New flood zones sink Navy Yard project

From Crains:

Blumenfeld Development Group has been dropped as the builder of the $100 million Admiral's Row project, an expansion to the 300-acre industrial space in Brooklyn that is slated to include a supermarket and shopping center, Crain's has learned.

The move comes more than a year after the Brooklyn Navy Yard Development, the nonprofit that manages the city-owned site, selected Blumenfeld to build a 74,000 square-foot supermarket, 86,000 square feet of retail space and 125,000 square feet of industrial space at the city-owned industrial park. Blumenfeld was one of several companies to respond to a request for proposals to develop the project.
Navy Yard President and Chief Executive David Ehrenberg said in a statement that Blumenfeld failed to meet its end of the contract, declining to elaborate on the reasons for change in plans. Under the agreement, Blumenfeld was supposed to be granted a long-term lease at the site after selecting a supermarket operator. A supermarket has not been picked. Blumenfeld was slated to break ground on the development this year.

"We are still committed to Admiral's Row being anchored by a supermarket that meets the community's needs and an industrial facility that supports our core mission," Mr. Ehrenberg said. "The city-approved site plan remains in place and we are evaluating our options for moving forward."

Blumenfeld said it is no longer involved in the Navy Yard because the project became untenable after changes to the Federal Emergency Management Agency's preliminary revised flood zones. The change would increase flood insurance premiums and construction costs, the developer noted.