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June 24, 2009
Atlantic Yards Developer Is Allowed to Defer Payments
City Room
by Michael Grynbaum
The developer Bruce C. Ratner can defer his payments for the Atlantic Yards project over a period of two decades, the governing board of the Metropolitan Transportation Authority voted on Wednesday, despite objections from community advocates who derided the deal as a “bailout” for Mr. Ratner.
Only two members of the authority’s board voted against the plan, which will allow Mr. Ratner’s company to pay $20 million up front and $80 million in deferred payments through 2031. Mr. Ratner was originally obligated to pay $100 million up front to the agency, but he requested revised terms after the real estate market entered its steep decline.
Nearly 50 speakers, ranging from private citizens to labor representatives to politicians, spoke before the board’s vote, although their opinions on the matter were mixed.*
...Voting against the plan were Allen P. Cappelli, an appointee of Gov. David A. Paterson, and Mitchell H. Pally of Long Island. Andrew M. Saul, the vice chairman, abstained, and Norman I. Seabrook was absent.
In the board’s debate, Mr. Cappelli said he was bothered by Mr. Ratner’s plans to ratchet down the renovation of the railyards at the heart of the project. He added that the sales price determined by the authority might be below market rate.
“This land is very valuable,” Mr. Cappelli said. “I know the economy has changed a lot in the four years since this plan was initially approved. There may be some risk in pushing the developer back to the table, but unfortunately it’s a risk that I would recommend we take.”
* Norman Oder offers a correction:
Re: “Their opinions on the matter were mixed.”
Actually, no. Almost all the supporters of Forest City Ratner’s plan praised the project as a whole, ignoring the transportation and fiscal impacts of the offer before the MTA.
No elected official other than (a rep for) Brooklyn BP Marty Markowitz spoke in favor of the project.
Along with Letitia James, Assemblyman Jim Brennan and state Senator Bill Perkins (via a rep) spoke against the deal. So did Council Member David Yassky.
Posted by eric at June 24, 2009 1:35 PM