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November 17, 2008

How Forest City Ratner (quite possibly) saved $55 million on "Arena Land"

Atlantic Yards Report

Norman Oder digs up yet more subsidy for Forest City Ratner's Atlantic Yards project.

In June, I wrote that an unreleased appraisal might be hiding a city-enabled bonus of tens of millions of dollars for developer Forest City Ratner (FCR).

Now I can better estimate a number: $54.6 million.

That number, of course, is speculative, but the calculation is fairly straightforward. Forest City Ratner was reimbursed $100 million by the city for property in the Atlantic Yards footprint for which it spent $103.5 million.

But the property was more likely worth $158.1 million, based on the city's own valuation of development rights at a site reasonably close to the Atlantic Yards footprint. So that means the city's land subsidy could be considered not the announced $100 million but nearly $155 million, a bonus of some 55%.

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NoLandGrab: While the Governor and the Mayor pay an extraordinary amount of lip service to "shared sacrifice," they continue to play a game of reverse-Robin Hood, taking from the taxpayers to line the pockets of the Sheriff of Nott..., er, Bruce Ratner.

Posted by eric at November 17, 2008 10:35 AM