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October 14, 2009
MTA lawsuit, which might affect arena financing, charges that Public Authorities Accountability Act was violated
Atlantic Yards Report
Norman Oder reviews what is at stake in the lawsuit filed against the MTA:
Even a successful lawsuit might not formally stop the project, but it could throw a wrench into Forest City Ratner's plan have the state sell tax-exempt bonds and for arena construction to begin this year.
...
The suit notes that MTA Chief Financial Officer Gary Dellaverson acknowledged that the transaction had to be approved quickly--the board had 48 hours--because, as he said, "it really relates to Forest City's desire to market their bonds as a tax-exempt issuance [by a December 31 deadline]."
Though this is the first time that elected officials have joined Develop Don't Destroy Brooklyn in a lawsuit, there are several who are conspicuously not on the list:
Missing from the lawsuit were City Council Members David Yassky and Bill de Blasio. While de Blasio is the Democratic nominee (and shoo-in) for Public Advocate, Yassky--who testified critically about the land sale at an MTA meeting June 24--lost his bid for Comptroller and will leave office this year. Also missing was Assemblyman Hakeem Jeffries, whose district includes the AY footprint.
Also missing were Assemblyman Richard Brodsky and state Senator Bill Perkins, who have led the push for reform of public authorities. A representative of Perkins testified critically about the land sale on June 24, as well, while Brodsky has mostly steered clear of Atlantic Yards.
NoLandGrab: In the case of Brodsky, it is easier to rail against projects that have already been built, than to put up a real fight in the midst of corruption.
Missing from the MTA's approval of the refinancing of the project:
While the MTA claimed it did not need to follow a public bidding process, because the sale was allowed by the PAAA as furthering the public interest, there's no evidence, the suit charges, that the MTA conducted "any actual analysis of the public benefits to be gained by the sale of the Vanderbilt Yard to FCR," nor did it acknowledge the "diminishment of the Project’s anticipated public benefits."
No independent appraisal was obtained, even though the MTA Staff Summary implicitly suggested the 2005 appraisal was outdated, stating that "the Brooklyn real estate market has markedly deteriorated." Nor was the fair market value of the property every discussed.
Check out the rest of the article for the petitioner's argument that they have standing to bring suit.
MetroNY, Another Atlantic Yards suit
The Daily Politics, Odds & Ends: "Develop Don't Destroy Brooklyn and four elected officials sued the MTA over the Atlantic Yards project"
AP, via 1010WINS.com, Groups Sue MTA to Block Deal for B'klyn Nets Arena
Posted by lumi at October 14, 2009 5:29 AM