Information about http://www.empire.state.ny.us/pdf/AtlanticYards/Mitigation_Commitments.pdf

MEMORANDUM OF ENVIRONMENTAL COMMITMENTS …

Tags: assigns, atlantic yards development, commitments, company llc, december 8, empire state development, empire state development corporation, environmental impact statement, esdc, feis, forest city ratner, forest city ratner companies, ground leases, maximum extent, parcels, project document, project documentation, property interest, purpose of memorandum, relevant portion,
Pages: 18
Language: english
Created: Wed Dec 6 02:16:11 2006
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            MEMORANDUM OF ENVIRONMENTAL COMMITMENTS
                 FOR THE ATLANTIC YARDS PROJECT

A.   PURPOSE OF MEMORANDUM

     This memorandum dated as of December 8, 2006 documents the commitments made by
     Forest City Ratner Companies and its affiliates including Atlantic Yards Development
     Company, LLC and Brooklyn Arena, LLC (collectively, "FCRC") to: (i) incorporate
     measures into the Atlantic Yards Project (the "Project") to avoid adverse environmental
     impacts, as described in the Final Environmental Impact Statement issued by the Empire
     State Development Corporation ("ESDC") on November 27, 2006 (the "FEIS"); and (ii)
     implement measures to mitigate, to the maximum extent practicable, the significant
     adverse impacts identified in the FEIS. ESDC and FCRC anticipate that the measures set
     forth in this memorandum will be included in appropriate Project documentation, with
     measures associated with, or the responsibility of, individual buildings or building parcels
     included in the applicable ground leases, and measures associated with the Project site as
     a whole or not specific to any one building parcel included in other Project
     documentation (any such lease or other Project documentation, a "Project Document" and
     such documentation collectively, the "Project Documentation"). Modifications to the
     obligations herein described may be granted by ESDC (not to be unreasonably withheld)
     or as otherwise provided for in this memorandum, and in the event of any such
     modification, the Project Document imposing the affected obligation shall be deemed to
     be revised to incorporate such modification. The Project Documentation shall provide
     that the commitments set forth herein shall run with the land and be binding upon
     FCRC's successors and assigns for the period of time any such party holds a property
     interest in the relevant portion of the Project or the Project site or until such earlier time
     as the relevant obligation is satisfied or fully discharged, with respect to those obligations
     that do not exist in perpetuity.

B.   SOCIOECONOMICS

     The Project (including Phase I and Phase II) shall generate at least 2,250 units of
     affordable housing on site for low-, moderate-, and middle-income persons and families.
     At least 30% of the units built on the Arena block in Phase I shall be affordable to such
     households. The remainder of the affordable units shall be built in Phase II or on Site 5;
     however, not more than 50% of the Phase II units shall be built without completion of at
     least 50% of the Phase II affordable units. The affordable units are anticipated to be built
     as part of the Mayor's New Housing Marketplace Plan and are expected to be financed
     through tax-exempt bonds provided under existing and proposed City of New York
     ("City") and State of New York ("State") housing programs such as the City's 50-30-20
     program. Based on currently available information, the parties anticipate that the
     affordable housing units will be made available to households with incomes falling
     within the income bands set forth in the FEIS. However, the income bands may be
     adjusted to accommodate the requirements of any City, State or federal housing program
     utilized for the construction of the affordable housing, subject to City approval.

C.   COMMUNITY FACILITIES

     1.      FCRC shall provide parking spaces for police vehicles assigned to the 78 th
             Precinct House in a number equal to the spaces lost as a result of the elimination
             of angled parking for police vehicles on 6 th Avenue, but in any event not to
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     exceed 24 parking spaces. Such parking shall be provided without charge prior
     to the elimination of such parking and shall be provided at a location that is
     proximate and convenient to the Precinct House. FCRC shall have the right to
     modify the location of such spaces from time to time in order to address
     construction logistics and operational matters, provided that the location remains
     proximate and convenient to the Precinct House.

2.   As mitigation for the projected significant adverse impact to the supply of
     elementary and intermediate school seats within ½ mile of the Project, FCRC
     shall, if requested by the New York City Department of Education ("DOE") prior
     to January 1, 2010 (or such other date agreed to in writing by FCRC and DOE),
     convey or lease to DOE, space within a development parcel sufficient in size to
     allow for the development of an approximately 100,000 gross square foot
     elementary and intermediate public school of contiguous space, a portion of
     which shall be located on the ground floor of the building (the "School"). FCRC
     shall also provide to DOE, by lease, easement or other conveyance acceptable to
     DOE, access to suitable outdoor space for use as a playground for the School's
     students. It is likely that the School will be located in the lower floors of
     Building 5. In the event that an alternative location is selected, the School site
     shall be one of the other residential parcels located east of 6th Avenue as
     determined by FCRC and DOE. If leased to DOE, such lease shall be on a triple
     net basis and with a rent of $1.00, and if conveyed, shall be conveyed for
     consideration of $1.00. DOE shall be responsible for all costs of constructing,
     fitting out, and operating the School (excluding the cost of land, infrastructure,
     site remediation and the platform over the rail yard), and FCRC shall undertake
     the construction of the School on DOE's behalf and at DOE's expense. The
     space provided for the School shall be in addition to the Atlantic Yards program
     described in Table S-1 of the FEIS and shall not replace or result in a reduction
     of any part thereof. Unless otherwise agreed between DOE and FCRC, the
     school shall be built at the beginning of Phase II. In the event that DOE elects to
     locate the School on the Project site, DOE and FCRC shall enter into appropriate
     arrangements providing for the construction and operation of the School, which
     agreements shall among other things provide FCRC with the right to locate
     residential units and other compatible uses within the same building as the
     School, and to coordinate the construction of the School with FCRC's
     construction of the remainder of the building in which the School is to be located.
     The School shall be constructed to provide adequate noise attenuation so that
     noise in the vicinity of the School (including Project-related traffic, general
     construction and the School playground) will not result in interior noise levels
     within the School in excess of 45 dBa L10.

3.   In order to avoid a significant adverse impact to day care services as a result of
     the Project, FCRC shall construct on the Project site and arrange for the long-
     term operation of a duly licensed day care center that shall accommodate at least
     100 children with publicly funded vouchers available to income-eligible
     households (or with some alternate form of publicly funded day care for income-
     eligible households). The day care center shall be placed into operation prior to
     the expected completion of occupancy for 1,800 affordable housing units at the
     Project.


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D.   OPEN SPACE AND RECREATIONAL FACILITIES

     1.   FCRC shall design and construct the Open Space as described in the FEIS and in
          accordance with the Design Guidelines. Such Open Space shall be placed into
          operation pursuant to a phased schedule (which schedule shall call for the
          construction of a portion of such Open Space as each building in Phase II is
          constructed) as specified in the Design Guidelines.

     2.   The Open Space shall be owned by a Conservancy or other not-for-profit entity
          established by FCRC, which shall be responsible for the maintenance, operation,
          and security of this public amenity. The Conservancy or other not-for-profit
          entity shall be funded in the first instance by FCRC, and when the surrounding
          parcels are developed, by the owners of the surrounding buildings pursuant to
          restrictive declarations recorded against the surrounding Project properties. The
          Conservancy or other not-for-profit entity shall be governed by a board, which
          shall include representatives of FCRC, civic group(s) active in park matters,
          representatives of surrounding properties on the project site, and, on an ex officio
          basis, Brooklyn Community Boards 2, 6 and 8, and the New York City
          Department of Parks and Recreation (the "Parks Department"). The initial
          program and plans for the Open Space and any material modifications shall be
          subject to the reasonable approval of the Parks Department. The Open Space
          shall be, at a minimum, accessible to the public as specified in the Design
          Guidelines.

E.   CULTURAL RESOURCES

     1.   FCRC shall comply with the requirements of the Letter of Resolution ("LOR")
          dated November 9, 2006 among Atlantic Yards Development Company, LLC,
          ESDC and the Office of Parks, Recreation and Historic Preservation. The LOR
          is included in Appendix B to the FEIS and requires certain mitigation or other
          measures to be taken with respect to architectural and archeological resources.

     2.   If the LOR is duly amended, FCRC shall comply with the terms of such amended
          LOR.

F.   SHADOWS

     1.   As set forth in the FEIS and LOR, prior to the time when the Project casts
          shadows on the stained glass windows of the Church of the Redeemer (the
          "Church"), FCRC shall develop and implement measures to offset the impacts of
          the shadows comprised of: (i) removing the existing protective coverings from all
          of the stained glass windows, including any patching and repair associated with
          the removal; (ii) cleaning both the interior and exterior of the windows; and (iii)
          installation of new transparent protective coverings of similar or greater
          durability, or other measures agreed to by FCRC and the Church pursuant to the
          letter between FCRC and the Bishop of Long Island dated October 31, 2006
          included in Appendix I to the FEIS.

     2.   Prior to the time when the Project casts shadows on the Atlantic Terminal Houses
          open space, FCRC, in consultation with the New York City Housing Authority
          ("NYCHA"), shall develop and implement measures to ameliorate the significant

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          adverse shadow impacts, comprised of one or more amenities from the following
          list: (i) new landscaping and shade resistant plantings within the Atlantic Avenue
          open space; (ii) additional play equipment within the Atlantic Avenue or Carlton
          Avenue open spaces; (iii) upgrade of the Carlton Avenue children's play area,
          including possible spray shower; and (iv) replacement of benches and other
          fixtures in the Atlantic Avenue or Carlton Avenue open spaces, subject to and in
          accordance with a letter dated October 23, 2006 from FCRC to Douglas Apple of
          NYCHA, and accepted on November 3, 2006 by NYCHA included in Appendix
          I of the FEIS.

G.   HAZARDOUS MATERIALS

     1.   FCRC shall design and construct the Project so as to prevent volatile organic
          compounds ("VOCs") from infiltrating the interior of the Project buildings. To
          address this concern, residential and community facility uses shall be located
          either above ventilated underground parking or other facilities or above the
          platform over the ventilated rail yard. FCRC shall submit engineering plans
          demonstrating compliance with the requirements of this paragraph to ESDC with
          respect to each of the Project buildings prior to the commencement of
          construction thereof.

     2.   FCRC shall implement the investigation and remediation measures specified in
          the FEIS to protect workers and the general public from adverse impacts
          associated with environmental conditions at the Project site during the period of
          construction. In particular:

          (a)     FCRC shall develop and implement procedures for pre-demolition
                  removal of asbestos in accordance with applicable federal, State and City
                  regulations which shall be monitored by an independent contractor as
                  required by such regulations.

          (b)     FCRC shall develop and implement procedures for pre-demolition
                  removal of PCB-containing equipment in accordance with applicable
                  federal, State and City laws and regulations.

          (c)     FCRC shall implement dust suppression techniques reflecting best
                  construction practices during the demolition of Project buildings and any
                  excavation, grading or earth-moving activities at the Project site in
                  connection with the construction of the Project or any related excavation
                  or remediation.

          (d)     FCRC shall conduct additional subsurface investigations as needed to
                  refine and supplement data presented in the Phase 1 and Phase 2 reports
                  heretofore prepared by Roux Associates, and shall provide the results of
                  such investigations to ESDC; upon review of such Phase 2 reports,
                  ESDC may require additional sampling as necessary to determine
                  whether remediation is appropriate. Remediation Plans, which shall
                  include protocols for any remedial activities (and associated additional
                  sampling and investigation), and Health and Safety Plans, shall be
                  prepared with respect to any remedial activities to be undertaken by


                                          4
                 FCRC, and shall be submitted to ESDC for review and approval prior to
                 the commencement of such activities.

          (e)    In the event that the New York City Department of Environmental
                 Protection ("NYCDEP") exercises jurisdiction over any portion of the
                 environmental remediation at the Project site, FCRC shall (in lieu of the
                 remedial plan called for under Subparagraph G.2(d) above) submit to
                 NYCDEP a remedial action plan with respect to such portion of the
                 environmental remediation, for review and approval in accordance with
                 NYCDEP requirements, prior to or in connection with excavation
                 activities at the Project site. FCRC shall simultaneously submit such
                 remedial action plan to ESDC for its review and consultation with
                 NYCDEP.

          (f)    Prior to remediation and excavation at the site, FCRC shall develop a
                 Construction Health and Safety Plan ("CHASP") which shall be
                 approved by ESDC (or, for any portion of the environmental remediation
                 under the supervision of NYCDEP, approved by NYCDEP) and
                 implemented by FCRC in connection with the remediation or excavation
                 work at the Project site. The CHASP shall include a Community Air
                 Monitoring Plan for PM10 and VOCs conforming to guidance published
                 by the New York State Department of Health to be implemented during
                 the excavation of site soils (or other activities that involve moving
                 existing site soils around or off the site) in connection with the
                 construction of the Project or any related excavation or remediation. If
                 the CHASP is modified, such modifications shall be submitted for
                 approval to ESDC or, for any portion of the site subject to supervision of
                 NYCDEP or the State Department of Environmental Conservation
                 ("NYSDEC"), approval by such agency. FCRC shall implement the
                 CHASP during all remediation or excavation work at the site.

          (g)    FCRC shall remediate or cause the remediation of the spills to the extent
                 required by NYSDEC and close the spill numbers at the gasoline station
                 on Block 1127, Lot 1, and the U-Haul facility on Block 1119, Lots 1 and
                 64, both of which have active petroleum spill numbers on file with the
                 NYSDEC. Remediation of these spills shall be completed under the
                 direction of NYSDEC.

H.   INFRASTRUCTURE

     1.   FCRC shall construct new water mains in and around the Project site in
          accordance with a water main plan to be approved by NYCDEP, as same may be
          modified and/or approved by NYCDEP.

     2.   FCRC shall construct new sewer improvements in and around the Project site as
          specified in an amended drainage plan RH-103 prepared by Vollmuth and Brush
          Environmental Engineers dated October 26, 2006, as same may be modified
          and/or approved by NYCDEP.




                                         5
I.   STORMWATER AND SEWAGE MINIMIZATION MEASURES

     1.   As part of the Project, FCRC shall implement the stormwater management
          measures set forth in the FEIS as designed by Judith Nitsch Engineering and the
          Olin Partnership, which formed one basis of a report prepared by HydroQual
          Environmental Engineers and Scientists, P.C. ("HydroQual") entitled "Impact of
          the Atlantic Yards Project on Local Sewer Infrastructure" dated November 8,
          2006 (the "HydroQual Report"). The HydroQual Report is Appendix H to the
          FEIS. Such measures shall include installation or implementation of the
          following facilities or alternative detention/retention facilities providing the same
          or greater combined retention and detention capacity:

          (a)     Two 100,000 gallon tanks in the Project site (one for the runoff from
                  Buildings 5, 6 and 7 and one for the runoff from Buildings 8, 9, and 14);

          (b)     Two storage tanks in the area of the Long Island Rail Road yard, with an
                  aggregate capacity of 124,000 gallons;

          (c)     Four storage tanks within the arena, with an aggregate capacity of
                  291,000 gallons; and

          (d)     Two 12,000 gallon storage tanks at Site 5.

     2.   The stormwater storage tanks set forth above (and any tanks installed in lieu of
          such tanks as allowed by subparagraph I.1) shall be designed and built to have
          two outlets, with a smaller outlet at the base and another larger outlet at a higher
          elevation in the tank wall.

     3.   FCRC shall landscape the Open Space at the Project in accordance with the
          landscaping plan developed by Olin Partnership (the "Landscaping Plan"), in a
          manner that accommodates the use of recycled stormwater for irrigation and the
          cultivation of native plants that have minimal irrigation needs.

     4.   The Project shall be designed to utilize recycled stormwater in the cooling towers
          of the Project buildings for make-up water, and also for cultivation of vegetation
          planted pursuant to the Landscaping Plan.

     5.   The Open Space shall include a surface water feature with a capacity of at least
          279,000 gallons in the area identified in the Open Space Design Guidelines.

     6.   FCRC shall include a green roof component on the arena.

     7.   FCRC shall equip sinks, toilets and showers in the Project buildings with high-
          efficiency, low-flow fixtures. All leases and condominium documents shall
          require the continued maintenance and use of these fixtures.

     8.   FCRC shall equip the arena with waterless urinals.

     9.   FCRC (and FCRC's successors and assigns) shall have the right to modify any
          and all of the measures set forth in subparagraphs I.1 through I.8 above, provided
          that FCRC demonstrates to ESDC through appropriate analysis that such

                                           6
           modification results in a level of stormwater management equivalent or superior
           to that described in the FEIS and the HydroQual Report.

     10.   FCRC and its successors in interest shall maintain the equipment and fixtures
           described in this section of the memorandum in a proper and well functioning
           condition.

J.   SUSTAINABLE DESIGN AND MINIMIZATION OF AIR EMISSIONS

     1.    FCRC shall design and construct the Project so that each building meets, at a
           minimum, the requirements for Leadership in Energy and Environmental Design
           ("LEED") certification, as established by the non-profit U.S. Green Building
           Council, with the goal of attaining a silver rating where feasible and practicable.
           LEED certification provides independent, third-party verification that a project
           meets advanced performance standards relating to environmental stewardship,
           including the conservation of energy and water, the reduction of waste sent to
           landfills, and protection of the health of building occupants and neighbors.

     2.    All Project boilers shall operate exclusively on natural gas and shall be equipped
           with low nitrogen oxide burners, provided that FCRC may substitute an
           alternative fuel or technology upon a demonstration to ESDC through appropriate
           analysis that such alternative fuel and/or technology would achieve equivalent or
           superior emission levels. The previous sentence does not preclude the use of
           standby or emergency generators, as set forth in the FEIS.

     3.    The Project boilers shall have emission rate specifications that do not exceed the
           emission rates specified in Table 14-3 and pages 14-16 and 14-17 of the FEIS.

     4.    The HVAC intake vents for the Project buildings shall not be located in areas that
           have a modeled aggregate impact from Project buildings that would exceed 0.3
           micrograms per cubic meter (annual average) using the dispersion modeling
           assumptions (including boiler load) used for the FEIS. Based on the design of
           the buildings used to prepare the air dispersion modeling for the FEIS, such
           locations are identified in the memorandum from Henry M. Kearney, P.E. of
           AKRF dated November 30, 2006.

     5.    FCRC and its successors in interest shall maintain the equipment and fixtures
           described in this section of the memorandum (or installed in obtaining LEED
           certification) in a proper and well functioning condition.

K.   PHYSICAL ROADWAY AND TRANSIT IMPROVEMENTS

     1.    FCRC shall fund the New York City Department of Transportation
           ("NYCDOT") in completing the roadway modifications and installation of traffic
           signals set forth in the conceptual design set forth in Figure 19-1 of the FEIS and
           shall cooperate in implementing the operational changes (including street
           closures, changes in street direction, signal timing modifications, restriping, and
           parking regulation modifications) described in the FEIS; however, it is
           understood that actions such as signal timing modifications at existing traffic
           signals, changes to travel direction, and changing parking regulation signs will be
           implemented by NYCDOT staff. The roadway modifications, signal installations

                                           7
     and operational changes and the timing thereof shall be subject to the approval of
     the NYCDOT. FCRC shall prepare and submit all drawings and designs (which
     shall meet AASHTO and NYCDOT specifications) required for implementation
     of such measures identified in the FEIS to NYCDOT for review and approval.

2.   Among the roadway improvements FCRC shall fund and/or implement are the
     following:

     (a)     Reconfiguration of the Atlantic Avenue/Flatbush Avenue/4th Avenue
             intersection and complementary operational changes to the adjacent
             streets, including physical changes relating to the following:

             (i)     elimination of northbound traffic operations on 4th Avenue
                     between Atlantic and Flatbush Avenues;

             (ii)    modifications to 4th Avenue lane designations between Dean
                     Street and Atlantic Avenue;

             (iii)   construction of expanded pedestrian spaces at Times Plaza along
                     with crosswalk changes; and

             (iv)    re-striping at various locations to accommodate new lane
                     configurations as indicated in Table 19-1 of the FEIS, except as
                     such re-striping is undertaken directly by NYCDOT.

     (b)     widening of portions of Pacific Street adjacent to the project site and
             related re-striping, except as such re-striping is undertaken by NYCDOT;

     (c)     installation of a new traffic signal and crosswalk (south approach) at the
             intersection of Pacific Street and Flatbush Avenue;

     (d)     physical changes associated with the introduction of an eastbound left-
             turn lane on Atlantic Avenue at Fort Greene Place;

     (e)     re-striping a westbound right-turn lane on Atlantic Avenue for 100 feet
             approaching 3rd Avenue and re-striping and physical modifications at
             various other locations in the street network adjacent to the Project site as
             shown in Figure 19-1 and Tables 19-1 and 19-2 of the FEIS, except as
             such re-striping is undertaken directly by NYCDOT;

     (f)     physical improvements to enhance vehicle flow and pedestrian safety at
             the intersection of Atlantic and Vanderbilt Avenues, including:

             (i)     elimination of the eastbound Atlantic Avenue left-turn
                     movement to Vanderbilt Avenue;

             (ii)    widening of the existing median on this approach to 15 feet to
                     provide additional pedestrian refuge space;




                                      8
                  (iii)   re-striping the approach to accommodate an exclusive right-turn-
                          only lane, except as such re-striping is undertaken directly by
                          NYCDOT;

                  (iv)    re-striping Vanderbilt Avenue between Atlantic Avenue and
                          Pacific Street to provide for four northbound travel lanes and two
                          southbound travel lanes, except as such re-striping is undertaken
                          directly by NYCDOT; and

                  (v)     reconfiguration of the west sidewalk along Vanderbilt Avenue
                          between Atlantic Avenue and Pacific Street from 20 feet to 12.5
                          feet in width to accommodate a new lay-by lane along the west
                          curb.

     3.   It is expected that NYCDOT will implement areawide signal coordination,
          timing changes, curbside parking regulation changes, changes in travel direction
          and other operational changes, as described in the FEIS. FCRC shall cooperate
          with NYCDOT in the implementation of such changes including keeping
          NYCDOT apprised of the progress of the Project's construction.

     4.   FCRC shall construct a new entrance to the Atlantic Avenue/Pacific Street
          subway station complex on Block 1118 at the southeast corner of Atlantic and
          Flatbush Avenues consistent with the conceptual drawings included in the FEIS,
          and pursuant to a final design approved by New York City Transit ("NYCT").
          FCRC's construction contract schedules shall require substantial completion of
          the new subway entrance prior to or simultaneously with the opening of the
          arena. For purposes of the foregoing, substantial completion shall mean that
          construction of the new subway entrance is sufficiently complete to be
          operational.

     5.   FCRC shall undertake the traffic monitoring following completion of Phase I and
          Phase II of the project as described in the FEIS and the letter from NYCDOT to
          ESDC dated November 22, 2006 (the "DOT letter") and comply with all other
          requirements of the DOT letter, including those pertaining to the funding of
          mitigation measures.

     6.   FCRC shall enter into discussions with NYCDOT to determine the extent of
          FCRC's financial responsibility for the traffic enforcement agents ("TEAs")
          required to manage traffic flow for major arena events and shall comply with the
          terms of any such agreement with NYCDOT as required by the DOT letter. If
          necessary to ensure that the TEAs are deployed for major arena events as
          described in the FEIS, and only in the event that FCRC and NYCDOT do not
          reach a funding agreement, FCRC shall provide such funding for TEAs as ESDC
          shall reasonably direct, considering funding arrangements at other sports and
          entertainment venues in New York City.

L.   DEMAND MANAGEMENT

     1.   As described in the FEIS, prior to the opening of the arena, FCRC shall
          implement incentives to reduce traffic demand associated with the operation of
          the Project to reduce the overall number of vehicles coming to the arena for a

                                         9
     Nets game within one-half mile of the arena by 30% of the initially projected
     demand. In connection with this requirement FCRC shall:

     (a)     provide remote parking facilities (e.g., facilities located at MetroTech,
             Long Island Hospital or other appropriate facilities at the western end of
             Atlantic Avenue near the Brooklyn-Queens Expressway) containing an
             aggregate of at least 500 spaces at a 50 percent discount from rates for
             FCRC-controlled parking at or near the arena;

     (b)     arrange for free shuttle bus service between the remote parking facilities
             described above and the arena;

     (c)     impose high-occupancy-vehicle ("HOV") parking requirements for at
             least 600 arena parking spaces at the Project site, requiring vehicles
             utilizing such HOV spaces to be occupied by three or more persons after
             5 PM on Nets game days;

     (d)     provide a free round-trip subway fare to Nets basketball game
             ticketholders who would otherwise drive. The final design of this fare-
             incentive program shall be developed with and subject to the review and
             approval of NYCT.

     (e)     provide free round-trip charter bus service between two Staten Island
             park-and-ride facilities (Outerbridge Park & Ride and Father Capodanno
             Park & Ride) providing an aggregate capacity accommodating
             approximately 264 persons. The park-and-ride facilities selected for this
             service may be modified after implementation, upon the approval of
             NYCDOT, to maximize the effectiveness of this measure.

     (f)     cross-market with area businesses to encourage ticketholders to patronize
             local restaurants and stores before and after games;

     (g)     provide any ticketholder traveling to the arena by bicycle with free
             indoor bicycle storage in a secure, manned facility designed to
             accommodate at least 400 bicycles on the arena block; and

     (h)     provide expected attendance data to, and otherwise cooperate with,
             NYCT as necessary to assist NYCT in determining the appropriate
             increase in subway service to the Atlantic Avenue/Pacific Street subway
             station on selected subway lines immediately following basketball games
             and other major arena events as necessary to alleviate potential platform
             crowding at that subway station.

2.   FCRC shall collect data midway through the first basketball season from Nets
     patrons documenting the travel mode of such patrons to evaluate the
     effectiveness of the demand management program, and shall provide such data to
     NYCT and ESDC. Subject to ESDC approval, which approval shall not be
     unreasonably withheld, FCRC may adjust the elements of the program to achieve
     the goal of reducing the auto share by a minimum of 30% of the number of
     vehicle trips projected for the Build Condition in the FEIS (i.e., to approximately
     800 arena inbound auto trips during the pre-game peak hour) within one-half

                                    10
            mile of the arena, provided that all practicable and effective demand management
            measures are maintained.

     3.     For major arena events other than Nets games, FCRC shall make available to
            event promoters practicable demand management measures (such as the reduced
            rate remote parking and shuttle bus mitigation described above) and encourage
            such promoters to implement such measures.

M.   PEDESTRIAN IMPROVEMENTS

     FCRC shall fund and cooperate with NYCDOT in the design and construction of the
     following crosswalk and sidewalk improvements to improve pedestrian circulation in the
     vicinity of the arena:
     1.     Widening of the north crosswalk on Carlton Avenue at Dean Street from 16 feet
            in width to 20 feet in width;

     2.     Widening of the north crosswalk on 6th Avenue at Dean Street from 16 feet in
            width to 17 feet in width;

     3.     Provision of a new sidewalk extension at the northeast corner of Atlantic Avenue
            at Fort Greene Place;

     4.     Provision of a new crosswalk on the south leg of the intersection of Flatbush
            Avenue and Pacific Street where the new traffic signal is to be installed;

     5.     Installation of fencing (consistent in design with NYCDOT-installed fencing
            throughout the City or as otherwise proposed by FCRC and approved by
            NYCDOT) on the northwest corner of the Flatbush Avenue/Pacific Street
            intersection to discourage pedestrians from crossing on the north side of the
            intersection where no crosswalk exists;

     6.     Installation of fencing (consistent in design with NYCDOT-installed fencing
            throughout the City or as otherwise proposed by FCRC and approved by
            NYCDOT) at the northwest and southwest corners of the Atlantic
            Avenue/Flatbush Avenue/4th Avenue intersection; and

     7.     Extension of the sidewalk at the northeast corner of Atlantic and Flatbush
            Avenues.

N.   CONSTRUCTION

     1.     During the construction of the Project, FCRC shall undertake, fund and/or
            cooperate in the undertaking of the measures set forth below in order to
            minimize, avoid and/or mitigate, as applicable, the effects of Project construction
            on traffic conditions, noise and air quality in the surrounding area. FCRC shall
            require its contractors to adhere to these construction measures (to the extent
            such measures are relevant to the contractor's activities) by including appropriate
            provisions in its contractor agreements and enforcing such provisions as
            necessary to assure compliance. FCRC shall provide ESDC documentation
            demonstrating same.

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2.   Traffic

     (a)       FCRC shall coordinate with the NYCDOT Office of Construction and
               Mitigation Coordination ("OCMC") to develop, implement and fund the
               implementation of maintenance and protection of traffic ("MPT") plans
               developed by OCMC. Construction shall proceed in accordance with the
               requirements set forth in such MPT plans.

     (b)       As set forth at pages 19-78 and 19-79 of the FEIS, certain of the roadway
               modifications, traffic installations and operational improvements shall be
               put into place at or about the time that significant construction activity
               begins at the Project site in order to minimize construction-related traffic
               impacts, or as otherwise directed by NYCDOT. FCRC shall fund and
               cooperate with NYCDOT to implement these measures; however, it is
               understood that changes in signal timing at existing traffic signals,
               installation of signage, implementation of parking regulations, and
               changes in traffic direction will be implemented by NYCDOT staff.

     (c)       FCRC shall make arrangements for security guards and flaggers to be
               deployed to manage vehicle access to the construction site. To the extent
               feasible, curbside deliveries shall occur within delineated closed-off
               areas.

     (d)       Truck deliveries shall be scheduled, and untimely deliveries shall, in
               general, be turned away or reassigned with different delivery times.
               Trucks shall be required to use NYCDOT-designated truck routes for
               traveling to and from the construction site, which include primarily
               Atlantic Avenue, Flatbush Avenue, 4th Avenue, and the Brooklyn-
               Queens Expressway except as required for movement between staging
               and construction areas.

     (e)       On-site designated staging areas shall be maintained throughout the
               construction period to store materials and to accommodate construction
               vehicles that require early arrival and marshalling for immediate material
               delivery to high-demand construction areas.

     (f)       FCRC shall provide on-site parking for construction workers at levels
               appropriate in light of the number of workers employed at the site during
               different stages of construction, to a maximum of 800 spaces. FCRC
               shall monitor the work force levels throughout the construction period
               and shall report to ESDC on a quarterly basis as to the number of on-site
               spaces and the utilization of such spaces. The parking facilities shall
               have perimeter fencing and shall be accessible only during work hours.
               Parking fees at rates comparable to commercial off-street facilities in the
               surrounding area shall be imposed for these spaces. FCRC shall consult
               with and obtain the approval of ESDC, such approval not to be
               unreasonably withheld, prior to reducing the number of construction
               worker parking spaces at the Project site as the number of workers
               changes and permanent parking locations within the Project site become
               available for construction worker parking.


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     (g)     NYCT shall be given at least four weeks notice prior to the date on
             which a bus stop is to be relocated. Any change in a temporary location
             from that identified in the MPT plans shall be subject to the reasonable
             approval of NYCT.

     (h)     FCRC shall fund physical improvements associated with and cooperate
             with NYCDOT in the early implementation of certain of the roadway
             modifications and mitigation measures specified in Sections K.1 and K.2
             above, and in the further implementation of temporary construction
             measures pursuant to the MPT. Such additional construction period
             traffic measures shall include the following:

             (i)     converting 6th Avenue to two-way operation during the period
                     that Carlton Avenue bridge is closed for reconstruction;

             (ii)    temporarily extending the two-way conversion of Carlton
                     Avenue to Dean Street during the 6th Avenue bridge
                     reconstruction;

             (iii)   prohibiting left turns along Atlantic Avenue at locations where
                     roadways are expected to be narrowed during the Carlton
                     Avenue and 6th Avenue bridge reconstruction work, the LIRR
                     West Portal reconfiguration, and utility relocation;

             (iv)    providing temporary left-turn bays or channelized lanes for
                     traffic detours and added capacity;

             (v)     reconfiguring the Flatbush/Atlantic/4th Avenue intersection
                     complex, entailing terminating northbound 4th Avenue traffic at
                     Atlantic Avenue, converting Pacific Street between Flatbush
                     Avenue and 4th Avenue to one-way eastbound, and creating a
                     new eastbound left-turn bay at Fort Greene Place, to optimize
                     traffic movements;

             (vi)    prohibiting parking during peak periods or at all times, where
                     needed, to provide added lane capacity; and,

             (vii)   changing signal phasing and/or timing.

3.   Noise

     (a)     Prior to commencement of construction, FCRC shall develop a
             construction noise mitigation plan in accordance with the New York City
             Noise Control Code (Chapter 2 of Title 24 of the New York City
             Administrative Code) (the "Noise Code") which shall be subject to
             NYCDEP review and approval procedures. The construction noise
             mitigation plan shall include the noise reduction measures described in
             the FEIS and assumed in the construction noise modeling set forth in the
             FEIS. During construction, FCRC shall implement the construction
             noise mitigation plan.


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(b)   FCRC shall employ the following measures in the construction of the
      Project:

      (i)      Using equipment that meets the sound level standards specified
               in the Noise Code;

      (ii)     Using construction equipment that meets the noise emission
               levels specified in Table 17c-3 of the FEIS, "Construction
               Equipment Noise Emission Levels," where such levels are more
               stringent than those imposed by the Noise Code;

      (iii)    Scheduling work that would generate high noise levels during
               weekday daytime hours to extent feasible, rather than during
               weekday nighttime or weekend hours, unless required as a result
               of safety or other agency requirements;

      (iv)     To the extent feasible, scheduling equipment and material
               deliveries during weekday daytime hours, rather than during
               weekday nighttime or weekend hours;

      (v)      As early as practicable in the construction period and wherever
               feasible, using electrical-powered equipment, such as electric
               scissor lifts and electric articulating boom lifts, rather than
               diesel-powered equipment for construction activities;

      (vi)     Situating noisier equipment, such as generators, cranes, tractor
               trailers, concrete pumps, concrete trucks and dump trucks at
               locations that are removed from sensitive receptor locations and
               are shielded from sensitive receptor locations wherever feasible.
               For example, during the early construction phases of the Project,
               delivery trucks and dump trucks are to be located approximately
               20 feet below grade to take advantage of the shielding benefits of
               grade differences. Once building foundations are completed,
               delivery trucks are to be located adjacent to noisy streets (i.e.,
               Atlantic Avenue, Flatbush Avenue and 6th Avenue) rather than at
               quieter streets, such as Dean Street and Pacific Street, where
               there are residences;

      (vii)    A minimum 8 foot perimeter barrier (constructed of 3/4" thick
               plywood), with a 16 foot barrier (of 3/4" thick plywood) adjacent
               to sensitive locations, including locations along Pacific Street,
               Dean Street, and Flatbush Avenue opposite residences and the
               Brooklyn Bear's Pacific Street Community Garden, and, where
               practicable, truck deliveries shall take place behind these
               barriers. Noisy delivery trucks, such as concrete trucks, are to be
               operated behind the barriers;

      (viii)   Where practicable, use of quiet construction procedures;

      (ix)     Requiring all contractors and subcontractors to properly maintain
               their equipment and have quality mufflers installed; and

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            (x)     Where practicable, noise curtains and equipment enclosures shall
                    be utilized to provide shielding from significant noise-generating
                    equipment to sensitive receptor locations.

     (c)    FCRC shall make available double-glazed or storm windows and
            alternative ventilation (e.g., air conditioning) for those residential
            locations where the FEIS identified significant noise impacts and such
            windows and air conditioning are not currently installed, subject to the
            consent of the owners and tenants of such residences, and subject to
            applicable laws, rules and regulations. All such windows and alternative
            ventilation shall be provided without charge and with free installation.

     (d)    As described in the FEIS, and subject to the consent of the respective
            property owners, FCRC shall make available and install, free of charge
            (i) interior-fitted storm windows (or suitable alternative windows) for the
            Pacific Street side of the Pacific Branch of the Brooklyn Public Library
            and (ii) storm windows for the second floor of the Temple of Restoration
            windows facing Dean Street (if such windows do not already have storm
            windows).

     (e)    FCRC shall work with the Parks Department to supplement its planned
            improvements to the Dean Playground with a comfort station open to the
            general public.

     (f)    Noise mitigation measures shall be implemented ­ where such measures
            have been accepted by building owners and their tenants ­ in a timely
            manner so as to avoid the significant adverse noise impacts identified in
            the FEIS where practicable.

4.   Air Quality

     (a)    FCRC shall require its contractors to implement dust suppression
            measures, including the following:

            (i)     Limiting on-site speed to five miles per hour. Signage of the 5-
                    mile per hour limit shall be posted at all site entrances and along
                    routes within the sites.

            (ii)    Using sleeves and wetting during demolition activities, and
                    wetting equipment. All demolition activities, including but not
                    limited to building, roadway, and pavement demolition, shall
                    utilize dust suppression. All drop transfer operations shall be via
                    closed sleeves and into sealed bins. Sleeves shall have no
                    openings other than the loading chute. During all breaking up of
                    material such as concrete, an employee shall be assigned to wet
                    the surface while the activity is taking place.

            (iii)   Watering unpaved surfaces, including haul roads and excavation
                    faces. All unpaved haul roads and excavation surfaces shall be
                    continuously watered by watering trucks or constant misting, so
                    that surfaces remain damp at all times when in use during

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              construction. Gravel cover shall be applied to unpaved surfaces
              which are regularly traveled.

      (iv)    Covering or water-misting of stockpiled materials. All
              stockpiled dry materials (e.g., sand, aggregate) shall be water-
              misted; sprayed with non-hazardous, biodegradable suppressing
              agent; covered; or otherwise enclosed.

      (v)     Loading of any dry material which may release dust from trucks
              shall be accompanied by manual water spraying of the material.

      (vi)    Covering all trucks carrying loose material such as debris,
              excavate or fill, and verifying that covers on all such trucks have
              been properly sealed. Outgoing trucks shall be inspected at the
              gate, and not allowed to exit if covers are not properly sealed.

      (vii)   Washing the wheels of all trucks as they exit from the site. A
              washing station shall be constructed at each truck exit, whereby
              truck wheels shall be washed, and the water shall be contained
              and recycled to avoid tracking mud out of the site.
(b)   FCRC shall implement a diesel emissions reduction program, which shall
      include minimizing the use of diesel engines and maximizing the use of
      electric engines in lieu of diesel. In particular, FCRC shall:

      (i)     ensure sufficient grid power is available to each site as early as
              practicable and commission permanent grid power service for
              Buildings 2 and 3 prior to the peak period of construction
              (currently scheduled for the third quarter of 2007);

      (ii)    ensure the distribution of power throughout the Project at all
              locations where electric engines are to be used, in order to avoid
              the use of portable or stationary generators where practicable;

      (iii)   use only electric engines where practicable (e.g., welders,
              compressors, electric saws, forklifts, etc.);

      (iv)    ensure that all contractors plug into the grid where available and
              do not use portable generators (diesel or gasoline, small or
              large); and

      (v)     ensure that generators will not be used for tasks where grid
              power is available, and that diesel engines will not be used for
              tasks that can be performed with electric engines.

(c)   FCRC shall require its contractors to limit all unnecessary idling of
      vehicles and non-road engines, ensure that engines are shut off when not
      in use, and enforce idling limits on queueing trucks.

(d)   FCRC shall require the use of ultra-low sulfur diesel ("ULSD") fuel (i.e.,
      fuel having less than 15 parts per million (15 ppm) sulfur content) for all
      equipment having diesel engines.
                             16
     (e)     FCRC shall employ best available tailpipe emissions reduction
             technologies, including utilization of diesel particulate filters ("DPF")
             (or, subject to ESDC approval, improved technologies verified by EPA
             or the California Air Resources Board to reduce particle emissions by at
             least 85%) on all nonroad engines of 50 hp or greater and on all concrete
             trucks and concrete pump trucks. All nonroad engines used for the
             construction work shall be inspected and labeled where practicable to
             confirm that DPF is installed and functioning and that the engine is to be
             fueled only with ULSD. FCRC shall bar any non-complying equipment
             from the work site or expeditiously bring into compliance any equipment
             found to not be in compliance. Notwithstanding the foregoing, if with
             respect to a specific nonroad engine of 50 hp or greater, FCRC
             determines that it would not be practicable to equip the engine with a
             DPF and that use of the engine is required for the construction to
             proceed, FCRC shall use a substitute particulate control technology such
             as a diesel oxidation catalyst instead of a DPF upon the concurrence of
             ESDC that the DPF is impracticable for the type of equipment needed for
             the construction work.

     (f)     To the extent practicable, FCRC shall require that all stationary engines
             be located at least 50 feet from locations such as sidewalks, residential or
             school windows, and building air intakes.

5.   FCRC shall submit to ESDC for review and approval, not to be unreasonably
     withheld, a written plan to adequately and reasonably demonstrate compliance
     with the foregoing construction air quality measures (the "CAQM Compliance
     Plan") during construction. The CAQM Plan shall be submitted before intensive
     construction work at the project site begins and, if not approved by ESDC as
     submitted, there shall be a consultation between FCRC and ESDC with respect to
     the submission and, after such consultation, the CAQM Plan shall be revised as
     required to conform to reasonable ESDC revisions. Elements of the CAQM
     Compliance Plan shall include: (i) incorporation into construction contracts
     appropriate terms requiring the contractors to implement the air quality measures
     contemplated by the FEIS; (ii) periodic meetings between FCRC's construction
     manager and the relevant contractors to discuss implementation of the air quality
     measures; (iii) practicable documentation requirements; (iv) recordkeeping with
     respect to the equipment and vehicles used during construction; and (v)
     compliance monitoring by a field engineer (to be employed by FCRC's
     construction manager) whose principal responsibility would be to monitor
     compliance. If deemed appropriate as construction proceeds, the CAQM
     Compliance Plan may be revised from time-to-time with the written approval of
     FCRC and ESDC.

6.   FCRC shall implement a rodent control program approved by the New York City
     Department of Buildings.

7.   Prior to and during the course of remediation or excavation, FCRC shall
     implement a CHASP and, during excavation, shall implement a Community Air
     Monitoring Plan.



                                     17
     8.   FCRC shall maintain an on-site construction coordinator to function as a liaison
          between FCRC and the community with respect to construction-related issues.
          The coordinator shall be available to consider specific concerns raised by the
          community with respect to the construction issues and seek to resolve such
          concerns.

O.   ENFORCEMENT

     1.   The Project Documentation shall provide that ESDC shall have the right to
          enforce FCRC's compliance with the commitments set forth above.

     2.   ESDC shall have the right to enter the Project site at all reasonable times, subject
          to safety and operational constraints, to monitor FCRC's and FCRC's
          contractors' compliance with the terms of such commitments.

     3.   FCRC and FCRC's general contractor shall meet with ESDC, at ESDC's request,
          to discuss the compliance and implementation of the obligations and measures
          set forth in this memorandum.

     4.   During the period in which the Project buildings, or any one of them, are being
          constructed, FCRC shall provide funding for the reasonable costs of an
          environmental monitor (which shall be a qualified consulting firm with
          subconsultants, as appropriate) to be selected by and retained by ESDC to:
          (i) monitor FCRC's compliance with certain provisions of this memorandum; (ii)
          review any submittals made by FCRC pursuant to such provisions and advise
          ESDC with respect thereto; and (iii) provide ESDC with periodic written reports
          concerning FCRC's implementation of such provisions. The certain provisions
          referred to in the preceding sentence are paragraphs: E (with respect to protection
          of cultural resources near the project site from being impacted by construction on
          the project site); G.2 (pertaining to Hazardous Materials); I.9 (pertaining to
          reviewing the effectiveness of any modified design for stormwater management
          facilities); J.2 (pertaining to reviewing alternative fuels or boiler technologies);
          J.4 (pertaining to reviewing the location of HVAC intakes in the event that the
          design of the relevant Project buildings changes from the design subject to air
          dispersion modeling in the FEIS); K.6 (pertaining to decisionmaking with respect
          to the funding of TEAs in the event that FCRC and NYCDOT do not reach
          agreement on this issue); L.2 (pertaining to the adjustment of demand
          management measures); and N.1, N.2.d, N.2.e, N.2.f, N.3.b, N.3.c, N.3.d, N.3.f,
          N.4, N.5, N.6 and N.7 (pertaining to construction). The obligation set forth in
          this paragraph shall cease upon completion of the Phase II buildings. This
          memorandum shall not make FCRC responsible for the cost or time expended by
          any ESDC personnel or consultant otherwise hired by or in the employment of
          ESDC. This memorandum is without prejudice to other funding discussions that
          may occur between ESDC and FCRC.

     5.   Where ESDC review and approval is required under this memorandum, ESDC
          shall review, comment and make its determination on an expedited basis where
          practicable but in any event within twenty (20) days of the date a request for
          ESDC approval is made. In the event ESDC has not acted on any request within
          such twenty (20) day period, such request shall be deemed approved by ESDC.


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