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January 25, 2010

Atlantic Yards Report Master Closing Mania!

Among the voluminous documents blog posts published by Norman Oder since he got his first peek at the Atlantic Yards Master Closing documents today are these three hot-off-the-internet pieces.

Gotta get paid: BALDC bond issue fee dwarfed by payments to bond counsel and underwriting counsel

Wonder why there's so much momentum for deals like the $511 million arena bond issuance?

Because all parties involved get paid. As part of the Atlantic Yards master closing documents, first made available today, there's a list of the funds paid various participants in the transaction.

Mintz Levin, the bond counsel, earned $2,726,633
Fried Frank, the counsel to Forest City Ratner, earned $626,684
Nixon Peabody, the counsel to the underwriters (Goldman Sachs), earned $2,325,000
Ratings agency Moody's earned $360,000
Ratings agency Standard & Poor's earned $388,080
Auditor Price Watershouse earned $60,000
Printer Bowne & Co. earned $76,618.63

New documents hint at potential affordable housing dodge: "all-affordable buildings" with no low-income units, but subsidized units at market rates

[The document] opens up the possibility of subsidized buildings that are "100% affordable," with the majority of units aimed at households earning 165% of Area Median Income, or AMI.

But that "fully affordable" building might be a dodge on two levels. First, most units would be unaffordable to those who most passionately advocated for subsidized housing.

Second, "affordable" units at 165% of AMI as I wrote in April and July--would easily fall into the range of current market prices.

A studio apartment for someone at 160% of AMI in 2006 would cost $1861 a month. Consider that the limit has risen to 165% and AMI has risen, even as studios at new towers in Downtown Brooklyn cost well under $1861.

Agreement says Forest City Ratner must reinforce subway supports on its own dime, but does anyone know how much it would cost?

Posted by eric at January 25, 2010 10:32 PM