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April 17, 2007
From FCE, (boilerplate) doubt about AY timing; Nets losses prompt $13M loan
Atlantic Yards Report takes a peek at Forest City's Annual Report.
Unlike a press release, the annual report is a disclosure document that must describe some of the risks and downsides of business operations:
While Atlantic Yards supporters have criticized opponents for delaying the project by filing a lawsuit challenging the environmental review, it turns out that developer Forest City Ratner has much more than legal delays on its mind.
Also, while the rate of losses for the New Jersey Nets has slowed, the parent company must still offer a $13 million loan to fund the team this year.
According to the annual report issued at the end of March by parent Forest City Enterprises, other factors, including increased construction costs and the availability of tax-exempt financing, also play into potential delays. The language is required boilerplate, but it does stand in contrast to the sunny predictions, despite countervailing evidence, that the project will be completed in the promised ten years.
Posted by lumi at April 17, 2007 7:42 AM