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April 2, 2010
Wondering about the Atlantic Yards Interim Developer? You're out of luck searching the records of tax haven Delaware
Atlantic Yards Report
Norman Oder probes the murky world of Delaware-based corporations to try to turn up some information on a company set up by Forest City Ratner, which can't possibly share too much information with the public and government officials.
Master Closing documents signed on 12/23/09 make reference to not only the Atlantic Yards Development Company, LLC (AYDC), an affiliate of Forest City Ratner, but also Brooklyn Arena, LLC and AYDC Interim Developer, LLC.
(Click on graphics to enlarge)
How might we learn more about the AYDC Interim Developer? Well, the Master Closing documents tell us more than the Delaware Division of Corporations.
Below is a graphic from the documents, which indicates that various outside investors own 41.76% of the Atlantic Yards Development Company (AYDC), which is a subsidiary of the AYDC Interim Developer, while the managing members of AYDC is a Forest City Ratner affiliate:
Looking to Delaware
More than 50% of all U.S. publicly-traded companies and 63% of the Fortune 500 have chosen Delaware as their corporate home. The state cites "modern and flexible corporate laws, our highly-respected Court of Chancery, a business-friendly State Government, and the customer service oriented Staff of the Delaware Division of Corporations."
Critics like law professor David Brunori say Delaware registration "is a vehicle for avoiding otherwise legitimate tax liabilities at a time when states need money badly.”
NoLandGrab: That's a nice, simple chart, no?
Posted by eric at April 2, 2010 11:27 AM