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June 22, 2009

Plus Ça Change, (The More Things Change,) Plus Une Chose En Particulier Ne Change Pas: La Transaction Fixée (The Wired Deal)!

Noticing New York posted a preview of the issues facing today's Metropolitan Transportation Authority (MTA) Finance Committee Meeting.

Here's an overview of the terms of the MTA bailout of Atlantic Yards developer Bruce Ratner:

  1. Letting the developer construct a project of significantly lesser public value under rubric of "value engineering" (translated, that means, among other things, constructing a train yard with 7 tracks rather than 9 or the original 10, delivering a project of much lesser quality, and with less “green space”).
  2. Giving the MTA’s property to the developer (property for which the developer did not bid in the first place) for a considerably smaller payment despite this currently being a time of financial need for the MTA. (We are now talking in terms of the pathetically paltry. See Atlantic Yards Report “What could $20 million buy?” series.)
  3. Less will be done by the developer up front, and
  4. Postponing, even further, the borrower’s obligation to deliver the ostensible benefits of the project. For instance, one housing tower that would be front-loaded with luxury units while others will be postponed.

The article continues by analyzing how the politics and economy have changed... and how little that matters, when the only one getting things done in Albany seems to be Bruce Ratner.

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Posted by lumi at June 22, 2009 5:38 AM