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January 26, 2009

Arena LDC emerges; why would it be used to pay for infrastructure for broader AY project?

Atlantic Yards Report

Even as the Atlantic Yards project seems stalled, state officials have organized a local development corporation (LDC) to oversee tax-exempt bond financing for Forest City Ratner’s planned Barclays Center arena.

But the odd thing about the Brooklyn Arena Local Development Corporation (BALDC) is that its scope contemplates financing for infrastructure improvements beyond the arena—a function not mentioned in the Atlantic Yards General Project Plan (GPP).

That could help get the city and state off the hook for providing additional infrastructure while allowing Forest City Ratner favorable terms to pay for the infrastructure.

The General Project Plan only outlines how a portion of the infrastructure improvements will be paid for, the LDC is a possible vehicle for funding the rest, and Norman Oder notes "other language in project documents opens up the possibility of additional governmental contributions."

The above analysis is preliminary, because the ESDC would provide only partial answers to my queries and was unwilling to explain whether such infrastructure financing was contemplated in the GPP.

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Posted by lumi at January 26, 2009 5:16 AM