« Sunday in NYC: Avella denounces overdevelopment; Luxury Living showcase draws throng | Main | Sports of The Times: Showing Power, but Weakening a Neighborhood »
March 31, 2008
Docs: Low Disclosure Req'd From Ratner For ED Seizure
Brownstoner.com
by Sarah Ryley
Brownstoner's Sarah Ryley has been poring over the State funding agreement for Atlantic Yards, and the details aren't pretty. For one thing, even though Bruce Ratner himself says the arena's the only thing he plans to start building, the state plans to seize all the land in the 22-acre footprint.
Bruce Ratner would only be required to show his financing plan for the Atlantic Yards arena, not its office and residential towers, for the state to seize property and leases spread across the project's 22-acre footprint. According to the recently released AY funding agreement, "Prior to, or simultaneously with, [Empire State Development Corporation] acquiring title to any portion of the Project Site by condemnation, Developer or its Affiliates shall (i) provide a financing plan, subject to the reasonable approval of ESDC, for the financing of the Arena, and (ii) cause the closing to occur under the acquisition contract for the LIRR Vanderbilt Yard." Most of the property the state plans to seize is not in the arena footprint, and the promise of 2,250 units of affordable housing was a central argument in justifying the use of eminent domain. Forest City Ratner spokesman Loren Riegelhaupt pointed out that prior to the state approving Atlantic Yards, "We have provided a complete financing plan for the entire project ... which outlines in detail all the components of the plan." That plan, dated late 2006, expected the residential and commercial towers to be largely financed by affordable housing bonds and mortgages. ESDC spokesman Warner Johnston said in an email exchange, "The residential piece is the most important component and we are working with the developer to ensure that it is delivered."
Lead Atlantic Yards opponent Daniel Goldstein was momentarily speechless last night when read the terms for seizing his condo, which is located in the center court of the planned arena. "This idea that they're going to condemn 22 acres when the only thing they can assure is an arena, it's an abomination... it's crazy, it's unethical." Goldstein contends that "the state needs to assure that there are financing agreements for the affordable housing before they proceed with condemnation." In a recent interview with The New York Times, Ratner indicated he intends to finish the entire project, but said his inability to find Miss Brooklyn an anchor office tenant and the tightened bond market could delay everything but the arena for years. He's made more headway in financing the arena, now tagged at nearly $1 billion: Barclays Bank agreed to pay $400 million for its naming rights, less than two-thirds the total expected from sponsorship deals according to the 2006 financial plan. Luxury suite and loge box revenue would bring in even more, staring at $38 million a year and steadily increasing.
NoLandGrab: Does the state really intend to sit idly by while Ratner creates a Norwood-style wasteland — or a massive parking lot?
Posted by eric at March 31, 2008 3:47 PM