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December 15, 2006
Ratner’s $500M slip is showing
Mega-project’s public benefit drops again
The Brooklyn Papers
By Ariella Cohen
The Atlantic Yards project approved last week by state officials would generate almost $500 million less in tax revenues than its developer and its Albany boosters promised just five months ago.
Now the Empire State Development Corporation says that the 16-skyscraper residential and arena mega-development would generate $944 million in tax money over 30 years — $456 million, or one-third, less than the ESDC said this summer when a slightly larger version of Atlantic Yards was going through the public approval process.
At that time, the city and state each coughed up an initial $100 million for infrastructure improvements around the site, largely on the promise that this small investment would later fill public coffers with Atlantic Yards tax revenues. The $200 million is just a small part of a multi-billion-dollar public subsidy of the project in the form of tax abatements, low-interest loans and reduced price for Ratner to acquire publicly and privately owned land in the 22-acre Atlantic Yards footprint.
Originally, Ratner claimed the project would generate $6 billion in tax revenues.
The Papers quotes Marty Markowitz, who is still bullish on the project.
“As the hub of an enhanced and vibrant Downtown Brooklyn, Atlantic Yards will be both a tax generator and magnet for investment,” the Beep said in a statement. “Even with the height reductions that I and others called for, which preserve every unit of affordable housing pledged, we’re looking at a billion dollars in new tax revenues for Brooklyn.
NoLandGrab: Sure we're being nitpickey, but we weren't aware that Brooklyn collects tax revenue, but Marty probably knows better.
Posted by lumi at December 15, 2006 7:30 AM