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November 10, 2010

Court ruling apparently leaves Forest City Enterprises a bit unnerved; executive at Investor Day says "we continue to evaluate the situation"

Atlantic Yards Report

Perhaps Judge Friedman should order Forest City Ratner to start dismantling their foundation.

During an Investor Day event today, with investors and investment analysts in attendance at the Arena Stage's Kreeger Theater in Washington, DC, Forest City Enterprises offered a confident update on its projects and its progress, and a notably less confident assessment of the court ruling yesterday regarding Atlantic Yards.

Chief Operating Officer David LaRue, who had to consult a recently-prepared script regarding the ruling, stated, "There is, just with regard to the Atlantic Yards project, while we're there, there was news that came out yesterday, we want to make sure we address it, immediately, what we know. Yesterday the state Supreme Court made a ruling that--Justice Friedman issued a ruling--which for the first time was in favor of the opponents of Atlantic Yards and against the EDC, the Empire State Development Corporation."

(Actually, in New York, the EDC is the New York City Economic Development Corporation, while the state agency is the ESDC.)

Tentative tone

"This is different--last spring she actually ruled in favor on this particular issue, which is the environmental impact study that was done," LaRue continued, in a tone far more tentative than in the rest of his presentation. "Uh, what's she's asked the EDC to do in this regard is to go back to reconsider the impact on the environmental study regarding an extended development period which we were able to negotiate, which gave up to 25 years for development of the project, versus a ten-year base plan that was used."

What he didn't tell the audience is that the judged slammed the ESDC for "what appears to be yet another failure of transparency" and "totally incomplete representations" in legal papers.

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Posted by eric at November 10, 2010 10:16 AM