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August 30, 2009
Barclays still behind Nets' plans for Brooklyn moveStar Ledger
Star Ledger
By Steve Politi
A constant feature in the Atlantic Yards fight is the attempt by project boosters to give the proposed project an air of inevitability. This article seems to be an attempt by Barclays to use that strategy.
Barclays president Bob Diamond called the delays on the new Brooklyn arena for the Nets "agonizing and frustrating," but he said the banking giant remained committed to the controversial project.
And, yes, Diamond is better than you. He is allowed to have exclusive access to the arena design. The public at large has to review the project without knowing this crucial information.
Diamond said that he had seen the new design of the arena - which has yet to be revealed to the public - and while he preferred the original Frank Gehry-designed project, he was satisfied with the plans.
Note in this statement how "I know" would have been much more reassuring for project supporters than "I think."
"As it finally resolved all the hurdles, then it was tough to get any construction money from the banks," he said. "I think we're in a good place now, but absolutely, it was frustrating and we would have preferred it to be accelerated. But as a partner, we think (owner) Bruce Ratner did everything he possibly could do, and we're very strong partners with him."
When is financing for the arena ready? "Fairly soon" is fairly vague.
Diamond, speaking before the third round of The Barclays golf tournament at Liberty National in Jersey City, said the he expected financing for the project would be "set fairly soon." The arena is expected to cost $800 million.
The article goes on to point out why there is good reason for Barclays to be less than certain as to the future of an arena for the Nets. Indeed, who can say for sure at this time what Barclays has agreed to pay for naming rights for the arena?
The Nets remain committed to moving to Brooklyn, but legal challenges from the community have prevented the team from breaking ground. The project now faces two important dates: An Oct. 14 hearing before the New York Court of Appeals dealing with eminent-domain issues and a Dec. 31 deadline to begin work in order to qualify for tax-exempt bonds.
Barclays agreed to pay a reported $400 million over 20 years for naming rights to the new arena in January 2007. That was before the collapse of the financial markets put the Atlantic Yards project in peril.
For all the talk of being "strong partners", Barclays still knows where the find the exit in its relationship with developer Bruce Ratner.
Barclays can opt out of the naming-rights deal if construction has not started by then, but Diamond said yesterday, "We won't be walking away." He said the project remains important for the company's profile.
Posted by steve at August 30, 2009 10:19 AM