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Q&A
Cost estimates for renovation vs. demolition/redevelopment of FEC campuses
3:16:21
ยท
3 min
Council Member Chris Banks inquires about cost estimates for both renovation and demolition/redevelopment of the Fulton/Elliott-Chelsea (FEC) campuses. NYCHA officials provide details on how cost estimates have changed over time and the current projections for redevelopment.
- Initial renovation cost estimate was $344 million, which later increased to about $1 billion after an updated physical needs assessment
- Current estimate for demolition and reconstruction of NYCHA buildings is approximately $1.7 billion
- The redevelopment plan includes replacing all 2,056 existing apartments, adding 1,000 new affordable units, and about 2,400 market-rate units
Chris Banks
3:16:21
Okay.
3:16:22
Before development partner was selected for FEC, what was NYCHA's estimated course for renovation of the FEC campuses?
3:16:33
And can you provide us with documentation supporting whatever estimate that was reported?
Simon Kawitzky
3:16:41
Sure.
3:16:41
We can provide documentation.
3:16:43
When we started this project or the engagement process associated with this project, NYCHA had estimated the physical needs assessment at about three forty four million dollars.
3:16:55
But, after NYCHA conducted its required five year physical needs assessment that is required for NYCHA to do every five years, that was released and had shown that costs had ballooned to closer to about a billion dollars.
3:17:14
So those are the costs that we have.
3:17:17
Those were also consistent with what the selected development partner had presented to us as part of their investigations as well.
Chris Banks
3:17:25
So, you'll be able to provide that documentation?
Simon Kawitzky
3:17:28
We can provide the physical needs assessment.
Chris Banks
3:17:30
Physical needs assessment.
3:17:31
Okay.
3:17:32
After related, in essence, were designated as PAC development partners for FEC, what was the estimated course of the renovation of the FEC campus?
Simon Kawitzky
3:17:45
And can you provide us with documentation supporting that estimate?
3:17:48
Sure.
3:17:49
It's same response that when we first solicited proposals for that project, NYCHA, based on our physical needs assessment, assumed the cost would be about $344,000,000 After the team had been selected and as they were conducting their own due diligence, NYCHA updated its physical needs assessment and that showed cost ballooning to about a billion dollars.
Chris Banks
3:18:09
Okay.
3:18:10
What is the current estimate course for the proposed FEC demolition and redevelopment?
3:18:16
And can you provide us with documentation supporting that particular estimate?
Jonathan Gouveia
3:18:24
I mean, so that's still being developed.
3:18:26
But for the replacement to build new buildings, and this would be inclusive of the demolition costs and the reconstruction of the NYCHA buildings, it's about $1,700,000,000.
Chris Banks
3:18:39
Is there any part to the proposal that includes doing an infill on the property?
Jonathan Gouveia
3:18:48
Well, yes.
3:18:48
Because both Fulton, Elliott Chelsea and Chelsea Addition will all be completely rebuilt.
Chris Banks
3:18:55
Will there be a infill on the existing property once the you know, if if the proposal goes forward.
3:19:03
On the existing property, will there be any fair market units added to the property?
Jonathan Gouveia
3:19:09
The current proposal calls for the replacement of all 2,056 apartments.
3:19:15
The addition of a thousand new affordable units on top of the replacement units, as well as about 2,400 market rate units.