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March 3, 2008
Unease Erodes Ambition in Real Estate
The NY Sun
By Peter Kiefer
Atlantic Yards is on the list of multi-billion-dollar projects that could be in trouble as the storm clouds thicken in the NYC real estate market:
Last week, the Metropolitan Transportation Authority said the price tag for the completion of the first leg of the Second Avenue subway line had ballooned to $4.35 billion from $3.8 billion. Critics are questioning whether Lower Manhattan transportation projects such as the Fulton Street Transit Center and the Santiago Calatrava-designed PATH Station are worth their soaring price tags, and the projects' elaborate designs are being pared down.
The planned redevelopment of Penn Station has a budget shortfall of at least $1 billion. A public spat erupted between city and state officials over Governor Spitzer's plan to scrap the expansion of the Jacob K. Javits Convention Center after cost estimates more than doubled to $5 billion, and last week one of the five original bidders in the proposed development of the Hudson Rail Yards project on Manhattan's West Side — Brookfield Properties — dropped out. A shortage of federal housing subsidies and ongoing litigation from resident groups is threatening Bruce Ratner's $4 billion Atlantic Yards project near downtown Brooklyn. The list of public and private projects on hold seems to grow on a weekly basis.
Posted by lumi at March 3, 2008 5:06 AM