NYT: New Domino Developer Stumbles

The NY Times reported yesterday that CPC, the group behind the New Domino projects in Williamsburg, dubbed by supporters as DomiYes, stumbled after its for-profit arm losed huge sums on risky loans for luxury mega developments.

Once dubbed DomiYES, may now be DomiNO

The group defaulted on a huge loan for the Domino project - a mixed project opposed by the Community board, Councilman Steve Levin and Assemblyman Vito Lopez, but subsequently passed with only minor changes thanks to the Mayor's support.

According to the Times, this project is now in serious jeporady, and Mr. Lappin who fought for it is now ousted from his Chair position, while the group tries to refocus on affordable projects. Here is what the Times says about New Domino.

In 2004, C.P.C. Resources bought an 11-acre parcel on the Brooklyn waterfront where a Domino sugar refinery once stood. The $1.4 billion project was supposed to convert the refinery into 2,200 apartments, a mix of luxury and subsidized units. But it repeatedly ran into delays before obtaining government approval in 2010. Last month, C.P.C. Resources defaulted on its $125 million New Domino loan.

UPDATE: A reader is pointing us to a Brooklyn Paper article that the site is up for sale. This will definitely jeopardize the affordability of the project, since a buyer may likely renege on those promises which are hardly enforceable.

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