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February 4, 2008

Does AY delay cost $6M a month? $12M? Forest City Ratner's fuzzy math

Atlantic Yards Report

Forest City is trying to convince an appellate court to expedite an appeal of the case challenging the Environmental Impact Statement for Atlantic Yards. The claim is that delays in the project is costing lots of money. But how many millions — 4.15, 6, 12? Take your pick.

How much money is Forest City Ratner losing each month because of delays in the Atlantic Yards Project. In an effort to convince an appellate court to expedite the appeal in the suit challenging the AY environmental impact, a top executive and top lawyer both offer some very fuzzy math.

While last April executive Jim Stuckey estimated $4.15 million a month--a little more than .1% of the projected cost of the project--in an affidavit filed 1/17/08, his successor MaryAnne Gilmartin now claims $6 million a month.

However, the text of the affidavit offers no explanation of why that cost has escalated, and in fact cautions in more than one place that the developer can't predict cost escalations.

Compounding that, FCR attorney Jeffrey Braun, in his legal affirmation unaccountably doubles down, claiming that Gilmartin's affidavit indicates that The expenses that FCRC would continue to incur while a stay was in effect and that are relatively easy to calculate would exceed $12 million per month, and that does not include the operating losses that the New Jersey Nets basketball team incurs while it continues to use an antiquated arena as its home venue.


Posted by steve at February 4, 2008 7:20 AM