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June 24, 2009
MTA full board rubber-stamps Ratner bailout
The Brooklyn Paper
by Mike McLaughlin
As expected, the Metropolitan Transportation Authority approved a massive public bailout of the struggling Atlantic Yards project today, changing the project’s financing to save developer Bruce Ratner hundreds of millions of dollars.
The full MTA board, following a presentation on Monday, met this morning and overwhelmingly rubber-stamped a deal to allow Ratner, who had originally promised $100 million for rights to build over the Vanderbilt railyards in Prospect Heights, to pay just $20 million up front for the prime eight-acres.
The remaining $80 million would be paid out, at 6-1/2 percent interest, over the next 22 years.
Ratner secured the railyard development rights in 2006 for less than its MTA-appraised value because he also promised $345 million in infrastructure improvements to the MTA facility.
Under the new deal, though, Ratner would make just $147 million in railyard improvements.
The MTA board vote was 10-2, and it came moments after the main Atlantic Yards opposition group, Develop Don’t Destroy Brooklyn, tried to upstage the meeting by offering $120 million for the development rights over the Vanderbilt Yard.
The group’s spokesman, Daniel Goldstein, made the offer during the public comment period. The offer was not accepted. In fact, it was not discussed at all by the board members.
Posted by eric at June 24, 2009 12:55 PM