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December 20, 2006
Atlantic Yards Report Super-duper-post
We tried to keep up with Norman Oder today, but by this afternoon, he'd already lapped us.
So here are the links to the stuff we already posted, with blurbs for the stuff we missed (or you could just cruise on over to http://www.atlanticyardsreport.com:
Would Forest City earn just a pittance? Confusing numbers in the AY audit
For the mixed-use development, KPMG's reconstructed model reflected an IRR of 9.86 percent. (Forest City's IRR was 9.6%). After KPMG looked at the assumptions and adjusted them, it came up with an IRR of 7.28%.
Does that mean that the developer would earn a little more than 7%? Again, investments with relatively small risk could earn a similar return.
So what really would be the developer's profit? How do the tax breaks and grants factor in? Apparently, no public agency is responsible for fully analyzing those issues, just as the net tax revenue to the public remains murky.
Last minute Ratner goodies: $3m for parks, help on a high school, more
Norman Oder considers Ratner's "last-minute" concessions and poses some questions:
In addition to the commitment to eight acres of open space within the Atlantic Yards footprint, FCRC will invest $3 million to improve existing parks in and around the project.
(Does that include the $1.25 million+ for the Dean Street Playground comfort station?)
As part of the affordable housing program, FCRC has already agreed to build 600 to 1,000 affordable home ownership units on or off site.
(When exactly is unclear, depending on subsidies, as the developer's Jim Stuckey said in July.)
Today, FCRC announced that it will seek to build at least 200 of these affordable home-owner units on site (they will be part of the proposed 6,430 units of housing already approved as part of the Atlantic Yards FEIS/GPP).
(This was a response to a request from Assemblymember-elect Hakeem Jeffries. Was this in the cards all along?)
FCRC will also seek to build the remaining affordable home-owner units as close to Atlantic Yards as possible.
(The developer has been said to be eyeing a site in Crown Heights. That may be "as close... as possible.")
Forest City Ratner will also open a community affairs office on the project site that will be operated and staffed during all phases of the construction project.
(As opposed to the very sporadically open Atlantic Yards Information Center, in the Atlantic Center mall.)
In addition to these project specific elements, FCRC will also work with the City, State and the United Federation of Teachers on the creation of a new 21st Century Brooklyn Tech High School, at a yet to be determined location in the borough.
(What does "work with" mean? How much might the developer actually contribute?)
AY approved by PACB in five minutes; DDDB, James, Jeffries respond
Condo cuts were in the cards since October
The $100,000 arena graduation ceremony?
The Atlantic Yards web site promotes the arena:
The arena will be a community centerpiece for the borough. FCRC has worked with local organizations to ensure the arena is an integral part of the community, where local college and high school athletes will have a new stage to showcase their skills. The arena will also host thousands of proud families and friends for college and high school graduations.
However, the KPMG report for the Empire State Development Corporation issued Tuesday offers a caution:
The average ticket prices assumed by FCRC for concerts, family shows, and other sporting events and the percentage split to the facility appear reasonable. However, the base rental rate for other events (e.g., graduations) of $62,000 plus the estimated $41,000 in event-related expenses appears to be high.
Some 225 arena events? KPMG ignores developer's own analyst
KPMG report to ESDC... says nothing about net revenue to city and state
More from the Brodsky hearing: $1B in housing bonds, housing MOUs coming
MIA: the New York Times editorial page on PACB vote
Posted by lumi at December 20, 2006 10:50 PM