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April 2, 2009
Forest City's Form 10-K signals a smaller arena, offers new warnings about loss of financing and sponsorships
Atlantic Yards Report
Norman Oder compares Forest City Enterprises' 2008 Form 10-K with the 2007 and 2006 versions, and notes some interesting changes.
While the annual Form 10-K documents filed by Forest City Enterprises with the Securities and Exchange Commission (SEC) contain boilerplate language about the risks facing the Atlantic Yards project, that language has changed somewhat, providing some significant hints about the developer's plans and concerns.
Notably, the developer no longer promises that the Atlantic Yards arena would be 850,000 square feet. A smaller arena would indeed be cheaper to build.
Also, the developer now acknowledges additional potential for increased costs and delays, for the first time warning of potential "inability to retain the current land acquisition financing" and "loss of arena sponsorships and related revenues." Forest City also warns about the possibility of failing to meet required equity contributions.
NoLandGrab: While Forest City marketing and PR execs are apt to stretch the truth, the financial folks are loath to trifle with the SEC.
Posted by eric at April 2, 2009 8:27 AM