« Looking at the Times's article on the effects of economics on sports | Main | Putting a stake in the heart of Dodgers nostalgia, new book on O’Malley points out that Brooklyn had rebounded by the 1960s »
March 23, 2009
Forest City in the News
Though we're trying to keep track of news about other projects being developed by Forest City Enterprises, the parent company of Atlantic Yards developer Forest City Ratner, here's one story we missed earlier this month, which includes an interesting twist.
MARCH 2 — Forest City Enterprises announces that The Village at Gulfstream Park secures tax-incremental financing (TIFs), where future gains from the taxes generated by the project are used to retire the debt. The project is being developed jointly by Forest City Enterprises and Manga Entertainment.
PR Newswire, Forest City Reaches Agreement on Tax-Increment Financing, Announces 32 Tenants for The Village at Gulfstream Park
CLEVELAND, March 2 -- Forest City Enterprises, Inc. (NYSE: FCEA) (NYSE: FCEB) today announced that it has reached agreement with the City of Hallandale Beach, Fla., for up to $900,000 per year for 15 years of tax-increment financing (TIF) for The Village at Gulfstream Park, a 490,000 square foot, high-end retail and entertainment destination currently under construction in the City. The Company also announced 32 top-tier tenants for the center, which is expected to open in the first quarter of 2010.
Commenting on the TIF agreement, Charles A. Ratner, Forest City president and chief executive officer said, "This is a milestone in our relationship with the City of Hallandale Beach and represents the creation of a true public-private partnership to make the Village at Gulfstream Park a reality. Given continuing challenges in the credit markets, creative solutions such as this are needed to ensure the strength and viability of new development. We deeply appreciate the commitment this represents on the part of the City. Today's tenant announcements are the first of many steps in returning that commitment."
Proceeds from the TIF will be used to assist in retiring debt incurred by the project for infrastructure improvements.
...
The Village at Gulfstream Park is located on Florida's Atlantic coast, between Miami and Ft. Lauderdale, on U.S. Route 1, less than two miles east of Interstate 95. It is anchored by Florida's premier thoroughbred racing track, and is being developed by subsidiaries or affiliates of Forest City and Magna Entertainment Corp.
Co-Star Group, Village at Gulfstream Park Opening in 2010
GlobeSt.com, Gulfstream Park Project Secures TIF
MARCH 6 — A local paper reports that the project is bucking national economic trends.
South Florida Times, Shops, theater, nightclub coming to Gulfstream Park
Although the country is in the midst of a national economic situation, the Village at Gulfstream Park is currently in the process of constructing Phase 1 of the $244.7 million project that will bring more than 13 restaurants, 17 shops and two upscale and trendy night clubs to the establishment.
Large cranes hang high over the skies of 201 South Federal Highway in Hallandale Beach, and men in yellow hardhats continue to layer block over block, as the general manager of Gulfstream Park, the developers of Forest City Commercial Development and the retailers wait in hope and anxiety for the final product.
The vision is to have the Village at Gulfstream Park be the leisure, fashion and entertainment destination in South Florida with quality dining, exceptional retail outlets, exciting entertainment and of course, one of America’s thoroughbred racing facilitie
MARCH 6 — Magna Entertainment, the largest owner and operator of thoroughbred racetracks in the nation, filed for Chapter 11 bankruptcy. Forest City offers a grim reminder of Magna's "obligations."
The Miami Herald, Gulfstream Park's owner seeks Chapter 11 bankruptcy
Magna Entertainment, the nation's largest horse track operator -- and owner of South Florida's Gulfstream Park -- has filed for Chapter 11 bankruptcy protection and will sell Gulfstream as part of a deal to keep its racetracks open.
...
Nevertheless, Magna's bankruptcy filing does raise questions about Gulfstream's future. To keep its racetracks open, the company arranged a six-month, $62.5 million financing package through a subsidiary of MI Developments, Magna's largest shareholder.That deal also calls for Magna to sell Gulfstream and other properties to either MI Developments or a third party that may emerge during the Chapter 11 process in Delaware.
Though South Florida's housing market is in a slump, Gulfstream's Hallandale Beach property is highly valuable, which could prompt interest from developers.
...
So far, the project is only 50 percent leased. Ultimately it will have 70 stores covering more than 410,000 square feet of retail and entertainment space, plus 80,000 square feet of office space.Magna partnered with Forest City Commercial Group on The Village. Brian Ratner, who heads Forest City's East Coast development team, said of Magna, "They've honored their obligations and we expect them to continue to do that.''
As an outsider, it's difficult to conclude where this leaves Forest City. However, we know that this is one of the few Forest City projects on which work has continued, and that executives in Cleveland who are "proactively managing debt maturities" didn't need another cloud of uncertainty hanging over their heads. Though Brian Ratner keeps his cool, you have to wonder if Magna will continue to honor its obligations, when the reason for filing for Chapter 11 in the first place is to find relief from just such obligations.
Posted by lumi at March 23, 2009 5:22 AM