INTRODUCTION
After decades of neglect, the blighted Bronx Terminal Market will be redeveloped into a new retail center, park and esplanade on the Harlem River. The Gateway Center at Bronx Terminal Market represents genuine revitalization of the West Haven neighborhood of the Bronx by converting a large underused site into retail use, and restoration of public access to the Harlem River waterfront. Here is a link to News 12 the Bronx coverage on the Bronx Gateway. https://www.news12.com/NewCDA/articles/media_pop?region=BX&id=206618
BACKGROUND
It was Mayor John F. Hylan’s idea to build the Bronx Terminal Market in the early 1920's on New York City land. The purpose was to move vendors away from the over utilized Washington Market, the area that is now TriBeCa. Fruit and vegetable vendors, many of them Italian, moved to the market after Mayor Fiorello H. LaGuardia expanded it along Exterior Street in 1935. In 1965 when the Hunts Point Market opened, those vendors moved out and Puerto Rican vendors moved in. The Bronx Terminal Market carved a niche as a wholesale tropical fruits and vegetable market and catered largely to the growing Hispanic bodega business. In 1972, the Strategic Development Concepts, Inc. acquired a 99-yr.lease from the City. In the later part of the1990s, the market’s vendors began selling African products. For the better part of that period, the market became mired in endless litigation with city attorneys pushing the landlord for repairs.
In 2004, Related acquired the Bronx Terminal Market lease from Strategic Development Concepts, Inc. and entered into a Memorandum of Understanding with the City of New York and the New York City Economic Development Corporation outlining the developmental responsibilities of the respective parties and calling for the redevelopment of the Bronx Terminal Market site along with the adjacent Bronx House of Detention. The new Gateway Center at Bronx Terminal Market is planned to house approximately 1million square feet of retail space consisting of four newly constructed multi-tiered buildings and one building to be restored due to its historical significance. Four of these buildings are slated to provide a mix of major retail and specialty shops. The fifth building is planned as a large, multi-level 2,600 space parking garage. The City of New York will also be constructing a waterfront park in connection with the project. Additionally, a 250-room hotel is planned as a second phase of the project. By all accounts, the redevelopment of the Bronx Terminal Market should contribute to the resurgence of the Bronx and the revitalization of the immediate neighborhood. The Gateway Center at Bronx Terminal Market should be a powerful magnet that should encourage other businesses to invest and should also provide a modern, attractive, environmentally-friendly design that should beautify the area.
Notably, the redevelopment of the site also ushers in a unique opportunity for the local community to take part in the rebuilding of the area with “living wage”/ employment opportunities and prospects for Bronx based contractors and suppliers to be included in the pre and post construction activities. A Community Benefits Agreement was executed in February, 2006 by the developer and local community organizations comprising the “Coalition” to try and foster the involvement of local businesses and individuals in the Gateway Center project.
ABOUT COMMUNITY BENEFITS AGREEMENTS
A Community Benefits Agreement (CBA) is a project-specific contract between a developer and local community organizations. The purpose of a CBA is to allow community groups to have a voice in shaping a project, press for community benefits that are tailored to the effected local community residents particular needs, and enforce the developer’s promises.
Generally, a CBA formulation begins with interested members of the community or local organizations, who together, identify how a proposed development project can benefit residents of the community where the site is proposed. Once a list of potential benefits is determined, community members meet with the developer and/or elected officials and representatives of the City to negotiate a CBA. Each CBA is unique, reflecting the needs of a particular community.
BRONX TERMINAL MARKET CBA
The Bronx Terminal Market CBA is historic in nature, because it is the first executed in the Bronx. The Bronx Terminal Market CBA was negotiated over several months and was primarily the work of a “Task Force - Coalition”, which is comprised of representatives appointed by the Bronx Borough President and the NYC Council Bronx Delegation, including local community, minority and women’s organizations. Under the Bronx Terminal Market CBA the developer has agreed to provide 3 million dollars towards the funding of certain recruiting, training and business/apprenticeship programs as detailed below under the Gateway Fast Track Unit and The First Source Referral System.
The entire CBA benefits package can be divided in two periods: “construction” and “post-construction.” During the period of “construction”, the CBA goals fall into three broad categories: (1) workforce development, including trade apprenticeship programs; (2) Bronx -based business and minority/women-owned business development; and (3) a” Buy Bronx” program, which encourages the purchase of construction materials from Bronx-based suppliers.
After construction, the CBA goals fall into three broad categories: (1) a first source hiring program operated through a non-exclusive referral system to Gateway tenants; (2) post-construction commercial retail space set aside; and (3) post-construction service contract goals.
The CBA calls for the administration of the benefits package through the “Gateway Fast Track Unit” and the appointment of a Program Administrator, who is principally responsible for implementing and monitoring the community benefits program and who reports back to the “Coalition”. Under the structure of the CBA, the primary function of the “Coalition” is to monitor and provide advice and guidance to the Administrator for planning and implementing the CBA and construction of the project. Because the continuing development and operational needs of the community benefits program presents ongoing challenges that often require legal counsel, the CBA Administrator is also an attorney, licensed in New York State, who shall serve as general counsel and provide legal services to enable effective operation under the CBA requirements.
THE GATEWAY FAST TRACK UNIT
The Gateway Fast Track Unit is a not-for-profit subsidiary of the Bronx Overall Economic Development Corporation and is not affiliated with the developer or Related. During the period of construction, the Gateway Fast Track Unit will be located at 557 River Avenue at149th Street, and shall serve as the focal point of contact for local businesses and residents.
The Gateway Fast Track Unit will keep a registry of Bronx-based businesses and will provide information about minority and women-owned local firms, certification, job experience and financial condition, all with the assistance of the Bronx Small Business Solutions Center. The Bronx Business Solutions Center is a partnership of BOEDC and Wild Cat Corp. which brings the services of the NYC Department of Small Business Services to the doorstep of borough companies. The Gateway Fast Track Unit will recruit qualified minority and women-owned local firms and workers from the Bronx for employment opportunities in the project, and aid the Developer in dividing bid packages into smaller units so that smaller firms can be able to bid for and perform the work; and when feasible urge waiver of bond requirements. Through Bronx Business Solutions Center, the Unit will provide technical assistance including bidding and contracting procedures, record keeping, insurance and other project management skills - all designed to optimize the opportunities for Bronx Based Businesses. The Program Administrator, through Bronx Business Solutions Center, will also provide a series of workshops to assist in preparing loan applications, understanding underwriting criteria; assist qualified minority and women-owned local firms in applying for certification under the programs operated by: NYC Dept. of Business Services; NYS Dept. of Business Services; NYS Dept. of Economic Development; Port Authority of NY&NJ; Dormitory Authority of NYS; NY&NJ purchasing council; including any other city, state and federal agencies that certify minority & woman owned business enterprises.
Once the Gateway at Bronx Terminal Market is completed, the Gateway Fast Track Unit will change its focus and will engage the use of a First Source Referral System. The First Source Referral System receives tenant notification of job openings, and initiate recruitment and pre-screening activities to create a pool of applicants for jobs who match tenant/employer job specifications. This system also refers targeted job applicants according to qualifications and specific selection criteria submitted by employers. The Unit will coordinate with various job-training centers and maintain contact with tenant/employers with respect to employers’ hiring decisions regarding applicants referred by the First Source Referral System. The Unit will also assist employers with reporting responsibilities of this First Source Hiring Policy, including but not limited to supplying reporting forms. The First Source Referral System benefits the tenant/employers in the project by providing, through a non-exclusive referral system, a trained and qualified work force readily available to perform.
ENVIRONMENTAL MONITORING
In addition to the financial benefits flowing from the redevelopment, there is also an environmental component of the CBA which includes: (i) monitoring particulate emissions during the demolition of the current facilities; (ii) reducing waste; (iii) tree planting on local streets between the Harlem River and the Grand Concourse, from 149th to 153rd Street; and (iv) providing rodent-resistant trash cans to residential buildings and businesses that are located south of 153rd Street, east to the Grand Concourse, south to 149th and west to the Harlem River. As Bronx Borough President Carrion said in a statement, "Good economic development happens when the community is a recognized, involved stakeholder in the process."