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April 20, 2007
FCR's Beekman tower, AY face same problem: scarce tax-exempt financing
Atlantic Yards Report
Forest City Ratner's annual report acknowledged "the potential for increased costs and delays" to Atlantic Yards as a result of, among other things, "our inability to obtain tax exempt financing or the availability of financing generally."
That looks to be an increasing concern. Take the example of the developer's other Frank Gehry-designed tower, on Beekman Street in Lower Manhattan.
Norman Oder references this week's article by Matthew Schuerman from The NY Observer and adds:
The amount of bonding required for Atlantic Yards would be considerably more (than the Beekman St. tower). Perhaps pressure from developers seeking this scarce resource will prompt the relevant government agencies, with the assistance of the federal government, to expand the availability of bonding authority. (Here's Schuerman's exposition of this complicated issue.)
For now, however, there are too many subsidized housing projects competing for limited funds.
Posted by lumi at April 20, 2007 9:00 AM