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March 21, 2008
Slow Economy Likely to Stall Atlantic Yards
The New York Times
by Charles V. Bagli
A must-read exclusive on the current state of Bruce Ratner's controversial, and now faltering, Atlantic Yards.
Here's the skinny:
The "darkening economy" is putting the kibbosh on large-scale development projects due to lack of bond financing.
Atlantic Yards office space and housing is being delayed (Ratner blames lawsuits), while the arena is going forward.
Starchitect Frank Gehry signed a letter, "cold calling" executives in hopes of finding a tenant for Miss Brooklyn. Ratner conceded, “until we get a tenant, we won’t start Miss Brooklyn.”
The high-rise planned for Site V, where PC Richard and Modell's are currently located, is also being delayed.
Reportedly, pre-construction costs will run $550 million. The City and State are kicking in $300 million in cash, with more subsidies to come.
As previously reported by other media organizations, the City and State have already disbursed $55 million of the promised $300 million.
The cost estimate for the arena is now $950 million (more than double the original $435 million price tag).
Ratner says he and Empire State Development Chairman Avi Schick have been working on getting the documentation for the project done, so that eminent domain condemnations can be started, and finished, by the end of the year.
Though reports, published last week, stated that Governor Paterson was committed to Atlantic Yards, in regard to eminent domain, Paterson's office told reporter Charles Bagli that they were reviewing the matter.
IRS proposals to restrict tax-exempt bonds could cause project costs to balloon.
Posted by lumi at March 21, 2008 5:55 AM