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July 27, 2011
New York’s MTA: It’s Not What You Think It Is
NY Gritty
by Mike Vogel
In 2005, the same group of politicians and real estate types that praised Walder’s sterling stewardship of the MTA conspired to build a $2 billion dollar stadium for Johnson & Johnson magnate Robert Wood (“Woody”) Johnson’s New York Jets football team on the West Side of Manhattan–most of it with taxpayer money.
Guess who owned the development rights for the land? You got it–the MTA. And while this prime property was appraised at just under $1 billion, the goodfellas on the MTA board offered it to their Jet cronies for the bargain basement price of $300 million.
The MTA, then run by real estate mogul Peter Kalikow, couldn’t wait to privately work out this deal with the low-balling Jets (it eventually fell apart), while simultaneously pleading poverty and preparing to raise the subway and bus fares.
At about the same time, real estate magnate and co-owner of the NJ Nets basketball team Bruce Ratner announced his latest extravaganza: The Atlantic Yards. This grand development was to encompass office buildings, residential towers, a hotel and a new home for the Nets in downtown Brooklyn.
Take three guesses who owned a vital chunk of this real estate. The first two don’t count.
In 2005 the MTA struck a secret deal to sell crony Ratner the valuable property without opening it up to competitive bidding. When the media caught wind of this scheme, the MTA reluctantly gave other bidders a short window for bids.
Real estate firm Extell bid $150 million. Ratner bid $50 million (eventually raised to $100 million). Guess who won the rights?
Posted by eric at July 27, 2011 4:53 PM