After an impasse, Mayor Bill de Blasio has announced a deal with developer Two Trees Management creating 537,000 square feet of affordable housing at the old Domino Sugar site in Williamsburg, Brooklyn.
Originally, the developer had promised 110,000 less square feet of affordable space.
"We set out from day one to get the best possible value for the public. This partnership delivers on that commitment,” said Deputy Mayor for Housing and Economic Development Alicia Glen.
The mixed-use project will include over 2 million square feet of total residential space, plus a park and commercial office space.
In a concession to Two Trees Management, about half of the new affordable space will be for moderate-income families.
That will significantly reduce costs for the developer, while also creating permanently affordable units in a desirable waterfront location.
"We hope this can become a model for what we can all achieve together in the years ahead,” said Jed Walentas of Two Trees Management.
The project is expected to break ground by December.