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April 16, 2008

Reading between the lines: Ratner may seek $163M (or more) in subsidies for the railyard

Atlantic Yards Report

We know that Atlantic Yards developer Forest City Ratner intends on seeking more direct subsidies for the controversial megaproject. But we still don't know how much and what the justification might be.

Norman Oder may have stumbled over a clue:

MoneyGiveaway-sm.jpg

What did Chuck Ratner, president of Forest City Enterprises (FCE), mean when he told investment analysts two weeks ago that "we still need more" subsidies for Atlantic Yards?

I can't be sure, but documents submitted by FCE's subsidiary Forest City Ratner (FCR) hint that the developer might seek reimbursement for $163 million (likely more) spent on "extraordinary infrastructure costs"--mainly the platform, but also including planned open space--at the Metropolitan Transportation Authority's Vanderbilt Yard.

Why do I draw that conclusion? Because FCR once claimed that it was absorbing those extraordinary infrastructure costs, part of its investment in the project.

In a court document, FCR dropped that claim. Thus it's reasonable to speculate that the developer will seek reimbursement from the public.

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Posted by lumi at April 16, 2008 5:47 AM