Activists Sue to Halt Flatbush Ave. Project Over Low Wages

By Caitlin Nolan

Elected officials, construction unions and community groups filed a lawsuit earlier this week against the City and developer Acadia Realty Trust, demanding that the City Point development project at DeKalb and Flatbush avenues be shut down. 

The suit also calls for the commissioning of a new environmental impact statement for the construction site that would take into account the negative economic impact created by the project, which the suit alleges currently pays constructions workers poverty-level wages. 

It alleges that the wage rate allowed by the 99-year City Point lease would allow a construction worker to earn as little as $7.25 an hour. For a 1,500- hour a year construction worker, that would mean annual earnings of $10,875, less than one half of the federal poverty line for a family, and just a little more than one-third of the family poverty level determined by the Mayor’s Center for Economic Opportunity.

“The last time the City looked at environmental impacts, including socio-economic impacts, for projects in downtown Brooklyn was in 2004," said Tom Kennedy, the group's lawyer, in a statement. 

"It’s been [nine] years, and there’s been a lot of development in that time; the real impact on the neighborhoods and the workers on the project has never really gotten a good look by the City, as required by law," he continued. "This project needs to be shut down and all public financing of the City Point Project has to stop until a proper environmental impact statement can be created and impacts assessed.” 

Throwing their support behind the lawsuit is City Councilwoman Letitia James, D-35, and Assemblyman Walter Mosley, D-57.

"The City should ensure that all mega-projects be built according to prevailing wages and benefits, and further review their impact on the existing community," James said. "I have joined food service and factory workers as they fought for fair wages, and I expect developers to meet the same standard of fairness in the interest of strengthening our community and local economy. I stand with this coalition in holding Acadia to this standard."

Mosley said the developers of the City Point project are "blatantly reneging on promises made and disregarding the most basic needs of the hardworking New Yorkers that make this project possible."

He noted the project is being built on public land and financed through a "tremendous amount" of public funds. "Good jobs with fair, prevailing wages and benefits are not too much to ask for when Acadia is receiving tens of millions in taxpayer money," he continued. "I refuse to allow the working families of the communities I represent to be short-changed by the greed and entitlement of any corporation." 

According to the petition, “Acadia is the tenth largest Real Estate Investment Trust in New York City. Using public subsidies to permit a major market player to drive down construction wages to poverty level will impact on every project built in the future.”

The suit is the latest move by a broad coalition of unions and community groups who launched a campaign earlier this year to fight for fair wages and benefits for workers at City Point and community benefits for the surrounding neighborhoods.

Petitioners in the case include FUREE, Metallic Lathers and Reinforcing Ironworkers Local 46, Ironworkers Local 361, Ironworkers Local 580, Enterprise Association Steamfitters Local 638, Cement League, Inc, NYC Councilperson Letitita James andNew York State Assembly Member Walter T. Mosley.