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July 23, 2007
With missing building (322 condos), AY financial projections have huge hole
Atlantic Yards Report
Norman Oder discovers that the high-rise planned for Site V, including the 322 market-rate condos, was completely missing from a project planning document:
The omission is important.
...
[T]he numbers have been used in the projections made by Forest City Ratner and in the KPMG report (large PDF) commissioned by the Empire State Development Corporation (ESDC) last year regarding project finances.So the estimation regarding a internal rate of return--in this case, 9.6% for the non-arena portion of the project--omits a building. It doesn't wash.
...
So state officials who examined Atlantic Yards, including the Public Authorities Control board, missed a building.
The NY Times had its own explanation of the omission, but gets a key fact wrong. The irony is that this building was also the subject of a previously secret Memorandum of Understanding, released by Develop Don't Destroy Brooklyn in August 2005.
Posted by lumi at July 23, 2007 9:57 AM