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April 4, 2007
Gag Me: Why Do Mr. Sitt and Mr. Ratner Like Silence?
The Gowanus Lounge
As anyone who's been following the Thor Equities Coney Island saga or the earlier Forest City Ratner buyout of property owners in the Atlantic Yards footprint, confidentiality clauses are the latest fashion accessory in development deals. The new issue of the Real Deal offers a nice picture of the trend:
Thor offered its tenants in Coney Island the opportunity to stay on for one year. In return, the business owners must remain silent about redevelopment efforts that "may generate opposition from other landowners, businesses and certain members of the public" for four years after signing...Violators would pay $10,000 to Thor for each infraction.
The developer says the gag rule is necessary not to keep tenants from speaking out, but to protect confidential information.
NoLandGrab: What's especially fun about Ratner's gag order is that sellers, when called upon, must also state publicly that they were "fairly treated" (or is it "treated fairly?") by the developer. These public displays of affection are kinda reminiscent of McCarthy-era loyalty oaths.
Posted by lumi at April 4, 2007 8:57 AM