« DDDB PRESS RELEASE: At State Senate Hearing on Ratner's Atlantic Yards Proposal: | Main | It came from the Blogosphere... »
June 1, 2009
LIRR chief: Sweeter MTA deal for Ratner could get Yards back on track
The Brooklyn Paper
by Mike McLaughlin
Atlantic Yards developer Bruce Ratner is poised to receive new generous terms from the MTA that could jumpstart his stalled mega-project even as a new report revealed that the city and state would actually lose money on the $4-billion arena, housing and office complex.
Helena Williams, president of Long Island Rail Road and the interim executive director of the Metropolitan Transportation Authority, told a state Senate committee on Friday that she’s in “intense negotiations” with Forest City Ratner to alter the deal to sell the Vanderbilt rail yards to the developer.
Ratner agreed to pay $100 million to acquire air rights to build over the trench between Atlantic Avenue and Pacific Street. But pleading hardship due to the global credit crunch, Ratner is looking to pay perhaps as little as $20 million up front and to spread the remainder out of over years.
And the MTA appears to be on board.
NoLandGrab: Okay, let us get this straight.
Later this month, straphangers are going to start paying 25 cents more for each bus or subway ride, a 12.5% increase. Long Island Railroad and Metro North passengers will start paying between 5% and 20% more.
Bruce Ratner, however, because of "hardship due to the global credit crunch," is only going to have to put down $20 million for the Vanderbilt Yard, an 80% decrease from the $100 million he was obligated to pay.
So every time you swipe our MetroCard or buy an LIRR or Metro North ticket after June 28th (perhaps on your way to a job interview or to plead with your mortgage lender for a little more time to make your payment), you can feel good that the higher rate you'll be paying will be going to help a near-billionaire (and his corporation) make ends meet.
Oh, and one other thing. The MTA will apparently allow Ratner to construct a new railyard with only seven tracks, two less than what they'd originally agreed upon. This despite the terms of the MTA's own request for proposal for the sale of the Vanderbilt Yard, which stated that the sale should:
"maximize the economic benefit to MTA for improvement of the public transportation facilities and functions of the MTA" and that "any development on the site should contemplate that LIRR would maintain uninterrupted use of the yard and support facilities at no less than the existing capacity and functionality."
Just for the record, there were 10 tracks in the original yard — click here and count 'em yourself.
Posted by eric at June 1, 2009 11:12 AM