November 9, 2009
How Bruce Ratner further undermines the ESDC's dubious AY "economic benefit analysis"
Atlantic Yards Report
The Empire State Development Corporation (ESDC) has never produced a real cost-benefit analysis for the Atlantic Yards project, because it never bothered to consider costs beyond the direct subsidies.
And it never produced an honest "economic impact analysis" or (most recently) "economic benefit analysis" because the analysis was premised on a decade-long build-out of the project. No alternative timetable was considered.
And the ESDC's analysis was further undermined in the recent Crain's profile of Forest City Ratner CEO Bruce Ratner, who acknowledged there was no timetable for the project's single office tower: “Can you tell me when we are going to need a new office tower?”
So the ESDC's numbers--$657.6 million in new city tax revenues over 30 years, on a present value basis--deserve much skepticism. First, those numbers aren't offset by costs. Second, they depend crucially on an office tower that doesn't appear in any renderings and thus hasn't even graduated to "vaportecture."
Posted by lumi at November 9, 2009 4:53 AM