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December 11, 2009
Vanderbilt Yard NO?! Willets Point YES??!!
OK, so let us get this straight.
In 2005, with New York City riding the crest of the real estate boom, the Vanderbilt Yard, which Forest City Enterprises CEO Chuck Ratner has called "a great piece of real estate," was put up for bid by the MTA — and it drew exactly two bids, one from pre-ordained developer Forest City Ratner Companies and the other, after an exhaustive effort by Develop Don't Destroy Brooklyn, from Extell Development.
Fast forward to 2009, smack in the depths of the worst commercial real estate slump in years, and NYC's request for expressions of interest in the 62-acre Willets Point site draws... 29 responses!!!
But didn't MTA Chief Financial Officer Gary Dellaverson just recently assert in an affidavit that "it is remarkable that MTA was able to negotiate a revised proposal" for the Vanderbilt Yard with Forest City Ratner, whereby it reduced Forest City's closing payment from $100 million to $20 million, with the balance payable over 22 years at a generous interest rate — without conducting a new appraisal or seeking alternate bids???!!!
Maybe it's just us, but something is not quite adding up. And it certainly would seem to add some traction to the lawsuit claiming that the MTA failed to properly carry out its fiduciary duty in its agreement to sell the Vanderbilt Yard to Forest City.
Crain's NY Business, Developers line up for Willets Point project
Twenty-nine groups express interest in reviving the 62-acre area, in what the city says is a positive sign amid difficult economic conditions.
Twenty-nine groups responded to the city's request for qualification expressing their interest in reviving the 62-acre area, the city's Economic Development Corp. announced Friday. The identity of the respondents was not disclosed, however, responses came from “a variety of commercial, residential and mixed-use developers across the U.S.,” the EDC said.
“The quantity and quality of these responses are strong indicators that the development community has confidence in the successful redevelopment of Willets Point despite current economic conditions,” said EDC President Seth Pinsky, in a statement.
The request for qualification was issued in October. The EDC will evaluate the respondents and narrow down the list of potential developers for the site before releasing a request for proposal some time next year, according to a spokeswoman. No time frame has been set. “We will try to move as quickly as possible, but we will do our due diligence,” she added.
Additional coverage...
The Real Deal, Willets Point draws developers' bids
The New York City Economic Development Corporation received 29 preliminary proposals from developers for the potential 62-acre Willets Point District redevelopment project in Queens, according to an announcement released today. Seth Pinsky, president of the EDC, said that the panel is enthusiastic about the proposals received for the project, which will include 5,500 residential units and will create 18,000 construction jobs.
Posted by eric at December 11, 2009 4:13 PM