March 22, 2009
EMINENT DOMAINIA: The Big Apple Bites!
Noticing New York, Willets Point Lawsuit Points Out . . .
This wide-ranging entry of Noticing New York covers:
- The latest in legal challenges to proposed development for Willets Point.
- How the City and State can become locked in a death embrace with "zombie mono-developers" who gain exclusive development rights to a site, but cannot actually follow through due to deteriorating economic conditions.
- Parallels to the AIG scandal analogy, wherein a developer might get paid extra to clean up its own mess.
- Extra bonus: a re-defining of BYOB as "Bring Your Own Blight."
References to the proposed Atlantic Yards project and developer Forest City Ratner (FCR) abound. One example compares AIG with FCR:
Consider the similarities: Like Forest City Ratner, huge AIG was headed for bankruptcy. Essentially, AIG was bankrupt except for the fact that the government stepped into a subsidizing partnership relationship with AIG. Through its subsidies, the government owns 79.9% of AIG. Similarly, the government is subsidizing Atlantic Yards so heavily with taxpayer money that it is paying for substantially more than half of the $4.4 + billion price tag of Atlantic Yards. In each case we are discovering how rushed and badly thought out the government’s provision of subsidies has turned out to be.
Cato Institute, Kelo v. City of New London
Here is a recently posted video that gives an overview of the Supreme Court decision allowing a broad definition of public use so that property may be taken by the State. In the case of Kelo, the result has been what is now feared for the proposed Atlantic Yards development: job creation only for demolition crews and a development that never happens.
Posted by steve at March 22, 2009 8:20 AM