« Atlantic Yards hearing: “It’s Déjà vu, all over again” | Main | Daily News to MTA: compromise with Ratner (and ignore all else) »
May 31, 2009
Times takes semi-skeptical look at Brooklyn arena plans, doesn't question professed 2011 opening
Atlantic Yards Report
Norman Oder looks at an article in today's New York Times reviewing the status of the proposed Atlantic Yards project.
Well, the New York Times didn't cover the hearing yesterday, but in a long article in tomorrow's Sports section, sports business reporter Richard Sandomir asks, Will the Nets ever play basketball in Brooklyn? and concludes: maybe.
For one thing, the Nets have some $500 million--albeit over 20 years--in sponsorship commitments for the arena, notably from Barclays Capital, which bought naming rights.
(Hm--one question no one asked--and I didn't think of: why exactly does the Empire State Development Corporation let Forest City Ratner sell naming rights to an arena that is nominally publicly-owned? The fig leaf of public ownership is necessary for tax-exempt arena bonds; FCR gets to keep the revenues.)
The cost of the arena was approved at $637.2 million in 2006, ballooned to $950 million, and now may be cut by $200 million. The Times reports that Forest City Ratner hopes to have $600 million in tax-exempt bonds sold, which would imply some portion of taxable bonds.
The Times reports that Develop Don't Destroy Brooklyn is committed to lawsuits that could continue to delay the project, though it's not clear they can stop the crucial exercise of eminent domain and thus stop the sale of bonds.
The entire entry is well worth a read as Oder examines:
- The credibility of claims for a arena built by 2011
- Expectations that work could resume on the MTA rail yards
- A point/counterpoint between FCR and DDDB
- The whereabouts of Gehry
Posted by steve at May 31, 2009 8:26 AM