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May 13, 2009
Atlantic Yards project faces fresh hurdle
Appeals court rulings could complicate life for developer Forest City Ratner
Crain's NY Business
by Amanda Fung
Two New York state appeals court rulings could put a wrench in Forest City Ratner Cos.’s plans to build its sprawling Atlantic Yards project in Brooklyn.
The recent rulings give Henry Weinstein, a developer who owns almost an acre within the proposed Atlantic Yards footprint, the right to evict the property’s tenant, Brooklyn developer Jeshayahu Boymelgreen and Forest City.
Forest City was given an illegal assignment to Mr. Weinstein’s properties according to last week’s rulings. The court also said Mr. Weinstein can sue the entities involved in the case for monetary damages. The unanimous decisions reverse a March 2007 decision made by Brooklyn Supreme Court Justice Ira Harkavy, which allowed Mr. Boymelgreen to remain an occupant despite termination of the lease.
The decisions were reached last week and announced Wednesday by Mr. Weinstein’s law firm Borah Goldstein Altschuler Nahins & Goidel. The law firm of Herrick Feinstein, which represents Mr. Boymelgreen, did not return a call for comment. A spokesman for Forest City said these rulings will not have an impact on the proposed project.
“We are now pushing for an eviction,” said David Brody, a senior partner at Borah Goldstein Altschuler Nahins & Goidel, adding the next step will involve asking for a hearing to determine the difference between the present-day value of the property and its value when the lease was terminated in July 2006, so Mr. Weinstein can recoup that money. The value is unknown, however. According to preliminary calculations in the lease, Mr. Weinstein’s damages exceed $25 million, the law firm said.
NoLandGrab: $25 million seems like a stretch, but hey, we could say the same thing about trying to sell $800 million worth of tax-free bonds to finance an arena in Brooklyn when a perfectly fine arena is available in Newark.
Posted by eric at May 13, 2009 4:45 PM