240 Nassau Plan Would Finance New Public School with ECF Bonds and 99‑Year Ground Lease of Market Units, City Planning Says

240 Nassau Street finance plan: City Planning Commission review on July 27, 2026 showed the Education Construction Fund (ECF) will issue tax‑exempt bonds, hold title to the new school and part of Building A, and use a 99‑year ground lease of market‑rate units to fund school construction without city capital. Source: https://s-media.nyc.gov/agencies/dcp/assets/files/pdf/about/commission/review-sessions/2026-07-27rs.pdf

# What’s happening
– City Planning Commission reviewed the 240 Nassau rezoning and special permit on July 27, 2026.
– The Education Construction Fund (ECF) will finance and hold title to the school and parts of Building A.
– A 99‑year ground lease of Building A’s market‑rate units is proposed to fund school construction without city capital.
Source: https://youtu.be/WPar0uHySyA&t=440

# Why it matters
– Students and families in School District 13 face a temporary relocation during school replacement construction.
– Neighborhood residents will see a large mixed‑use build with a new public school and added market housing.
Source: https://youtu.be/WPar0uHySyA&t=710

# Key details
– Meeting date: City Planning Commission review session, July 27, 2026.
– Project program: ~1.4 million sq ft; ~1,500 residential units; ~300 permanently income‑restricted affordable.
– School: Building B planned as an 8‑story, ~96,000 sq ft public school.
– Building A: 63‑story tower with ~702 units; market‑rate units will generate ground‑lease revenue.
– Land and parcels: Lot 1 (50 Navy Street) is city‑owned school property; Lot 25 (240 Nassau Street) is privately owned.
– Financing mechanism described: tax‑exempt bonds issued by ECF; a 99‑year ground lease of market units supports school financing.
Source: https://youtu.be/WPar0uHySyA&t=898

**Education Construction Fund (ECF)**
– Role or jurisdiction: New York City Education Construction Fund, a public entity involved in school construction.
– Action taken or responsibility: Proposed to issue tax‑exempt bonds and hold title to the new school and part of Building A.
– Relevant numbers or dates: School construction financed via tax‑exempt bonds; referenced 99‑year ground lease revenue.
Source: https://youtu.be/WPar0uHySyA&t=1008

The City Planning Commission heard the 240 Nassau presentation on July 27, 2026, as part of a certification of zoning map and text amendments and a special permit in Brooklyn Community District 2. (Source: https://youtu.be/WPar0uHySyA&t=440)

Presenters described a mixed‑use redevelopment that would deliver about 1,500 housing units, roughly 300 permanently affordable, 132,000 sq ft of community facility space, and a new 96,000 sq ft public school in an approximately 1.4 million sq ft project. (Source: https://youtu.be/WPar0uHySyA&t=440)

Panel materials and staff commentary said Building B, the standalone school, would be financed through tax‑exempt bonds issued by the Education Construction Fund (ECF). The presentation stated ECF would hold title to the school and to the residential portion of Building A. (Source: https://youtu.be/WPar0uHySyA&t=1008)

The presenters and staff explained that ground‑lease revenue generated from Building A’s market‑rate units over a 99‑year term would allow the school to be constructed without city capital funding. The record links the 99‑year ground lease to school financing but did not provide a public bond term sheet or detailed pro forma at this session. (Source: https://youtu.be/WPar0uHySyA&t=1008)

Officials noted Lot 1 at 50 Navy Street is the city‑owned school site and Lot 25 at 240 Nassau Street is privately owned; the existing Lot 1 school (PS287) would be replaced and students temporarily relocated under a relocation plan described in the presentation. (Source: https://youtu.be/WPar0uHySyA&t=710)

City staff said the applicant team selected in December 2025 followed a June 2024 request for expressions of interest. Staff also told commissioners that project‑specific details about ownership and operating arrangements would be provided by the applicant at a future public hearing. (Source: https://youtu.be/WPar0uHySyA&t=710)

When asked directly about ownership and the 99‑year ground lease, staff reiterated that ECF would own the market‑rate portion and the school component and that the long ground lease would help pay for school construction; staff said the applicants would expand on financing and operational details at public hearing. (Source: https://youtu.be/WPar0uHySyA&t=284)

The record does not include a published bond issuance schedule, detailed ground‑lease economic terms, or a stated operating agreement for the market‑rate units or school. Commissioners asked for additional documentation and for the applicant to submit written details about development program and financing at the public hearing. (Source: https://youtu.be/WPar0uHySyA&t=284)

What remains to be provided in the ULURP record and public hearing: the applicant’s detailed financing exhibits, the tax‑exempt bond structure, the 99‑year ground‑lease contract terms, and the operating arrangements for the market‑rate residential portion and the school. City staff said those items would be addressed by the applicant team at the public hearing. (Source: https://youtu.be/WPar0uHySyA&t=284)

For the official review materials, see the Department of City Planning review‑session agenda and the recorded July 27, 2026 session. (Source: https://s-media.nyc.gov/agencies/dcp/assets/files/pdf/about/commission/review-sessions/2026-07-27rs.pdf)