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November 30, 2005

Wednesday: Special Report in the Cleveland Plain Dealer

FCEFCR.jpgThe Cleveland Plain Dealer comes to New York and covers Forest City Enterprises' subsidiary, Forest City Ratner.

Ratners target New York
The rise of Bruce Ratner in NYC started with Metrotech, detours through 42nd Street and big box stores before landing in Brooklyn again with the controversial Atlantic Yards plan.

One interesting tidbit in this article, on the relationship between Forest City Ratner and the mothership in Cleveland:

Moore, from KeyBanc Capital Markets, said Forest City puts up all the money for Bruce Ratner's developments. When they're completed, he said, Bruce keeps a third of the profits; the rest flows back to Cleveland. Cleveland has the ultimate say on investment decisions.

Incentives were big part of package for MetroTech
On Ratner and Metrotech subsidies:

"He's the master of subsidy. No one does it better," said Fred Siegel, a professor of history at the Cooper Union for the Advancement of Science and Art in New York who focuses on urban issues. "That's not a flat-out criticism of him. It's just that he never builds without someone else taking the risk."

NoLandGrab: A comparison between the two articles reveals the inconsistency in the PR surrounding Metrotech. The first mentions that Metrotech "would stem the trend of firms taking back-office operations from Manhattan's high rents to New Jersey and other locales." The second article points out that, "In addition to receiving the subsidies, Forest City leases lots of space [in Metrotech] to city agencies." The City of NY is one of the largest tenants in Metrotech.

Somehow New Yorkers can't imagine that NYC agencies would move to Jersey City for cheaper rent. Yes, projects change over time, but Brooklynites should be aware that Metrotech hasn't delivered on all of its promises.

As a special follow up, the Plain Dealer's Forest City web log carries "a real-time glimpse of a clash between Forest City and a community" over Atlantic Yards.

Posted by lumi at November 30, 2005 9:06 AM