Politics & Government

State Saves 42-Story Tower Near BAM

A $90 million loan paves the way for the latest addition to the nascent Cultural District.

An embattled residential tower in the heart of the BAM Cultural District has been pulled back from the brink of failure thanks to a cash infusion from New York State.

The Dermot Company broke ground last week on a 42-story, 327-unit tower at Flatbush Avenue between Fulton Street and Lafayette Avenue, thanks to $90 million from the state Homes and Community Renewal agency, which made the financing contingent upon 66 of the apartments being rented at below-market rates.

Executives at the company said they scrambled to secure the state's cash before a deadline at the end of the year.

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"We had to race to the goal line," said Stephen Benjamin, the Principal at Dermot, who added that construction had not gone as originally planned.

"The project was delayed due to the financial crisis in 2008," he said.

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State politicians were gushing that they had secured some affordable housing in the building, which is sure to have some pricey rents.

"We are making resources available to move communities forward with much-needed revitalization and housing opportunities," said Gov. David Paterson, who announced the financing earlier this month.

The development faced several delays since it was first announced in 2007.

Dermot had initially said that it expected to start building in 2009, but that year the city Department of Buildings did not approve the project.

The ailing economy was partly to blame; a familiar nemesis to those involved in the BAM Cultural District — an area that city planners envision being Brooklyn's own version of Lincoln Center.

Still, if all goes as planned, the residential tower will fit right in with other buildings looming over the edge of Fort Greene like the Toren, DKLB BKLN, and the Avalon.

Renderings of the tower, known by its address, 29 Flatbush Avenue, depict a brick and glass building oriented toward Rockwell Place and Fulton Street. Executives at Dermot said it will have a 200-car garage, as well as retail space along Flatbush Avenue and Fulton Street.

The project is the most significant piece of news regarding the BAM Cultural District since the Shakespeare Company, the Theater for a New Audience, revealed renderings of its future home in the area in May.

That project had faced numerous delays as well.

In fact, another plan for a mixed-income tower at Fulton Street and Ashland Place was taken off the table only last year.

The blog Brownstoner was the first to report the announcement of money from the state.

Updated on Jan. 4 at 4:26 pm to correct contradictory information in two press releases, as well as to clarify that the money from the state is a loan.


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