center for Urban Science and Progress (CUSP) CLINTON Fort HILL

Fulton St Greene Park Institute Pratt Brooklyn Law School

Berkeley CollegeLIU Brooklyn Empire State College Dekalb Ave Livingston St and information technology. Lafayette Ave Atlantic Ave

Applied Sciences Initiative, CMU announced the creation of a new program to be to enroll in August 2016, working in industries integrating technology and the arts. New York City College of Technology: A new, 360,000-square-foot building is now BOERUM HILL under construction at 300 Jay Street, and is scheduled to be completed in 2017. NYU Center for Urban Science and Progress (CUSP):

40 41 NYU Tandon School of Engineering: Created when Polytechnic University merged with New York University, the school provides opportunities for collaboration in entrepreneurs in incorporating elements of sustainability into their designs; and areas such as computer science, data sciences, digital media, and biomedical engineering. for local businesses and entrepreneurs.

of skills needed to represent emerging tech, Internet, communications, and new These collaborative efforts were formalized in 2014 with the establishment of the Brooklyn media companies; Educational Innovation Network (BE.IN) by the Downtown Brooklyn Partnership with LIU Brooklyn's Center for Entrepreneurship offering programs, resources, support from the New York City Economic Development Corporation. The consortium is networking opportunities, and incubator space to connect the LIU community with currently made up of 10 member institutions and will primarily focus its efforts on providing educational and career opportunities to its students. Perhaps most importantly, the the New York startup ecosystem; consortium will also work to create a real-time feedback loop between the labor needs of local companies and the curriculum schools are using to prepare their students for these on computer technology and digital media; missing in local labor markets. Renewable Economy and Urban Future Lab, which support the growth of promising young companies in alternative energy and clean technology;

42 43 NYU Tandon School of Engineering: Created when Polytechnic University merged with New York University, the school provides opportunities for collaboration in entrepreneurs in incorporating elements of sustainability into their designs; and areas such as computer science, data sciences, digital media, and biomedical engineering. for local businesses and entrepreneurs.

Several university-affiliated incubator and accelerator programs have also been Recognizing an area of opportunity, the Downtown Brooklyn Partnership began working in established, including: 2012 to foster increased collaboration among these institutions and with businesses and other organizations in the Downtown area. Initial efforts included an annual entrepreneurship symposium that brings together representatives of local tech companies exploring legal issues surrounding entrepreneurship, and for providing effective and educational institutions; a job board for local companies to post employment and legal representation and support for new commercial and not-for-profit businesses; internship opportunities; the Brooklyn Tech Triangle Internship Program, funded by the NYC Department of Small Business Services, which expands internship opportunities with The Brooklyn Law Incubator & Policy Clinic, which functions as a modern, local companies for students; and intercollegiate service and learning opportunities. technology-oriented law firm training a new generation of lawyers with a spectrum of skills needed to represent emerging tech, Internet, communications, and new These collaborative efforts were formalized in 2014 with the establishment of the Brooklyn media companies; Educational Innovation Network (BE.IN) by the Downtown Brooklyn Partnership with LIU Brooklyn's Center for Entrepreneurship offering programs, resources, support from the New York City Economic Development Corporation. The consortium is networking opportunities, and incubator space to connect the LIU community with currently made up of 10 member institutions and will primarily focus its efforts on providing educational and career opportunities to its students. Perhaps most importantly, the the New York startup ecosystem; consortium will also work to create a real-time feedback loop between the labor needs of local companies and the curriculum schools are using to prepare their students for these on computer technology and digital media; missing in local labor markets. Renewable Economy and Urban Future Lab, which support the growth of promising young companies in alternative energy and clean technology;

42 43 Changes in public policy and investments

Despite key elements such as local trends flexible enough to permit a surge in and positive economic and social residential development. The rezoning did not create demand for new housing in for growth could not have been realized Downtown Brooklyn, but instead made it without strong support from both New economically feasible for developers to York City and State. Zoning and land use respond to that demand. policies and public investment are two areas that have been especially important The new development made possible by to the transformation of Downtown the rezoning was not limited to market- Brooklyn. rate housing. By providing developers with an incentive (in the form of additional density), the new Downtown zoning made Zoning, land use, and it not only feasible but economically development policies attractive for them to include affordable units in their projects. The impact of this As noted in Part One, the zoning changes implemented in the Special Downtown further detail in Part Three. Brooklyn Development District in 2004 were designed to permit and encourage The Special District is not the only place higher-density commercial and residential within the wider Downtown Brooklyn development. The rezoning also called for Community where zoning changes have inclusion of ground floor retail space in new residential and office buildings, and From the mid-1980s through 2005, a offered additional floor area ratios (FAR) series of piecemeal changes and to developers who included community facilities (such as space for cultural, gradual transition from a declining educational, and health care uses). industrial area to a vibrant mixed-use neighborhood. While the primary objective of the authors of the Downtown Brooklyn Plan was to encourage new commercial office development, the 2004 rezoning was

44 45 Changes in public policy and investments

44 45 Public investment in Downtown Brooklyn

In 2009, the Department of City Planning Ratner then purchased a controlling New York City and New York State have Operations and maintenance would be proposed and the City Council approved a interest in the New Jersey Nets, and similarly contributed to the transformation funded with revenues derived from more comprehensive rezoning of an area announced plans to move the team to of the Downtown Brooklyn Community residential and hotel development sites at east of the Manhattan Bridge, bounded Brooklyn. through their investments in public spaces the Park. Construction got underway in roughly by John, Front, Adams, and and facilities and their support for private 2008, and the first section of the Park Bridge Streets. The rezoning allowed The General Project Plan for Atlantic investment. opened in 2010. conversion of industrial loft buildings to residential use, and the construction of Today, Brooklyn Bridge Park serves as the new mixed-use projects consistent in calls for development of a sixteen-building Investments in gateway to Greater Downtown Brooklyn. It scale and character with the surrounding complex that when completed will include public space is an 85- acre, multi-use public space that neighborhood. It also provided zoning more than 5,000 residential units, bonuses for inclusion of affordable units in commercial office and retail space, East River waterfront and attracts 4 million Public space improvement and creation residential development projects. community facilities, parking, and eight annual visits from residents and New York has helped make the Downtown Brooklyn acres of public open space. Later, the City tourists. Community a more attractive place to live, New York State has also contributed to Plan was modified during the depths of work, invest, do business, and visit. the recession to allow FCRC to stretch One such development with great impact development of Atlantic Yards, a mixed- development out over a longer period. residential investment, raised property is the creation of Brooklyn Bridge Park. use project now being developed on a 22- values, and attracted new customers to a acre site roughly bounded by Flatbush wide range of businesses near the Park. In 2000, after many years of controversy and 4th Avenues on the west, Vanderbilt over the redevelopment of Piers 1 through Avenue on the east, Atlantic Avenue on Although Brooklyn Bridge Park may be 6, preliminary plans for the Park were the north, and Dean and Pacific Streets sports and entertainment centers. In 2014 the grandest improvement in the last completed by the Brooklyn Waterfront on the south. Forest City Ratner the Plan was amended once again to fifteen years, it is far from the only one. Local Development Corporation, an entity accelerate the development of affordable Investment in the following public spaces created a few years earlier by Borough had focused primarily on residential and housing, with 2,250 affordable units help form a chain of public spaces from President Howard Golden. commercial office space, but at the urging scheduled to be completed by 2025. Brooklyn Bridge Park to Barclays Center. of then-Brooklyn Borough President Marty Two years later, New York City and State Markowitz, then-CEO Bruce Ratner entered into an agreement to develop agreed to include in the proposed Brooklyn Bridge Park, with more than development an arena large enough to $300 million in capital funds provided by accommodate a professional sports the City, the State, and the Port Authority. franchise.

46 47 Public investment in Downtown Brooklyn

46 47 Willoughby Square Park: This one-acre public park will be developed on top of an automated 700-car underground parking garage on a city-owned site on Willoughby Street. In 2013 the New York City Economic Development Corporation (NYCEDC) selected the Willoughby Operating Company (an affiliate of American Development Group) to develop the park along with capital contributions from the City and owners of adjoining properties. Flatbush Ave and Fulton Mall: Since 2006, over $40 million dollars has been spent on the reconstruction of Flatbush Avenue and the Fulton Mall, creating streetscapes that eliminate barriers between neighborhoods and enliven historic shopping districts.

public park thanks to collaboration between the New York City Parks Department and Fort Greene Park Conservancy. Fox Square and BAM Park: The City and State have also funded the renovation of

the corner of Flatbush and Fulton, and the long-closed BAM Park at Flatbush and Lafayette, scheduled to reopen in 2017.

48 49 Willoughby Square Park: This one-acre public park will be developed on top of an automated 700-car underground parking garage on a city-owned site on Willoughby Street. In 2013 the New York City Economic Development Corporation (NYCEDC) selected the Willoughby Operating Company (an affiliate of American Development Group) to develop the park along with capital contributions from the City and owners of adjoining properties. Flatbush Ave and Fulton Mall: Since 2006, over $40 million dollars has been spent on the reconstruction of Flatbush Avenue and the Fulton Mall, creating streetscapes that eliminate barriers between neighborhoods and enliven historic shopping districts. public park thanks to collaboration between the New York City Parks Department and Fort Greene Park Conservancy. Fox Square and BAM Park: The City and State have also funded the renovation of the corner of Flatbush and Fulton, and the long-closed BAM Park at Flatbush and Lafayette, scheduled to reopen in 2017.

48 49 Investments in Investments in cultural facilities transportation

The accelerated development of new cultural facilities in the Brooklyn Cultural assets is its transit-rich infrastructure that District and elsewhere in the Downtown has come as a result of massive Bronx Brooklyn Community would not have been investments by the MTA and New York possible without capital funds provided by State since the 1980s. NYCEDC and the New York City Department of Cultural Affairs. To date the The Greater Downtown area is served by City has invested more than $100 million

launched in 2015, that will knit together As seen in Figures 14 and 15, a Jersey three existing BAM buildings along Fulton population of more than 6.5 million and a City Street. The City also contributed $10 labor force of nearly 3.5 million live within Newark Downtown Brooklyn million to the $31 million cost of converting a one-hour commute by mass transit from

the historic Tobacco Warehouse in the center of the Special Downtown Brooklyn Brooklyn Bridge Park to a theater, to serve Brooklyn District. Additionally, some of

Warehouse. are within walking distance of most jobs in the Downtown area; and many more are within easy biking distance. Staten Island This level of access enhances Downtown

looking to tap a large and diverse pool of workers, and expands the potential

institutions and organizations; and has Figure 14: Census tracts within a one-hour trip from Downtown Brooklyn been an essential element in the success by public transportation Source: Census Bureau data, Google Maps, Appleseed calculations of Barclays Center.

50 51 Investments in Investments in cultural facilities transportation

Manhattan toward the renovation of facilities in the C, D, F, G, N, Q and R trains, 15 local bus Cultural District, including BAM Fisher, the lines, the Long Island Railroad, and the Queens Polonsky Shakespeare Center, BRIC East River Ferry Service. launched in 2015, that will knit together As seen in Figures 14 and 15, a Jersey three existing BAM buildings along Fulton population of more than 6.5 million and a City Street. The City also contributed $10 labor force of nearly 3.5 million live within Newark Downtown Brooklyn million to the $31 million cost of converting a one-hour commute by mass transit from the historic Tobacco Warehouse in the center of the Special Downtown Brooklyn Brooklyn Bridge Park to a theater, to serve Brooklyn District. Additionally, some of

Warehouse. are within walking distance of most jobs in the Downtown area; and many more are within easy biking distance. Staten Island This level of access enhances Downtown looking to tap a large and diverse pool of workers, and expands the potential institutions and organizations; and has Figure 14: Census tracts within a one-hour trip from Downtown Brooklyn been an essential element in the success by public transportation Source: Census Bureau data, Google Maps, Appleseed calculations of Barclays Center.

50 51 Investments in educational facilities

County Total Population In Labor Force New York City and State have also supported the ongoing development of Downtown Brooklyn 2,539,789 1,250,241 Manhattan 1,592,329 932,233 Queens 1,504,428 811,107 square-foot academic building for the New York City College of Technology, located at Jay and Tillary Streets. Construction of the $406 million project began in 2013, and is Bronx 352,419 154,848 scheduled to be completed by 2017. Staten Island 52,886 25,653 Nassau County 76,323 40,225 Hudson County, NJ 389,130 227,728 Essex County, NJ 37,993 19,250

TOTAL 6,545,297 3,461,285 Urban Science and Progress (CUSP). Renovations for CUSP include 150,000 square feet for research and academic programs and a 40,000-square-foot incubator, with completion expected in 2017.

Finally, a total of $2 million contributed by the City, State, and former Borough President

Design Accelerator. mass transit. Circulating in and around Downtown Brooklyn

James Whelan, Executive Vice President, Real Estate Board of New York

Figure 15: Population of census tracts within a one-hour trip by public transportation Source: U.S. Census Bureau, American Community Survey 2009-13 5-Year Estimates

52 53 Investments in educational facilities

Finally, a total of $2 million contributed by the City, State, and former Borough President

Design Accelerator. mass transit. Circulating in and around Downtown Brooklyn

James Whelan, Executive Vice President, Real Estate Board of New York

Figure 15: Population of census tracts within a one-hour trip by public transportation Source: U.S. Census Bureau, American Community Survey 2009-13 5-Year Estimates

52 53 Investments in commercial and industrial development

City financing has also played a critical value of PILOT revenues used by the City role in several industrial and commercial development projects in the Downtown $146 million. New York City and New York Brooklyn Community. The New York City State also funded infrastructure Independent Budget Office reports that improvements needed to support the between fiscal year 2002 and fiscal year development and ongoing operations of 2013, the City financed $269.5 million in the facility, at an estimated cost of $274 capital improvements in the Brooklyn million. When the cost of other tax Navy Yard,4 including both site, building, benefits and incentives are added in, the and infrastructure improvements. These IBO estimated the net present value of investments have played a critical role in City and State contributions to development of Barclays Center at more ability to attract private investments (as at than $470 million.5 Steiner Studios and the planned construction of a 675,000-square-foot Taken together, City and State office building at Pier 72), to retain existing contributions in just the areas cited above tenants, and to attract new ones. This in represent a public investment of more turn has enabled BNYDC and its tenants than $1.5 billion dollars since 2002 in to increase employment at the Navy Yard support of the redevelopment of the from 3,000 in 1998 to 5,800 in 2012 and Downtown Brooklyn Community. nearly 7,000 in 2015. These public investments have been instrumental in attracting more than $12 The City also played a central role in billion in private investment during the financing the development of Barclays past ten years that will benefit the area for Center. Construction was financed with decades to come. tax-exempt bonds, with the City

annual payments in lieu of real property 4 Sean Campion, City Support for the Industrial Sector, NYC Independent Budget Office, June 2014, p. 5 taxes on the facility to pay debt service on 5 New York City Independent Budget Office, The the bonds. In 2009, the Independent proposed arena at Atlantic Yards: An analysis of City Budget Office estimated the net present fiscal gains and losses, September 2009 p. 3 54 55 Investments in commercial and industrial development

The transformation of Downtown Brooklyn Together these projects account for more can be better understood by investigating than 40 million square feet built, under statistics around the surge of private construction, or planned. The zoning development following the 2004 rezoning changes enacted in 2001 and 2004 of the Special Downtown Brooklyn District, opened the door to private investment in population growth, demographic change, dozens of new developments in the heart and job growth in the broader community. of the Downtown area. The development that has occurred, however, differs substantially from that which the authors A surge in new of the Downtown Brooklyn Development Plan had envisioned. development As noted in Part One, NYCEDC and the In the twelve years since Downtown Department of City Planning expected that Brooklyn was rezoned, both the Special the rezoning and public investments Downtown Brooklyn District and the included in the plan would lead to the Greater Downtown area have seen a development of 4.5 million square feet of remarkable surge in private development. new commercial office space and 1,000 Some of this development has been a new residential units. What private direct consequence of the rezoning, and developers have instead produced (at some reflects an array of other factors that least to date) is much less new office have been driving growth in Brooklyn. space and much more new housing.

Figure 17 shows residential, commercial, and institutional projects that since 2004 have been completed in Greater Downtown Brooklyn, are now under construction, or in the pipeline.

56 57 Part Three: Downtown Brooklyn by the numbers

Figure 17 shows residential, commercial, and institutional projects that since 2004 have been completed in Greater Downtown Brooklyn, are now under construction, or in the pipeline.

56 57 Projects completed, under construction, or planned in Greater Downtown Brooklyn from In large part, the NYC Department of Housing Preservation and Development's (HPD) 2004 through mid-2015 include: Inclusionary Housing Program, whose tax exempt bond financing offering, when combined with land prices found in Downtown Brooklyn before 2013 that were below More than 27.9 million square feet of residential development; $100 per square foot, incentivized the creation of a significant number of new affordable More than 2.8 million square feet of additional retail space; units for Brooklyn. Thus, smart affordable housing policy and reasonable land prices Nearly 5.8 million square feet of office space; and converged to create a window of opportunity that is being realized today in the supply of affordable housing coming online in the area. More than 3,800 hotel rooms.

To help ensure that local residents were prepared to take advantage of these housing opportunities, the Downtown Brooklyn Partnership launched in 2011 a seminar series with While most of the new housing completed in the area since 2004 has been market-rate local developers and housing advocates to train community members to navigate the rental or condo units, residential projects completed in the Special Downtown Brooklyn

has been far exceeded, with approximately 3,500 people attending the seminars to date. new units completed during that period. Moreover, as affordability has become a higher priority for the City, the percentage of new units designated as affordable has increased. As of December 2015, affordable apartments accounted for 19 percent of all residential

pipeline. This figure includes units associated with the Pacific Park development project.

By the time all of the residential projects planned for the Special District are completed, we estimate that 18 percent of all of the units developed in the Special District since 2004

Just as it has in the Special District, the rezoning of DUMBO provided incentives for

feasible for them to do so. Taking into account projects completed or being developed in DUMBO and Fort Greene since 2004, we estimate that of the approximately 24,600 units completed, under construction, or planned in Greater Downtown Brooklyn, more than 4,000 will be affordable.

58 59 Projects completed, under construction, or planned in Greater Downtown Brooklyn from In large part, the NYC Department of Housing Preservation and Development's (HPD) 2004 through mid-2015 include: Inclusionary Housing Program, whose tax exempt bond financing offering, when combined with land prices found in Downtown Brooklyn before 2013 that were below More than 27.9 million square feet of residential development; $100 per square foot, incentivized the creation of a significant number of new affordable More than 2.8 million square feet of additional retail space; units for Brooklyn. Thus, smart affordable housing policy and reasonable land prices Nearly 5.8 million square feet of office space; and converged to create a window of opportunity that is being realized today in the supply of affordable housing coming online in the area. More than 3,800 hotel rooms.

By the time all of the residential projects planned for the Special District are completed, we estimate that 18 percent of all of the units developed in the Special District since 2004

Just as it has in the Special District, the rezoning of DUMBO provided incentives for feasible for them to do so. Taking into account projects completed or being developed in DUMBO and Fort Greene since 2004, we estimate that of the approximately 24,600 units completed, under construction, or planned in Greater Downtown Brooklyn, more than 4,000 will be affordable.

58 59 Completed projects Within Special District* Outside Special District Manhattan Bridge SF Units Rooms SF Units Rooms Brooklyn Bridge Residential (Market) 7,934,333 6,224 - 2,848,519 2,003 - Residential (Affordable) - 534 - - N/A - East VINEGAR Retail 1,127,980 - - 32,528 - - HILL River DUMBO Hotel 457,604 - 1,117 260,690 - 454 NAVY YARD Office 554,627 - - 145,113 - - Cultural/Entertainment 118,000 - - 850,000 - - Education ------Flushing Ave SUBTOTAL 10,192,544 6,758 1,117 4,136,850 2,003 454 BROOKLYN Under construction HEIGHTS Cadman Plaza E Tillary St BQE Residential (Market) 4,578,211 4,250 - 1,576,280 2,246 - FORT Residential (Affordable) - 1,004 - - N/A - GREENE Retail 988,000 - - 57,000 - - Myrtle Ave CLINTON Hotel 231,000 - 693 128,743 - 200 Fort HILL Fulton St Greene Office 397,000 - - 2,699,864 - - Park 820,000 -- --- Education Dekalb Ave Livingston St SUBTOTAL 7,014,211 5,254 693 4,461,887 2,246 200 Lafayette Ave Planned projects Atlantic Ave Residential (Market) 10,432,715 5,769 - 562,286 730 - Residential Residential (Affordable) - 2,021 - - N/A - Retail Retail 646,000 - - 1,953 - - Hotel Hotel 203,000 - 665 453,000 - 700 Office BOERUM Cultural / Entertainment Office 1,326,000 - - 670,000 - - HILL Education TBD 650,000 -- --- SUBTOTAL 13,257,715 7,790 665 1,687,239 730 700 Completed Under Construction

TOTAL 30,464,470 19,802 2,475 10,285,976 4,979 1,354 Proposed PROSPECT

4th Ave HEIGHTS

Figure 16: Completed, under construction and planned development projects within and Figure 17: Development in Greater Downtown Brooklyn since 2004 outside the Special District since 2004 *Includes units associated with the Pacific Park development project Source: Downtown Brooklyn Partnership, CoStar

60 61 Completed projects Within Special District* Outside Special District Manhattan Bridge SF Units Rooms SF Units Rooms Brooklyn Bridge Residential (Market) 7,934,333 6,224 - 2,848,519 2,003 - Residential (Affordable) - 534 - - N/A - East VINEGAR Retail 1,127,980 - - 32,528 - - HILL River DUMBO Hotel 457,604 - 1,117 260,690 - 454 NAVY YARD Office 554,627 - - 145,113 - - Cultural/Entertainment 118,000 - - 850,000 - - Education ------Flushing Ave SUBTOTAL 10,192,544 6,758 1,117 4,136,850 2,003 454 BROOKLYN Under construction HEIGHTS

Cadman Plaza E Cadman Plaza E Tillary St BQE Residential (Market) 4,578,211 4,250 - 1,576,280 2,246 - FORT Residential (Affordable) - 1,004 - - N/A - GREENE Retail 988,000 - - 57,000 - - Myrtle Ave CLINTON Hotel 231,000 - 693 128,743 - 200 Fort HILL Fulton St Greene Office 397,000 - - 2,699,864 - - Park Education 820,000 -- --- Education Dekalb Ave Livingston St SUBTOTAL 7,014,211 5,254 693 4,461,887 2,246 200 Lafayette Ave Planned projects Atlantic Ave Residential (Market) 10,432,715 5,769 - 562,286 730 - Residential Residential (Affordable) - 2,021 - - N/A - Retail Retail 646,000 - - 1,953 - - Hotel Hotel 203,000 - 666665 453,000 - 700 Office BOERUM Cultural / Entertainment Office 1,326,000 - - 670,000 - - HILL Education TBD 650,000 -- --- SUBTOTAL 13,257,715 7,790 665 1,687,239 730 700 Completed Under Construction

TOTAL 30,464,470 19,802 2,475 10,285,976 4,979 1,354 Proposed PROSPECT

4th Ave HEIGHTS

60 61 A growing and evolving resident population

While the physical redevelopment of the area may be the most readily visible aspect of 17,515 23,806 39,040 45,723 140,373 150,656 160,000 in the heart of the Downtown area. As shown in Figure 18, between 2000 and 2009-13:

The population of the Special Downtown Brooklyn District grew from 17,515 to 6

In Greater Downtown Brooklyn, the resident population rose during the same 2009-13

through 44. Between 2000 and 2009-13, the number of residents in this age group rose by 48.2 percent in the Special District, 28.6 percent in Greater Downtown Brooklyn, and 9,653 14,308 19,009 24,443 71,908 77,912 8.4 percent in the Downtown Brooklyn Community. 80,000

For Brooklyn as a whole, in contrast, the resident population age 18 to 44 grew by only 3.5 percent during the same period. The Greater Downtown area was home to just 1.8 2009-13

the borough-wide increase in population age 18 through 44. 2000

Special Downtown Greater Downtown Downtown Brooklyn Brooklyn District Brooklyn Community

Figure 19: Growth in population age 18-44 in Downtown Brooklyn Sources: Census 2000 and American Community Survey 2009-2013 6 Since the smallest geographic area for which the American Community Survey provides estimates is the census tract, 5-Year Estimates (Social Explorer) these estimates are for a group of census tracts that roughly correspond to the Special District. The Downtown Brooklyn Partnership sometimes cites population estimates, based on a different configuration of census tracts, that differ from those used here.

62 63 A growing and evolving resident population

The population of the Special Downtown Brooklyn District grew from 17,515 to 6

In Greater Downtown Brooklyn, the resident population rose during the same 2009-13

Combining the Greater Downtown area with the surrounding residential 2000 neighborhoods, the population of the Downtown Brooklyn Community rose from Special Downtown Greater Downtown Downtown Brooklyn 140,373 to 150,656, an increase of 7.3 percent. Brooklyn District Brooklyn Community Figure 18: Population growth in Downtown Brooklyn Sources: Census 2000 and American Community Survey 2009-2013 5-Year Estimates (Social Explorer) through 44. Between 2000 and 2009-13, the number of residents in this age group rose by 48.2 percent in the Special District, 28.6 percent in Greater Downtown Brooklyn, and 9,653 14,308 19,009 24,443 71,908 77,912 8.4 percent in the Downtown Brooklyn Community. 80,000

For Brooklyn as a whole, in contrast, the resident population age 18 to 44 grew by only 3.5 percent during the same period. The Greater Downtown area was home to just 1.8 2009-13 the borough-wide increase in population age 18 through 44. 2000

Special Downtown Greater Downtown Downtown Brooklyn Brooklyn District Brooklyn Community

62 63 Income and educational attainment

In 2009-13, the median household income (MHI) in the Downtown Brooklyn Community

2000 and 81.0 percent higher than the median household income for all of Brooklyn. 94,036 69,286 83,399 46,085 $100,000

attainment. In 2009-13, 64.0 percent of residents of the Downtown Brooklyn Community

especially strong within the Greater Downtown area, where residents with at least a

Special Downtown Greater Downtown Downtown Brooklyn Brooklyn Total Brooklyn District Brooklyn Community

Figure 20: Median household income (in 2013 dollars), 2009-13 Source: American Community Survey 2009-2013 5-Year Estimates (Social Explorer) 47.9% 68.1% 34.6% 54.5% 50.1% 63.9% 21.8% 30.6% 70% 2009-13 2000

Special Downtown Greater Downtown Downtown Brooklyn Brooklyn Total Brooklyn District Brooklyn Community

Figure 21: Percentage of residents age 25 and older with at

Sources: Census 2000 and American Community Survey 2009-2013 5-Year Estimates (Social Explorer)

64 65 Income and educational attainment

In 2009-13, the median household income (MHI) in the Downtown Brooklyn Community

2000 and 81.0 percent higher than the median household income for all of Brooklyn. 94,036 69,286 83,399 46,085 $100,000

attainment. In 2009-13, 64.0 percent of residents of the Downtown Brooklyn Community

especially strong within the Greater Downtown area, where residents with at least a

Special Downtown Greater Downtown Downtown Brooklyn Brooklyn Total Brooklyn District Brooklyn Community

Figure 21: Percentage of residents age 25 and older with at

Sources: Census 2000 and American Community Survey 2009-2013 5-Year Estimates (Social Explorer)

64 65 Employment growth in Downtown Brooklyn

emerging industries, new working

in part reflects its relatively high arrangements, and new ways of doing 70.6% 60.6% 66.7% 55.5% 80% employment ratio, where 66.7 percent of business. all working-age residents of the Downtown Brooklyn Community were employed in Until recently, however, it had not led to 2009-2013, as compared to 55.5 percent the type of development envisioned in the of all working-age Brooklyn residents. Private-sector employment also rose specifically, large-scale development of across Downtown Brooklyn between 2002 more traditional commercial office space. and 2013, as shown in data from the

It is nevertheless worth noting that during Special Downtown Greater Downtown Downtown Brooklyn Brooklyn Total Brooklyn District Brooklyn Community Dynamics (LED) series. the last few years the continued growth in business activity and employment in the Figure 22: Percentage of employed civilian population age 16 years and over, 2009-13 Even as private-sector employment in Downtown area has resulted in a dramatic Source: American Community Survey 2009-2013 5-Year Estimates Downtown Brooklyn was growing, its reduction in the available supply of office (Social Explorer) composition was changing. Between 2002 space. Figure 25 traces the rise in the and 2013, private employment in the office vacancy rate in the Special

Downtown Brooklyn Community declined Downtown Brooklyn District during the 44,432 47,270 50,157 53,572 51,506 54,804 66,754 68,584 72,100 76,483 87,608 91,880 100,000 in manufacturing, financial services, recession and its sharp decline thereafter. administrative services, and health care and social assistance; but grew strongly in professional and business services, media million square feet of office space already

and information services, real estate, under construction or planned in the 2010 2013 education, the arts and entertainment, hotels and restaurants, and retailing. Downtown Brooklyn is poised for yet 2002 2006 another round of commercial office

The growth of private employment in the development and job growth. Special Downtown Greater Downtown Downtown Brooklyn Downtown Brooklyn Community has Brooklyn District Brooklyn Community fueled demand for commercial space at Figure 23: Growth in private-sector employment in Downtown Brooklyn key locations within the overall area, and Source: U.S. Census Bureau, OnTheMap Application and LEHD Origin- Destination Employment Statistics (Beginning of Quarter Employment, 2nd led to the development of new types of Quarter of 2002-2012) space designed to accommodate

66 67 Employment growth in Downtown Brooklyn emerging industries, new working in part reflects its relatively high arrangements, and new ways of doing 70.6% 60.6% 66.7% 55.5% 80% employment ratio, where 66.7 percent of business. all working-age residents of the Downtown Brooklyn Community were employed in Until recently, however, it had not led to 2009-2013, as compared to 55.5 percent the type of development envisioned in the of all working-age Brooklyn residents. Private-sector employment also rose specifically, large-scale development of across Downtown Brooklyn between 2002 more traditional commercial office space. and 2013, as shown in data from the

66 67 -2,052 -1,897 -1,162 1,162 1,292 1,717 1,963 1,964 2,744 3,031 3,811 5,107 5.9% 6.0% 7.9% 7.6% 6.4% 11.9% 10.1% 7.5% 5.1% 2.8% 2.6% 1.6% 6,000 12.0%

9.0%

6.0%

0 3.0%

-3,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Utilities Information Retail Trade Retail Finance & Insurance Educational Services These big companies reinventing themselves in the digital age are creating innovation divisions, with a desire to be Real Estate & Rental Leasing Health Care & Social Assistance Health Care & Social

Accommodation & Food Services around other manufacturers, makers and creators and Arts, Entertainment, & Recreation Other Services (except Public Admin) Other Services (except Public

Professional, Scientific, & Technical Services Technical Professional, Scientific, & Andrew Kimball, CEO, Industry City Administration & Support, Waste Mgmt. & Remediation Administration & Support, Waste

Figure 24: Change in private-sector employment in selected Figure 25: Special Downtown Brooklyn District vacancy rate Source: CoStar Source: U.S. Census Bureau, OnTheMap Application and LEHD Origin-Destination Employment Statistics (Beginning of Quarter Employment, 2nd Quarter of 2002-2012)

68 69 -2,052 -1,897 -1,162 1,162 1,292 1,717 1,963 1,964 2,744 3,031 3,811 5,107 5.9% 6.0% 7.9% 7.6% 6.4% 11.9% 10.1% 7.5% 5.1% 2.8% 2.6% 1.6% 6,000 12.0%

9.0%

6.0%

0 3.0%

Accommodation & Food Services around other manufacturers, makers and creators and Arts, Entertainment, & Recreation Other Services (except Public Admin) Other Services (except Public

68 69 Part Four: Conclusion and key recommendations

Perhaps only Brooklyn, of all of New York Public amenities and spaces will require City's five boroughs, possessed the local substantial investment in order to create leadership and commitment to harness its walkable areas through Downtown assets to create a new magnet for Brooklyn. New job creation efforts should economic activity and cultural energy. The build upon the abundance of workers in remarkable transformation of Downtown Brooklyn is the result of sustained efforts communities with high unemployment. by civic leaders and private firms who Academic institutions will require a new worked closely with elected officials, cooperative approach for housing, especially the Brooklyn borough research, and assistance to startup firms presidents, to mobilize support from City that need a broad array of labor and skills. and State government. Most important, Downtown Brooklyn must The Downtown Brooklyn Community has continue to be the place in New York City been able to leverage its key assets to which attracts artists, innovators, and advance this transformation: superb startups. It cannot and should not transportation access, a concentration of replicate Manhattan-style development. cultural organizations and institutions of The appeal of Downtown Brooklyn lies in higher education, industrial space that its contrast with Manhattan: no one firm or could be repurposed and modernized for industry dominates the landscape or cultural activities, startup firms and economy. Creating new commercial space housing, and land that could be is essential to its future, but this space will redeveloped for new commercial, only work if it is congruent with the new recreational, and residential uses. economy firms that prefer older buildings at less cost than Manhattan's prime A But serious challenges remain. office towers. It is as close to a natural experiment in urban revival as exists in North America.

70 71 Part Four: Conclusion and key recommendations

70 71 Key recommendation: Key recommendation: Key recommendation: Maintain space for Employ less prescriptive Provide increased innovation, but also for land use and zoning support for open growth policies space

During the past decade, conditions in Providing a sufficient supply of what is in The rezoning of Downtown Brooklyn did The creation of Brooklyn Bridge Park has Greater Downtown Brooklyn have made it effect high-quality Class B commercial not in itself create new demand for had a major impact on the redevelopment a good place to launch and develop a space is both a challenge and an development. Rather, it revealed at a of Downtown Brooklyn. Both the City and wide range of innovative businesses. As critical time the latent demand for new local Brooklyn interests should work to their number and economic significance and elsewhere. The Downtown Brooklyn development that the old, more restrictive complete the remaining phases of grows, the Downtown Brooklyn Community is particularly attractive for zoning had artificially repressed. The Brooklyn Bridge Park and then build upon Community and the City need to ensure such development due to the greater nature of that demand was not what the these efforts by supporting the that these companies have the space they availability of lower cost developable sites authors of the Downtown Brooklyn development of the Brooklyn Strand, an need to grow. when compared to Manhattan in Development Plan had anticipated, yet the innovative proposal linking a series of combination with attractive residential new framework they created proved public green spaces stretching from Local developers and development areas, a vibrant and diverse urban culture, flexible enough to allow developers to Brooklyn Bridge Park to Borough Hall to agencies are already responding to this and an array of neighborhood amenities respond in a timely and efficient manner to more effectively connect the core of that few areas in (or outside New York what the market was telling them. Downtown Brooklyn to the waterfront. Brooklyn Navy Yard; at Industry City in City) can match. Sunset Park; at Empire Stores and The desire on the part of local officials and Additionally, it will be crucial to provide DUMBO Heights in DUMBO; at the The City should work with developers to community groups to keep the most increased public and private support for Domino site in Williamsburg; and most ensure that they can provide this type of profitable forms of development from capital improvements and ongoing recently at Albee Square and on Flatbush space in the Greater Downtown Brooklyn driving other uses out of mixed-use areas maintenance and programming in Avenue in Downtown Brooklyn. area, as quickly and as economically as is understandable. Zoning restrictions, neighborhood parks throughout the area. possible. however, may not be the most efficient or While some companies growing or moving effective way to address this concern. The park bounded by Flushing and Park to Brooklyn may be in the market for zoning code should not attempt to define Class A office space, there is likely a offers a particularly notable example. Its greater need for less costly space that is given mixed-use area. proximity to several New York City nevertheless attractive, flexible, efficient, Housing Authority projects, new expandable, and capable of supporting a residential development, and the Brooklyn wide range of technology requirements. population makes it an asset of significant importance to the community, yet it has suffered from chronic underinvestment. 72 73 Key recommendation: Key recommendation: Key recommendation: Maintain space for Employ less prescriptive Provide increased innovation, but also for land use and zoning support for open growth policies space

During the past decade, conditions in Providing a sufficient supply of what is in The rezoning of Downtown Brooklyn did The creation of Brooklyn Bridge Park has Greater Downtown Brooklyn have made it effect high-quality Class B commercial not in itself create new demand for had a major impact on the redevelopment a good place to launch and develop a space is both a challenge and an development. Rather, it revealed at a of Downtown Brooklyn. Both the City and wide range of innovative businesses. As critical time the latent demand for new local Brooklyn interests should work to their number and economic significance and elsewhere. The Downtown Brooklyn development that the old, more restrictive complete the remaining phases of grows, the Downtown Brooklyn Community is particularly attractive for zoning had artificially repressed. The Brooklyn Bridge Park and then build upon Community and the City need to ensure such development due to the greater nature of that demand was not what the these efforts by supporting the that these companies have the space they availability of lower cost developable sites authors of the Downtown Brooklyn development of the Brooklyn Strand, an need to grow. when compared to Manhattan in Development Plan had anticipated, yet the innovative proposal linking a series of combination with attractive residential new framework they created proved public green spaces stretching from Local developers and development areas, a vibrant and diverse urban culture, flexible enough to allow developers to Brooklyn Bridge Park to Borough Hall to agencies are already responding to this and an array of neighborhood amenities respond in a timely and efficient manner to more effectively connect the core of that few areas in (or outside New York what the market was telling them. Downtown Brooklyn to the waterfront. Brooklyn Navy Yard; at Industry City in City) can match. Sunset Park; at Empire Stores and The desire on the part of local officials and Additionally, it will be crucial to provide DUMBO Heights in DUMBO; at the The City should work with developers to community groups to keep the most increased public and private support for Domino site in Williamsburg; and most ensure that they can provide this type of profitable forms of development from capital improvements and ongoing recently at Albee Square and on Flatbush space in the Greater Downtown Brooklyn driving other uses out of mixed-use areas maintenance and programming in Avenue in Downtown Brooklyn. area, as quickly and as economically as is understandable. Zoning restrictions, neighborhood parks throughout the area. possible. however, may not be the most efficient or While some companies growing or moving effective way to address this concern. The park bounded by Flushing and Park to Brooklyn may be in the market for zoning code should not attempt to define Class A office space, there is likely a offers a particularly notable example. Its greater need for less costly space that is given mixed-use area. proximity to several New York City nevertheless attractive, flexible, efficient, Housing Authority projects, new expandable, and capable of supporting a residential development, and the Brooklyn wide range of technology requirements. population makes it an asset of significant importance to the community, yet it has suffered from chronic underinvestment. 72 73 Key recommendation: Key recommendation: Key recommendation: Maintain incentives to Improve transportation Create increased support the role of the within the Downtown opportunity for local arts Brooklyn Community residents

The role that cultural institutions, arts While a dense network of transit services While the transformation of Downtown now being done at Industry City. These businesses, and artists have played in the Brooklyn creates opportunities for centers would be responsible for rebirth of Downtown Brooklyn stems from borough residents in a wide range of connecting residents to local employment their long history in the area. Their interest highlighted a number of gaps in that industries, a combined effort by the opportunities along with training or and commitment to seeing it thrive again, network. These gaps include the Brooklyn business community, local educational services needed to take full advantage of however, has been particularly impactful institutions, public agencies, and those opportunities. with the support of two groups: local subway network; limited connections community organizations needs to ensure government officials and Brooklyn between Downtown and the area along that local residents have the opportunity to Additionally, support for the creation of developers and business leaders. the East River waterfront; and the lack of partnerships between local colleges and travel connections between residential ongoing economic transformation. universities and businesses, as called for As the area has been reborn, cultural neighborhoods and fast-growing in the Brooklyn Education Innovation institutions have flourished, and many concentrations of jobs along the This will require a long-term commitment Network (BE.IN) strategic plan, should innovative organizations and enterprises waterfront, from Sunset Park to Long from all involved, along with the same aim to expand opportunities for co- have emerged. However, redevelopment Island City, and beyond. operative education, internships, and of the area gives rise to fears that artists entrepreneurs, artists, researchers, other forms of experiential education. and small arts-based enterprises that There is no silver bullet that can address developers, and community leaders have Colleges and universities should be have contributed so much to the area may all of these. The best strategy is likely to long demonstrated in their daily work. encouraged to establish satellite locations no longer be able to live or work there. pursue multiple improvements in areas with large or growing numbers of simultaneously, including expansion of Examples of approaches to expanding jobs, offering a wide range of adult, Initiatives undertaken by Two Trees and East River Ferry Service, new select bus economic opportunity that could be continuing, career, and specialized the Walentas Family Foundation service or a streetcar system, an pursued in the Greater Downtown area professional education programs. demonstrate how developers can play a improved pedestrian environment, and elsewhere in Brooklyn include the constructive role in preserving cultural expansion of bike transportation, and creation and expansion of high school uses, and how arts organizations, innovation in for-hire vehicle service. career and technical education (CTE) property owners, and the community can programs that are particularly relevant to benefit as a result. The City should Leaders of the Downtown Brooklyn develop incentives that encourage Community should continue to work with establishing employment service centers developers and property owners to do the MTA, New York City Department of at sites with large or growing Transportation, and the private sector on in DUMBO, and beyond. all of these fronts. the Brooklyn Navy Yard in 1999 and is 74 75 Key recommendation: Key recommendation: Key recommendation: Maintain incentives to Improve transportation Create increased support the role of the within the Downtown opportunity for local arts Brooklyn Community residents

While specific challenges that the City, Building on the achievements of Acknowledgments Special thanks for information, insight, and borough, and community will face over the Downtown Brooklyn will require assistance provided by New York City Public next ten years will of course differ from continuous efforts by civic and local Advocate Letitia James, Brooklyn Borough those of the last ten, one underlying government leaders. A broad agenda of President Eric Adams, former Deputy Mayor constant has endured: Downtown new investment in job creation, public Daniel Doctoroff, Joseph Chan, MaryAnne Gilmartin, Risa Heller, Karen Brooks Hopkins, spaces, and affordable housing will take Andrew Kimball, Regina Myer, Katepalli creative change. the same level of sustained commitment Sreenivasan, Rob Walsh, James Whelan, and that has led to the transformation of James Yolles. The ongoing transformation has been a Downtown Brooklyn over the past two product of favorable citywide changes in decades. This report demonstrates the economic and social conditions, the power of harnessing local groups, private creativity and energy with which the local business, and public officials working community responded to those changes, and the combination of public investments are not for resting on the past but building and public policy changes that supported for an even greater future. that effective local community response.

In addition, targeted investment in downtownbrooklyn.com infrastructure, undertaken in concert with smart land-use policy and sustained local advocacy, allowed Downtown Brooklyn to enjoy a significant leveraged return on /downtownbrooklyn public investment. This return will continue /downtownbrooklyn to pay dividends for years to come in the form of jobs, housing, cultural and /downtownbklyn educational advancements and private investment attraction.

The de Blasio administration has signaled Design by Studio FANT STICA a continued focus on creating opportunity in this community. © February 2016

76 LearningReport prepared from by: Downtown Brooklyn Introduction While specific challenges that the City, Building on the achievements of Acknowledgments Special thanks for information, insight, and borough, and community will face over the Downtown Brooklyn will require assistance provided by New York City Public next ten years will of course differ from continuous efforts by civic and local Advocate Letitia James, Brooklyn Borough those of the last ten, one underlying government leaders. A broad agenda of President Eric Adams, former Deputy Mayor constant has endured: Downtown new investment in job creation, public During the past thirty years, the DanielThe Doctoroff,transformation Joseph Chan,of Downtown MaryAnne Brooklyn Gilmartin, Risa Heller, Karen Brooks Hopkins, spaces, and affordable housing will take Downtown Brooklyn Community has been from laggard to leader is not traceable to Andrew Kimball, Regina Myer, Katepalli creative change. the same level of sustained commitment transformed in ways and to an extent that Sreenivasan,any single Rob cause. Walsh, Key James factors Whelan, that and played that has led to the transformation of Jamesa role Yolles. include the growth of the innovation The ongoing transformation has been a Downtown Brooklyn over the past two recent history. Since 2004 the area has economy, continued collaboration among With support from: product of favorable citywide changes in decades. This report demonstrates the experienced a surge of new development, local institutions of higher education, and economic and social conditions, the power of harnessing local groups, private with nearly 41 million square feet of the development of the area as a major creativity and energy with which the local business, and public officials working residential, commercial, and institutional center for arts and culture. These local community responded to those changes, space completed, under construction, or milestones were supported by the public and the combination of public investments are not for resting on the past but building in the pipeline. Downtown Brooklyn has sector through zoning, land-use, and and public policy changes that supported for an even greater future. seen strong gains in population and development policies; and through that effective local community response. employment. And more than $10 billion targeted investments in commercial dollars of private investment have been development projects and world-class

In addition, targeted investment in public spacesdowntownbrooklyn.com like Brooklyn Bridge Park. infrastructure, undertaken in concert with staggering amount of private dollars for an Table of Contents smart land-use policy and sustained local often overlooked outer borough The result is a central business district in 2 advocacy,Part One: allowed Downtown Brooklyn to destination. Downtown Brooklyn that can serve as a enjoy a significant leveraged return on 11 model for the/downtownbrooklyn 21st century, set an publicPart Two:investment. This return will continue This leveraged return for the City is the ambitious pace for the rest of the city, and Why it happene 19 /downtownbrooklyn to pay dividends for years to come in the 19 result of targeted public capital spent on provide a roadmap for other burgeoning form of jobs, housing, cultural and infrastructure, undertaken in concert with business hubs across the region and the 26 /downtownbklyn educational advancements and private 45 smart land-use policy and sustained local world. investmentPart Three: attraction. advocacy, and shows just how far strong 57 57 The de Blasio administration has signaled 62 by wise public investment. Design by Studio FANT STICA a continued focus on creating opportunity 64 66 in this community. © February 2016 Part Four: Conclusion and key recommendations 71

76 1 DowntownDowntown Rising: Rising: 02.2016 02.2016 HowHow Brooklyn Brooklyn became became a model a model for for urbanurban development development