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March 9, 2007

Cash flow docs mystery: missing revenues, missing subsidies

Atlantic Yards Report compares and combines numbers from the three pages of financial projections, dated 10/06 and released last week, with the 24-page KPMG report obtained, but not released, 12/06.

Using the KPMG report, AYR is able to fill in some of the gaps in the three-page financials, but many details remain wanting.

Neither set of documents provides a clear sense of the project bottom line; for that, we’d need a full accounting of “sources and uses” of the funds. However, the unreleased document—which I and some other reporters have acquired, though not via the ESDC—goes much farther than the document publicly released.

For example, the Nets team and arena might end up being a cash cow:

Regarding the Nets, the document released last week (right) has some gaps. The KPMG document includes $33.5 million in annual TV revenue and $27 million in “other Nets-related revenue,” figures that do not appear explicitly on the document at right.

That suggests more than $60 million annually should be added to the bottom line—a significant gain, given that the developer’s obligation to pay for the arena would be less than $44 million a year. That sum refers to debt service on tax-exempt bonds; it would be higher if the state required Forest City Ratner to pay for the arena directly rather than have it be “publicly-owned” by a state subsidiary.

Oder also looks into figures for condos, rentals, subsidies, rental of retail space and revenue from laundry facilities.

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Posted by lumi at March 9, 2007 8:21 AM