A billion-dollar push to revitalize New York City neighborhoods will reshape how the Big Apple builds and who gets to build it.
Over $1 billion in construction projects, including about $270 million in transformative upgrades in Willets Point, Queens, will proceed under two new project labor agreements, according to an announcement from New York City Mayor Eric Adams.
The Willets Point redevelopment features 2,500 affordable homes, over 20,000 square feet of retail space, a 250-key hotel and the city’s first soccer-specific stadium, which is being privately financed by the New York City Football Club.
The PLAs reached with the Building & Construction Trades Council of New York, an umbrella union organization, include design-build delivery to accelerate timelines, while incorporating hiring goals for underserved communities and contracts for minority- and women-owned business enterprises.
Other projects covered by the PLAs include:
- A $150 million greenway along the East Side Coastal Resiliency project in Lower Manhattan.
- A $40 million deep sewer manhole project in Brooklyn.
- A $240 million bridge and roadway improvement project on Belt Shore Parkway in South Brooklyn.
- A $100 million waterfront dock and bulkhead reconstruction project at the Port Richmond and Rockaway Wastewater Resource Recovery Facilities in Staten Island and Queens.
These PLAs also set a framework for similar agreements that could support $50 billion in future city projects, said Adams.
For example, the New York City Economic Development Corporation has signed a letter of intent with BCTC of New York to negotiate additional PLAs for the Hunts Point Produce Market, the Kingsbridge Armory redevelopment and the Science Park and Research Campus (SPARC) Kips Bay projects — a cumulative $1.88 billion in construction work.
Willets Point
The Willets Point redevelopment, which the city highlighted in its announcement, aims to reinvigorate an industrialized area of auto shops and junkyards that inspired F. Scott Fitzgerald’s Valley of Ashes in “The Great Gatsby.”
“The work being done at Willets Point is a generational opportunity to transform what was once a dumping ground into a vibrant community that is a model for public-private partnership,” said Andrew Kimball, president and CEO of New York City Economic Development Corp. “We are showing our commitment to increasing union labor.”
Turner Construction will lead the $780 million construction of New York City Football Club’s 25,000-seat soccer-specific stadium, while AECOM is part of the broader project team supporting the redevelopment.
Design-build delivery
The design-build delivery method marks a shift for New York City where design and construction are included in a single contract, according to the release. The approach aims to reduce project timelines, streamline oversight and increase efficiency compared to traditional bid-build models, said Adams.
PLAs, meanwhile, will help drive these large-scale infrastructure improvements while also creating equitable workforce opportunities, said Gary LaBarbera, president of the BCTC of New York.
“Project labor agreements make projects more efficient. They actually save money to the capital plan and the capital budget, which creates more opportunity,” said LaBarbera during a news conference. “This is just not a construction job. It is a pathway into the middle class, building a stronger middle class, a stronger blue-collar middle class.”
The agreements indicate a turning point in the relationship between unions and MWBEs as well, said LaBarbera. Historically seen as incompatible, unions and MWBEs are now actively collaborating under Mayor Adams’ administration to ensure broader participation in large-scale city projects, he said.
Initiatives include connecting MWBE contractors with unions and supporting them through mentorship programs. That collaboration expands award opportunities for these businesses, said Michael Garner, the city’s chief diversity officer.
“Access to contracts equals job creation in those communities of color who have historically been shut out,” said Garner. “It also equals homeownership opportunities for the business owners, better education opportunities and healthcare options for their respective families.”
