« THE ORIGINAL DEAL -- OR NONE | Main | Goldstein Outbids Ratner, In Vain »
June 24, 2009
This Week in Bailouts: MTA Edition
NY Observer, M.T.A. Approves Less Lucrative Atlantic Yards Deal
Bruce Ratner can now cross a major task off his to-do list.
For months now, Mr. Ratner, the developer planning the $4.9 billion Atlantic Yards apartment and arena complex in Brooklyn has been seeking financial relief from an agreement he struck with the M.T.A. in better times.
...Voting 10-2, the M.T.A.’s board approved a new deal that involves $180 million less in upfront payments and early expenditures for the project than was pledged in 2005, accepting a reduced-size rail yard and $20 million at first, with another $80 million (in today’s value) to be paid in pieces over the next 22 years.
...In a statement, Mr. Ratner praised the M.T.A. and the Empire State Development Corporation, from whom he also received an approval for a revised design.
“The MTA approval today, along with ESDC Board authorization yesterday, was critical to this project going forward. Delays due to litigation and a difficult economic environment required the approved changes. We have worked very hard, however, as have our colleagues in government, to ensure that these changes would in no way impact the overall benefits of the project. We’re are extraordinarily appreciative of the professionalism and vision of these two agencies and all who believe that development is good for the City, that jobs are good and that affordable housing is good should applaud their actions.”
NoLandGrab: Yup, professionalism. That's the term that always comes to mind first when thinking of the MTA board and the ESDC.
NY1 News, MTA Board Approves Extension For Atlantic Yards Developer
"From the MTA perspective, our goal was transportation; we're very satisfied that we have a yard that meets our needs," said MTA Interim Chief Executive Officer Helena Williams. "[I'm satisfied] that we have transportation improvements for the subway entrances."
Cityfile New York, Bruce Ratner Gets His Way
Critics took to the podium before today's vote to deride the deal as a "massive bailout." And, shockingly, the MTA didn't pay any attention to the last-minute counterbid that landed its lap when 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."
Brooklyn Daily Eagle, MTA Approves Revised Atlantic Yards Deal
Among those who spoke against the revised deal, said [MTA Spokesman Aaron] Donovan, were Councilwoman Letitia James, a longtime foe of Atlantic Yards; Councilman David Yassky, Assemblyman Jim Brennan, and Dan Goldstein of the anti-Atlantic Yards organization Develop Don’t Destroy Brooklyn.
Among those speaking in favor of the project were members of Brooklyn United for Innovative Local Development (BUILD), which would provide jobs within Atlantic Yards for low-income area residents; and Carlo Scissura, chief of staff for Borough President Marty Markowitz.
BUILD is contractually obligated to support the project publicly.
Councilman John Liu (D-Flushing), head of the City Council’s Transportation Committee, said, "The public just bailed out the MTA -- the MTA should not use the money to bailout a developer. Much to the public's dismay, the same authority that was crying for cash just weeks ago has now cut a generous break for a real estate developer. As difficult as times may be, it doesn't warrant a bailout for developers.”
WNYC Radio, MTA Approves New Deal for Atlantic Yards
REPORTER: Some board members expressed regret that they were accepting less cash up front and a less valuable rail yard than originally proposed in 2005. But Jeff Kay, who represents Mayor Bloomberg on the board, said it was better than nothing.
KAY: There is no other market, no one else has come forward with a credible proposal at this time.
Um, could that be because the deal with Ratner has been cooked from day one?
REPORTER: At the last minute, opponents of the Atlantic Yards project offered to pay $120 million over a period of 12 years for the rail yards. Developer Bruce Ratner is paying $100 million over 21 years under the new deal.
Board members did not appear to take the counter-offer seriously and the board chairman refused to comment when asked about it.
Crain's NY Business, MTA approves Atlantic Yards schedule changes
The outcome was expected despite a cadre of critics claiming that the MTA is shirking its financial responsibility by allowing the $100 million payment to be stretched out over two decades. Now instead of paying the money upfront, Forest City will deliver $20 million at closing and the rest in payments ending in 2031.
The MTA vote comes a day after the board of the Empire State Development Corp. approved changes to its deal with Forest City that also awards the developer more financial breathing room. Now Forest City will be able to pay for the land in pieces instead of all at once. A public comment period will follow the vote and any negative testimony—which is virtually guaranteed—will require another tally. The result is expected to be the same, however.
That's an understatement. Did someone say something about a cooked deal?*
Forest City’s next major agenda item is selling bonds to finance the project’s centerpiece: an arena that where the company’s basketball team, the Net’s will play. The company hopes to begin selling $490 million worth of bonds to finance the $772 million arena this fall.
Daily News I-Team Blog, Done deal: MTA approves Ratner pact - and that's that
MTA officials who approved a sweetened deal on Wednesday for Nets owner Bruce Ratner refused to consider an alternative plan for Brooklyn's Atlantic Yards which its proponents say would provide the embattled transit authority more money in a shorter period of time.
The UNITY Trust plan pushed by Develop Don't Destroy Brooklyn, which has led the opposition to Ratner's plan to build a basketball arena and housing towers in Prospect Heights, calls for the MTA to receive $120 million over 12 years. The plan approved by the MTA calls for Ratner to pay $20 million up front and $80 million by 2031.
The Vanderbilt Rail Yards would be placed into a trust that would oversee financing and management of the project. The trust would generate more revenue by dividing up the land over the railyard and offering it to several developers.
The MTA's own appraisal valued the Vanderbilt Rail Yards at $214 million, and Extell Development offered $150 million for the site. So DDDB's Daniel Goldstein says he is not surprised that the MTA snubbed the UNITY Trust, even though the agency clearly could use the extra money (the state legislature approved a $2.26 billion rescue plan for the MTA last month).
2nd Ave. Sagas, MTA Board approves renegotiated Ratner deal
No surprise here, but the MTA Board has approved the sweeter sweetheart deal for Bruce Ratner. Instead of paying anything close to market price for land valued at $214 million four years ago, Ratner will pay the MTA the lump sum of $20 million with deferred payments over the next 22 years totaling $80 million. In return, he will provide a smaller-than-promised rail facility for the Atlantic Yards. Only two MTA Board members — Allen P. Cappelli and Mitchell H. Pally — voted against the new deal.
Posted by eric at June 24, 2009 11:22 PM