OFFICE OF THE MAYOR THE CITY OF NEW YORK ALICIA K. G LEN D EPUTY MAYOR FOR HOUSING AND ECONOMIC D EVELOPMENT September_Sth, 2017 Honorable Melissa Mark-Viverito New York City Council Member 8111 District I 05 E I 16111 Street New York, NY 10029 Re: 126111 Street African Burial Ground Memorial and Mixed-Use Project Honorable Council Member Mark-Viverito: Enclosed within this letter, please find a "Points of Agreement" reflecting recent discussions betvveen the Administration and you with respect to the 1261h Street African Burial Ground Memorial and Mixed-Use Project ("Project") located at 2460 Second Avenue (Tax block 1803, Lot 1) in Manhattan as well as an area or Second Avenue to be de-mapped as part of the land use actions related to the Project (the "Site"). The input that we have received from you, your staff, the Harlem African Burial Ground Task Force and the Bus Depot Task Force has been extremely valuable in creating these Points of Agreement and will be incorporated into the Request for Proposals ("RFP") for the Project. The Project will establish a living memorial to honor the Harlem African Burial Ground's history, develop a mix of uses including affordable and mixed-income housing and job-creating commercial uses, and enhance the streetscape and connectivity to the surrounding neighborhood. Pursuant to your conversations with New York City Economic Development Corporation ("NYCEDC'') and the New York City Department of Housing Preservation and Development ("HPD"), the City of New York (""City") is committed to including terms in its disposition documents that will reflect the goals of the Project, consistent with the points herein. 1261h Street African Burial Ground Memorial and Mixed-Use Project: As you are aware, the Harlem African Burial Ground Task Force ("HABGTF") was created in 2009 to help memorialize the Harlem African Burial Ground that existed on part of the Site. The HABGTF. under the guidance of yourself and Dr. Patricia A. Singletary, Pastor of the Elmendorf Reformed Church, has been instrumental in guiding the historical research and maintaining the cultural significance of the Harlem African Burial Ground. In 2011, Manhattan Community Board 11 ("CB 11 ") designated the HABGTF as the organization 1 CiTY HALL • NEW YORK, NY 10007 representing the interest of the colonial cemetery. In 2015, after the Metropolitan Transportation Authorit) relocated its operations from the Site, the Bus Depot Task Force ("BDTF"), a group of elected officials. Cit) agencies and community stakeholders (including the HABGTF), was convened to develop goals for the Project. The BDTF established the following goals: 1. 2. 3. 4. Establish a permanent outdoor memorial and cultural center to honor and commemorate the Harlem African Burial Ground's history and those who were buried there; Develop a mix of uses, including mixed-income affordable housing and job-creating commercial uses; Enhance the streetscape and pedestrian connections to the surrounding neighborhood; and Advance a financially feasible Project that can support the cost of constructing and operating the memorial and cultural center. The City will endeavor to achieve each of these goals as follows: I. Memorial A. Memorial. The Project will include a permanent outdoor public memorial to the Harlem African Burial Ground ("Outdoor Memorial") located approximately on the historical footprint of the burial ground (as depicted in Exhibit A), as well as an indoor cultural center ("Cultural Education Center") providing public programming related to the Outdoor Memorial. The developer selectl·d through the RFP process ("Developer") will work with the City, elected officials, the HABGTF. community members, and other cultural organizations, as appropriate, with respect to the development of the Outdoor Memorial and the Cultural Education Center. B. Lord Cultural Resources Study. The Outdoor Memorial and the Cultural Education Center will be developed in accordance with the mission, vision, mandate, spatial and programmatIC objectives, and other outcomes laid out in the Lord Cultural Resources Memo (Exhibit B). C. Financial Contribution. The City will seek to identify eligible funding, through capital funding. grants, or other programs, for all or a portion of the eligible costs associated with: 1. Pre-development archeological work on the Site; 2.Construction ofthe Outdoor Memorial; and 3. Construction of the Cultural Education Center D. Developer's Financial Responsibility. As part of its negotiations with the Developer. the Cit) wi II require from the Developer an annual contribution to offset eligible operating costs of the Outdoor Memorial and Cultural Education Center ("Developer Operating Cost Contribution"). In general, eligible operating costs shall be those described in the Lord Cultural Resources Memo. The eligible operating costs for the program identified in the Lord Cultural Resources Memo are estimated to be approximately one million dollars per year. As such, the initial Developer Operating Cost Contribution shall be one million dollars or less in accordance with the remainder of this paragraph and shall commence at the time that the Outdoor Memorial and the Cultural Education Center begin operations. Should the Developer Operating Cost Contribution exceed the actual eligible operating costs in any year, then the Developer shall only be obligated to pay 2 the actual eligible operating costs; however, the Developer shall not be responsible for any costs in excess of the Developer Operating Cost Contribution in any given year. The initial Developer Operating Cost Contribution will be adjusted annually from the date of commencement of 1 operations of the Cultural Education Center by the change in CPI • E. Delivery of the Outdoor Memorial and Cultural Education Center. As pa11 of its negotiations with Developer, the City will include a term that the Developer not cause operations to be commenced for more than 50% of the Project square footage prior to substantial completion of the Outdoor Memorial. The Developer will not be entitled to a purchase price or rent or other payment related to the delivery of the Outdoor Memorial and the Cultural Education Center. II. Affordable Housing and Job-Creating Commercial Uses A. Housing Distribution. With the intention of maximizing affordable housing while advancing a financially feasible Project, the City's goal is to achieve the following distribution of housing units: l. Income Restricted Units. The distribution of income restricted units will include: a. The City will provide a preference in the RFP for proposals that maximize the number of housing units at the deepest levels of affordability. b. At least twenty percent (20%) of total housing units available at rents affordable to households earning no more than 30% of Area Median Income (AM I) c. At least fifty percent (50%) of total housing units available at or below 60% of AMI Note: The AMI percentages listed above are averages. 2. Non-Income Restricted Units. No more than twenty percent (20%) of total housing units to be non-income restricted with a goal of maximizing income-restricted units B. Housing Commitment. The Project, when fully complete, will include a minimum of 524.000 square feet of housing; therefore, the City's affordable housing commitment would be a minimum of 419,000 square feet of housing. C. Commercial Space. The Project, when fully complete, will include commercial space. v. hich may include retail, office, and/or other commercial uses. The City will encourage a mix of retail uses between locally serving and destination retail. The total retail square footage will not exceed 138,000 square feet. D. Job Training and Hiring. I. Job Training Program. As part of its negotiations with the Developer, the City will require from the Developer a one-time contribution of at least $50,000 for one or more job training programs for City residents and a requirement to perform outreach to local organizations regarding the job training program. The local organizations shall ha\ e experience serving the local population. 1 CPI shall be the Consumer Price Index to all Urban Consumers, published by the Bureau of Labor and Statistics of the United States Department of Labor, New York, N.Y. Northeastern N.J. Area, or any successor index thereto. 3 2. Targeted Hiring Outreach Plan. The City will require the Developer to create a rargeted Hiring Outreach Plan in accordance with HPD guidelines. 3. Hiring. The City will require the Developer to work with local stakeholders, including. but not limited to, CB 11, the local City Council member, and the Manhattan Borough President to identify, train, screen, and refer qualified candidates. E. HireNYC. The City will require the Developer to use best effo11s to achieve the following with respect to the HireNYC programs: I. Construction Employment. Participation in the HireNYC Construction Program. 2. III. Permanent Employment. a. Hiring Goal: Fifty percent (50%) of all new permanent jobs created in connection with the Project (but excluding jobs relocated from other sites) will be lilled hy members of the Target Population, which is defined as persons who ha\ c an income that is below two hundred percent (200%) of the poverty level as determined by the New York City Center for Economic Opportunity. b. Retention Goal: Forty percent (40%) of all employees whose hiring satistiecl the Hiring Goal will be retained for at least nine (9) months from date of hire. c. Advancement Goal: Thirty percent (30%) of all employees whose hiring satisfied the Hiring Goal will be promoted to a higher paid position within one (I) year nf date of hire. d. Training Goal: Cooperation with NYCEDC and the Designated City Agl..!nC) (NYCEDC designated City Agency providing recruitment services) to provide skills-training or higher education oppmtunities to members of the Targl.!t Population. Open Space & Public Realm A. HABGTF Design Guidelines. The form of the Design Guidelines produced by the HABGTF will be included in the RFP. These guidelines are included as Exhibit C. B. Developer Selection. The City will include a preference for RFP responses that maximize the si;e and quality of public open space provided, consistent with achieving other Project goals. C. Outdoor Memorial Designation. The agreement between the City and the Developer will include a provision that would restrict development on· the area of the Outdoor Memorial to development related to the construction of Outdoor Memorial itself and require that the Outdoor Memorial be accessible to the public. D. Streetscape Improvements. Prior to the disposition of the Site to the Developer, the New York City Department of Transportation ("NYC DOT") will identify priority streetscape and pedestrian safety improvements in the vicinity of the Site, including along Second Avenue. to enhance connectivity of the Site to the surrounding neighborhood. These NYCDOT improvement recommendations will be developed as budget priorities for implementation. IV. Project Progress 4 A. RFP. The City commits to ongoing engagement with the HABGrF leadership and CB 11 throughout the RFP process. The City further commits to one or more briefings on responses to the RFP prior to Developer selection for representatives of the HABGTF and CB I 1. Such briefing would be silent as to the identities of respondents to the RFP or other identifying features of respondents and would be conducted in accordance with all applicable HPD and I~DC procurement rules and procedures. I. Local Nonprofit Development Partners/Emerging Developers. The City commits to including provisions in the RFP to encourage local nonprofit development p