Does ESD have discretion over a potential transfer of development rights in foreclosure? Yes, but the conditions may not be onerous.
As I've written, the foreclosure auction of developer Greenland USA's interest in six development sites over the Vanderbilt Yard has been postponed twice, most recently until April 30 . It's likely to be postponed again. After all, there are a lot of complications, including a winning bidder's obligation to comply with project requirements--or to evade them--regarding affordable housing liquidated damages, and more. That likely involves negotiation with Empire State Development (ESD), the state authority that oversee/shepherds the project. And yesterday, ESD reps said no developer has surfaced. If a bidder does emerge, it's also worth looking at the conditions imposed by ESD on such a transfer. One unit, or two? First, note that, while the six development sites might be seen as a unit, they represent two separate auctions: one for the sites B5-B8, the collateral for the $249 million "Atlantic Yards II," and another for B9-B10, the collateral for the $100 m