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September 10, 2009
Bondage
The NY Times and NY Observer are both reporting that Atlantic Yards developer Bruce Ratner is planning on getting around the thorny issue of issuing the arena bond financing before the end of the year by placing the money in escrow, as long as the project is held up in litigation.
The NY Times, Atlantic Yards Developer Releases New Arena Plan
This is the incredible timeline that developer Bruce Ratner is selling to the media and investors:
The state is expected to give the arena final approval on Sept. 17. Three weeks later, Forest City plans to begin marketing and selling about $700 million in tax-exempt bonds for the project. At the same time, the company will be marketing 100 luxury suites and premium seats. It hopes to get control of the land and begin construction in November. If all goes as planned, Mr. Ratner says, the Nets, now playing in East Rutherford, N.J., will play part of the 2011-12 season in Brooklyn.
The NY Observer, New Design in Hand, Ratner Plans to Seek Nets Arena Financing Within Weeks
Nearly three years after receiving a green light from the state government, the mega-Atlantic Yards development is entering a critical stage, as developer Bruce Ratner is rushing to secure financing and tie up loose ends before an end-of-year tax deadline.
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If Mr. Ratner’s timeline for the bonds stays on course, Forest City would be attempting to secure the financing while key litigation is still pending. Next month, the state’s highest court is slated to hear a challenge to the use of eminent domain for the project.To mitigate the uncertainty from this, Mr. Ratner said the bond sale would call for money to go into an escrow account, pending the outcome of the various uncertainties.
Posted by lumi at September 10, 2009 7:55 AM