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May 15, 2009
It came from the Blogosphere...
Runnin' Scared, Atlantic Yards Continues to Not Get Built
If you're wondering what's going on with the troubled Atlantic Yards development project, the answer is nothing much and nothing good for developer Forest City Ratner. Back in 2007 a judge ruled that the way a long-term tenant of Henry Weinstein's Pacific Street building transfered his lease to Ratner -- a ploy to get the property for Ratner's Atlantic Yards project -- was illegal. That ruling was upheld on appeal this week, and Weinstein given the right to sue for damages. Ratner's stock has fallen 12 percent, and Ratner is issuing a stock split to raise money.
NoLandGrab: It's not technically a stock split, because that would not dilute the value of current shares.
Stick News, 752 Pacific Street Owner Looking for $25 Mil in Damages
While some Atlantic Yards opponents probably think the recent appeals court ruling that Jeshayahu Boymelgreen violated the terms of his lease with the owner of 752 Pacific Street by subletting to Forest City Ratner is priceless, the owner's law firm is being a little more precise in its calculations: It's going to sue for $25 million or so to make up for loss in value since the lease was violated back in 2006, reports Crain's.
Curbed, Atlantic Yards Oops
The rightful landlord can evict Boymelgreen and sue the for damages, which exceed $25 million according to the plaintiff's lawyer. Will the guy end up selling to Ratner himself? "My client declined to sell the property to Ratner and has never been desirous of selling his properties," his lawyer says.
GlobeSt.com, Court Okays Eviction of FCRC, Boymelgreen
The lead attorney for Weinstein, David Brody, of Borah, Goldstein, Altschuler, Nahins & Godel, PC, tells GlobeSt.com that FCRC’s Bruce Ratner "recorded his option for the assignment of the buildings, then he recorded certain other things and all for purposes of allowing him to represent to the ESDC that he controlled the property in terms of the Atlantic Yards project."
Standing firm, the ESDC spokesperson tells GlobeSt.com that in fact, FCRC "did not misrepresent its position to ESDC, as it believed it had a valid assignment of Boymelgreen’s lease hold interest in the premises. The courts, however, disagreed."
...Brody tells GlobeSt.com that while his client may not win in the end, the ruling at least provides an opportunity for discovery to see how far up the ladder they can go. "Boymelgreen illegally assigned the lease to Ratner," he says.
...Brody says that under the lease, Weinstein "has the right to go in and inspect his property." But he adds Weinstein has even encountered difficulties when he visited his properties.
He says that Weinstein’s desire has been to be left alone and to be allowed to own his property and develop it as he sees fit. "That’s what this is really about for him," Brody says.
Posted by eric at May 15, 2009 12:40 AM