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November 19, 2009
DDDB PRESS RELEASE — DDDB to Comptroller DiNapoli: Paterson, Silver, Sampson Must Review and Vote on Atlantic Yards Financing
PACB Role is to Prevent The Kind of Reckless Borrowing Envisioned by the Ratner Project
NEW YORK, NY — Develop Don’t Destroy Brooklyn (DDDB) sent a letter to State Comptroller Thomas DiNapoli, State Senator Bill Perkins and Assemblyman Richard Brodsky (each chair committees on public authorities) explaining in detail why the Public Authorities Control Board (PACB) needs to convene and vote on whether to approve the Atlantic Yards project’s financing.
The 3-member PACB is comprised of appointees of Governor Paterson, Speaker Sheldon Silver and Majority Leader John Sampson. PACB votes must be unanimous.
In sum the letter, provided below explains that the financing, cost, revenue model, design and construction timeline of Forest City Ratner’s Brooklyn Atlantic Yards project have changes so substantially since the PACB voted in December 2006 that new analysis and a new vote is required.
The letter also explains that the PACB must vote to approve the $700 million Barclays Center arena bond before it can be issued. Ratner has an end-of-year IRS deadline to issue the tax-exempt bond.
DDDB explains "The PACB was formed specifically to guard against reckless borrowing by the Empire State Development Corporation that could result in defaults and place the State in a moral obligation to support the bonds."
"Allowing the vastly altered Atlantic Yards financing to go forward without a review and vote by the PACB, would be not just reckless in the extreme, but illegal" said DDDB spokesman Daniel Goldstein. "The Governor, who is so concerned about the State’s precarious financial situation, should convene a review of the Atlantic Yards financing and do due diligence to determine if the project’s borrowing makes any sense. The Comptroller, Mr. Brodsky and Mr. Perkins should make sure this happens."
[Click through to read the rest of the release and the letter to State Comptroller Thomas DiNapoli.]
Posted by eric at November 19, 2009 2:51 PM