« News analysis: The Times gives the ESDC a bye | Main | More Developers Tracking Projects' Progress With Cameras »
March 28, 2008
Is Bruce Ratner Out of Cash?
Brownstoner
Bruce Ratner is just a little strapped for cash — this time it's his Frank Gehry-designed tower in Lower Manhattan that's caught in the starting gate:
Looks like Brooklyn isn't the only borough seeing a stalled project care of our pals at Forest City Ratner. Apparently an ambitious FCR-developed 75-story tower planned for 8 Spruce Street, near City Hall, is going nowhere fast. This wouldn't necessarily be news except for the fact that part of the Frank Gehry-designed building is supposed to include a public school, and the local community board down there is starting to get a wee bit skeptical about the school being ready for action in '09, as promised. Downtown Express reports:
When Noah Pfefferblit, C.B. 1’s district manager, asked Ratner and the S.C.A. why no work has happened on the project in six months, he got two different answers. The School Construction Authority said there was a delay in delivering a shipment of steel, but that the steel would arrive soon. After that, work will begin on an expedited schedule to get the school open by fall 2009, the authority said. Ratner gave an entirely different explanation, after canceling an appearance at the community board to discuss the project. “They said they’re having issues with their financing,” Pfefferblit told the Youth and Education Committee Tuesday. Frank Gehry, known for complicated and whimsical buildings, designed the tower that will house the school. Paul Hovitz, a committee member, provided further evidence of funding troubles, which have been rumored for months. He was recently discussing the project with another board member in public, when a man overheard him. Ratner is having problems financing the project, said the man, who added that he worked for a company doing the financing, Hovitz said.
The Real Estate [NY Observer] linked Brownstoner and the same Downtown Express item in its afternoon news wrap-up:
Forest City Ratner might be backing away from another commitment it made to the community in exchange for development rights, but this time we're not talking about Atlantic Yards. Developer Bruce Ratner said he is having trouble securing financing for a planned 75-story tower at Spruce Street near City Hall, meaning the elementary school under construction there probably won't be completed in time for the 2009 school year.
Charles Bagli discussed the Beekman Tower project on WNYC's The Leonard Lopate Show, beginning around the 5:26 mark.
Bagli reports that the tower's foundation has been poured and a construction crane has already been positioned on site. While Bruce Ratner is scrambling to close on the financing, the crane continues to be leased and the crew is paid because he can't afford to have workers hired away to another job site.
Bagli reveals that the developer said that they plan to close on the financing by the end of the month. Whether or not Ratner is on track remains to be seen.
NoLandGrab: Ratner-enabler Sheldon Silver can be none too happy with the lack of progress on Beekman Tower.
Posted by lumi at March 28, 2008 4:54 AM