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December 22, 2009
Did the ESDC board fully consider the changed terms and revised timetable of the MTA deal? Despite responses in pending lawsuit, the record says no
Atlantic Yards Report
While some of the lawsuits challenging Atlantic Yards have been dismissed but face possible appeals, one extant lawsuit has not yet faced a judge and, as a "master closing" looms tomorrow, we shouldn't forget the serious allegations in that lawsuit.
The plaintiffs, Develop Don't Destroy Brooklyn and several other community groups, argue the Empire State Development Corporation (ESDC), rather than take a "hard look"--as required by state law--and delay its approval process, instead bowed to the developer's timetable to move the project forward so tax-exempt arena bonds could be issued by a crucial end-of-year deadline.
The suit charges that the ESDC did not evaluate the impact of Forest City Ratner's (FCR) revised deal with the Metropolitan Transportation Authority (MTA) for the 8.5-acre Vanderbilt Yard, which immediately conveys only an initial parcel needed for the arena block (for $20 million) and allows the developer "to extend the full acquisition of the balance of the MTA property beyond 2030" and to abandon the project "with virtually no penalty."
In fact, the suit charges, the ESDC Board was "never officially informed about the changed financial terms with MTA or the consequences of that change."
And that's the crux of the lawsuit, with the ESDC and FCR offering various responses and rationalizations, but not--to my reading--offering a credible refutation.
Posted by steve at December 22, 2009 9:04 AM