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June 29, 2007
Bruce boost: Assemblyman gives Ratner a clause for celebration
The Brooklyn Paper
By Ariella Cohen
Bruce Ratner’s sweetheart deal got a cherry on top last week after a state lawmaker slipped in a last-minute amendment to a housing reform bill that will shave $175 million off the developer’s costs.
The so-called “Ratner carve-out” was slipped into a tax-break bill passed by the Assembly last Friday, in the rush to close the legislative session. The amendment didn’t mention Ratner’s development by name, but referred to it as a “multi-phase project that includes at least 2,500 dwelling units and is being implemented pursuant to a General Project Plan” — a description that fits only one development in the state: Atlantic Yards.
The full article has quotes from politicians who are stunned, and affordable housing advocates who are speaking out. As for Marty, Vito, and Bruce, they had no comment.
City Councilman David Yassky wants NY City to rescind its direct cash contribution. State Assemblyman Hakeem Jeffries is asking the Governor to veto the bill.
You can guess what Ratner thinks about the bill:
Ratner has been lobbying the legislature for several years, state records show, and has, in fact, been banking on the exemption.
A consultant report commissioned by the developer last year showed that Ratner’s cash flow projections assumed the state would grant him the 25-year tax break on all 16 Yards towers.
The “carve out” will also allow Ratner’s project to charge more for his “affordable” units than other developers who receive the tax credit.
Posted by lumi at June 29, 2007 12:24 PM