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December 19, 2008

Indirect subsidies: how Forest City Ratner might save another $8 million (and a whole lot more)

Atlantic Yards Report has a must-read post for those who are trying to "follow the money."

Norman Oder explains how the value of subsidies for Bruce Ratner's Atlantic Yards megaproject have already been lowballed. Plus, he identifies another area where NYC is on the hook for unspecified millions:

For example, I estimated last month that Forest City gained nearly $55 million when the city reimbursed the developer $100 million for property in the AY footprint for which it spent $103.5 million--but was more likely worth $158.1 million.

And think I've identified another $8 million, given the transfer of city streets and the conveyance of city property for just one dollar.

Beyond that, the use in project documents of a term known as "extraordinary infrastructure costs"--which Develop Don't Destroy Brooklyn has aptly called "a blank check"--leaves open the possibility of much more public subsidy.

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Posted by lumi at December 19, 2008 5:16 AM