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June 29, 2009
Video: MTA official say FCR's arena plans were "principal driver" of "cramped" timing for board to vote on revised deal
Atlantic Yards Report
It's all on tape. According to CFO Gary Dellaverson, MTA staff had to work over the weekend to hammer out the bailout of Atlantic Yards, so developer Bruce Ratner can issue the bond to finance the arena by the end of this year to take advantage of a federal tax loophole that has since been closed.
"I think that, in terms of why must it be now in the summer versus in the fall, I think that really relates to Forest City's desire to market their bonds as a tax-exempt issuance [by a December 31 deadline]. If the structure... is not such that allows for the marketability of the bonds, then the financial aspect of the transaction, as it relates to arena construction expenses that Forest City Ratner would incur, become less viable and perhaps not viable. That's not something that I'm prepared to say from my own knowledge... but I would be remiss if I suggested anything other--that's the principal driver of the timing."
NoLandGrab: In short, the MTA had to work weekends to get this deal done so that Atlantic Yards developer Bruce Ratner can issue the bond to finance the arena by the end of this year to take advantage of a federal tax loophole that has since been closed.
Posted by lumi at June 29, 2009 5:38 AM