NYC Tax Break Deal Hands Brooklyn Developer Millions

A last-minute New York state budget provision revives an expired 421a tax incentive program for the River Ring luxury housing project in Williamsburg. The change extends a deadline that would have otherwise disqualified the project from receiving property tax reductions. The River Ring development by Two Trees Management is planned along the East River between North 1st and North 3rd Streets and includes two towers, a waterfront boardwalk, public beach and park space, and about 1,200 apartments. Roughly 30 percent of units are designated for low- and middle-income renters. The first tower is expected to open in 2033, and the project includes a YMCA facility and a $31 million contribution toward senior housing elsewhere in northern Brooklyn. The 421a program previously faced criticism for subsidizing developers while producing insufficient affordable housing.

"Gov. Kathy Hochul and state lawmakers agreed to revive an expired version of the controversial 421a tax incentive program for the River Ring development, a sprawling waterfront complex planned by Two Trees Management. The measure, tucked into the state's estimated $268 billion budget housing package, extends a deadline that would have otherwise disqualified the project from receiving the tax break. Under the 421a program, developers receive steep property tax reductions in exchange for including affordable housing units in new residential projects."

"The River Ring project, approved by the New York City Council in 2021, will rise along the East River between North 1st and North 3rd Streets in Williamsburg. Plans call for two towers standing 710 feet and 560 feet tall above a circular waterfront boardwalk, public beach and park space. The development will include roughly 1,200 apartments, with about 30 percent designated for low- and middle-income renters, according to Lombino. The first tower is not expected to open until 2033."

""We're pleased that the River Ring project now has a clear path to completion," company spokesperson David Lombino wrote in a statement to the Gothamist. The 421a tax program expired in June 2022 after years of criticism from progressive lawmakers and housing advocates who argued the subsidy enriched developers while failing to generate enough affordable housing. Critics also said the incentive cost New York City at least $1 billion an"

Read at Brooklyn, NY Patch