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June 8, 2009

Brodsky: MTA board’s acceptance of Ratner’s lesser offer for railyard would violate its fiduciary duty

Atlantic Yards Report

Assemblyman Richard Brodsky, who chairs the state Assembly Committee on Corporations, Authorities, and Commissions, warned last week that, if the Metropolitan Transportation Authority (MTA) board accepts “less money” for the property destined for the Brooklyn arena, it would “be a violation of the fiduciary duty”--their obligation to act with the highest standard of care.

Forest City Ratner, which agreed to pay $100 million for the MTA’s 8.5-acre Vanderbilt Yard, has reportedly offered only $20 million upfront for the segment of land it needs for the arena, with the rest to be paid at some later date. The MTA board meets June 24.

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Posted by lumi at June 8, 2009 6:56 AM