What was your path that led you to your current role as CFO of Battery Park City Authority?
My career began in business operations and financial management at Procter & Gamble, where I developed a strong foundation in management. After earning my MBA, I transitioned into investment banking and commercial lending and later spent decades on infrastructure and project finance and strategic debt hedging.
These experiences prepared me for my current role as CFO of Battery Park City Authority (BPCA), which I’ve held for the past eight years. BPCA was established more than 50 years ago as part of a visionary plan led by Governor Rockefeller to create a mixed-use community in Lower Manhattan. Today, Battery Park City is home to more than 16,000 residents and spans 92 acres and includes 10 million square feet of residential space, 10 million square feet of commercial space, public buildings, and 36 acres of parks and open spaces.
As CFO, my primary responsibility includes managing BPCA’s financial operations, including the recent multi-year resiliency capital program to protect the site from sea level rise, storm surge, and other environmental risks.
For those that aren’t familiar with Battery Park and the Authority, can you give us some context on the organization’s history and sustainability strategy?
BPCA was established in 1968 as a New York State public benefit corporation and has been a pioneer in environmental sustainability for more than 25 years. Starting with environmental guidelines for residential buildings in 2000, BPCA set the standard for sustainable development in the area. In 2020, we took a significant step forward by issuing our first Sustainability Plan. The ten-year plan is a comprehensive strategy that builds on BPCA’s environmental legacy and lays the groundwork for continued success, focusing on four core areas: site management, water conservation and management, waste reduction and treatment and energy.
Battery Park City is a leader in sustainable building practices, with seven LEED-certified residential buildings and eight commercial ones. In 2008, the Verdesian became the first condo in New York City to earn LEED Platinum certification. Projects such as the South Battery Park City Resiliency Project has become the 13th project nationally to receive WEDG certification, putting the project at the forefront of resilient, ecological, and accessible waterfront design.
“The community’s 36 acres of parks and open spaces are also central to our sustainability strategy. These green spaces offer a natural refuge within Manhattan’s urban landscape, fostering community connections while serving as critical green infrastructure for stormwater management and biodiversity.”
Pamela Frederick, CFO, Battery Park City Authority
While our immediate focus is on resiliency projects, we’re planning to shift more attention to energy initiatives, as energy remains one of the larger emissions sources in the community. It’s all part of our long-term goal to achieve net-zero emissions while maintaining the vibrant, sustainable character of Battery Park City.
The 2019 and 2023 Sustainability Bond transactions were pivotal for BPCA’s sustainability initiatives. Can you outline their key objectives, the projects they funded, and how they have supported the Authority’s climate resilience and sustainability goals?
Hurricane Sandy in 2012 was a watershed moment for New York City, resulting in 100 fatalities and $70 billion in damages across a dozen states. Lower Manhattan was impacted, and we knew we had to do more to protect Battery Park City from the threats of storm surges and sea level rise.
In 2019, after a six-year hiatus, BPCA issued Sustainability Bonds to support the planning and development of comprehensive resilient infrastructure to address damage from Hurricane Sandy and future environmental impact. This included perimeter storm barriers, flood protection systems, waterproofing buildings, pile remediation for aging infrastructure, and bridge projects like the Tribeca and West Thames Bridges. The bond proceeds also financed public access to open space and socio-cultural attributes within Battery Park City. We were proud to have won the Northeast Deal of the Year by Bond Buyer for this transaction.
In 2023, we returned to market with $349 million in Sustainability Bonds, shifting our focus to the South Battery Park City Resiliency Project, which raised the area’s elevation upwards of 10 feet to protect against climate risks. This project also incorporated community-driven features such as an amphitheater, expanded green spaces, eating areas, and the provision of universal access while integrating sustainable design elements like a 63,000-gallon subterranean cistern for water reuse and berms to avoid large walls. These efforts blended resilience with the neighborhood’s character and enhanced public spaces.
Together, the 2019 and 2023 Sustainability Bond transactions have significantly advanced BPCA’s climate resilience goals. They funded critical infrastructure improvements, reduced environmental risks, and ensured the community’s adaptability to long-term climate challenges while maintaining its vibrant and sustainable design.
In 2023, we returned to market with $349 million in Sustainability Bonds, shifting our focus to the South Battery Park City Resiliency Project, which raised the area’s elevation upwards of 10 feet to protect against climate risks.
Pamela Frederick, CFO, Battery Park City Authority
How did BPCA approach investor and stakeholder engagement when issuing Sustainability Bonds?
BPCA bonds are often considered “museum pieces” due to their limited secondary market, as most investors buy and hold. Issuing Sustainability Bonds was a natural fit for the work we do.
For the 2019 and 2023 Sustainability Bond transactions, investor and stakeholder engagement became a key focus for us. We aligned the financings to ICMA Principles and obtained external verification. We also made intentional efforts to attract sustainability-focused investors through tailored meetings that highlighted the projects, technology, and engineering involved. We leveraged resources such as BondLink to get information out to investors in a consistent way.
BPCA also organized tours of funded initiatives, partnering with groups like Ceres to engage not only investors but also community members. A standout feature of these tours was the use of blue lanterns to demonstrate the potential impact of a 20-foot sea level rise. This visualization helped investors and community members understand the risks being addressed and the importance of the projects.
Community engagement was also integral to the success of these initiatives, with over two dozen community meetings and walking tours conducted to incorporate public input into all design aspects. This collaborative approach ensured transparency, strengthened stakeholder relationships, and built trust in BPCA’s sustainability efforts.
What are BPCA’s key sustainability priorities for the next 5 - 10 years, and how will innovative financing, technology, and innovation support these goals?
BPCA’s sustainability priorities for the next 5–10 years focus on four core areas: site, waste, water, and energy. Specific initiatives include exploring community-wide renewable energy solutions, either on-site or off-site. However, major energy investments will likely follow the completion of ongoing resiliency programs, such as the North/West Battery Park City Resiliency Project, which involves complex engineering and is expected to take about five years.
In terms of technology and innovation, BPCA is integrating sustainability into its operations through tools like tree canopy software, permeable paving, and zero-waste certification. These efforts, combined with community composting and sustainable landscaping practices, reflect a holistic approach to embedding sustainability into urban planning, development, and operations.
Innovative financing mechanisms, like Sustainability Bonds, will continue to play an important role, ensuring a clear connection to sustainability objectives and targeted use of proceeds.
What advice would you give to leaders pursuing similar efforts, and how can BPCA’s experience inspire sustainable urban development?
Prioritize being transparent, inclusive, and consistent with stakeholders, particularly investors and the community. Investors want to fund impactful projects. Resiliency projects have community impact, so engaging residents early and often ensures that projects align with public needs and builds trust. Collaboration with city, state, and local organizations is also essential.
"Resiliency projects have community impact, so engaging residents early and often ensures that projects align with public needs and builds trust. "
Pamela Frederick, CFO, Battery Park City Authority
BPCA’s story highlights the value of being intentional about sustainability – designing sustainability into the fabric of the built environment, our operations, and sustainable financing. Ultimately, being intentional about sustainability will form the foundation of climate-resilient, community-informed designs. Tools such as visualizing future sea level rise and creating green spaces showcase how urban planning can tackle environmental challenges while improving livability. This inclusive approach aims to inspire broader adoption of sustainable practices in urban development.
