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July 1, 2007
Murky Times article on AY financials leaves impression Ratner deserves a long leash
Atlantic Yards Report
A Metro front New York Times article today, headlined (online) as Official Sees Possible Risk in Big Project in Brooklyn and featuring contributions from four (! ) reporters, is rather murky, but the main message seems to be this: because developer Forest City Ratner may be optimistically projecting condo revenues and construction costs, that jeopardizes the affordable housing promised as the main public benefit, and that should have been disclosed earlier. (The headline in print is "Documents Show Risk In Big Project In Brooklyn.")It almost reads like a backhanded argument for the $300 million in special subsidies that the state's 421-a reform would provide to FCR, though that issue is not mentioned and, given that this article was likely weeks in preparation, could not have been the trigger.
Though the Times article breaks some news, notably about the condo market and construction costs, it also muddies the waters, failing to sufficiently analyze the developer's potential profit and failing to calculate the public subsidies for the project. Also, it fails to acknowledge that the developer's announced ten-year buildout may be a fantasy.
Thus the article doesn't squarely address the question posed by Assemblyman Jim Brennan, who sued to get the documents he passed on to the Times, asking "whether the Project’s size and density could be reduced without endangering its economic viability.” Instead, it leaves the impression that Forest City Ratner needs as long a leash as possible, even though it has essentially received a private rezoning for prime property.
article
NoLandGrab: As always, Atlantic Yards Report is the best place to go to read a complete breakdown of all the fact and figures described in the Times article.
Posted by amy at July 1, 2007 12:05 PM