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December 21, 2007
Real Estate Round-up
Brooklyn Daily Eagle
By Sarah Ryley
Atlantic Yards developer Forest City Ratner is “the undisputed king of [Payments in Lieu of Taxes],” or privately negotiated deals between the city and companies, according to the Daily News.
Of the $100 million in property taxes the city lost last year due to PILOT agreements, Forest City saved $16.6 million from its actual $26.3 million property tax bill on the commercial property the company owns in Downtown Brooklyn. Ratner spokesman Loren Riegelhaupt responded: “A lot of those buildings in MetroTech were constructed when downtown Brooklyn was not what it was today… Many businesses were fleeing to New Jersey in the 1990s, and we were willing to invest in that area when others wouldn’t.”
NoLandGrab: Loren Rigelhaupt's comment conceals the fact that MetroTech, though originally conceived as a high-rise office park to stem the tide of corporations leaving for New Jersey, has not lived up to its promise.
After high vacancy rates required a municipal bailout, the City of NY became MetroTech's largest tenant. So taxpayers lose revenue through PILOTs, and then get to pay MetroTech's landlord Bruce Ratner for the privilege.
Posted by lumi at December 21, 2007 5:21 AM