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August 12, 2009
When it comes to the curious assessments in Atlantic Yards arena block, the Department of Finance is mum
Atlantic Yards Report
One of the most crucial steps on Forest City Ratner's path to arena financing has gotten almost no attention, even though it deserves far more scrutiny: the curious elevated reassessments of properties in the Atlantic Yards arena block.
Remember, the only way Forest City Ratner can have the state sell crucial tax-exempt bonds--$650 million, saving the developer more than $100 million--is to make sure that the PILOTs (payments in lieu of taxes) do not exceed the value of the foregone taxes on the arena block.
In a nutshell, the City must fudge the value of the land, which the State claims is blighted, to justify, to the Federal Government, the value of the bonds that Ratner needs.
As I reported June 8, for some properties on the block, land assessments--which are a percentage of market value, and rise with the latter--have leaped 17 or 20 or 34 times in one year.
...
Is there an explanation? I queried [Owen Stone, a spokesman for the city Finance Department,] several times by phone and email. I never got a response.
Posted by lumi at August 12, 2009 5:10 AM