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February 14, 2009
Atlantic Yards Buys More Time, Ratner Wants Stimulus Money
Gothamist
This item summarizes the most recent Atlantic Yards news: Ratner has been able to renegotiate his loan from Grammercy Capital. Meanwhile, the developer has until the end of 2009 to get the development started in order to take advantage of tax-exempt bonds and a redesigned arena plan has not yet appeared. Follow the link the read of the upcoming hearing for the eminent domain case and how former Senator Alfonse D’Amato is lobbying in Washington to get stimulus money for the boondoggle.
Developer Bruce Ratner's embattled, $4.2 billion plan to build a Nets basketball arena, office towers and thousands of apartments in Brooklyn is staying alive, at least for now. This month was critical for Ratner because a $177 million loan from Gramercy Capital Corporation for the 22-acre property was due. Considering that the developer still hasn't paid the MTA some $100 million for the Vanderbilt Yards site, it seemed doubtful that he'd be able to make the nut.
And he hasn't! But the Times reports that Ratner's company Forest City has just bought more time from Gramercy Capital, working out a deal to make a $15 million payment immediately, as well as additional large payments in the future, in return for a two-year extension. Of course, many obstacles remain. Because of a recent ruling by the IRS, Forest City has only until the end of the year to use special tax-exempt bonds for the arena, which was originally pegged at $1 billion. Ratner's now leaning on designers to cut that cost in half because investors aren't coming forward to finance the thing.
Posted by steve at February 14, 2009 8:00 AM