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September 29, 2008
Barclays committed to Brooklyn arena
Court setback imperils Atlantic Yards ground breaking but bank statement is a boost.
Crain's NY Business
by Matthew Sollars
Barclays Bank says it is committed to the planned basketball arena at the Atlantic Yards project despite a court setback which imperils a planned ground breaking.
A state Appellate Court panel Monday rejected a plea by the state’s Empire State Development Corp. and Forest City Ratner to dismiss a lawsuit alleging the use of eminent domain violates the state constitution. A group of 9 property owners and tenants opposed to the project filed the state suit after a similar lawsuit arguing eminent domain violated the U.S. Constitution was rejected by the U.S. Supreme Court in June.
...“While the Appellate Division Second Department’s decision to hear the case may delay the project for approximately six months let me be clear that the project will go forward,” Mr. Ratner said, in a statement.
The developer also stressed that the project could boost the city during an economic downturn. "Atlantic Yards will be built and it will create thousands of needed jobs and affordable homes," he said.
Barclays Bank has agreed to pay an estimated $20 million per year for the naming rights to the proposed arena, and is believed to have a clause which allows it to back out the deal if construction on the arena is not started by the end of November.
“We look forward to breaking ground with our partners in Brooklyn,” said a Barclays spokesman.
NoLandGrab: Talk is cheap. Let's see what Barclays does when the end of November comes around — will they be donning hard hats and wielding silver shovels in Prospect Heights, or mailing in their cancellation notice while trying to grapple with the increasingly grave global financial crisis?
Posted by eric at September 29, 2008 4:23 PM