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April 28, 2006
Arena questions & frustrations II
We cut over to Forest City Enterprise's bid to build a giant slot machine parlor in Pittsburgh, when we stumble over something that sounds familiar.
For instance, last week Neil DeMause nailed Forest City Enterprises's CEO Al Ratner for whining that the Pittsburgh Penguins are refusing to foot the bill for their own arena in order to "to sell the hockey team at a higher price." Meanwhile, back in Brooklyn, cousin Brucie "is currently seeking public subsidies to build a new Nets arena in Brooklyn, to help justify the inflated price he and his partners paid for the team."
This week, Al Ratner gets spanked in a letter to the editor to the Pittsburgh Tribune-Review:
When questioned about their outrageously inflated slots revenue projections, Harrah's Albert Ratner said, "If we're wrong, it's our money that's being lost." How utterly self-serving.
If Mr. Ratner is wrong (the way Harrah's was wrong with its casino revenue projections in New Orleans), it's the City of Pittsburgh's money that is being lost -- $100 million more per year in property tax relief -- not his company's money.
NoLandGrab: The Brooklyn subsidiary of Forest City frequently makes the point that their interests naturally conform to the community's interests since they are investing in the community and are committed to holding and managing the properties they develop. However, when Forest City Ratner's public-subsidy-rich holdings don't meet expectations, it's the City and State (that means YOU) to the rescue.
Posted by lumi at April 28, 2006 8:21 AM