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June 30, 2009
HEADLINES: Not-so-frivolous eminent domain lawsuit edition
NY Observer, New Uncertainty for Atlantic Yards as Court of Appeals Takes Eminent Domain Suit
New York’s highest court has agreed to hear an eminent domain case over the Atlantic Yards project proposed for Brooklyn, a move that infuses new uncertainty into the planned $4.9 billion development that entails a new Nets basketball arena and 6,400 apartments.
The decision by the Court of Appeals was not expected by the project’s developer—Bruce Ratner and his Forest City Ratner—at least based on its public statements and actions. After a year and a half of stagnation, the development seemed to gain new momentum in recent weeks after an appellate court ruled against opponents. Mr. Ratner had been pushing for new public approvals and renegotiated deals with the stated intent of breaking ground on the arena this fall.
Mr. Ratner already confronts a tight schedule in securing $530 million in tax-free financing for the arena. Based on a Dec. 31 I.R.S. deadline for the financing, the cost of the arena would jump by tens of millions of dollars without a tax exemption, and the task of securing financing would grow substantially harder (the broader real estate financing market is more inclement than the tax-free bond market). Thus the viability of the project seems to depend in large part on how fast the court can turn around a ruling.
NoLandGrab: The ESDC and MTA giveth, and the Court of Appeals taketh away.
Reason Hit & Run, New York Court of Appeals to Hear Atlantic Yards Case
The New York Court of Appeals (the state's highest court) agreed today to hear arguments in the case of Goldstein v. New York State Urban Development Corporation, which deals with the controversial use of eminent domain on behalf of developer and New Jersey Nets owner Bruce Ratner. As I discussed in an article last week, Ratner is the real estate powerbroker behind the Atlantic Yards redevelopment project in Brooklyn, a massive boondoggle centered on a new basketball arena for the Bruce Ratner-owned Nets.
Things are certainly heating up now. Last Monday, the Metropolitan Transit Authority (MTA), which controls a crucial 8-acre rail yard at the center of the Atlantic Yards footprint, offered Ratner a massively discounted new offer, whereby he would pay just $20 million up front for the land, then pay another $80 million over the next 22 years. Three years ago, however, the MTA wanted the full $100 million up front (and that's for 8-acres that have been appraised at over $200 million). Bear in mind that the MTA just raised subway and bus fares, yet somehow still has the cash to bail out Ratner and his lousy corporate welfare arena. So much for acting responsibly during an economic recession! As for Ratner, he still needs to raise over $500 million and break ground before the end of the year in order to qualify for tax-exempt status. So it's wonderful news that he'll be tied up in court trying to explain away eminent domain abuse while the clock keeps ticking away.
NY Daily News, Court challenge could delay Ratner plan to break ground at Atlantic Yards in fall
The developer has vowed to break ground this fall, but the latest court action could throw a wrench in those plans.
When a lower court threw out the eminent domain case in May, Ratner told the News: "This is really the last hurdle that we have and now we can do what our company does best and build an arena and houses."
NLG: Actually, Forest City did what it does best last week — secure more handouts of public money courtesy of the MTA and ESDC.
The Local [Fort Greene/Clinton Hill], Court of Appeals to Decide AY Suit
The suit was filed by nine property owners and tenants, including DDDB spokesman Daniel Goldstein, whose corner of Prospect Heights was deemed “blighted” and whose homes and businesses in the proposed Atlantic Yards footprint have been slated for government seizure.
The Architect's Newspaper Blog, See Bruce in Court!
We recently wrote above how opponent’s best hope of stopping Bruce Ratner’s Atlantic Yards Project was not the departure of Frank Gehry but lawsuits. There was a good possibility the “sweetheart” deals the state had crafted to make Ratner’s project easier to move forward could have triggered further litigation, but it seems it may not even come to that, as the Court of Appeals, the state’s highest court, has decided to hear Develop Don’t Destroy Brooklyn’s challenge to the state’s use of eminent domain.
Nets Daily, Court of Appeals Will Hear Critics’ Lawsuit
New York’s highest court will hear a critics’ appeal against the Empire State Development Corp., further tightening the schedule for Barclays Center and possibly jeopardizing it. The court asked for briefs by July 31, with a hearing in mid-October. The ESDC, Ratner’s partner in the arena project, had asked the court for a hearing in September so Ratner could meet a Dec. 31 deadline for tax emempt bonds.
Curbed, Atlantic Yards Tripped Up Again
In a somewhat surprising decision, the state's highest court has decided to hear the appeal filed by Atlantic Yards opponents in the eminent domain case against New York State.
NY Politics, Atlantic Yards Eminent Domain Case To Be Heard By Court of Appeals
Willets Point United Against Eminent Domain Abuse, Appeals Court agrees to hear Atlantic Yards case
Queens Crap, Appeals Court will hear Atlantic Yards case
CastleWatch Daily, New York High Court to Consider Atlantic Yards Suit
Brownstoner, Court of Appeals Will Hear AY Eminent Domain Case
Posted by eric at June 30, 2009 12:40 PM