September 2, 2010
New Yorkers Called Upon to Turn Out Lights for Birds
90,000 migrating birds die in New York City every fall
The Epoch Times
by Jack Phillips
Thousands of migrating birds are killed every fall in New York City. To combat this, the New York office of the National Audubon Society is calling on New Yorkers to turn their lights out at night in the coming months.
The initiative, known as “Lights Out New York,” aims to get all New Yorkers and especially skyscraper owners to turn their lights out between Sept. 1 and Nov. 1, from midnight until dawn.
...Notable skyscrapers with lights being shut off at night include the Time Warner Center, Rockefeller Center, the Chrysler Building, Con Edison Clock Tower, the New York Times Building, and 601 Lexington Avenue.
Forest City Ratner Companies, Durst Properties, Silverstein Properties, and JP Morgan Chase Properties have also promised to turn their buildings’ lights out.
NoLandGrab: Here's one bird that won't be saved by Forest City Ratner.
Posted by eric at 10:04 AM
September 1, 2010
More city leasing at MetroTech
Atlantic Yards Report
Forest City Ratner has a long history of getting government tenants in its MetroTech and Atlantic Center complexes, and that string continues.
Posted by eric at 11:28 PM
City takes 82K square feet at MetroTech
Inks 20-year lease for office and data-center space for Department of Information Technology and Telecommunications.
Crain's NY Business
by Jeremy Smerd
Inventory was getting a little flabby at Bruce Ratner's MetroTech complex, so guess what? We New York City taxpayers just bailed him out by taking more space!
The city's Department of Citywide Administrative Services has signed a lease for 81,800 square feet at 2 MetroTech Center in downtown Brooklyn. The asking rent was $35 a square foot.
The space, which is under a 20-year lease that officially began in May, will be used by the city's Department of Information Technology and Telecommunications, which plans to use it for offices and a data center. DoITT will take over the entire second floor and part of the fifth floor—64,000 square feet—in the 20-year-old, 10-story property. The remaining nearly 18,000 square feet will be used for the city's expanded data center.
That's just a drop in the bucket, however.
The city already leases 216,000 square feet at 11 MetroTech Center. That lease was first signed in 1993 and amended in 2004 with an option to extend until 2020.
NoLandGrab: Yes, folks, the city leases the equivalent of 1/3 of the entire Atlantic Yards footprint at MetroTech.
Posted by eric at 7:23 PM
Fake cop scams man
The Brooklyn Paper, Police Blotter
by Joe Anuta
If it's Wednesday, it must be news of more crime in one of Bruce Ratner's Brooklyn malls.
Target target
Cops arrested two perps who stole a wallet containing $300 from a woman while she was shopping at a department store inside the notorious Atlantic Terminal Mall on Aug. 27.
Cameras inside the store, which is located near Atlantic Avenue, caught one of the jerks taking the wallet then handing it off to her partner-in-crime at 8:15 pm.
Posted by eric at 10:53 AM
August 25, 2010
Sex will have to wait
The Brooklyn Paper, Police Blotter
by Thomas Tracy
Wait, didn't the Empire State Development Corporation claim it was the Atlantic Yards project footprint that was "crime-ridden?"
Target trouble
Two more crimes were reported at Target inside the crime-ridden Atlantic Terminal Mall this week. Here’s what happened:
• A shopper seized an opportunity on Aug. 20, taking a woman’s wallet that was accidentally left on the checkout line. The 62-year-old customer said she was at the register, but got distracted and left her wallet as she ran to grab another item. The cashier said that the woman on line behind her walked off with it.
• A thieving mom recruited her children to help steal over $1,100 in property on Aug. 19.
Store security guards said they caught the 21-year-old woman and her children with the stolen items as they were trying to leave at 6:42 pm.
Posted by eric at 11:58 AM
August 21, 2010
In Washington, federal money gets a Forest City project started; the adaptive re-use looks like... Brooklyn
Atlantic Yards Report
It shouldn't be a surprise that the first new construction in two years for Forest City Enterprises, outside of the Atlantic Yards arena, is a building that depends significantly on government subsidies.
What is something of a surprise is that the federally-insured mortgage loan for Foundry Lofts, a 170-unit, 80/20 multifamily apartment building at The Yards, a Forest City project in Washington, involves the adaptive re-use of historic former Navy Yard industrial building (right).
That looks a bit like Newswalk in Brooklyn, or the Ward Bakery, or the building once owned by Henry Weinstein near them at 752 Pacific Street.
The Ward Bakery is already demolished, with the Weinstein building (below; photo taken December 2008 by Tracy Collins) likely to serve as offices during the construction phase of the arena, even thought Forest City Ratner executive Maryanne Gilmartin said in court papers that the developer plans to demolish that building.
...
Also notable is that, like Battery Park City but unlike Atlantic Yards, at The Yards a park will come first.
In fact, it will feature a 5.5-acre public park--not publicly accessible private space, as at MetroTech and planned for Atlantic Yards--though, as with many parks today, the financing is creative.
NoLandGrab: This is yet another indication that the ESDC and all those politicians who supported Atlantic Yards without reservation could have pressed Bruce Ratner for a much better project that would have saved some of the historic structures on the site and delivered goodies like promised open space first, instead of who knows when.
Posted by steve at 8:29 AM
August 20, 2010
Beekman Tower: Now Glistening to the Very Top
WNYC
by Matthew Schuerman
Frank Gehry's design for the Beekman Tower in Lower Manhattan elicited a wide range of responses when its designs were circulated two years ago. Among them: Just how will the shiny steel surface fit in among lower Manhattan's stone towers?
While the building is still several months away from completion, the stainless steel siding appeared to have reached the top of the 76 floors this week, giving passersby a chance to assess it.
The building, at 8 Spruce Street, was planned during the real estate boom...and, against all odds, went up during the bust. Construction did stall last year while the developer, Forest City Ratner, renegotiated costs lower -- but work resumed within a few months. The steel structure topped off last November, and shortly afterwards, workers began installing the undulating stainless steel curtain wall.
NoLandGrab: Frank Gehry design? Don't they mean Peter Jackson?
Photo: Matthew Schuerman/WNYC
Posted by eric at 11:22 AM
August 17, 2010
Gang attack on S. Portland
The Brooklyn Paper, Police Blotter
by Thomas Tracy
If the Empire State Development Corporation had asked AKRF to study crime in Bruce Ratner's malls, they would've been declared blighted a long time ago. But that just isn't how they operate.
Mall rats
A lot of crooks were found shopping inside the frequently hit Atlantic Terminal Mall on Flatbush Avenue between Hanson Place and Atlantic Avenue this week. Here’s the rundown:
• A 25-year-old shoplifter was arrested inside Target after swiping over $500 in DVDs and CDs on Aug. 13.
• A sticky fingered thief made off with a 29-year-old woman’s wallet as she shopped for shoes inside DSW at 7:15 pm on Aug. 14.
• A 28-year-old told police she was perusing the aisles in Target on Aug. 12 when she put her wallet on a shelf for just a moment. It was gone seconds later.
• A thief sneaked his hand in a woman’s shoulder tote as she waited on line inside Victoria’s Secret on Aug. 10, taking her wallet.
Posted by eric at 11:56 AM
August 5, 2010
They stole his Pop Tarts!
The Brooklyn Paper, Police Blotter
by Andy Campbell
As the Brooklyn Paper frequently and often makes clear, Bruce Ratner's Atlantic Terminal and Atlantic Center malls are the area's crime hub — something the Empire State Development Corporation did its best to cover up in committing the crime of property theft.
Diabetic thief
A jerk on a sugar high stole $1,710 worth of diabetes testing strips from Target in the Atlantic Terminal Mall on July 27.
Employees told cops that they noticed the 15 expensive kits, called OneTouch Ultra Test Strips, missing from the store — which is at Flatbush and Atlantic avenues — at about 9:43 pm.
The mall — and its neighbor, the Atlantic Center — is a frequent location for crime. (See item below.)
Bold Navy
In another burglary at the Atlantic Terminal Mall, a kleptomaniac lifted a whopping 36 pairs of jeans from Old Navy on Aug. 1.
Employees told cops that they noticed the jeans missing at the clothing superstore, which is on Atlantic Avenue between S. Portland Avenue and Fort Greene Place, at about 4:30 pm. Security footage shows the perp taking about $1,062 worth of denim.
Posted by eric at 10:26 AM
August 4, 2010
Gilmartin in The Real Deal: personal tidbits and endurance of "the friction and the tension in a public setting"
Atlantic Yards Report
Maryanne Gilmartin, Forest City Ratner's point person on Atlantic Yards, mostly sounds authoritative, confident, and charismatic in a Q&A yesterday with The Real Deal.
Among the tidbits: she has a driver to bring her from her Westchester estate to Brooklyn--so much for transit-oriented developers--and she says she sleeps just five hours a night, which is edging toward Brett Yormark territory.
The AY opposition
Here's the most interesting segment:
What has been challenging for you personally about the opposition to Atlantic Yards?
It's a complicated project with lots of dimensions. And that's just hard work and I love that. I can't say I love the friction and the tension in a public setting. But it comes with the territory. I knew that and I accept that.
Well, the friction and tension in a public setting is often caused by FCR's allies, which is why I had Gilmartin last in July 2009 send an imaginary open letter apologizing for such conduct.
That event referenced, in fact, was Gilmartin's only public appearance before a (partly) unfriendly audience.
Related coverage...
Develop Don't Destroy Brooklyn, Atlantic Yards Head Honcho Gilmartin Profiled in The Real Deal
What do we learn?
She works very hard, but when she can she enjoys relaxing in her backyard in Westchester rather than in the massive parking lots she is preparing to create in Prospect Heights. Also, like her predecessor Jim Stuckey and her boss Bruce Ratner, she is the product of the revolving door of the city's Economic Development Corporation.
Posted by eric at 1:32 PM
August 3, 2010
EXCLUSIVE: Toys ‘R’ Us coming to Downtown!
The Brooklyn Paper
by Andy Campbell
It’s Christmas in August!
Toys “R” Us will open a “seasonal” store in the empty Sid’s Hardware store on Jay Street, bringing toys, games and Geoffrey the Giraffe to the otherwise all-business Downtown area through Christmas.
...It’s unclear what will happen to the shop once the Christmas buying season ends — or if Toys “R” Us would even want to stay, given the “high” rents that developer Bruce Ratner is apparently asking.
In February, Sid’s workers told us that the shop was forced to move to Gowanus after its initial sweet deal with Ratner expired, and the landlord upped the rent.
NoLandGrab: It's Christmas every day for Bruce Ratner, and New York's taxpayers are Santa Claus.
Posted by eric at 1:38 PM
The closing: MaryAnne Gilmartin
The Real Deal
by Candace Taylor
The Real Deal profiles Atlantic Yards honcho MaryAnne Gilmartin.
MaryAnne Gilmartin is the executive vice president of commercial and residential development at Forest City Ratner Companies, where she's been since 1994. She's overseeing the controversial $4 billion, 22-acre Atlantic Yards development, one of the most significant developments in Brooklyn's history.
...How do you get from your house in Westchester to Forest City's headquarters in Downtown Brooklyn every day?
I have a driver … I used to laugh with Bruce [Ratner] when I was pregnant with each of my children that I would go into labor on the BQE and have to name one of them after an exit.
...What has been challenging for you personally about the opposition to Atlantic Yards?
It's a complicated project with lots of dimensions. And that's just hard work and I love that. I can't say I love the friction and the tension in a public setting. But it comes with the territory. I knew that and I accept that.
What did you do to celebrate closing the deal?
We closed on Dec. 22 [2009], so I went home to my family to begin my holiday shopping. [Just before we closed] there were two lost packages with critical documents in them, letters of credit without which we couldn't close. The UPS facility was completely overwhelmed with holiday packages ... But we unearthed the documents in time for the closing.
...Do your kids understand what a big deal Atlantic Yards is?
They used to be flummoxed by what I did. They wondered … how could she leave every morning in a suit and build that building? When did she pick up her tool belt and how did she get so high up in the air? But whenever possible I include my children. For example, at the Atlantic Yards groundbreaking, both of my boys were there. I always say if I have to leave my children every day it better be good. And this has been quite good.
NoLandGrab: Rumor has it that she involved a number of her son's 4th Grade classmates a couple years back, too, telling them that "bad man" Daniel Goldstein was standing between Brooklynites and their new basketball team.
Photo: The Real Deal
Posted by eric at 1:07 PM
July 29, 2010
Phone calls from Utah firm about Atlantic Yards: is Pacific Crest Research back? and is this about the Senate race or just AY p.r.?
Atlantic Yards Report
It looks like the shadowy, Utah-based polling firm Pacific Crest Research (PCR) may be back and involved in tapping/shaping public opinion about Atlantic Yards.
From Brooklynian, selected comments:
- just got off the phone with someone, based in utah, who peppered me with a lot of questions about the yards project, and whether i agree that forest city ratner's doing a great thing for the slope and the community as a whole. i assume ratner's paying for the survey since many of the questions seemed tilted in his favor.. but i had some free time, and it was a very cathartic experience....still, to be doing a survey like this, the developers must be really worried about something.
- I took the survey and it was obviously sponsored by Ratner. I told the guy that I really shouldn't be taking the survey as my husband used to work for FCR and says the affordable housing phase of the project ain't never gonna happen.
- I took the survey too and also think it was sponsored by Ratner. Whenever they asked whether finding out something positive e.g., about job creation changed my mind, I just responded that I didn't believe any of it (the good stuff) would happen.
The background
None of the commenters on Brooklynian mentioned the name of the firm, but the Utah connection offers a significant hint. Remember, in 2006, I got two calls from the company, the second “a very brief public opinion survey on some very interesting issues in Brooklyn.”
...Why now?
It could be that FCR is simply trying to gauge public opinion in anticipation, for example, of the its next phase of p.r. statements regarding the project.
It could be that FCR is trying to help candidates such as Mark Pollard, who's challenging incumbent state Senator Velmanette Montgomery, an Atlantic Yards opponent (though the big backing for Pollard in that race comes from charter school proponents).
After all, in one 2006 call, I was asked some general questions, but most focused on the race between last-minute challenger Tracy Boyland and Montgomery.
Or maybe it's another client with another motive.
NoLandGrab:
Related coverage...
Develop Don't Destroy Brooklyn, More Annoying Atlantic Yards Phone Polling
One would think that 30 years of construction and massive parking lots would be enough of an imposition on Brooklynites. But no!
Someone (Ratner, Barclays, an unknown) is polling Brooklynites on Ratner's Atlantic Yards to tap and shape public opinion.
Posted by eric at 10:31 AM
July 27, 2010
atlantic yards phone survey
Brooklynian
Posted by prezst
just got off the phone with someone, based in utah, who peppered me with a lot of questions about the yards project, and whether i agree that forest city ratner's doing a great thing for the slope and the community as a whole. i assume ratner's paying for the survey since many of the questions seemed tilted in his favor.. but i had some free time, and it was a very cathartic experience.
still, to be doing a survey like this, the developers must be really worried about something.
NoLandGrab: Not sure if or what about FCRC might be worried, but it does seem a little odd for them to be doing a push-poll at this stage of the game.
Posted by eric at 9:03 AM
July 26, 2010
Beekman Tower: Gehry's Downtown Skyscraper
Buildipedia
by Murrye Bernard
Frank Gehry's second architectural venture into New York City is also his tallest building yet. Spiraling 76 stories and enveloping 1.1 million square feet, the Beekman Tower dominates the nearby Woolworth building in downtown Manhattan. Under construction since 2006, the newest addition to the city's distinct skyline is expected to open early next year, and it proves that Gehry's signature, sculptural vocabulary translates successfully into skyscraper form.
Although many refer to Beekman as a "luxury" residential building, its 900-plus units will be market-rate rentals, rather than the condominium model. As part of a unique public-private partnership [NLG: AKA massive subsidies], the building will house an elementary school in its base, as well as an ambulatory care center for New York Downtown Hospital. Retail spaces will occupy the street level, and two adjacent public plazas have been designed by award-winning landscape and urban design firm Field Operations.
...New York City has not always been so receptive to Gehry. After several failed attempts to build in Manhattan, he finally completed the IAC Headquarters on the West Side Highway. Its billowing, fritted glass facade did not indicate smooth sailing, however, as the building received more than its fair share of criticism. Brooklyn wasn't very receptive to Gehry, either. Last summer his controversial and ultimately too-expensive design for Atlantic Yards was scrapped by Forest City Ratner, the very same developer responsible for Beekman Tower.
Though reaction to Beekman Tower has generally been positive, it has not escaped criticism for a couple of its design elements. The six-floor base that houses the public school is a vast departure from the rest of the sleek steel-and-glass facade; the red-orange brick plinth with punched windows looks like a typical, uninspired school design. Also typical of public school projects, Gehry had to grapple with a very tight budget and strict guidelines for this component of the project. Another point of criticism is that the rippling facade is absent from the south side, which is completely flat. There have been many theories as to why it was designed as such, ranging from zoning issues to ill-informed aesthetics. It has been reported that this side was flattened due to the main issue that has plagued the project from the start: budget constraints.
Posted by eric at 10:32 AM
July 20, 2010
The Sooner he goes home!
The Brooklyn Paper, Police Blotter
by Stephen Brown
It's rare that a week goes by without a crime being reported at one of Bruce Ratner's Brooklyn malls, and this week is no exception.
What a steal!
A 22-year-old was arrested on July 17 after she was nabbed stealing more than $11,000 worth of bare essentials.
Workers at the Target on Flatbush Avenue between Hanson Place and Atlantic Avenue told police they stopped the young woman from rolling away with a cart full of items at 12:13 am.
A set of bed sheets, some luggage, cleaning supplies, pet food and adult and baby clothes were among the items heading out the door, they said.
Posted by eric at 9:36 AM
July 19, 2010
New Rochelle veterans have new plans in pitch to save city armory
LoHud.com
by Hannah Adely
Local veterans, reinvigorated in their hope of saving the city armory, will present plans Tuesday at a City Council meeting to convert the dormant building into a community, veteran and athletic center.
Forest City Residential had planned to tear down the New Rochelle Armory as part of its larger 26-acre Echo Bay development proposal, but has said it will alter and possibly downscale its plan to fit the current economy.
..."Forest City Residential now has exclusive rights, under contract with the city, to develop the area that includes the armory.
The company, however, gave permission for the City Council to hear the veterans' alternate plan.
NoLandGrab: Sounds like they took a page out of the Land Grab Pirates playbook: "propose the biggest, ugliest complex possible, only to... pare it down 15% or so, and say you've been merciful.
Posted by eric at 1:04 PM
July 13, 2010
More trouble at Atlantic Terminal
The Brooklyn Paper, Police Blotter
by Stephen Brown
Bruce Ratner is lucky that he's the biggest, meanest developer in town, because if a bigger, meaner developer were to eye his Brooklyn malls, they'd be ripe for a blight-based eminent domain taking.
‘Terminal’ illness
Are there more thieves than shoppers at the Atlantic Center Mall? More criminal activity has popped off at the uber-sketchy hub of commerce.
A thief snatched a woman’s bag while she shopped on July 5. The victim told cops she had placed the bag down for less than a minute at around 12:30 pm when the thief took a cellphone, an iPod and $20.
A thief managed to swipe a woman’s wallet from her bag on July 6 while she sat in front of the Children’s Place store at around 1 pm. When the victim went to make a purchase minutes later, she realized she was missing an assortment of credit cards and IDs.
A crafty thief bumped a woman and stole her billfold while she shopped at the DSW Shoe Warehouse on July 10. The victim told cops that she was scoping some shoes at around 4:30 pm when some goon bumped her. When she went to buy some items, she realized she was missing $20 and an assortment of IDs and credit cards.
Posted by eric at 11:55 AM
July 9, 2010
Ratner Hands Out AC Units to Residents Near Atlantic Yards
NY Observer
by William Alden
Since this story is such old news, we can only guess that someone at Forest City — maybe the unnamed "assistant vice president" (assistant to the vice president?) — figured he'd take advantage of the heat wave to make Bruce Ratner appear somehow benevolent.
Some residents near the Atlantic Yards construction site in Brooklyn can expect a free air-conditioning unit from their friendly neighborhood developer, Forest City Ratner.
According both to an assistant vice president at Ratner and to Joe DePlasco, the publicist who represents the developer, Ratner has been handing out AC vouchers to people who live near the construction. The effort is part of Ratner's mitigation plan; in the past such efforts have included closing roads to ease traffic related to the construction. But it remains unclear just how an air conditioner would mitigate construction woes.
NoLandGrab: We're pretty sure that Dean Street residents will attest that closing roads has not eased traffic. And it's a fair bet that construction will outlast Ratner's cut-rate AC units.
Posted by eric at 10:11 AM
July 7, 2010
Brutally weird: top lawyer at firm that represents Forest City Ratner in Atlantic Yards cases denounces Community Benefit Agreements
Atlantic Yards Report
While a few people covering the New York City Charter Revision Commission hearing on June 24 noticed the criticism of Community Benefit Agreements by invited experts, no one noticed an enormous irony.
The co-chair of Land Use department at the law firm Kramer Levin--which represents Forest City Ratner on Atlantic Yards--denounced Community Benefits Agreements (CBAs), even as a colleague has, in legal papers, praised the Atlantic Yards CBA.
And a fellow panelist, also denouncing CBAs, echoed a basic question raised by critics of the Atlantic Yards CBA: how do you define who represents a community?
The CBA critics agreed that the only mitigations should deal with project impacts rather than negotiating with groups--many of them, in the case of Atlantic Yards, with no track record--on issues like job training.
That suggests that Forest City Ratner should have negotiated with groups representing communities very close to the Atlantic Yards site regarding issues like traffic.
NoLandGrab: Oh? Is traffic a problem?
Posted by eric at 10:13 AM
July 5, 2010
Rumor Noted That Toys ‘R’ Us is Coming To Downtown Bklyn
FCRC Will Not Confirm
Brooklyn Daily Eagle
The possibility that a Toys “R” Us store may open in Downtown Brooklyn was reported by Brownstoner.com yesterday.
Stating that the rumor was from “a trusted source,” the blog said the toy giant was considering renting the old Sid’s Hardware space at 345 Jay St., a space owned by Forest City Ratner Companies (FCRC).
...No comment was available from FCRC at press time.
NoLandGrab: Out with the mom 'n' pop, in with the national chain.
Posted by eric at 10:29 AM
June 28, 2010
In softball interview with hometown paper, Forest City Enterprises CEO Chuck Ratner stresses integrity, openness, and candor
Atlantic Yards Report
The Cleveland Plain Dealer, hometown paper of Forest City Enterprises, today offers a Q&A headlined Charles Ratner, president and CEO of Forest City Enterprises Inc.: Talk With the Boss.
The relevant section for Atlantic Yards watchers, is this:
The Question: What other key lessons have you learned?
The Answer: Perhaps the lessons that I've learned are best described by the core values that we have worked to develop and celebrate at our company. First among those is integrity. I guess what I've learned, as much as anything, is what goes around comes around, as they say. It's extremely important to conduct yourself with a sense of your own integrity, and then make sure that there's organizational integrity, institutional integrity.
The second is openness and candor. I think much of what we've seen recently, in the world both of public and private enterprise, is that that openness is often compromised. People are afraid to deliver bad news. There are always challenges there, and you need to know about them if you hope to deal with them.
Earlier this week, in a friendly profile in the New York Times, his cousin Bruce Ratner sounded a little more defensive:
“There’s a bittersweet feeling in having a majority owner in Brooklyn not be us,” he said, acknowledging his many critics will scoff because “when a developer speaks it’s not always believed.”
Maybe there's good reason for that, as I wrote.
As for openness and candor, there's DDDB's list of 20 times Forest City Ratner chose the opposite tack.
NoLandGrab: We're not afraid to deliver bad news, Chuck — if what goes around really does come around, there's a giant s**tstorm headed in Forest City's direction.
Posted by eric at 10:27 AM
June 22, 2010
Panelists at Real Estate Summit Flourish in Midst of Controversy
Brooklyn Daily Eagle
by Linda Collins
Another uncritical report from the "Brooklyn Real Estate Summit."
[Forest City Ratner EVP MaryAnne] Gilmartin, in her presentation, emphasized that Atlantic Yards is primarily a housing initiative with an arena attached. Of 6,430 planned residential units, 35 percent (or 2,250) will be affordable with preferences given to those in the community board districts immediately surrounding it.
Right, which is why they're building the arena first.
“We are committed to building 30 percent of the affordable units in a first phase building adjacent to the arena,” she said, adding that it is now in the design phase, funding will be sought next year and construction could begin in mid- or late-2011.
...Gilmartin noted that FCRC has partnered with eight different community groups on the Atlantic Yards development and an inter-generational center is planned.
NoLandGrab: What Ms. Gilmartin meant is that "FCRC has 'partnered' with eight different 'community' groups on the Atlantic Yards development and an inter-generational center is 'planned'."
Posted by eric at 9:46 AM
June 21, 2010
In Progress: Beekman Tower / Frank Gehry
ArchDaily
by Karen Cilento
 |
Compared to its context, the monstrously tall tower will dominate the neighborhood which is predominantly filled with lower rise building. In the beginning of the construction phase, developer Forest City Ratner threatened to cut Gehry’s 76-story Beekman Tower in half due to cost, but in a press release on the matter, the developer concluded, “FCRC’s critical decision to build the full skyscraper was due to a combination of factors, including a reduction in the cost of construction materials and interior build-out and finishes. In addition, a successful collaboration with the Building and Construction Trades Council and the Building Employers Trade Association resulted in a beneficial Beekman Project Labor Agreement. Completing the Beekman tower will keep hundreds of workers employed at a time when construction in New York has slowed dramatically.”
Photo: Moonman82 via ArchDaily
Posted by eric at 10:51 AM
Carl Andrews Goes From Clownish Antics to More Serious Trouble
Runnin' Scared
by Wayne Barrett
Sleazeballs of a feather flock together.
I remember when Carl Andrews was an innocent. The focus of scorching New York Post stories the last two days, Andrews is now a target of a probe that threatens the brief Democratic reign in the New York State Senate. It's the culmination of a life of clownish crime, though the usually ebullient Andrews has never been convicted of one.
The Post reported this morning that Senator John Sampson, whose leadership of the narrow Democratic majority has restored at least some semblance of sanity to the chamber in recent months, actually gave Andrews an internal Senate document summarizing the details of the six bids received by the state for one of its most lucrative contracts ever, the operation of 4,500 electronic slot machines at the Aqueduct Racetrack in Queens. Andrews, a former state senator with close political ties to Sampson, was the lobbyist for Aqueduct Entertainment Group, the eventual winning bidder whose contract is so engulfed in scandal it was subsequently cancelled.
The State Inspector General and the United States Attorney are probing the award to A.E.G., which revised its bid after seeing the Senate summary of their competitors' offers.
...To me, it is all Brooklyn chickens coming home to roost in Albany.
Sampson and Andrews joined forces under onetime Brooklyn Democratic boss and ex-Assemblyman Clarence Norman, who wound up convicted in a series of corruption cases in recent years and doing up to nine years in state prison.
...You'd think a dossier like that might make [Andrews] a hard sell as a lobbyist, but in Albany, he was flooded with paying customers the minute he hung a shingle, everything from builders like Forest City Ratner and the McKissack Group, which have giant Brooklyn projects, to eBay and Brooklyn Philharmonic. A.E.G. knew it was buying access, and they didn't care whether it was the seediest kind.
Posted by eric at 10:44 AM
June 17, 2010
At Forest City's annual meeting, talk of "de-risking the business," the huge improvement over 2009 for AY, and a "very profitable" arena
Atlantic Yards Report
The unencumbered development opportunity with Atlantic Yards and its expected “very profitable arena” were among the highlights cited by Forest City Enterprises (FCE) executives yesterday at the corporation’s homey annual meeting in Cleveland. (I listened via a webcast.)
Referring to the corporation’s efforts as a whole, CEO Chuck Ratner said “we have de-risked the business,” surely an important message to shareholders but a statement that should raise questions among the developer’s governmental partners and the public.
If they’ve gotten rid of risk, has it simply evaporated, or been shifted?
In the case of Atlantic Yards, run by subsidiary Forest City Ratner, evidence suggests it’s been shifted. The New York City Independent Budget Office, for example, considers the arena a net loss for New York City. (It calls the arena a modest gain for the state, but that’s without considering the naming rights the state gave away.) Penalties for delay are slight.
Forest City's CEO got to indulge himself in a fantasy sequence.
Chuck Ratner said, “Look folks, we’ve come a long way… Think about the fact that one year ago, standing right about where [Executive VP] David [LaRue] is sitting, was one Mr. Goldstein, who had come to our annual meeting to take on our board over the Atlantic Yards transaction, and how unfairly we were treating him and his neighbors, and why don’t we just leave and go away.”
(While Goldstein did cite “staunch and widespread community opposition, ongoing and potential new litigation, diminished political support, and an extremely challenging economic environment,” he didn’t complain about unfair treatment but asked Forest City executive to tell shareholders its contingency plans “if and when you don't break ground in 2009 and can't open the arena in Brooklyn in 2011?”)
“[Co-chairman] Albert [Ratner] handled him, I thought, extremely well, and he basically left,” Chuck Ratner continued. “And here we sit one year later, and for an exorbitant price, we bought him and his interest out.”
Exorbitant? That’s the official line, but it’s pretty much what they paid speculators five years earlier for the buildings containing Freddy’s Bar & Backroom.
NoLandGrab: "Exorbitant" is the bill being hung on the taxpayers — and the cost to property rights in New York State.
Posted by eric at 11:10 AM
One mean text
The Brooklyn Paper, Police Blotter
by Thomas Tracy
The week wouldn't be complete without a crime (or two) taking place in one (or both) of Bruce Ratner's malls.
iPod insult
A thief swiped an iPod from a 29-year-old woman on June 5 then insulted her intelligence during a text exchange later that day.
The woman said that she and the thief — an acquaintance — were leaving the Pathmark inside the Atlantic Center Mall at Atlantic Avenue and Fort Greene Place at 2 pm when the 24-year-old suspect asked to see her iPod Touch.
When the woman handed it over, the thief started to exit the cab, suddenly claiming he had to go back inside the supermarket.
The woman grabbed the iPod from him, but he snatched it back, explaining he’d return in a few minutes.
He didn’t.
Upset, the woman texted the suspect, asking him where he was so she could get her iPod back.
His response made it quite clear she wasn’t going to see him or the iPod again: “I’m at [the corner of] Psyche and You’re a Fool avenues.”
The Local [Fort Greene/Clinton Hill], The Week in Crime: Purses, iPods and More Van Theft
June 12: At 1:53 p.m. a woman left her purse in the bathroom at Target. When she went back to get it five minutes later, the purse was gone.
Posted by eric at 10:52 AM
June 16, 2010
Chuck Ratner Explains Who Atlantic Yards Benefits
Develop Don't Destroy Brooklyn
At yesterday's analyst conference call Forest City Enterprises CEO Chuck Ratner explained how Atlantic Yards is a public use, legitimizing eminent domain...oh, wait, no he didn't.
Norman Oder reports (and transcribes) the CEO's words, which actually explain what a sweetheart deal the whole scam is for the Ohio-based firm:
"But let me just share this reflection," [Charles Ratner} added. "Y’know, in the last three to five years, all that anybody ever saw at Atlantic Yards was risk and losses from the basketball team. Look where we are now. We’ve sold 80% of the team, which was a major drag on our earnings, to a well-capitalized owner who is committed to the business. As to the arena, we are investors in a great real estate asset and we are managing partners in a great real estate asset in a great market. We together with our partners own 55% of the arena and we are the managing partner. It is a real value proposition for Forest City."
That's not all anybody ever saw. What so many saw was one of the biggest land grabs in the city's development history. But at least it is a "real value proposition for Forest City."
Posted by eric at 11:29 AM
June 15, 2010
Forest City executives call AY "real value proposition," says "land prices seem to have come back for new opportunity" (what about that railyard?)
Atlantic Yards Report
Executives at Forest City Enterprises (FCE), speaking yesterday in a conference call with investment analysts to discuss first quarter results, said their optimism about the real estate market was continuing to grow--and that progress on the Atlantic Yards project was significant.
"We believe the bottom has been reached for most real estate fundamentals," declared FCE CEO Chuck Ratner, who acknowledged that "clearly that recovery is fragile."
AY progress
"Without question, however, our biggest pipeline-related achievement during the first quarter was obtaining vacant possession in Atlantic Yards in Brooklyn, closing our new partnership with Mikhail Prokhorov for the ownership of the Barclays Center arena and the Nets team and continuing construction work on the arena," Ratner said.
"Vacant possession" referred not to the entire Atlantic Yards site, or even the entire first phase, but the arena block.
"All projected debt and equity needed to complete the arena construction has been fully funded, and we expect to open in late spring/early summer of 2012," he said.
..."But let me just share this reflection," he added. "Y’know, in the last three to five years, all that anybody ever saw at Atlantic Yards was risk and losses from the basketball team. Look where we are now. We’ve sold 80% of the team, which was a major drag on our earnings, to a well-capitalized owner who is committed to the business. As to the arena, we are investors in a great real estate asset and we are managing partners in a great real estate asset in a great market. We together with our partners own 55% of the arena and we are the managing partner. It is a real value proposition for Forest City."
Posted by eric at 11:35 AM
Criminals Also Fans of Frank Gehry's Beekman Tower
Curbed
There's panic on the streets of FiDi, caused by that greatest of urban menaces: landscaping. You see, Frank Gehry's wavy 76-story Beekman Tower won't only have rental apartments, a school and hospital offices when it makes its debut in 2011. It will also have two street-level plazas, with beautiful bushes and trees..."and other places where a criminal might hide while waiting to assault somebody who walked by," according to a concerned Community Board 1 member. And so the committee passed a resolution urging developer Forest City Ratner to staff the plazas with full-time security, after, the Broadsheet Daily reports, FCR reps "weren't very forthcoming" about their security plans. Suspicious! Maybe they plan on mugging tenants to make up for a soft rental market.
NoLandGrab: Actually, Forest City Ratner is perfectly content to mug taxpayers, which appears to be much more lucrative.
Posted by eric at 11:26 AM
June 14, 2010
New rental tower fills tall order
Downtown's Beekman seen drawing good crowd, but units are pricey, and market is still shaky
Despite years of community opposition over its size, a financial crisis that briefly threatened to halve its height, and falling debris that rendered neighboring streets hazardous, the city's tallest residential spire will officially open its doors in about six months.
And after all that, the 867-foot Beekman Tower is already being hailed as a winner. In a remarkable about-face, many community officials expect their new 76-story, Frank Gehry-designed neighbor to raise the profile of the entire area. Meanwhile, real estate brokers predict developer Forest City Ratner Cos. will not only have little trouble renting the building's 903 high-end apartments but that their arrival on the market will be perfectly timed.
...Beekman is fortunate to open in a strengthening rental market,” says Gary Jacob, executive vice president of developer Glenwood Management, which raised rents and eliminated concessions in February.
With many of the off-price leases due to expire in the fall, however, the market faces a major test. That factor, combined with a still uneven economic recovery, could yet make Forest City Ratner's hope of garnering rents that brokers predict will work out to be around $80 per square foot overly ambitious. Rents at nearby Liberty Plaza and 10 Barclay are $60 to $65 per square foot—and even those are considered high. According to Platinum Properties, rents in luxury financial district buildings range from the mid- to high $40s per square foot.
NoLandGrab: $5,000 a month for a 750-square-foot apartment is almost as fanciful as the $1,250 per square foot Forest City hopes to get for Atlantic Yards condominiums.
Posted by eric at 9:04 AM
June 12, 2010
Barclays/Nets Community Alliance now supports Brooklyn Public Library
Atlantic Yards Report
After getting on the charitable map with contributions to playgrounds and to the Brooklyn Historical Society, the Barclays/Nets Community Alliance is now supporting the Brooklyn Public Library's summer reading program.
(For perspective, the donation is far, far less than what the library needs to keep its doors open if planned budget cuts go through. Supporters of the city's three library systems are having a 24-hour read-in at the Brooklyn Public Library's Central Library beginning today at 5 pm.)
The summer reading program
As stated on SummerReading.org:
Target is the lead sponsor of Brooklyn Public Library’s Summer Reading 2010 program. Barclays/Nets Community Alliance, Astoria Federal Savings, National Grid Foundation and Con Edison have also provided generous sponsorship support. Additional funding is provided by Federal Library Services and Technology Act funds awarded to the New York State Library by the Federal Institute of Museum and Library Services. In-kind support is provided by Con Edison, Scholastic, Sesame Workshop and Tops Trumps USA.
...And how much are they giving? It doesn't say, but consider that lead sponsor Target last year donated between $25,000 and $49,999, according to the library's annual report.
Presumably the Barclays/Nets Community Alliance contributed less. It's a worthy cause, of course, but, given the public subsidies for the project, and the sweet naming rights deal for the Atlantic Avenue transit hub, why not eliminate the middleman?
NoLandGrab: See if you can follow the ironic trail here.
In February 2007, the Brooklyn Public Library re-exhibited a collection of artworks that had first appeared the previous fall in Prospect Heights, entitled Footprints: Portrait of a Brooklyn Neighborhood. Only they excluded some of the works from the original exhibition, including a portrait of Daniel Goldstein, and photos of a Develop Don't Destroy Brooklyn protest taken by our own Amy Greer. Among the Library's lame excuses for the exclusions was that they "didn't take positions on issues currently being decided" and were "publicly funded."
Now, however, that public funding is withering; the city's libraries are being called the "biggest losers" in the mayor's proposed budget, facing almost $75 million in cuts. That, of course, is but a fraction of the bounty that the mayor, and the state, have handed to Bruce Ratner to help him build his Brooklyn basketball palace. And now, flush with the taxpayers' hundreds of millions, he's going to give a few thousand crumbs to the Brooklyn Public Library — which was careful not to offend his eminence back in 2007.
Posted by eric at 9:13 AM
June 11, 2010
Forest City in the News
Curbed, Gehry's Beekman Tower to Hit the Market in Early 2011
Is Frank Gehry's Beekman Tower the most eagerly anticipated NYC rental building of all time? It's certainly the flashiest, and with the rippling skyscraper now hogging the Lower Manhattan skyline (without the aid of medical science!), we're wondering when these 900 slices of starchitecture will hit the market. A Curbed tipster writes we're one winter away:
Forest City Ratner has selected Citi Habitats to lease, Nancy Packes as marketing consultant and co-op as the advertising agency for Beekman Tower. Kick off meeting on Monday and leasing to commence early spring 2011.
According to a Forest City Ratner rep, leasing will begin in the first quarter of 2011, but that's all the developer will confirm. Will the apartments be snapped up quickly? We haven't heard much about prices or amenities, but Ratner can always throw in Nets season tickets with every signed lease, though that might actually discourage most people.
Image: Roccocell/Flickr via Curbed
PR Newswire, Press Release: Forest City Announces Closing of Permanent Financing for East River Plaza Retail Project
Forest City Enterprises, Inc. today announced that a subsidiary has closed on the conversion of the construction facility for the East River Plaza retail center in Manhattan, to a $214.3 million ($107.2 million at the Company's pro-rata share) term loan.
The conversion to permanent financing, with maturity in January 2019, is through the same lender group that provided construction financing for the center. The loan carries an effective all-in fixed interest rate of less than 4.5 percent. The major financial terms of the conversion were negotiated in conjunction with the initial construction loan. Coupled with the conversion of the construction loan, the existing $40 million credit enhancement in tax-exempt Empowerment Zone bonds has also been extended to the 2019 maturity date. In addition to conventional bank financing, the center was made possible by financing provided by the State of New York, New York City and the Upper Manhattan Empowerment Zone.
Posted by eric at 9:12 AM
June 9, 2010
Green Oasis of Trees and Fountains to Open Next to Frank Gehry’s Beekman Tower
DNAinfo
by Julie Shapiro
A burbling oasis of trees and fountains will open beside the new 76-story Beekman Tower as early as next year.
Sounds almost like a "Garden of Eden."
The plaza includes fountains and landscaped sitting areas.
The 13,000-square-foot plaza will sit just west of the Frank Gehry-designed skyscraper, spanning the length of the building from Beekman Street to Spruce Street. The project also includes a smaller 2,500-square-foot landscaped walkway just east of the building at William Street.
Forest City Ratner, the tower developer, unveiled new designs for the plazas, by landscape architect Field Operations, at Community Board 1’s Seaport/Civic Center Committee Tuesday night.
...Susi Yu, a senior vice president at Forest City Ratner, said the plaza would have security cameras and “appropriate oversight.”
“We will do everything we need to do to protect our investment,” she said.
Rendering: Field Operations via DNAinfo
Posted by eric at 10:45 PM
Forest City 1Q Loss Narrows As Signs Of Turnaround Seen
Dow Jones Newswires via The Wall Street Journal
Forest City Enterprises Inc.'s (FCEA, FCEB) fiscal first-quarter loss narrowed as the real-estate company said momentum in the most recent period inspired optimism about a turnaround.
The company, which owns commercial and residential properties, has seen its results improve recently because of fewer write-downs and tax credits. The real-estate bubble popped just as Forest City was embarking on a contentious $4.3 billion revamp of downtown Brooklyn, N.Y., known as the Atlantic Yards development.
That would be Prospect Heights, actually. And "contentious" is putting it mildly.
For the quarter ended April 30, Forest City posted a loss of $15.6 million, or 10 cents a share, narrowing from a year-earlier loss of $30.7 million, or 30 cents a share. The company's earnings before depreciation, amortization and taxes surged 69% to $70.5 million on decreased write-offs of abandoned development projects and lower severance and outplacement costs, among other effects.
Revenue dropped 9.6% to $281.7 million on joint ventures entered into during the quarter and reduced sales of commercial outlots.
NoLandGrab: Like the Nets, who managed not to set the NBA record for futility, Forest City managed to lose less money last quarter.
Related coverage...
Atlantic Yards Report, Forest City Enterprises reports better first-quarter results, AY milestones
Forest City Enterprises reports its first-quarter results, which are better than last year. Notably, the developer states--as it has in the past--that the arena would open in 2012 (not for the 2012-13 season):
...Finally, results from the Nets segment increased $6.5 million, compared with the prior year's first quarter, primarily due to reduced amortization of intangible assets related to the purchase of the team.
AY mentions
The comments in quotes come from CEO Chuck Ratner:
"Another major highlight for the Company occurred early in the second quarter when we achieved vacant possession of the land at our Atlantic Yards project in Brooklyn on May 7. This was the culmination of a six-year journey for Forest City. It allowed us not only to continue to move forward on the overall project, including ongoing construction of the Barclays Center arena, but also to complete the transaction, on May 12, with Mikhail Prokhorov for his investment in the Nets and the arena. With Mr. Prokhorov's $200 million investment completed, he now owns 80 percent of the Nets and 45 percent of the arena project. Once again, our New York team, led by Bruce Ratner and Joanne Minieri, deserves credit for their hard work, creativity and perseverance in achieving these important milestones.
...Finally, construction activity continues for the Barclays Center arena project at Atlantic Yards. All projected debt and equity needed to complete the construction has been fully funded and the Company expects the arena to open in 2012.
Forest City Enterprises Press Release, Forest City Reports Fiscal 2010 First-Quarter Results
Posted by eric at 10:35 AM
June 7, 2010
The Week in Crime: Madiba Burglary
The Local [Fort Greene/Clinton Hill]
by Mitchell Trinka
May 21: A woman shoplifted over-the-counter drugs from Target at 9:37 a.m., police said. Police used store surveillance footage to identify and arrest Michele Wheelock, 25, three days later, they said.
...May 22: Jewelry valued at $35,495 was removed from a safe at Sterling Galleries in the Atlantic Center mall at 6:15 p.m., police said. An employee, known to store owners only as Mike, was accused of stealing the rings, bracelets, chains and pendants, police said.
NoLandGrab: We know that Bruce Ratner's malls are prone to criminal activity, but really, if you own a jewelry store, it's probably not a good idea to give the safe combination to an employee whose last name you don't even know.
Posted by eric at 9:46 AM
June 4, 2010
The Gallerina Guide to NYC's Ugliest Buildings
WNYC News Blog
by Carolina Miranda
This week, the American Institute of Architects (AIA) unveils its latest Guide to New York, the must-have architectural bible that tracks -- block by block -- the city's significant structures. To celebrate the book's release (it's been a decade since the last update!), we combed through its 1,000-plus pages to come up with our own guide...to the city's 10 homeliest buildings.
...
10. METROTECH CENTER, Downtown Brooklyn (from 1989). This 11-block development at Flatbush and Tillary is an architectural mixed bag -- some of it interesting (Davis Brody Bond's sleek Othmer Residence Hall), much of it a snore (15 Metro Tech Center). Walking through this dull morass can be soul-crushing. But the real problem here, says the AIA, is the way in which one company appropriated a vast swath of public space and made it into their own quasi-private territory, complete with battalions of security guards. The complex should serve as a lesson on letting developers and architects build monuments to themselves, with little consideration for how these projects might weave into the greater urban fabric. It may be a lesson we have yet to learn. Metrotech's developer, Forest City Ratner, is now working on another behemoth 22-acre project nearby: the highly controversial Atlantic Yards.
Photo of 15 Metrotech Center: See-Ming Lee/flickr
Posted by eric at 12:31 PM
June 1, 2010
Brooklyn’s first iPad theft is reported!
The Brooklyn Paper, Police Blotter
by Thomas Tracy
This week, Forest City Ratner wasn't just the host to the crime — it was a victim, too.
Pretty pinch
A jeweler selling baubles at the Atlantic Center Mall lost several pricey pieces on May 24 — and his own employee may be to blame.
The shop owner in the Bruce Ratner-owned mall on Atlantic Avenue between Fort Greene Place and S. Portland Avenue said the employee put the bling in the safe right before closing on May 22.
But when the safe was opened on May 24, six diamond rings, five chains, four pendants and four bracelets were missing.
So was the employee, who didn’t show up for work that morning — and his phone number was suddenly disconnected.
FCRC felony
In other Ratner-related news, someone broke into his company’s satellite office on Rockwell Place on May 26, swiping a $600 computer.
Cops were not sure how the thief got into the office between DeKalb Avenue and Fulton Street, although the theft occurred sometime after 4:30 pm.
NoLandGrab: One wonders if the Forest City heist, too, was an inside job; perhaps a whistleblower, gathering evidence?
Posted by eric at 8:38 AM
May 25, 2010
Hot cakes, foul mood
The Brooklyn Paper, Police Blotter
by Thomas Tracy
Speaking of the site of the Atlantic Center, had Walter O'Malley succeeded in building a baseball stadium on the site, it's possible that "Beaten and Robbed" might refer to a Dodger victory sparked by a couple stolen bases rather than yet another spate of crime in one of Bruce Ratner's malls.
Beaten and robbed
Two teens were apprehended after they mugged a 15-year-old inside the Atlantic Terminal Mall on May 21.
Police said that the suspects pulled a knife on their victim as he perused the Flatbush Avenue mall between Hanson and Atlantic avenues at 3 pm, but were taken into custody before they could exit the front door.
The Bruce Ratner-owned mall is a hotbed for crime, making an appearance pretty much every week in this column.
Posted by eric at 9:40 AM
May 24, 2010
Brutally weird: There's a monitoring plan to ensure arena construction doesn't damage subways. But it's illegible. Ask for legible copy? Unavailable.
Atlantic Yards Report
The construction of the Atlantic Yards arena, according to a Subway Indemnity Agreement signed by Brooklyn Arena LLC and the New York City Transit Authority, not only must proceed "in a good and workmanlike manner" but also must be subject to a monitoring plan, thus protecting critical transit system assets.
The monitoring plan begins on the 29th page of the document below.
But you can't read it, as the two sample excerpts below show.
It's illegible. [Click for a larger, though no more legible, version.]
So I asked the MTA press office for a legible copy.
My request was ignored.
I filed a request with the NYCTA FOIL officer.
I was told to file with the MTA.
I refiled the request with the MTA FOIL officer and got the following response: In response to your May 20, 2010 [request], please be advised that the MTA does not have a more legible copy of Exhibit A of the Subway Indemnity Agreement. This completes the MTA's response to your FOIL request.
Catch-22
Well, if the MTA doesn't have a more legible copy, then how do we know what's supposed to be in the monitoring plan?
Answer, we don't.
Perhaps some of our elected officials might want to check into this.
NoLandGrab: "Brutally weird?" Norman Oder's too kind. More like completely moronic. But that's our tax dollars at work.
Posted by eric at 9:27 AM
May 21, 2010
The Brooklyn Real Estate Summit
GreenPearl Events
It better be a hell of a meal for that price, but considering the speakers, who'd have an appetite, anyway?
We are pleased to announce that...
MaryAnne Gilmartin, Executive Vice President, Forest City Ratner Companies has confirmed her participation at The Brooklyn Real Estate Summit on the New Development panel to discuss the Barclays Center, the centerpiece of the 8 million square foot Frank Gehry master plan for the Atlantic Yards.
MaryAnne joins a who's-who line up of key speakers, including Joe Sitt, Chairman & CEO of Thor Equities; David Kramer, Principal of Hudson Companies; and Seth Pinsky, President of the NYCEDC for a day of information, discussion and networking.
Join us at...
THE BROOKLYN REAL ESTATE SUMMIT
Wednesday, June 16, 2010, 8 am - 4 pm
St. Francis College
180 Remsen Street, Downtown Brooklyn
Click for information / registration
Registration: $195 (includes lunch)
NoLandGrab: You know those police sting operations where they contact wanted criminals and tell them they've won a TV or something and need to show up at such-and-such a place in order to collect it? Gilmartin, Pinsky and Sitt might want to think twice.
Posted by eric at 2:29 PM
May 20, 2010
When business necessities trump professed corporate values: Goldman Sachs and Forest City Enterprises
Atlantic Yard Report
In an article yesterday headlined Clients Worried About Goldman’s Dueling Goals, the New York Times concluded:
While Goldman [Sachs] has legions of satisfied customers and maintains that it puts its clients first, it also sometimes appears to work against the interests of those same clients when opportunities to make trading profits off their financial troubles arise.
Note that Goldman vigorously disputes the article.
Yes, Goldman was behind the Atlantic Yards bond deal, but the interesting parallel regards similar claims by the investment bank and Forest City Enterprises to high ethical standards, and evidence that such standards are trumped by business necessities.
...As for the values professed by Forest City Enterprises, under the heading "Integrity and Openness," the company states:
In all our dealings with all stakeholders, we will uphold the highest possible standards of ethical behavior. Our interactions will be characterized by an attitude of openness, candor and honesty.
NoLandGrab: Huh?! Is there another company named Forest City Enterprises?
Posted by eric at 11:12 AM
May 18, 2010
Pain in the butt
The Brooklyn Paper, Police Blotter
by Thomas Tracy
Bruce Ratner's malls maintain their lock on being ground zero for local criminal activity.
No rest
A thief who swiped a bike outside the Atlantic Center Mall was arrested on May 10 after the owner of the two wheeler told police about a distinctive feature — it had no seat.
The victim told police that he locked his $1,100 Schwinn Voyager to a bike rack on Atlantic Avenue near Fort Greene Place at 10:35 am. He then removed the bicycle seat, locking it on the same rack next to his bike before running a few errands.
When he returned over a half hour later, the seat was still attached to the rack, but the bike wasn’t.
It didn’t take long for cops to track down the 45-year-old thief, who was spotted riding high on the uncushioned two wheeler past the corner of Lafayette Avenue and Rockwell Place.
Posted by eric at 12:14 PM
May 12, 2010
PRESS RELEASE: Forest City Announces Closing of Agreement with Mikhail Prokhorov Related to Nets, Barclays Center and Atlantic Yards
Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that its New York-based subsidiary, Forest City Ratner Companies, closed an agreement with Nets Sports and Entertainment and Mikhail Prokhorov, under which entities controlled by Prokhorov will acquire an 80 percent stake in the Nets basketball team and a 45 percent share in the Barclays Center arena in Brooklyn. The transaction was approved by the National Basketball Association's Board of Governors on May 11.
"This is a major step forward for Brooklyn, the Nets and Atlantic Yards," said Charles A. Ratner, Forest City Enterprises president and chief executive officer. "We are pleased to partner with Mikhail Prokhorov and we share his vision of bringing professional basketball to Brooklyn and to a worldwide audience from the Barclays Center at Atlantic Yards. I also want to acknowledge the hard work and creativity of Forest City's entire New York team, led by Bruce Ratner and Joanne Minieri, in making this day possible."
In accordance with the agreement, subsidiaries of Onexim Sports and Entertainment Holding USA, Inc., have invested $200 million and made certain contingent funding commitments to acquire the above-referenced shares of the arena and team, as well as the right to purchase up to 20 percent of the Atlantic Yards Development Company, which will develop the non-arena real estate.
NoLandGrab: Yadda, etc.
Posted by eric at 6:26 PM
PRESS RELEASE: Prokhorov and FCRC Announce Closing on Partnership
via NBA.com
Onexim Sports and Entertainment Holding USA, Inc., Forest City Ratner Companies (FCRC) and Nets Sports and Entertainment (NSE) announced today that they have closed on the agreement for the purchase of an 80% stake in the capital of the Nets basketball club and a 45% share in the Barclays Center arena in Brooklyn.
Mikhail Prokhorov, principal owner of Onexim Sports and Entertainment Holding USA, Inc., said, “This much-anticipated day has finally come and now the real fun begins of building a championship team with a state-of-the-art home in the Barclays Center at Atlantic Yards. It’s a wonderful opportunity to combine great sports and good business, and I look forward to working with Bruce Ratner and Forest City and with the Nets organization as we move ahead. To the fans, whether in New Jersey, Brooklyn, or Moscow, I will do everything I can to give you a winning team. See you at the Draft Lottery.”
Bruce Ratner, Chairman and CEO of FCRC, said, “This is a partnership that will allow us to bring Brooklyn and the Nets to a world-wide audience. I’m thrilled to have Mikhail on board and look forward to working with him as we embark on this journey to Brooklyn.”
Mr. Ratner explained as well that while construction on the site and arena has been ongoing, today also marks a significant milestone in the history of the project because all paper work related to the arena lease has been completed and bond funds have been released from escrow. “We are thankful to our partners, especially the Mayor and the Governor,” Mr. Ratner said. “Today, the promise of Atlantic Yards, including the Barclays Center, the jobs and the housing, becomes a reality.”
In accordance with the agreement, subsidiaries of Onexim Sports and Entertainment Holding USA, Inc., have invested $200 million and have made certain contingent funding commitments to acquire 45% of the arena project and 80% of the NBA team, and the right to purchase up to 20% of the Atlantic Yards Development Company, which will develop the non-arena real estate.
The transaction was approved by the NBA’s Board of Governors on May 11th. Simpson Thacher & Bartlett LLP acted as legal counsel to FCRC and NSE. Hogan Lovells advised Onexim Sports and Entertainment Holding USA, Inc. and its subsidiaries.
NoLandGrab: Yadda. Yadda. Yadda.
Posted by eric at 6:20 PM
Two-faced Times
Ignores own 'corporate welfare'
NY Post
by Steve Cuozzo
There they go again at The New York Times -- trashing "corporate welfare" in the form of tax breaks for companies that pledge to keep or create jobs in the city. It's an axe they're entitled to grind, even in stories that are supposed to report news rather than disseminate propaganda. But a Times piece yesterday, like so many before, neglected to mention how the bleeding "paper of record" has itself so lavishly and greedily benefitted from "corporate welfare."
Pfizer Inc. plans to move up to 1,400 employees out of town. As a result, the Times reported, it may have to reimburse the city for $12 million in tax breaks of which it availed itself since 2003, when it received a theoretical $47 million in city and state incentives in exchange for committing to expand its workforce here.
...But what's outrageous is how the Times, in its predictable and repetitive campaign opposing "corporate welfare," invariably omits any reference to the public largesse the newspaper company enjoyed in the construction of its own Eighth Avenue headquarters.
Lest anyone forget, the Times Co. and its development partner, Bruce Ratner, received $26.1 million in city tax breaks -- more than twice the amount Pfizer actually accepted -- for the tower project.
But even that number doesn't begin to reflect what the Times really got from Albany and City Hall. The Times Co. and Ratner were only able to build an admittedly fine skyscraper thanks to the bulldozer of eminent domain -- the state's highly controversial, and rarely applied, condemnation power.
Condemnation not only forced out scores of viable stores and business between 40th and 41st streets, it rewarded the Times Co. and Ratner by charging them a sweetheart price for the blockfront -- a lowball $85.1 million, compared with comparable land values in the mid-'00s estimated at $200 million.
NoLandGrab: Two-faced Post!
Corporate welfare and eminent domain for Bruce Ratner and The New York Times = Bad.
Corporate welfare and eminent domain for Bruce Ratner minus The New York Times = Good.
Posted by eric at 11:07 AM
May 11, 2010
Hey, cops, how about Targeting target already
The Brooklyn Paper, Police Blotter
by Thomas Tracy
The Atlantic Yards blight study pointed a big, lying finger at the project footprint as the source of local crime. Amazingly, with the footprint (or at least the Phase One portion of it) now devoid of human beings, that crime doesn't appear to be letting up. Wonder how that could be?
Target trouble
Two thieves were arrested on May 5 when they supplanted an apparent smoking addiction with another bad habit — shoplifting.
Police said that the suspects, a 41-year-old man and a 42-year-old woman, were caught trying to swipe 18 packages of Nicorette gum from the Target in the Atlantic Terminal Mall on Flatbush and Atlantic avenues at 6:50 pm.
The two also tried to pocket 19 boxes of Prilosec heartburn treatment before store employees grabbed them and contacted police.
Marshalls menace
A fast-moving thief snagged a pocketbook from a woman’s shopping cart as she perused the aisles at Marshalls on May 7.
The 31-year-old woman told police that she was shopping in the department store, which is part of the Atlantic Center Mall, at Flatbush and Atlantic avenues at 5:30 pm when she turned away from her cart for just a few moments.
When she turned back, her bag, which contained $700, her credit cards and an Australian driver’s licence was gone.
Posted by eric at 12:43 PM
May 6, 2010
In coverage of Goldstein move, the New York Post lies and Forest City Ratner (apparently) displays its vindictiveness
Atlantic Yards Report
Evidence suggests that Forest City Ratner is still trying to be vindictive to Daniel Goldstein, and the tabloid press is a happy partner. The New York Post's Rich Calder, diminishing his integrity, wrote, in a blog post yesterday headlined It's game over for Nets Arena holdout Goldstein:
Here’s Brooklyn’s new $3 million man packing up his belongings and fleeing his longtime hood to pave way for Nets basketball.
Two lies, one sentence. He's not close to being a "$3 million man," given the cost of legal fees, taxes, and a replacement apartment. (Forest City Ratner's gained far more value from the override of zoning.)
And Goldstein, who's moving a short distance away, could hardly be said to be fleeing, after living alone in his building with his family for more than five years.
Who let the photographer in?
...Well, it is a private street, so why was photographer Benny J. Stumbo allowed? Did FCR tell the guard to let the photographer in? Does the Post really think that a picture of someone's baby is fair game?
Goldstein's response
I asked Goldstein for comment and he responded:
"The photographer was shooting right out on my street and shooting me. I do not know how he knew I was moving at that precise moment, but I have my guesses. When I told him to leave me alone and he wouldn't, we had a heated exchange (one in which I explained to him the street was private and residents and their visitors were only allowed, and he did not want to believe me despite a big sign saying so at the entrance to the street), ending with him telling me 'Put down your baby, take off your glasses and I will beat your ass.' It was an idle threat, but out of proportion to anything I did. I certainly did not threaten him in any way.
...Some perspective
Why was this more important news than any analysis of, say, the Development Agreement that sets 25 years as a deadline to finish the project?
Because the Post, like so many in the media, doesn't think its job is to hold public agencies accountable. Its job is to grab a few eyeballs, at whatever the cost to its reputation.
Posted by eric at 1:12 PM
April 27, 2010
Atlantic Terminal and Center malls are crime magnets
The Brooklyn Paper, Police Blotter
by Claire Glass
It appears that the Empire State Development Corporation's master plan for alleviating the blighting influence of crime in the Atlantic Yards footprint is to turn the land over to the man who presides over the neighborhood's center of criminal activity.
Target trouble
The Target in the notorious Atlantic Terminal Mall was yet again the scene of crime last week, when a fast-handed perp stole a victim’s wallet while she shopped on April 19.
The victim told cops that she got to the checkout line at around 7 pm and discovered the missing property when she reached into her pocket to pay. She quickly called to cancel her credit cards and found that the thief had already done some shopping at her expense.
Marshall’s matters
Yet another shopper at the notorious Atlantic Center Mall was burglarized by a sneaky perp on April 19.
The victim told cops that she got to the Marshall’s store inside the mall, which is between Fort Greene and S. Elliot places, at around 2 pm, but didn’t notice that her purse was missing from her cart for another 20 minutes.
Posted by eric at 12:13 PM
April 23, 2010
FCR spent $1.13 million on New York lobbying in 2009, including the second-largest (or likely largest) single contract
Atlantic Yards Report
Developer Forest City Ratner spent $1,127,598 in 2009 on city and state lobbying, just outside the top ten spenders in the state and perhaps the largest sum for any real estate developer.
Forest City Ratner's spending, almost exclusively through the Atlantic Yards Development Co., includes what the New York State Commission on Public Integrity calls the second-largest lobbying contract in the state, $466,421 with the law firm Fried Frank.
However, my analysis of the underlying data shows that AYDC actually paid $812,528 to Fried Frank for lobbying, with nearly $690,000 in the second half of the year.
That would make it easily the largest contract. (I'll contact the Commission and see if they revise their data.)
...Why so much in the second half of the year? Some of the heaviest lifting came in the late spring, when Forest City Ratner managed to get the Metropolitan Transportation Authority (MTA) to revise the Vanderbilt Yard deal and to get the Empire State Development Corporation (ESDC) to issue a revised Modified General Project Plan (MGPP).
So it's possible some of the second-half payments went to earlier work. Or maybe they had more to do with the ESDC's September 2009 passage of the MGPP or the December 2009 "arm's length" negotiation of the Development Agreement.
According to state lobby data, Fried Frank lobbied both the MTA and the ESDC, as well as the New York City Economic Development Corporation, the New York City Law Department, and the New York City Transit Authority.
Posted by eric at 10:49 AM
April 22, 2010
Atlantic Yards bitterness, take 1: an eavesdropper from Forest City Ratner outside the court room
Atlantic Yards Report
Forest City Ratner and its employees continue to impress with their classy actions — and their political ties.
From John Brennan's coverage in the Record, headlined Holdouts' deal clears way for Nets arena in Brooklyn, of the scene outside the courtroom yesterday.
Daniel Goldstein of Develop Don't Destroy Brooklyn was describing the settlement he'd reached with Forest City Ratner:
During the interview, Goldstein’s attorney, Michael Rikon, asked for the identity of a man lurking nearby and who appeared to be taking notes electronically via a hand-held device. The man said he was Michael Rapfogel, a vice president with Forest City Ratner Companies, the developer.
When Rikon asked the reporters to move down the hall, Rapfogel followed and continued to eavesdrop.
A Michael Rapfogel is son of William E. Rapfogel, Executive Director and Chief Executive Officer of the Metropolitan Council on Jewish Poverty, a powerhouse social service organization.
William Rapfogel is a longtime friend of Assembly Speaker Sheldon Silver, who funds his agency generously. And Rapfogel's wife Judy is Silver's chief of staff.
In 2008, developer Bruce Ratner was honored by the Met Council. It's all in the family.
Posted by eric at 7:26 PM
April 21, 2010
Two more Target robberies
The Brooklyn Paper, Police Blotter
by Claire Glass
With criminal activity commonplace in his two shopping malls, imagine what Bruce Ratner will be able to do for the local police blotter with an 18,000 seat arena.
Target trouble
Beware Target customers, yet another week of thievery has gone down at the Atlantic Terminal Mall store. Here’s a round-up:
• A perp got away with more than $2,000 worth of electric razors and luggage on April 11. When an employee noticed the missing shavers, at around 7 pm, he called the cops and provided a surveillance tape of the crook getting away with the goods.
• A thief nabbed a wallet from a victim’s purse on April 12 while she did her shopping. The victim told police that when she got to the checkout line, at around 10 pm, she noticed her wallet was missing.
Posted by eric at 12:18 PM
Ranking New York’s top legal wranglers
A look at the 20 NYC law firms with the biggest real estate divisions – and at how they’ve dealt with the downturn
The Real Deal
by Alison Gregor
Some firms have dealt with the downturn by milking fees from deals that have gotten fat at the public teat.
In 2009, for example, Fried Frank represented developer Forest City Ratner in connection with the sale of over $500 million in tax-exempt bonds for the financing of the new Barclays Center, the planned arena for the Nets, the centerpiece of the Atlantic Yards project in Brooklyn. The firm also represented the developer in completing arrangements with the state, city and MTA for development of the entire Atlantic Yards project, which broke ground last month.
Posted by eric at 11:58 AM
April 19, 2010
Democrats accuse GOP candidate of taking shady donations
Dayton Daily News
by Laura A. Bischoff
The Ohio Democratic Party charged that Rep. Josh Mandel, the Republican candidate for state treasurer, took campaign contributions from three men with “criminal financial histories.”
...State Rep. Mandel, R-Lyndhurst, received $13,000 from Elliot Broidy who pleaded guilty to bribing the New York state controller; $1,000 from Brian Chisick, whose company settled a lawsuit over deceptive loans for $60 million; and $11,300 from Roger Hertog, whose company paid a $250 million fine to the Securities and Exchange Commission and settled a lawsuit with the state of New York for $600 million.
Thursday, April 15, Ohio Democratic Party Chairman Chris Redfern said, “Josh’s donors committed bribery, ravaged pension funds and engaged in deceptive practices that forced people out of their homes.”
"Deceptive practices that forced people out of their homes?" Why, that's the specialty of another of Mandel's donors.
His tab includes $3,919 in travel paid for by Forest City Enterprises, a Cleveland company that employs Mandel’s father-in-law and $2,392 in travel paid for by RPM International, a sealant and chemical company.
Posted by eric at 10:36 AM
April 15, 2010
Atlantic Center Security
Brownstoner
We were as surprised as anyone that this week's 88th Precinct police blotter didn't include any reports of crime in Bruce Ratner's Atlantic Center and Atlantic Terminal malls, but according to this Brownstoner forum post, all is not peaceful in Ratnerville.
I not too long ago returned home from a shopping trip at Atlantic Center. My Target browsing was cut short by a HUGE group of angry, shouting, cursing, teen boys. I sensed a melee brewing, so I got the hell out of the store. To my dismay, the teens followed right behind me. The group began to disperse on the escalators, but quickly reconvened on the main level. More shouting and cursing, including threats of violence continued. Myself and another woman split up to find some type of security or random police officer who may have happened to be in there. Approximately 5 minutes later, we bumped into each other again, neither of us having found anyone of authority to diffuse the situation. I figured I did my best and decided to just go home. As I stepped out onto the Flatbush Avenue exit, the groups of teens began running towards each other hurling insults and threats of imminent bodily harm. I damn near had to toss myself into oncoming traffic to avoid the ensuing melee.
Does Atlantic Center have no security officers? Do the police not patrol this place? Who the hell knew that Target could be such an anger inducing place in the early evening? (All of this happened around 4:45-5:00pm)
Posted by eric at 11:48 AM
April 10, 2010
Overstated allegation that Yonkers pol was indicted for "accepting a bribe from Ratner" subject of heated exchange among lawyers in remaining AY case
Atlantic Yards Report
Attorneys for the ESDC fulfill their role as the tool of developer Bruce Ratner when they become sensitive to an allegation that Ratner offered a bribe.
Forest City Ratner's murky role in the controversial Ridge Hill corruption case--mentioned indirectly but not implicated--has become the subject of some heated exchanges between lawyers on opposite sides of the only Atlantic Yards case that remains to face an initial hearing.
Williams vs. New York State Urban Development Corporation (aka Empire State Development Corporation, or ESDC) goes to court Monday.
It's not likely that Ridge Hill will come up--the larger issue is whether the Development Agreement, not unveiled until January, should trigger new Determination & Findings (D&F) needed to pursue eminent domain.
But Ridge Hill hangs like a cloud over the developer, even though a lawyer for property owners challenging the state overstates what has been alleged.
...
What actually happened is murky, but the indictment does not charge Annabi with "accepting a bribe from Ratner." It lays out a sequence in which Annabi is charged with accepting corrupt payments from Zehy Jereis, who got a no-show job from Forest City Ratner.
As I wrote, the role of the developer is questionable, making it dubious that the ESDC considers the developer a "good corporate citizen." It's unclear why the developer was not considered a target by prosecutors, or why Forest City thinks it has a clean bill of health.
Posted by steve at 9:00 AM
April 8, 2010
Forest City Ratner Foundation: still supporting BAM, the Brooklyn Museum, and Markowitz's concert series
Atlantic Yards Report
Forest City Ratner's "Foundation" appears to work more like a quid pro quo lobbying operation than a charitable organization.
It may be more of the same, but the latest Internal Revenue Service report from the Forest City Ratner Companies Foundation--which I called shadowy because of its lack of transparency--is still telling.
As with the return through the year ending 1/31/2008, the latest return, through the year ending 1/31/09, shows that the single largest recipient of the developer's largess, by far, was the World Trade Center Memorial Foundation (a fundraising effort led by Mayor Mike Bloomberg), gaining $1 million out of the approximately $1.5 million total dispensed.
Gifts in Brooklyn
But the foundation also plays a role in maintaining friendly relationships with some important institutions and neighbors. Thus Polytechnic University, Forest City Ratner's original partner in MetroTech, got $100,000.
The foundation also gave $100,000 to the Brooklyn Academy of Music. Bruce Ratner has been a BAM Trustee since 1989 and chaired its board from 1992 until 2001. BAM has unequivocally supported the Atlantic Yards project.
It gave $165,000 to the Brooklyn Museum of Art, up from $125,000 in the previous year. In April 2008, shortly before the foundation delivered $100,000, Bruce Ratner was honored by the museum, an event that provoked a sometime bitter public protest.
For the second straight year, Borough President Marty Markowitz's Martin Luther King Jr. concert series got $100,000.
Posted by eric at 10:33 AM
April 6, 2010
Lots of beatings
The Brooklyn Paper, Police Blotter
by Claire Glass
No beatings, thankfully, in Bruce Ratner's Atlantic Terminal and Atlantic Center malls, just the usual allotment of petty larcenies.
Target trickery
A fast-handed offender stole a woman’s wallet from out of her purse while she was shopping at the notorious Target in the Atlantic Avenue Terminal on March 29.
The victim told cops that the purse was on her shoulder the entire time that she was in the store, which is near the corner of Atlantic and Flatbush avenues, but when she got to the checkout line at around 4 pm, she noticed that the wallet had been picked.
It’s just the latest purse-snatching at the store, which makes virtually weekly appearances in our Police Blotter.
Steal bucks
A thief swiped a woman’s purse at the Atlantic Terminal Mall on April 4 — but she didn’t realize it until she was paying for a cup of coffee later in the day.
By that time, the thief had already rung up $425 in charges on the purloined credit card.
NoLandGrab: We still think that's Bruce Ratner's Russian sugar daddy, Mikhail Prokhorov, could do wonders for crime deterrence in Ratner's malls.
Posted by eric at 11:07 AM
April 5, 2010
New Rochelle takes steps to preserve armory artwork
LoHud.com
by Hannan Adely
Bruce Ratner, conservator.
The large paintings that hang in the city's armory show vivid scenes of naval military history, ranging from a life-size portrait of a tugboat to ships in training after the first world war.
The paintings, though, are losing their life as the building around them continues to deteriorate and drip.
Now, the city is taking steps to protect the artworks. With support from veterans and the city's Municipal Art Commission, city officials approved a $19,000 contract to remove and store the artworks for the next year.
...The $19,000 tab to store the four paintings will be paid by developer Forest City Enterprises. The company agreed to pay for future years, too, as long as it continues to have an agreement with the city to develop the land, said City Manager Charles Strome.
Forest City had initially planned to demolish the armory as part of its $450 million Echo Bay project and put up a community center in its place. The company is revising its plans because of the downturn in the economy, so the fate of the armory is unclear.
NoLandGrab: Forest City's act of generosity likely means that it expects to be getting back many times the amount of its "gift" in additional subsidies.
Posted by eric at 11:03 AM
April 2, 2010
In Forest City conference call, Atlantic Yards cited as example of FY 2009 milestones
Atlantic Yards Report
A relieved and optimistic--but still cautious--set of Forest City Enterprises (FCE) executives held their quarterly (and annual) conference call yesterday with investment analysts, and Atlantic Yards was highlighted as an emblematic success of the past fiscal year, which ended 1/31/10.
Moreover, in the Q&A segment, unlike in previous calls, the analysts had no questions about Atlantic Yards. From their perspective, it seems, the project is a done deal.
Leading off
FCE CEO Chuck Ratner led off by stating that "we feel a lot better" than they did a year ago and even "three short months ago."
He cited a number of success in the past three months, including the closing of a new revolving line of credit, completed debt exchanges, and "the master closing at Atlantic Yards in Brooklyn and [we] held a groundbreaking for the Barclays Center arena in that project."
AY as example
He singled out "Atlantic Yards alone as one example of what we were able to accomplish in 2009 and early 2010," citing:
- they "successfully addressed a major land loan" [with Gramercy Capital]
- "tax-exempt bonds... have been issued at an attractive rate"
- "lawsuits opposing the project are almost behind us"
- they "identified a great partner [Mikhail Prokhorov] who plans to take a majority interest [80%] in the team and a significant interest [45%] in the arena"
- they began construction on the arena
- and executed the master closing
"It was quite a to-do list, but our New York team, led by Bruce Ratner and Joanne Minieri, achieved all of those milestones," Ratner said.
Posted by eric at 12:01 PM
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 11:27 AM
April 1, 2010
Top 10 Real Estate Stocks with Highest Short Interest: JOE, EJ, FCE.A, CHLN, MPG, OHI, FOR, CBG, MGRC, PICO
China Analyst
Below are the top 10 Real Estate stocks with the highest short interest as a percentage of total shares outstanding. Two Chinese companies (EJ, CHLN) are on the list.
The St. Joe Company (NYSE:JOE) has the 1st highest short interest in this segment of the market. Its short interest is 18.7% of its total shares outstanding. Its Days to Cover is 45.64, calculated as current short interest divided by average daily volume. E-House (China) Holdings Limited (NYSE:EJ) has the 2nd highest short interest in this segment of the market. Its short interest is 9.1% of its total shares outstanding. Its Days to Cover is 6.76, calculated as current short interest divided by average daily volume. Forest City Enterprises, Inc. (NYSE:FCE.A) has the 3rd highest short interest in this segment of the market. Its short interest is 8.2% of its total shares outstanding. Its Days to Cover is 10.8, calculated as current short interest divided by average daily volume.
NoLandGrab: The relatively high short interest in FCE is an indication that a goodly number of investors believe the stock is ripe for a fall.
Posted by eric at 10:42 AM
March 30, 2010
Forest City reports increased earnings, lower net loss; cites major milestones for Atlantic Yards but acknowledges risks, including need for equity
Atlantic Yards Report
Forest City Enterprises, parent of Forest City Ratner, announced today some relatively good financial news, citing a 37.5 percent increase in annual earnings for the year ending 1/31/09 and a lower net loss--$30.7 million, or $0.22 per share, compared with a net loss of $113.2 million, or $1.10 per share, in 2008.
After cutting costs and seeing the economy recover, FCE even gained positive fourth quarter net earnings of $0.04 per share, compared with a net loss of $0.44 in the fourth quarter of 2008.
The Nets and Atlantic Yards
Still, the Nets lost a bit more in 2009 than they did in the previous year: FCE's share was $35.4 million, compared to $34.9 million.
Hence the importance to FCE that Atlantic Yards, as detailed below, was seen as reaching significant milestones.
Still, vacant possession of the project site--likely to be concluded by summer via eminent domain--is necessary for FCE to finish the transaction with Russian billionaire Mikhail Prokhorov to sell 80% of the New Jersey Nets and 45% of the arena.
Also, among the development risks--required boilerplate, maybe more--is the need to "meet required equity contributions," which suggests that, however Forest City Ratner and Prokhorov have pledged to fill an equity gap, it hasn't been consummated.
Note that the press release refers to "a refinancing from Gramercy Capital on a key $161.9 million land loan for the project," but doesn't explain, as Bruce Ratner suggested at the groundbreaking, that Gramercy progressed from "our land lender" to "our partner." There's no mention of any cash flow difficulties at FCR.
Click here for Forest City's press release.
Posted by eric at 11:29 PM
Forest City Swings To Quarterly Profit
The Wall Street Journal
by John Kell
Forest City Enterprises Inc. swung to a fiscal fourth-quarter profit as the real-estate company benefited from government tax credits and fewer development project write-downs. The company, like its peers, has faced a difficult environment since the residential real-estate bubble popped in 2007, a calamity that struck just as Forest City was getting geared up to begin construction of its $4.3 billion project to remake downtown Brooklyn, N.Y., with its Atlantic Yards residential and commercial project.
Ratings agencies, meanwhile, have expressed concern about the company's debt-protection measures. Still, Standard & Poor's Ratings Services earlier this month said Forest City had sufficient liquidity to meet its funding needs through next year.
The owner of commercial and residential properties reported a profit of $6.2 million, or 4 cents a share, compared with a year-earlier loss of $45.3 million, or 44 cents a share. Total revenue climbed 1.2% to $324.3 million.
Posted by eric at 11:24 PM
Cowboys Gone, Irving Officials Call an Audible
What Happens to NFL Hallowed Ground After Players Take the Ball Elsewhere? Bye, Texas Stadium. Hello, Tanger Outlets?
The Wall Street Journal
by Kris Hudson
Forest City is hoping to start building a pro sports facility in Brooklyn, and they're helping to replace one in Texas.
The Dallas suburb of Irving is planning for life after Texas Stadium, which will be demolished April 11.
After 1,900 pounds of explosives level the 65,639-seat stadium early that Sunday morning, Irving officials will target a similarly rare feat—redeveloping the site of a National Football League stadium for a different use.
In Irving, that site is an 80-acre parcel at the busy intersection of Texas highways 183 and 114, which about 150,000 cars pass through daily. Another 320 acres surrounding the site also are slated for redevelopment. Irving officials have enlisted Forest City Enterprises Inc., a veteran of several big urban redevelopment projects, to help plan the effort.
NoLandGrab: The article doesn't mention government subsidies, but like smoke and fire, Forest City and public handouts go hand in hand.
Posted by eric at 10:59 PM
Tug-of-thug
The Brooklyn Paper, Police Blotter
by Claire Glass
Another week, another purse grabbed in Bruce Ratner's mall.
Target trickster
Yet another woman’s purse was stolen at the Target at the Atlantic Terminal Mall on March 22.
The victim told police that she noticed that her bag was gone when she headed for the checkout line at 5:45 pm. She also lost three $45 Metrocards and credit cards.
Seems like the crooks are now crossing Flatbush to PC Richard, where the bigger crime is the state's use of eminent domain to terminate the store's lease.
Not very PC
Two thieves entered the PC Richard Store on March 25 and got away with more than $2,000 worth of goods.
The manager of the store, which is at the corner of Atlantic and Flatbush avenues, said that the perps broke into a showroom case and grabbed the electronics at 3:30 pm.
NoLandGrab: Maybe prospective Nets owner Mikhail Prokhorov can patrol Target with his AK-47.
Posted by eric at 10:29 AM
March 29, 2010
New York real estate firms set up REITs to raise cash
But badly burned banks are hesitant to make big loans
Investment News
by Theresa Agovino
Smart financing strategy or desperation move? Forest City, which recently missed a mortgage payment on one of its Metrotech buildings, looks to the Real Estate Investment Trust model to raise money.
Joining Mr. Swig in an effort to tap the stock market for cash is Forest City Ratner Cos., which hired Bank of America Corp. and Barclays PLC to explore underwriting a REIT of its retail properties. Meanwhile, American Realty Capital New York Recovery REIT Inc. is trying to raise up to $1.5 billion to purchase distressed Manhattan office properties.
...What Forest City hopes to offer investors with its proposed REIT isn't office buildings but retail properties.
Forest City didn't return calls seeking comment.
NoLandGrab: This is the second time in as many weeks that Forest City has been mentioned in an article (and in a similar context) alongside a seriously struggling developer. Is it just smoke, or might there be a fire?
Posted by eric at 11:23 AM
FCE PRESS RELEASE: Forest City Enterprises Notice of Fourth-Quarter 2009 Earnings and Conference Call
Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) will release its fourth-quarter 2009 financial results on Tuesday, March 30, 2010, after the NYSE close, and will hold a conference call with investors on Thursday, April 1, 2010 at 11:00 a.m. ET, to discuss these results. Investors are invited to dial into the conference call hosted by Charles A. Ratner, president and chief executive officer.
The conference call is scheduled for 11:00 A.M. ET, Thursday, April 1, 2010. A live webcast of the call will be available online at www.forestcity.net.
Use the following link to pre-register for this conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time.
To pre-register, go to:
https://www.theconferencingservice.com/prereg/key.process?key=PCVPLMBN6
To participate on the day of the call, dial 888-713-4205 and use access code 47647890, approximately five minutes before the call. Callers without a pre-registration PIN can press *1 to bypass the instructions and speak to a live operator. Tell the operator you wish to join the Forest City Fourth-Quarter Earnings Conference Call. (International callers, please dial 617-213-4862.)
The call will be replayed from April 1, 2010, 2:00 P.M. ET to May 1, 2010, 11:59 P.M. ET. The replay number is 888-286-8010, access code 86333720. (International callers, please dial 617-801-6888.) The webcast replay will be available at www.forestcity.net.
Posted by eric at 9:29 AM
March 24, 2010
Ratner on Israeli apartheid Pt.1
Michael Ratner reports on his recent visit to the West Bank
The Real News Network
Michael Ratner — Center for Constitutional Rights president, leading light of the Left, Carl Kruger campaign contributor, Nets minority owner, Forest City shareholder, and Bruce Ratner brother — visits Israel's Occupied Territories, which bear certain uncanny resemblances to... Prospect Heights!
RATNER: We were appalled by what we saw, and it was much worse than I expected. I mean, I had been, you know, very sympathetic to the plight of Palestinians, to what I've heard about how they're treated, to what—the term "apartheid" is thrown around a lot, and, sadly, what I saw was much worse than I expected. You can begin with, really, in East Jerusalem. You go to East Jerusalem, which, of course was captured in 1967 by Israel, and slowly, ever so slowly, and maybe more rapidly, Palestinians are being pushed out of East Jerusalem. Their houses are being demolished. We visited the houses of people who had—we visited the homes of people who had had their houses demolished.
The State of New York recently gained title, against the will of the owners, to several occupied properties in Prospect Heights. Those homes and businesses will be conveyed to Forest City Ratner, and demolished to make way for a basketball arena and parking lots.
RATNER: They have to get a special permission from various authorities, including, of course, obviously, the guards that they show their permission to, and that can take one, two, three days.
Since title was transferred to New York State, Daniel Goldstein and his family have been virtual prisoners in their own home, unable to have pizza delivered, with guards paid by Forest City Ratner deciding who can visit his home — and who can't.
JAY: What's the presence of the army in this situation?
RATNER: Well, the army's everywhere in Hebron. The army is on every corner.
The NYPD deployed several dozen — and possibly more than 100 — officers to suppress demonstrations during Bruce Ratner's heavily fortified Atlantic Yards groundbreaking ceremony. The show of force included rooftop spotters, counter-terrorism officers, mobile command centers and even a helicopter.
NoLandGrab: Is life in Prospect Heights like life in the Occupied Territories? No, not really. But we wonder if Michael Ratner has ever bothered to visit Prospect Heights to see what he and his brother have wrought.
Posted by eric at 1:51 PM
March 23, 2010
Criminals still targeting Target
The Brooklyn Paper, Police Blotter
by Claire Glass
Another week, another crime spree in Bruce Ratner's Brooklyn malls. One wonders how he'll be able to keep his Atlantic Yards project from descending into a similar state of blight.
Target take
Once again employees and customers were victim to unlawful behavior at the Target in the Atlantic Terminal Mall. Here’s a roundup:
• A lucky shopper found a woman’s wallet on the floor of the department store, which is near Flatbush Avenue, and went on a spending spree on March 15. The victim reported that she dropped her wallet at around 6 pm in an aisle, but later discovered that someone had rung up $150 in charges on her missing card.
• A employee stole — and then used! — a co-worker’s debit card on Feb. 25. The victim told cops that she reported the card missing at around 9 pm, and store managers quickly discovered $400 worth of charges made. They confronted the greedy worker, who confessed, giving Officer Eon Adamson an easy collar.
Shoe-in
A thief grabbed a woman’s wallet out of her shoe while she tried on another pair at the Burlington Coat Factory in the Atlantic Center Mall on March 21.
The victim told cops that the sneaky snatch must have been made while she was admiring her potential purchase at 2:45 pm. Unfortunately, the shoe had contained $200 and her cellphone.
Posted by eric at 10:24 AM
March 20, 2010
Financial Woes for Forest City Ratner
Here are two takes on the news that Forest City Ratner failed to make a mortgage payment on 10 Metro Tech Center.
Atlantic Yards Report, Despite lavish groundbreaking, two signs of cash flow difficulties for Forest City Ratner; are more subsidy tweaks on the agenda?
Things are looking up for Forest City Enterprises--its stock has more than tripled in the last year (and more than doubled the price of a stock offering), but it's still orders of magnitude below its 2007 and 2008 highs.
But Forest City Ratner, despite the lavish, well-publicized groundbreaking for the Barclays Center on March 11, has its struggles, one well-publicized via Crain's New York Business, one not really noticed at the groundbreaking ceremony.
That doesn't necessarily portend serious trouble for Forest City Ratner--though it casts further doubts on the developer's questionable pledges to build the project as proposed. At the least, it might spur the developer to push, as it did last September, to get pledged subsidies for Atlantic Yards delivered faster, and ensure that subsidies encompass a broader set of costs, thus boosting liquidity.
...
Norman Oder finds an additional indicator of a cash flow problem:
It snuck by nearly everybody at the groundbreaking ceremony. I watched the video (via the Mayor's web site) and there, at about 48:04, Bruce Ratner let it out briefly.
"One other very important organization, speaking of sticking with it, Gramercy Capital. They started as our land lender, our land lender!" he said, with a mix of exuberance and slight incredulity. "These economic times made them our partner."
That sounds like, in exchange for missing payments, Gramercy was given a piece of the deal.
Remember, in February 2009 we learned that the developer got an extension on a $177 million loan from Gramercy for property in the AY footprint.
A partnership is more than an extension.
Queens Crap, Ratner misses mortgage payment
Tsk, tsk. And this was looking so promising for Brucie a few years back.
So...how will Ratner build his Atlantic Yards project if he can't afford to pay the mortgage on a building he's owned for more than 2 decades?
Posted by steve at 8:45 AM
March 19, 2010
Two big developers hit financing difficulties
Moinian loan goes to special servicer; Forest City misses loan payment on 10 Metro Tech.
Crain's NY Business
by Theresa Agovino
Might there be trouble in Ratnerville?
In another sign of distress in the city's real estate market, Forest City Ratner failed to make mortgage payment on 10 Metro Tech Center, part of its huge office complex in downton Brooklyn. As a result that loan was placed on a watch list, Trepp said.
The Forest City news is somewhat surprising because it has not been a fixture on such lists.
...Many developers have faced severe challenges in repaying loans that were made when lending standards were lax and capital was plentiful as banks have subsequently severely tightened access to cash.
...It is too soon to say whether the loan on 10 Metro Tech is headed for a special servicer. The loan has a balance of $52 million, according to Trepp. Tenants at the building include the International Revenue Service and New York City's Human Resources Administration.
Forest City Ratner didn't have an immediate comment.
NoLandGrab: Hmm, let's see, lobster sliders for Bloomie, Marty, Hova and the gang at the groundbreaking ceremony, or this month's mortgage payment? Ah, maybe we'll pay the mortgage next month. Hey, Proko, want to buy an office complex?
Posted by eric at 2:27 PM
Legal payoffs, dubious payments, FCR's corporate ethics, and the continuing mystery of Ridge Hill
Atlantic Yards Report
Norman Oder publishes another segment in his series following up on last week's ceremonial Atlantic Yards groundbreaking.
So many of them--the public supporters of Atlantic Yards on the dais--were paid, thus tainting their words.
The Rev. Herbert Daughtry, who delivered the invocation, asserted that the property that Forest City Enterprises CEO Chuck Ratner once called "a great piece of real estate" was some " "long-neglected, rodent-infested, garbage-strewn strip of geography."
Daughtry is a Community Benefits Agreement (CBA) signatory, and all CBA signatories receive funding from Forest City Ratner (despite Daughtry's lack of transparency).
Delia Hunley-Adossa, chairperson of the CBA executive committee, asserted the wonders of the CBA, also has ducked questions about Ratner's money.
Then there's the Rev. Al Sharpton, who came to pronounce the essential value of the project, despite his unwillingness to do any analysis. (His National Action Alliance has been funded by the developer.)
It's all perfectly legal. Not terribly savory--and rather problematic, according to a New York City Bar analysis of CBAs--but legal.
(Was Jay-Z paid? He doesn't need the money. But surely he negotiated a sweeter deal in thanks for his willingness to shift the spotlight off the Russian oligarch behind the curtain.)
The mystery of Ridge Hill
Nobody was talking about another set of payments involving Forest City Ratner, part of a deal that was much more complicated, required more political hardball, and has provoked three federal indictments.
Posted by eric at 10:19 AM
March 16, 2010
Customers getting ‘Malled’
The Brooklyn Paper, Police Blotter
by Stephen Brown
During the same week that Bruce Ratner was breaking ground on the Atlantic Yards project, a land grab facilitated by phony claims of pervasive criminal activity in the project footprint, crooks were once again running wild in his nearby shopping malls.
Atlantic Frantic
More troublemakers stalked the Atlantic Terminal Mall at Flatbush and Atlantic avenues last week. Here’s a roundup:
• A thief swiped a woman’s purse and handed it off to an accomplice, who fled in a black livery cab in front of the mall on March 8. The victim told cops that she was buying a soda at around 4:30 pm when the thief struck. A struggle between the victim and perp concluded with the thief handing the bag off to his partner in crime. The get-away snatcher got $500.
• Will people ever learn to mind their belongings at the uber-sketchy Target? A careless woman left her purse at the cash register of the department store, only to return a minute later and find it had been snatched on March 10. The victim told cops that she was checking out at around 3:35 pm when she realized that she had left her purse. She returned within a minute, but her bag, containing $650 and a cellphone, was long gone.
And on the very day that Bruce Ratner was "officially" pinching the homes and businesses of Brooklyn property owners, and making off with hundreds of millions in taxpayer subsidies as well, a hapless would-be shoe thief ran into the 300-or-so cops on hand to keep protestors out of Ratner's "Green Zone."
• A misguided youth attempted to rob the Payless Shoes on March 11, but was busted by cops.
Police said that the 15-year-old troublemaker entered the shoe store at around 4:30 pm and pretended he had a gun. But while the thug was attempting to swipe cash from the register, Officer Omisanya Basil arrived and arrested him.
Posted by eric at 10:54 AM
March 15, 2010
Best Buy at East River Plaza Hired Less Than a Third of Workers From East Harlem
DNAinfo
by Jon Schuppe
Here's what happens when Bruce Ratner signs unenforceable agreements with the community — or the "community."
When East Harlem welcomes Best Buy on March 26, less than a third of the people working there will be from the neighborhood, local officials say.
That’s a lower percentage than at Costco, the first retailer to open at East River Plaza, a shopping plaza that was built overlooking the FDR Drive last year with promises to take 60 percent of workers from East Harlem. Costco took 37 percent of its workers from the neighborhood before laying off scores of people.
"The fact of the matter is that we are at half of what we were looking for,” Community Board 11 Chairman Matthew Washington said.
......there’s a possibility that the goal of taking 60 percent of hires from the neighborhood, written into an agreement called a memorandum of understanding between the community board and the malls’ developers, simply wasn’t realistic.
“There are a lot of unknowns,” Washington said. “We can’t put a bulls-eye on the reason for the numbers being lower than what hoped for.”
The memorandum of understanding with Tiago, a partnership of Forest City Ratner Companies and Blumenfeld Development Group, was signed after the community board agreed to allow overnight truck deliveries at the shopping center.
That document wasn’t legally binding, but was important to a neighborhood with a 17 percent unemployment rate and where a quarter of residents use food stamps.
NoLandGrab: "Wasn't realistic?" Or wasn't credible?
Don't worry, Brooklyn, surely Bruce Ratner will live up to his Atlantic Yards promises. This time will be different. No, really. That was just a Memorandum of Understanding. This is a Community Benefits Agreement.
Posted by eric at 2:03 PM
March 13, 2010
Report: Real Estate Interests Spent $5.5M on Transport Lobbying in 2009
Streets Blog
by Elana Schor
This article shows the influence developers have on federal transportation policy. For those who wonder how Bruce Ratner gets politicians like Senator Charles Schumer to roll over and play dead for bad developments like Atlantic Yards, this article provides one good clue.
Forest City pays multiple federal lobbyists for nationwide projects from Washington, D.C., to Hawaii, and between individual donations and its political action committee, Forest City has showered federal candidates and parties with more than a million dollars since 2005.
Posted by steve at 8:31 AM
March 11, 2010
Ceremonial Groundbreaking for Barclays Center at Atlantic Yards in Brooklyn
Forest City Ratner Chairman Bruce Ratner, Barclays PLC President Robert E. Diamond, Jr., And NETS Investor and Cultural Icon Shawn "JAY-Z" Carter to Celebrate The Next Phase of Construction
Forest City Ratner Companies Press Release via MarketWatch
Follow the link below to Marketwatch for the full Forest City press release; here are some "highlights."
It is anticipated that Atlantic Yards will generate over $5 billion in new tax revenues for the State and the City over the next 30 years and will create upwards of 17,000 union construction jobs and up to 8,000 permanent jobs when the entire project is completed.
"It is anticipated?" By whom? Forest City is sticking with its phony claims of $5 billion-plus in tax revenues and 8,000 permanent jobs no matter how hollow they may be.
When we announced Atlantic Yards in December 2003, we anticipated that this project would create buzz and excitement for the borough and the City as well as needed jobs and affordable housing," said Mr. Ratner. "We did not at the time appreciate that Atlantic Yards would be such an important economic engine. The fact that we can start construction in this financial environment is testament to the lasting appeal of New York City. We are a City that continues to grow and prosper and Atlantic Yards will for many years stand as a reminder that we can build and create jobs and homes and dreams even during the most difficult of economic times."
Actually, the fact that they can begin construction in this financial environment is testament to the millions and millions in state and city subsidies Ratner is receiving, including a huge discount on land and sweetened payment terms, to boot.
Plenty more hyperbole via the link.
Posted by eric at 7:41 PM
The mystery of Ridge Hill: however FCR avoided indictment, does the developer remain (as per ESDC) "a good corporate citizen"?
Atlantic Yards Report
It's a shame that Norman Oder chose the Atlantic Yards groundbreaking day to publish this must-read story about the Ridge Hill indictments and Forest City Ratner's role in the bribery scandal, since it will likely not get the attention it deserves.
Forest City Ratner, as a developer, is resilient and resourceful, able to renegotiate deals for the Atlantic Yards project with government agencies like the Metropolitan Transportation Authority (MTA) and the Empire State Development Corporation (ESDC).
But when it comes to the federal corruption case in Yonkers, which involves FCR's Ridge Hill mixed-use project but does not implicate the developer, FCR looks more than lucky.
After all, City Council Member Sandy Annabi changed her vote to approve the project and was indicted for accepting bribes. Her cousin, Zehy Jereis, was indicted for giving them.
FCR, which hired Jereis for an apparent no-show job, was not indicted and issued a statement indicating that it had been told by federal prosecutors that neither it nor its employees was a "target" of the investigation.
If so, that suggests either that prosecutors lack sufficient evidence to indict the developer and/or that they believe the developer's cooperation justifies not seeking its indictment.
Thus, FCR not only escaped sanction for some questionable behavior--it has never explained or justified the no-show contract--it also can continue to benefit from a zoning change that was, according to prosecutors, illicitly gained.
A confounded ex-prosecutor
Is the developer bulletproof?
I spoke to a former federal prosecutor experienced in investigating corruption and fraud. Though he’s no fan of the AY project, he also emphasized that any knowledgeable practitioner of criminal law--whether for the defense or for the prosecution--would read the indictment and be left with numerous questions about FCR's conduct.
The indictment, he said, leaves a reader wondering whether FCR has--or had--potential criminal exposure or even if not, whether it engaged in conduct incompatible with participation in a public-private development.
Posted by eric at 10:49 AM
March 10, 2010
East Harlem Left Disappointed by Local Hires at Another East River Plaza Store
DNAinfo
by Jon Schuppe
Another reason why Atlantic Yards Community Benefits Agreement signatories might be wanting to re-read the fine print.
In a couple of weeks, a second big-box store will open at East River Plaza, the cavernous new shopping center built with promises to provide hundreds of jobs to local residents.
But the community is bracing for more disappointment.
Early indications are that the new retail tenant, Best Buy, appears to be falling short of goals to take 60 percent of its new hires from East Harlem, neighborhood leaders say.
That apparent setback comes several weeks after a decision by the first tenant, Costco, to lay off 132 workers, leaving less than half the staff local.
...The memorandum of understanding with Tiago, a partnership of Forest City Ratner Companies and Blumenfeld Development Group, was signed after the community board agreed to allow overnight truck deliveries at the shopping center. That document wasn’t legally binding, but was important to a neighborhood with a 17 percent unemployment rate and where a quarter of residents use food stamps.
Posted by eric at 11:12 PM
March 9, 2010
Burglary on your block? Check out The Brooklyn Paper’s new interactive crime map
The Brooklyn Paper
by Gersh Kuntzman
The Brooklyn Paper’s most-loved column — the weekly Police Blotter — enters the modern age this week with a new feature that gives you maps of all the crimes in our coverage area, allowing you to search block-by-block, crime-by-crime or precinct-by-precinct.
Has there been a burglary on your block?
What’s the latest on the iPhone bandit?
Where are the hotspots for car theft?
It’s all now one click away.
Click here for instructions on how to use The Brooklyn Paper's new interactive crime map.
Clicking on most any point on the map will open a pop-up window with the type of crime, the date and time when the crime was perpetrated, the police precinct in which it occurred, and The Brooklyn Paper's description of the crime. In every case in which we clicked on a point on the map, it revealed a single crime — except for two locations. Can you guess what those were?
Yup, clicking on Bruce Ratner's Atlantic Terminal and Atlantic Center malls opens super-sized pop-up windows chock full of criminal activity — and that's just for the past 90 days.
Here the report on the latest crimes:
The Brooklyn Paper, Police Blotter, More oyPhone trouble
More Target trauma
There were two more crimes at the Atlantic Avenue Target that came to light last week. Here’s a roundup:
• A thief stole a mom’s purse from the lobby of the building, which is near the corner of Flatbush and Atlantic avenues, while she was folding her baby’s stroller on Feb. 28. The victim told cops that this mom menace must have grabbed her purse off the floor while she was busy with the child at around 1 pm.
• An employee turned conniving counterfeiter when he tried to pay for items with fake money on Jan. 23. The fake funds amounted to over $2,500, but the crime was not discovered until last week.
Posted by eric at 11:01 PM
Paterson, Bloomberg, Markowitz, Ratner, Jay-Z (but no Prokhorov) scheduled for arena groundbreaking Thursday; will they let me in?
Atlantic Yards Report
Forest City Ratner yesterday sent out a press release regarding the groundbreaking ceremony Thursday, to be held at 1:30 p.m. at the intersection of Fifth and Atlantic avenues.
Leaders of the state (Gov. David Paterson), city (Mayor Mike Bloomberg), and borough (Brooklyn Borough President Marty Markowitz) are expected; it will be interesting to see how many local elected officials and community board officials choose to attend.
Also present will be developer Bruce Ratner, naming rights purchaser Bob Diamond of Barclays Capital, and entertain Jay-Z, who owns a tiny slice of the team. Unmentioned in the press release is prospective Nets owner Mikhail Prokhorov, scheduled to buy 80% of the team and 45% of the arena.
Is it that Prokhorov hasn't been officially approved as owner? Or is it that significant subsidies, tax breaks, and the use of eminent domain looks a little different when the beneficiary is Russia's richest man?
Norman Oder wonders if he'll be allowed beyond the velvet rope.
Note that only "officially credentialed press" will be allowed in, which can be used to keep out both self-appointed temporary journalists as well as yours truly.
I asked FCR spokesman Joe DePlasco and he said he'd check.
I'm not holding my breath. I wasn't allowed into the notorious Frank Gehry press conference in May 2006 but I was allowed into the January 2007 naming rights event, largely because I was covering it for the weekly Brooklyn Downtown Star.
But if it's a ban, it's a ridiculous one. They read my work. They know I know more about this project than the "officially credentialed journalists." They know that I'll likely cover the event in greater detail than afforded in print on on TV.
Additional coverage...
Brooklyn Daily Eagle, Atlantic Yards Groundbreaking Set for Thursday
The first phase of Atlantic Yards will also include three residential buildings, with construction of the first starting later this year, according to the company. Several local streets were recently closed as part of the overall Atlantic Yards plan.
Opponents of the Atlantic Yards, led by the organization Develop Don’t Destroy Brooklyn, are planning a demonstration at a site yet to be announced in the project’s “footprint.”
Not Another F*cking Blog, Atlantic Yards Groundbreaking Ceremonies – March 11th
(Un)fortunately, I won’t be there to witness the lies first hand, but all the Atlantic Yards perpetrators will be wielding their golden shovels this coming Thursday, March 11th, at 1:30pm for the ceremonial Barclays Center & Atlantic Yards groundbreaking. I expect Develop-Don’t Destroy Brooklyn’s Groundbreaking Ceremony (to bury the soul of Brooklyn) to be a much more interesting event, and I am sorry that I’ll miss that.
CoStar Group, In The Pipeline: CoStar Development and Construction News for March 7-13
WCBS Newsradio 880, Downtown Brooklyn Prepares for Atlantic Yards Groundbreaking
Here on Fifth Avenue between Flatbush and Atlantic Avenues, huge neon signs read CLOSED.
It's to make way for the $4.9 billion Atlantic Yards project.
Atlantic Yards Report, "Let the evictions begin," says WCBS radio in its report on the "Downtown Brooklyn" project
It's just a 42-second radio report according to the audio but it's rather broad-brush.
"Let the evictions begin, as stretches of key avenues here in Downtown Brooklyn are now closed to make way for the $4.9 billion Atlantic Yards project," declares Long Island Bureau Chief Mike Xirinachs. "Somewhat surprisingly, many residents and business owners I'm talking to say, bring it on."
(There are no evictions yet, or court orders, despite reports of letters sent by the Empire State Development Corporation.)
The only person quoted is a guy who runs a bagel shop on Fifth Avenue and, while the store isn't specified, it might be A.R.E.A. Bagels & Bialys, which was originally--before protests--named for the arena.
"So you see it as a good business move, it's going to help you?" the reporter asks, in a helpful leading question.
Yes, replies the bagel guy.
NoLandGrab: We fully expect A.R.E.A. Bagels to revert to ARENA Bagels once construction begins in earnest.
Posted by eric at 1:07 PM
March 5, 2010
Forest City in the news
Brooklyn Daily Eagle, Sid’s Hardware Files for Chapter 11 Protection
Had To Get Out of Lease at MetroTech
After reporting on Tuesday that the popular Sid’s Hardware in Downtown Brooklyn had closed its store in MetroTech and moved to Gowanus (in Sign of the Times: Popular Hardware Store Leaves Downtown, Leaves Retail Business), the Eagle has learned that the firm has filed for bankruptcy.
“We filed for Chapter 11 protection because we had to get out of our lease,” said William Ruzzo, director of operations. “We could no longer afford to be there.”
According to Ruzzo, the hardware company had two years left on its lease and was unable to work out an agreement with its MetroTech landlord, Forest City Ratner Companies (FCRC).
“At one point we had a deal on the table, but two hours before the end of a Friday — when we had to appear in court the following Monday — we heard the deal was off,” he said. “We had no choice at that point.”
Sid’s Hardware has had a retail store at 345 Jay St. in MetroTech for the past 20 years and, before that, at basically the same location but in a building that was demolished to create the MetroTech Center.
...Contacted for a comment Thursday, Joyce Baumgarten, a spokesperson for FCRC, could only confirm that Sid’s did file for bankruptcy and there is a hearing before a judge in Federal Court, Eastern District, Brooklyn on Wednesday, March 10, at 3 p.m.
NoLandGrab: Let's get this straight. Forest City Ratner, which has both wrapped itself in the cloak of benevolent provider of much-needed jobs (and affordable housing) and itself renegotiated a sweetheart deal with the MTA for the Vanderbilt Yard when it couldn't meet the terms of its original obligation, has essentially forced bankruptcy on a tenant with two decades' tenure that needed a little help to make it through the final two years of its lease. And pulled the rug out from under that tenant at the last minute, after a deal had been struck.
That's the kind of company that the likes of Mike Bloomberg and Marty Markowitz have bent over backwards to accommodate. That's the kind of company that is going to control more than 50 acres of prime Brooklyn real estate. That's the kind of company that we're supposed to believe will hold up its end of a flimsy Community Benefits Agreement.
Good luck, Brooklyn.
LoHud.com, Saks Fifth Avenue pulls out of new Yonkers mall
Saks Fifth Avenue no longer intends to move into the Ridge Hill Village retail-shopping complex under construction off Interstate 87.
Ridge Hill's developer Forest City Enterprises announced Thursday that the retailer withdrew its non-binding letter of intent to locate a store at the $650 million project. Saks was to be one of the anchors for the 1.2-million-square-foot complex, according to the developer's Web site.
Brownstoner, 80 Dekalb Reaches 50% Rented Mark, Allegedly
When we checked in with 80 Dekalb in early January, the 365-unit rental being brought to you by Forest City Ratner was about 25 percent rented as best we could ascertain. Yesterday we received an email from a reader who had just toured the 36-story tower and been told by the broker that half the apartments were now rented. For what it's worth, the tipster also said that the apartments were extremely nice.
Posted by eric at 12:54 PM
March 4, 2010
The Week in Crime: Smoking May Be Hazardous to Your Health
The Local [Fort Greene/Clinton Hill]
by Carl Gaines
It's official: even Bruce Ratner isn't safe from crime in Bruce Ratner's malls.
Feb. 22: The offices of Atlantic Yards Marketing were burglarized. A wireless router, valued at $1,000, was stolen from the office and a projector was damaged in the theft, which was reported at 7 a.m.
Posted by eric at 4:21 PM
FOREST CITY ENTERPRISES PRESS RELEASE: Forest City Announces Decision by Saks To Withdraw From Westchester County Mixed-Use Project
Forest City Enterprises, Inc. today announced that it has been notified by Saks Incorporated that the company will not move forward with a Saks Fifth Avenue store at Forest City's mixed-use development, Westchester's Ridge Hill, in Yonkers, New York. Saks had previously signed a non-binding letter of intent to locate a store at Ridge Hill.
"This is obviously a disappointment, but we are fully committed to seeing this project become a world-class shopping and entertainment destination," said Rich Pesin, executive vice president of retail development for Forest City Ratner Companies, the New York-based subsidiary of Forest City Enterprises. "Westchester's Ridge Hill is one of the finest retail projects under construction anywhere in the United States, with a great location and tremendous, underserved demographics. We continue to have the support of a variety of premier tenants such as Whole Foods, Cheese Cake Factory, Cinema DeLux, Sephora and Loft, and we have ongoing discussions with other major retailers. We expect to announce additional tenants in the coming months as these discussions are finalized."
NoLandGrab: Perhaps if someone was willing to pay Saks a bribe...
Posted by eric at 2:21 PM
It came from the Witt-o-sphere...
Courier-Life reporter Stephen Witt, who has what could be called the "Forest City Ratner beat," has been busy this week.
Barclays Center to do official groundbreaking
Court decision kicks off Atlantic Yards project
With the official groundbreaking ceremony for the Barclays Center arena set for March 11, the ducks finally seem to be lining up in a row for developer Forest City Ratner.
The ceremony was quickly set last week following State Supreme Court Judge Abraham G. Gerges’ final approval ruling for the state’s planned seizure of property to make way for the $4-plus billion Atlantic Yards project.
...On the flip side of the condemnation, the Atlantic Yards project comes at a time when the city has seen little major development come to fruition in recent years. The Freedom Tower, for example, remains stalled, and unemployment is over 10 percent.
NoLandGrab: "Little major redevelopment?" Witt needs to get out more. Someone returning to Brooklyn after a several-year absence would hardly recognize the place for all the new buildings populating places like Greenpoint-Williamsburg, Downtown Brooklyn and 4th Avenue — many of them empty or only partially filled.
AY starts off an economic boom for Brooklyn contractors
Unanswered questions remain regarding affordable housing
With the Barclays Center arena and the Atlantic Yards project officially underway, all the parties to the Community Benefits Agreement say they expect the agreement to be honored.
...New York ACORN founder and current staff person for NYCC John Kest said it hasn’t been determined yet if the new organization will replace ACORN to facilitate the affordable housing.
“The board will be meeting at some point in the next month and will come to a conclusion on whether it will join the CBA,” said Kest.
FCR spokesperson Joe DePlasco said the company remains 100 percent committed to the CBA.
NLG: To Witt, the "unanswered questions" about the promised affordable housing is who'll be administering it. For most of the rest of us, the question is whether or not any of it will ever actually be built.
City to move nearly 500 workers to Downtown Brooklyn
Parasitical developer Bruce Ratner is getting another public host on which to feed.
The Department of City Planning (DCP) recently approved the Bloomberg administration’s plan to move about 460 Department of Information Technology and Telecommunications (DoITT) employees to the MetroTech Campus.
Under the plan, the city will lease 85,000 square feet at the 10-story 2 MetroTech building.
...Both Forest City Ratner and the city refused comment on the move as the deal remains under negotiation.
NLG: "Negotiations" between Forest City Ratner and the city somehow always seem to favor the former at the expense of the taxpayers.
Posted by eric at 12:33 PM
March 3, 2010
Smoked out
The Brooklyn Paper, Police Blotter
by Claire Glass
Judge Abe Gerges's decision this week allowing the condemnation of crime-free private properties to make way for Bruce Ratner's Atlantic Yards project is likely the precursor of a local crime wave, given the track record of Bruce Ratner's malls.
Buffalo bill
A perp swiped an employee’s wallet from a workers-only area at the Buffalo Wild Wings on Flatbush Avenue on Feb. 23.
The victim told cops that the theft must have happened before 9:30 am when she went into the back room to retrieve her purse. That’s when she discovered that it was gone.
Posted by eric at 2:23 PM
February 26, 2010
Pinsky hopes for AY groundbreaking in weeks, says projects should emerge via RFPs; Gilmartin says FCR's frustrated with absent government coordination
Atlantic Yards Report
At an interview and panel discussion sponsored by BISNOW on Wednesday February 24, Atlantic Yards was mentioned as an example several times by Seth Pinsky, president of the New York City Economic Development Corporation (NYC EDC), and MaryAnne Gilmartin, the Forest City Ratner executive in charge of Atlantic Yards.
While Pinsky said "we hope to break ground in just a matter of weeks" on Atlantic Yards, perhaps the most interesting statements concerned the unsaid: while he asserted that the city's projects emerge from community consultation and that the best way to proceed was via RFPs (Requests for Proposals), Atlantic Yards proceeded differently.
Gilmartin expressed frustration at the lack of coordination among government agencies working on Atlantic Yards, without acknowledging that, while that certainly may slow things down, it also can give the developer the upper hand.
She also asserted that, in contrast to the example of Stuyvesant Town, Forest City has avoided the "exuberance" of inflated expectations--even though a report from KPMG on Atlantic Yards housing suggests similar expectations.
Posted by eric at 9:31 AM
February 24, 2010
What Role Did Bruce Ratner's Company Play in the Ridge Hill Indictments?
The Huffington Post
by Daniel Goldstein
In early January the Southern District US Attorney's Office indicted former Yonkers City Councilwoman Sandy Annabi, former Yonkers GOP Leader (and Annabi cousin) Zehy Jereis and Westchester County attorney Anthony Mangone for conspiracy, bribery, extortion, false statement and tax crimes.
The Annabi and Jereis indictments revolve around developer Forest City Ratner's Ridge Hill development project and the Councilwoman's approval the developer sought for the project.
...In a nutshell, Annabi was indicted for taking bribes to flip her crucial nay to a yea on the project's approval vote in 2006.
To be clear, none of Ratner's representatives (aka Developer No. 2 in the indictment) have been indicted or accused. But the facts alleged in the indictments speak for themselves and do not shine a positive light on the developer. The implications are unsavory and enormous.
...I've spoken with many confounded Brooklynites familiar with the indictments who wonder why nobody from Forest City Ratner has been indicted in the Yonkers public corruption case along with the others now facing criminal charges. By not holding Forest City Ratner accountable for the actions alleged in the indictment there is, yet again, an appearance of favoritism, which appears thus far to have let Ratner's company escape prosecution for what may well be very serious crimes.
When is Attorney General Cuomo going to investigate the wrongdoing in Yonkers and Forest City Ratner's role in it? A first step for the yet-to-be-officially-announced gubernatorial candidate would be to return the $5,000 donation Bruce Ratner gave him because of the clear implications of the Ridge Hill indictments.
Posted by eric at 6:14 PM
February 23, 2010
FOREST CITY ENTERPRISES PRESS RELEASE: Forest City Announces Joint Venture with Health Care REIT for University Park Life Science Properties
Forest City Enterprises announced a joint venture today that seems aimed more at generating some cash than anything else. From the release:
Forest City Enterprises, Inc. and Health Care REIT, Inc. today announced the creation and first-stage closing of a new $668 million joint venture in Forest City's mixed-use University Park project in Cambridge, Mass.
Under the terms of the joint venture, Health Care REIT will acquire a 49 percent interest in the seven University Park life science properties owned solely by Forest City. For its share of the joint venture, Heath Care REIT will invest $170 million in cash and the joint venture will assume $320 million of secured debt on the seven buildings. Subsidiaries of Forest City will retain 51 percent ownership in the properties and will serve as asset and property manager for the joint venture.
..."We're thrilled to launch this new venture with Health Care REIT," said Charles A. Ratner, Forest City president and chief executive officer. "Today's announcement demonstrates both our ability to create liquidity by monetizing elements of our portfolio, and the intrinsic value in that portfolio."
Forest City's updated "safe harbor language" includes this potential pitfall:
"liquidity risks we could face if we do not close the transaction with Onexim Group to create a strategic partnership for our Brooklyn Atlantic Yards project...."
Posted by eric at 6:12 PM
February 18, 2010
Brutally weird: In New Jersey hometown, FCR executive fights zoning variances, claims Brooklyn projects are "as of right"
Atlantic Yards Report
More coverage of Forest City Ratner EVP Bob Sanna's NIMBY crusade to stop a 16,000-square-foot synagogue from being built in his New Jersey town at the same time Forest City is gearing up to unleash a project 500 times bigger on brownstone Brooklyn.
Led by a Forest City Ratner executive with a curious case of double standards, people in Millburn, NJ, are banding together under the Save Millburn organization, opposing a zoning exception for a proposed 16,350 square foot house of worship.
As the caption says, "The structure would be too big, too high, too wide, too close to neighbors, and without a major variance would not be legal. Traffic would increase and height limits, density limits, and signage would be overridden.
Well, it's not an unreasonable position to argue that an approved Zoning Ordinance and land use plan should be amended rather than be subject to "special zoning for special interests."
But...
NorthJersey.com reports:
Members of Save Millburn aren't 100 percent positive they will prevent the variances from being granted. However, members say the major priority was finding transparency in the application process, and it has been a long, litigious road.
..."Robert Sanna makes his living through development projects that require major variance relief," said [synagogue attorney Philip] Pfeffer. "In his own neighborhood they [variances] are suggested and he says they are inappropriate. This shows his true colors."
..."My company is engaged in economic development that brings jobs and affordable housing into areas that really need it," said Sanna. "That is quite different from a rabbi who wants a very fancy shul."
"All the projects my company does are 'as of right' projects that don't need zoning variances," said Sanna.
That's not close to true.
Related coverage...
Develop Don't Destroy Brooklyn, Forest City Ratner Executive Shows True NIMBY Colors in Jersey Zoning Dispute
Forest City Ratner Executive VP Bob Sanna is crying about a zoning variance in Millburn, NJ where a Rabbi wants to build a new synagogue. Sanna—whose Forest City Ratner company eschewed a zoning variance in Brooklyn for its Atlantic Yards project, instead going for a massive state override of all city zoning regulations—is a member of a local organization opposing that variance.
...None of his company's projects are "as of right." None, as in zero. Unless by "as of right" he means the right to any zoning they want and the right to steal other people's properties.
NoLandGrab: Could Mr. Sanna have meant "as of fright?"
Posted by eric at 11:07 PM
City’s Department of Information Technology & Telecommunications Seeks To Expand Presence in MetroTech
Brooklyn Daily Eagle
The Eagle regurgitates Tuesday's Crain's story.
The city’s Department of Information Technology and Telecommunications (DoITT) is seeking additional space in the MetroTech Center in Downtown Brooklyn.
According to a report Monday in Crain’s New York Business, the city agency needs 85,000 square feet of additional space to house 460 employees and a new data center, according to the article. It already occupies space at 11 MetroTech, which is near capacity.
NoLandGrab: Once again, we wonder why — with the city planning to lay off thousands and close 19 schools and 20 firehouses — the city needs to lease yet more space from Forest City Ratner.
Posted by eric at 9:05 PM
Residents dispute Rabbi's requests
NorthJersey.com
by Laura D'Onofrio
Why are we posting an item about a zoning dispute over a proposed synagogue in Millburn, NJ? Because Forest City Ratner Exec VP (and Millburn resident) Bob Sanna is playing the part of rabid obstructionist community activist — but his grip on the facts is a little bit off when his company's Atlantic Yards project becomes an issue.
Representatives of Rabbi Mendel Bogomilsky are scheduled to appear before the Zoning Board of Adjustment in March to apply for three variances to Bogomilsky's Jefferson Avenue and Old Short Hills Road property where he hopes to construct a synagogue.
A grass roots civic group, the Concerned Neighborhood Association, known as Save Millburn, wants residents to be aware of the zoning issue this creates in the township.
...Save Millburn declares on their Web site that this is not an issue about religion or the rabbi, but is an effort to stop substantial zoning exceptions in town.
...Fellow member Bob Sanna concurred that the zoning requirements were designed for a reason.
"To me, zoning is substantive and relies on infrastructure. There was a certain lifestyle, traffic, population and density in mind when they were created," said Sanna.
Forest City Ratner's Atlantic Yards project relies on overriding New York City zoning, to accomplish goals like plopping down an 18,000-seat arena directly across the street from two-story clapboard houses and building 50-story skyscrapers in the midst of low-rise brownstone neighborhoods.
[Philip] Pfeffer [the synagogue's attorney] says it is ironic that Mr. Sanna has become a public advocate against the issue of variances. He notes that Sanna is employed with Forest City Ratner Corporation – a large development company in the New York.
"Robert Sanna makes his living through development projects that require major variance relief," said Pfeffer. "In his own neighborhood they [variances] are suggested and he says they are inappropriate. This shows his true colors."
..."My company is engaged in economic development that brings jobs and affordable housing into areas that really need it," said Sanna. "That is quite different from a rabbi who wants a very fancy shul."
Uh, sure. Or an NBA team owner who wants a very fancy basketball arena.
"All the projects my company does are 'as of right' projects that don't need zoning variances," said Sanna.
That outrageous lie is accurate only to the extent that Atlantic Yards totally overrides local zoning, so as not to need a variance. As of right? Wrong.
He explains that Pfeffer most likely was referring to the Atlantic Yards Project. It is a hotly debated issue over eminent domain, which every court upheld, said Sanna.
NoLandGrab: For all we know, the synagogue project is inappropriate, but if it is, we hope it's being built right next door to Mr. Sanna's home. The chickens are coming home to roost, eh, Bob?
Posted by eric at 10:03 AM
February 16, 2010
City's tech agency eyes Brooklyn expansion
The city Department of Information Technology and Telecommunications seeks 85,000 square feet at Brooklyn office complex to house 460 employees and a new data center.
Crain's NY Business
by Amanda Fung
Here's a surprise — a New York City agency bailing out leasing space from Forest City Ratner.
The city's Department of Information Technology and Telecommunications is eyeing office space at 2 MetroTech Center in downtown Brooklyn. The agency has submitted a proposal to the city Department of Planning to acquire 85,000 square feet at the 10-story building, according to filings with the city.
The new office space will relieve overcrowding at two existing DoITT offices, located at 59 Maiden Lane in lower Manhattan and 11 MetroTech Center in downtown Brooklyn. DoITT also has an office at 75 Park Place in Manhattan.
...DoITT and Forest City Ratner, MetroTech's developer and landlord, declined to comment.
NoLandGrab: Wait a sec. Isn't the city planning thousands of layoffs and closing 19 schools? How can city agencies be short of space?
More likely, this is just a back-door way of tossing another subsidy at the Atlantic Yards developer.
Posted by eric at 5:24 PM
Mugger defeated!
The Brooklyn Paper, Police Blotter
by Andy Campbell
This week's Fort Greene police blotter is noteworthy in that it reports no crime in either of Bruce Ratner's two neighborhood malls, the Atlantic Terminal and Atlantic Center. Which means either local crooks got into the Valentine's Day spirit, or the Empire State Development Corporation and AKRF were compiling the crime statistics.
Posted by eric at 11:34 AM
February 12, 2010
Forest City Ratner Addresses Debris Scare at Beekman Tower
The Tribeca Trib
by Matt Dunning
Weeks after pieces of debris blown from the 77-story Beekman Tower, under construction at 8 Spruce Street, brought much of Lower Manhattan to a standstill, developer Forest City Ratner promised new steps to prevent a repeat of the dangerous incident.
On Jan. 25, wind gusts approaching 100 miles an hour blew several small pieces of wood and metal from the upper floors of the Frank Gehry-designed, tower, forcing police to close several blocks near the tower for most of the day, including eastbound access to the nearby Brooklyn Bridge, crippling pedestrian and vehicular traffic Downtown.
Earlier this week, Forest City Ratner Senior Vice President Joseph Rechichi said the company has installed new rigging for the orange safety nets surrounding the outer edges of the building’s unfinished floors, as well as reinforced tie-downs for the plywood hole covers throughout the tower.
...“The nets were shredded in place, you could see them dangling all the way up the building,” said Boris Faiguenbaum, a construction superintendent for Kreisler Borg and Florman, Ratner’s general contractor on the project.
NoLandGrab: In an ironic twist, Ratner's other Nets get shredded every night in the Izod Center, too — most recently by Milwaukee, 97-77.
Related...
Downtown Express, Ratner promises better safety on Gehry tower
Two weeks after metal and plywood rained down from the 76-story Beekman Tower, the project’s managers promised concerned residents that the building was now safe.
“We are confident this will not happen again,” said Joe Rechichi, a senior vice president with developer Forest City Ratner.
...“Some people don’t like the height,” C.B. 1 District Manager Noah Pfefferblit said Tuesday night, “but that’s another issue.”
NLG: Gehry-designed buildings typically begin failing after, not during, construction.
Posted by eric at 7:20 AM
February 10, 2010
The Op-Ed: Atlantic Yards—It Is Happening
The Commercial Observer
by MaryAnne Gilmartin
The Forest City Ratner Companies executive vp pens a misleading op-ed infomercial in the NY Observer's real estate-biz weekly.
The recession, the credit crunch and the inherent difficulty of building in the most densely settled city in America: These are just a few of the challenges that have dogged the Atlantic Yards project since its announcement, in December 2003. Add to these general obstacles a small group of litigious opponents who vowed to sue early and often to stop the project, and the six-year project inception period makes more sense.
But the wait is over. We are building Atlantic Yards. And the project is more important than ever.
NoLandGrab: By "more important than ever," Ms. Gilmartin means "more important than ever to Forest City Ratner." And we especially enjoy the way the Westchester-dwelling Gilmartin frames Atlantic Yards as a latter-day Great Society initiative.
The obfuscations, mischaracterizations and outright untruths in this "op-ed" are too numerous to catalog; The Observer, whose own Eliot Brown has done excellent reporting on the Atlantic Yards project, would have been wiser to slug it "advertisement" and at least collect a royalty.
Posted by eric at 1:29 PM
February 9, 2010
Stung By Costco, East Harlem Officials Hope Jobs will Come from Other Stores at East River Plaza
DNAinfo
by Jon Schuppe
Another must-read article for counter-parties to Community Benefits Agreements (legally binding or not) with Forest City Ratner Companies.
Still stinging from layoffs at the neighborhood’s new Costco, public officials are shifting their focus on getting local residents hired at the other big-box stores that will be opening at East River Plaza.
Best Buy is scheduled to open March, and Target and Marshalls are expected to follow in July. Officials want to avoid a repeat of what happened last month, when Costco surprised them with news it was laying off scores of workers. The announcement came two months after the wholesale outlet opened with promises of jobs for people who lived nearby.
In the end, 132 people lost their jobs—not the 160 the company orignally reported. Of the 279 workers who remain, less than half are from the neighborhood, officials said.
That's considerably less than the 60 percent goal outlined in a “memorandum of understanding” with the shopping mall’s developer. The agreement, between Community Board 11 and Tiago, a partnership of Forest City Ratner Companies and Blumenfeld Development Group, is not legally binding. But officials say it’s key to maintaining a healthy relationship with the surrounding community.
...The layoffs were a blow to East Harlem because local officials gave the developer approval to have overnight deliveries in return for assurances that the stores at East River Plaza would hire people who live in the neighborhood, which has a 17 percent unemployment rate.
NoLandGrab: Fool me once, shame on you. Fool me twice — well, that's a "Community Benefits Agreement."
Posted by eric at 11:07 PM
Broad daylight snatch
The Brooklyn Paper, Police Blotter
by Claire Glass
How much more evidence of blight will the Empire State Development Corporation (motto: Open for Business!) need before it starts eying Bruce Ratner's crime-ridden malls?
Target trifling
Watch your backs, Target shoppers. Thieves continue to stalk the aisles of the Target at the Atlantic Terminal Mall.
• A superficial shoplifter was seen trying to get away with over $900 worth of beauty supplies on Feb. 6. The greedy shopper also tried to steal electronic equipment and almost $100 worth of candles in the 6:15 pm swipe. An employee called the cops, and the perp was arrested by Officer Desmond Dempster.
• Another thief grabbed a lady’s purse from her cart on Feb.6. The victim said that as soon as she turned her back at around 5 pm, a thief stole her wallet from her bag and got away with her cash.
Posted by eric at 11:46 AM
February 2, 2010
Attention Pathmark shoppers!
The Brooklyn Paper, Police Blotter
by Claire Glass
With Bruce Ratner's Atlantic Center and Atlantic Terminal malls once again dominating the weekly crime reports, it's a safe bet that blight-for-hire firm AKRF could make a compelling case for condemning the real estate developer's property. Except their specialty is manufacturing blight where it doesn't exist.
Attention shoppers
A razor-blade-wielding shoplifter sliced and diced a Pathmark employee on Jan. 25.
The victim, who works on Fort Greene Place between Atlantic Avenue and Hanson Place, told cops that he was trying to stop the hungry shopper around 10 am when his assailant chopped his face with the blade.
The perp escaped empty handed.
More Target trouble
A scandalous squad shoplifted over $1,000 worth of electronics from the Target at the Atlantic Terminal Mall in a stealing spree that allegedly started on Dec. 18.
Officer Richard Gong put an end to the thievery on Jan. 26, cuffing the trio at noon.
...Shoe-in
A sneaky sneaker collector stole 15 pairs of kicks from the Discount Shoe Warehouse on Flatbush Avenue on Jan. 30 — but he didn’t put much mileage on them before he was arrested.
A security guard at the shoe store reported that the perp nabbed over $1,000 worth of footwear at around 5 pm.
Posted by eric at 10:32 AM
February 1, 2010
Costco misses mark in Harlem
Imposes big layoffs as logistics of bulk buys confound Manhattanites
Crain's NY Business
by Adrianne Pasquarelli
Here's a must-read piece (if you've signed a Community Benefits Agreement with Forest City Ratner).
After opening a store in late November with promises of jobs and economic revival for the community of East Harlem, warehouse club Costco Wholesale Corp. terminated 160 of its 453 workers there last month in order to cut costs.
“That's a lot of people,” says Matthew Washington, chairman of the neighborhood's Community Board 11, adding that the area's unemployment rate is 17%. “At a time when many are hurting, we want people to be working: They have families to take care of.”
...Costco's relationship to its Manhattan neighborhood is also important because of the community benefits agreement signed last March by developer Tiago, a partnership between Forest City Ratner Cos. and Blumenfeld Development Group. Tiago promised city officials that Costco would make a good-faith effort to ensure that this year, at least 60% of workers at the Manhattan location come from the area. The proportion for the third year of operation is 75%.
After the recent layoffs, Mr. Washington of the local community board suggested that Costco work with the city's Human Resources Administration and its federal stimulus funds to rehire some employees, but he has yet to receive a response from the company.
Posted by eric at 12:41 PM
January 28, 2010
Tower debris shuts down Downtown
Downtown Express
Pieces of metal and plywood blew off the 76-story Beekman Tower during a windy storm Monday, damaging property and forcing street closures but not injuring anyone. Work on Forest City Ratner’s luxury apartment tower remained stopped Wednesday, and the city Buildings Dept. issued contractor Kreisler Borg Florman General Construction Company a violation for failing to protect persons and property.
...Joyce Baumgarten, a Ratner spokesperson, said Monday’s high winds dislodged some of the metal screws that hold the building’s orange construction netting in place. Some of the screws, which are 6 to 8 inches long, popped off high floors of the building and fell to the streets below, Baumgarten said. She said the contractor would find a better way to secure the netting.
Borough President Scott Stringer sent a letter to the contractor calling the incident “unacceptable” and inviting a representative to meet with Community Board 1. The contractor referred comment to Ratner.
NoLandGrab: We suppose Prospect Heights residents should be glad that Bruce Ratner is only figuratively screwing them, while literally screwing lower Manhattan denizens.
Posted by eric at 7:55 PM
January 25, 2010
High Winds Scatter Debris from Beekman Tower
WNYC Radio
by Matthew Schuerman
A 15-block area near City Hall Park remains closed to pedestrians, and traffic, after high winds scattered debris from a nearby construction site.
The source of debris was a 77-story tower under construction on Spruce Street. It was designed by Frank Gehry and is owned by Forest City Ratner. Authorities say wind speeds reached 70 miles an hour or more near the top of the tower. A piece of metal was found two blocks away at City Hall Park.
On Sunday, the buildings department warned contractors to secure their construction sites because of the weather. City officials say they will keep a stop-work order in place through at least Tuesday.
Related coverage...
Gothamist, Construction Debris Falling From Gehry's "Beekman Tower"
A tipster informed us that Pace University has canceled all of its daytime classes (classes after 4 pm are still scheduled). According to the school, several nearby subway station exits are closed, and "[s]tudents in residences and administrative personnel now in Pace buildings should remain on campus and follow instructions of security personnel if it is necessary to go outside."
Curbed, Construction Accidents
Frank Gehry's 76-story dick joke is having trouble keeping it in its pants.
Posted by eric at 9:38 PM
Beat up before going down
The Brooklyn Paper, Police Blotter
by Stephen Brown and Claire Glass
Another week, another crime in Bruce Ratner's "blighted" Atlantic Terminal Target.
Trouble at Target
Once again, bandits are stalking the aisles of the sketchy Target at the Atlantic Terminal.
A cunning thief snatched an employee’s purse from a shopping cart while she was busy helping a customer on Jan. 23.
The victim told cops that her back was turned for no more than 30 seconds when the shopper-turned-thief made the grab at around 1:30 pm.
She lost an antique bag holding an iPod Nano.
Posted by eric at 9:15 PM
How Big Is Atlantic Yards Really? 16 New Buildings or 19? (Plus the Arena plus. . .)
Noticing New York
Michael D.D. White looks at Forest City's prospective Brooklyn landholdings.
One thing our readers should know is that no matter whether the new megadevelopment is thought of as just the 22 acres with the new 16 towers plus arena, or the entire contiguously owned 30 acres with the 19 new towers plus arena, the entire mega-monopoly of contiguously owned development acres brought about by the no-bid gift of “Atlantic Yards” to ForestCity Ratner will, including existing already built properties, consist of the following:
• Two large suburban-style shopping malls (existing)
• One sports arena (proposed)
• 20 towers of both residential and commercial development. (One built and 19 planned.)That 30-acre mega-development is only part of the larger (approximately 50-acre mega-monopoly) that is to be owned by Forest City Ratner mostly through eminent domain and governmental favoritism. Those 50 acres constitute a heavy preponderance of the prime densely zoned land in or near Downtown Brooklyn sitting astride the key subway lines that make Brooklyn’s best land accessible.
Posted by eric at 8:32 PM
High Winds Bring Debris Down from Beekman Tower
The Tribeca Trib
by Matt Dunning
A large swath of Lower Manhattan remained closed to cars and pedestrians Monday evening following reports of debris falling from the Frank Gehry-designed Beekman Tower at 8 Spruce Street.
Sustained winds of up to 45 mph and gusts approaching 100 mph began blowing small pieces of wood and metal from the upper floors of Forest City Ratner’s unfinished 77-story tower around 8 a.m. this morning, according to Joseph Bruno, Commissioner of the city’s Office of Emergency Management. The morning-long wind and rainstorm carried debris as far as 700 feet from the tower into City Hall Park, according to Bruno.
“It’s been an unusual event, but one that I think we’ve handled quite well,” Bruno said at a press conference this afternoon.
No injuries were reported as of 5 p.m. Department of Buildings investigators have stopped all work on the tower, city Buildings Commissioner Robert LiMandri said, but have not been able to complete an inspection of the building because of high winds.
“This is a dangerous thing that happened today,” LiMandri said. The Buildings Department had issued a wind advisory on Sunday, warning contractors all over the city to secure their sites in advance of this morning’s storm. LiMandri said investigators have not yet determined whether Kreisler Borg Florman, the general contractor on the Beekman Tower, had heeded the warning. On the upper levels of the tower, orange safety netting dangled in tatters over the edges of concrete floors.
“Today we were lucky,” LiMandri said, “and I’m telling you that contractors need to make sure that when they see a wind advisory, they need to watch the weather alerts, get out there and secure their sites. I don’t care how big or small your site is.”
Calls to Forest City Ratner and Kreisler Borg Florman were not returned as of Monday evening.
“One thing’s for sure, they’re not going back to work tomorrow,” LiMandri said.
The dangerous condition crippled pedestrian and vehicular traffic Downtown. With the outbound lanes of the Brooklyn Bridge effectively shut down, traffic was snarled at virtually every major intersection in the northeast section of Lower Manhattan.
NoLandGrab: Should efforts to stop Atlantic Yards fail, Prospect Heights and Fort Greene residents might want to invest in hard hats.
Additional coverage...
WNYC News Blog, Stormy Weather Forces Downtown Street Closure
Streets near City Hall are closed this afternoon as the Office of Emergency Management works to secure a construction site at 8 Spruce Street. Powerful winds knocked debris from the 72-story building early this morning. Officials with the Department of Buildings are investigating to make sure construction materials are tied down. The Office of Emergency Management advises people in the area to stay indoors. The area around Gold Street, Ann Street, and Park Row is closed to vehicles and pedestrians. Pace University canceled daytime classes, but evening classes are on. There are no reported injuries.
Posted by eric at 8:00 PM
What "not a target" means in the New York Times, and why self-serving statements (like that issued by FCR re Ridge Hill) should be checked
Atlantic Yards Report
Norman Oder takes The New York Times to task (again!), this time for the failings of its coverage of the recent Yonkers indictments and Forest City's possible role.
Well, I sent my post critiquing the New York Times's coverage of the Ridge Hill indictments (in which developer Forest City Ratner was cited but not indicted) and got the following response back from Senior Editor/Standards Greg Brock:
I had two editors go over your note and I agree with them that no correction or Editors' Note is warranted on any of these points. You might want to consider writing a Letter to the Editor about your thoughts on our journalistic efforts and how we could have improved this article. But there were no errors here and no violation of any ethics/standards policy that would merit an Editor's Note.
First, consider the implicit sneer (and not the first one) in Brock's invitation to me to write a letter with my "thoughts" on the Times. The newspaper has never printed a letter from me and has very little space for letters.
And my analysis does not consist of random "thoughts;" rather, it's backed up by clear evidence. We just read the evidence differently.
Posted by eric at 8:36 AM
January 22, 2010
Sam Miller Is the Funniest Man in Town
The Cleveland Leader
by Roldo Bartimole
The inveterate Cleveland journalist muses about the inveterate chairman of Forest City Enterprises.
My best laugh on a trip out West for warm air came when I read on line Sam Miller’s tribute to himself as part of Cleveland Magazine’s take on Cleveland’s most powerful people.
Sam’s powerfully funny. He may have lost a few steps at 88 years old but he’s still got the great one-liners. Possibly to some he’s even believable.
...What I can’t understand is why Cleveland Magazine doesn’t do the top charlatans in town. It would be much more interesting. Maybe it did. You just change use your imagination and switch. From Power to Faker.
...Sam’s been one of the most evil men I’ve known in Cleveland. He’s done so much damage to Cleveland you couldn’t even hope to record it all. His fights with Dick Jacobs were a double dose of greed. The town didn’t matter to either of them as they grabbed whatever they could.
...But you have to hand it to him. He’s truthful sometimes. He tells us that you should buy politicians early. “The very person that, let’s say, is a precinct committeeman, a relative nobody politically – one day, you wake up and discover he’s a senator for the state. When you helped him as a precinct committeeman, that he’ll never forget.” Buy early, he tells us. But Sam buys early, later and latest.
Posted by eric at 11:16 AM
January 20, 2010
Panty raider
The Brooklyn Paper, Police Blotter
by Stephen Brown
While a barely perceptible sidewalk crack is enough to get your home condemned in New York State, if you're a politically connected real estate developer, crime in your own malls is a convenient excuse for having your government cronies hand you over someone else's property.
A thief who favors sexy undergarments stole $3,200 worth of lingerie from the Victoria’s Secret on Flatbush Avenue on Jan. 16.
An employee at the store between Hanson Place and Atlantic Avenue told cops that a man entered the store at around 7:30 pm carrying a large bag, which he stuffed full of underwear. The perp then left without paying.
...Path marked
A trip to the Atlantic Terminal Pathmark turned rotten on Jan. 12, as a thief swiped $1,500 of fancy gear from a careless shopper.
The victim told cops that he had left his property unattended at the grocery store at Atlantic and Flatbush avenues for a mere five minutes around 2:30 pm when he realized it had been stolen.
Some of the more valuable items he lost included a $500 pair of sunglasses, a $300 Louis Vuitton wallet and a $400 Ralph Lauren coat.
The Local [Fort Greene/Clinton Hill] corroborated both crimes.
Posted by eric at 11:16 PM
Annabi arrives at court in Mercedes, tells judge she can't afford lawyer
The Journal News
by Jonathan Bandler
A former Yonkers councilwoman charged with taking $166,000 in bribes for her vote on key city projects told a federal judge this afternoon she could not afford to hire a lawyer.
Although she owns two homes, leases a Mercedes-Benz and earns nearly $100,000 a year, Sandy Annabi asked for a court-appointed lawyer. Chief Magistrate Judge George Yanthis granted her request in part - Annabi will be represented by federal public defender Suzanne Brody but will have to pay the reduced rate the government provides beginning in three months.
Annabi, 39, who is free on $400,000 bail, was indicted this month on bribery, extortion and other charges along with her cousin, former Yonkers Republican chairman Zehy Jereis, and lawyer Anthony Mangone. She allegedly switched her vote on two city projects in 2006 — the $600 million Ridge Hill project and the development of two delapidated school buildings — after getting regular payments from Jereis and a $30,000 payoff from the school-project developer that Mangone allegedly arranged.
Posted by eric at 11:56 AM
January 12, 2010
Ridge Hill needs another name
The Journal News, Letters
As the "Battle of Ridge Hill" reignites, perhaps it should be retitled the "War of Diners and Swag," in honor of the diner meetings and bribes that truly sealed the deal, according to the government's allegations. What a disgrace these public and political figures have brought to our Yonkers. As the mayor and Yonkers City Council consider damage control — to the city's good name and the future of this now-tainted development — I strongly suggest the city demand a name change. Ridge Hill will forever connote bribery and scandal.
I have some suggestions: How about "Larkin Ridge," in honor of John Larkin; this is, perhaps, too personal but it honors the man who led community opposition to Ridge Hill. How about "Watchdog Ridge"? That would honor the neighborhood groups that banded together to fight developer Forest City Ratner. We lost the battle, but have we lost the war? We might also consider "Mt. Pataki." It was our then-governor who allowed this state site to be sold for pennies on the dollar. How would "City of Hills" sound? I'm sure someone out there has better suggestions than I do. Please send a letter to the editor.
The mayor and council should demand a name change. It would cost Forest City Ratner millions. As the developers apparently are going to skate on any wrongdoing in this case, they should be made to pay plenty for their involvement in this disgrace to our city.
Mike Breen
Yonkers
Posted by eric at 5:48 PM
January 11, 2010
U.S. cities seek ways to aid property developers
Reuters
Guess which company gets the first mention in a story about government aid to real estate developers?
U.S. municipal and state governments, despite facing their own cash shortfall, are finding ways to help local property developers navigate the current downturn, in some cases rescuing projects that would otherwise fall victim to the credit crunch.
Such public-private partnerships highlight the increased role of the public sector in a business where the help of bureaucrats is typically not wanted. In atypical times, such aid may be a stepping stone toward the eventual return of private capital.
Au contraire, mon Reuters. Some companies always seeks the help of the public sector — or at least its money.
Las Vegas' city council voted last month to move its city hall, a decision Mayor Oscar Goodman called a "mini-stimulus." It is a complicated deal that frees up the building's attractive current location for the development of a district anchored by a sports arena, since Vegas hopes to attract a Major League franchise.
"The city needs something like this right now," said Eric Louttit, Vice President of Finance at Forest City Enterprises Inc., a national developer of retail, office and apartment properties.
Forest City-watchers know that "complicated deal" is a euphemism for "taxpayer-subsidized boondoggle." They also know to insert "Forest" before "city," as in "[Forest] City needs something like this right now."
Louttit, the project developer of Forest City's Las Vegas land, said that, without the move, downtown development could remain stalled for years.
"The economy is really quite bad," he said. "I don't think there's any legitimate hope of any private sector developer coming in."
NoLandGrab: That might sound convincing to those unfamiliar with the Forest City m.o., but bad economy or good, Forest City rarely builds anything without a heaping helping of public subsidy.
Posted by eric at 3:26 PM
"Bilked" or cost of doing business
It's disingenuous to suggest, as the NY Times did in last week's article, that public officials are accused of "bilking" developer Forest City Ratner in exchange for a key vote to approve the Ridge Hill project in Yonkers. "Bilked" would suggest that Forest City was a victim of extortion, which is extremely doubtful, since the company apparently never reported the alleged "crime."
In light of a history of corruption surrounding Ridge Hill, since its inception, watchdogs in Brooklyn and Yonkers are only surprised that anyone seems to care.
Back in 2005, the same NY Times ran an article ("An Agency to Answer a City's Prayers, but Not All Its Questions") about what crawled out from under the rock called the Ridge Hill Development Corporation, as local politicians and the public sought more transparency. Included was this revelation:
Some of the corporation's directors are allies of Mayor Philip A. Amicone and former Mayor John R. Spencer, and sit on the boards of at least two other local development corporations in Yonkers. Tax documents show that in 2003, Mr. Spencer's brother-in-law, Chris Spring, had a $100,000-a-year job with the corporation, but a storm of protest followed and by 2004 he was on the developer's payroll instead.
Would anyone suggest that Forest City Ratner was "bilked" by the then-twenty-something-year-old Chris Spring, or is putting the relative of a political patron on the payroll somehow different than hiring another influential politician's cousin as a contractor? Unless, "bilked" is now a euphemism for cost of doing business.
Posted by lumi at 4:35 AM
January 10, 2010
Are backroom deals par for the course?
The Journal News, Op-Ed
By Debra West
The controversy over payments made to insure a key vote for approval of Forest City Ratner's Ridge Hill project in Yonkers leads watchdogs to wonder if backroom deals are the way to go:
Federal prosecutors accused Annabi, the former Democratic majority leader whose term ended in December, of taking more than $166,000 in payoffs to vote "yes" on two development projects. One development, the so-called Longfellow apartments project, was small and remains unstarted. The other, Ridge Hill Village, is the biggest retail, residential and office complex that Yonkers has seen to date.
...
"This is really an isolated incident," [Geoff] Thompson said. Though government skeptics may assume that backroom deals are par for the course, it is not the case. "If it were common, it would be in the headlines every six months, and it's not."Thompson points out that long before the indictments, other developers looked to Ridge Hill and its closed-door process as an example of how not to proceed. Forest City Ratner seemed to shut out the public, he said. Thompson does represent a group of developers — including mega-builder Louis Cappelli — who have been at work for years on a redevelopment plan for downtown Yonkers; he said the partnership has sought community input at every juncture.
If prosecutors are to believed, the $630 million Ridge Hill development was denied a fair and honest hearing; who can say how the controversy would have otherwise unfolded?
Terry Joshi is president of the watchdog group Yonkers Committee for Smart Development and a frequent critic of the many tax incentives and zoning changes developers wrest from local governments. The indictments notwithstanding, she doesn't think that backroom deals and bribes are the way business is regularly done. "The real giveaways happen right out in the open," Joshi said. "They take votes in public, in the light of day, and still just basically give developers whatever they want. That's the problem."
NoLandGrab: Forest City's political connections and a few well placed donations are usually all that's required to secure the megaprojects outside of meaningful public scrutiny.
Posted by lumi at 4:13 PM
City's new image takes a hit
The Journal News [LoHud.com]
By Ernie Garcia
Here is commentary on alleged misdeeds in getting a Yonkers councilwoman to approve Forest City Ratner's Ridge Hill project.
In the past decade public officials have carefully crafted an image of a Yonkers on the rise.
Significant development, improving schools, better shopping and the slow but steady reinvention of downtown all promised a city that would overcome its decades-old reputation as a segregated, corrupt place.
That 21st-century profile took a blow last week with the indictment of a former councilwoman and two political insiders on charges of public corruption, extortion and tax evasion.
The charges stemmed from two development projects in the city — the $630 million Ridge Hill development and the smaller Longfellow school redevelopment project. Former Democratic Councilwoman Sandy Annabi, former Yonkers Republican Chairman Zehy Jereis and attorney Anthony Mangone were accused Wednesday of conspiring to sell Annabi's votes on the two proposals.
Jereis and Annabi were charged in both developments; Mangone was charged in the Longfellow project.
Annabi, 39, is accused of accepting more than $166,000 in cash, house and car payments, airline upgrades, a Rolex watch and a diamond-studded crucifix.
Jereis allegedly got a $60,000 consulting job from Forest City Ratner in exchange for Annabi's deciding vote for the Ridge Hill project, and he's accused of passing along bribes to her. And Mangone received $10,000 in the scam, prosecutors say.
Posted by steve at 8:51 AM
January 8, 2010
Got “Bilked?” The New York Times Biased Report on Federal Investigation Involving Forest City Ratner
Noticing New York
Michael D.D. White catches The New York Times bilking readers out of accurate reporting in this must-read piece of media criticism.
What’s your definition of “bilk”? We think that these days “bilk” generally evokes the concept of someone being swindled out of something valuable by fraud, trick or deceit, as in any of the following usages in the New York Times (here and here- at the risk of going just a tad too far to be sure we make our point):
. . . Irving Picard, the trustee for the investors bilked by Bernard L. Madoff. . .
. . . where Mr. Stanford, 59, has been held since he was indicted in June on charges of bilking investors through a scheme involving Antiguan bank certificates.
Marc S. Dreier, once a high-flying New York lawyer who orchestrated an elaborate fraud scheme that bilked hedge funds and other investors of $700 million. . .
...Times Says Ratner Was "Bilked" by Public Officials
Why do we want to be so sure of the meaning conveyed by the New York Times use of word “bilk”? Because of the story the Times wrote today about a federal corruption case in Yonkers where three individuals, two of them public officials, have been indicted for taking improper payments in connection with two development projects in Yonkers. One of them is Forest City Ratner’s $630 million, 1000-apartment, 81-acre Ridge Hill project. The Times reported that Forest City Ratner has allegedly been bilked by the public officials. Specifically, the Times article said that the indicted public officials:
. . . are accused of bilking two developers of tens of thousands of dollars and funneling the money and other favors to Ms. Annabi in return for her support.
...Ratner, a Specialist in Public Officials, Is “Bilked”?
So the Times is reporting that Forest City Ratner, a real estate firm whose specialty is collecting government subsidies through its relentless cultivation of public officials, was outsmarted....
It sounds to us instead as if Forest City Ratner got a pretty good deal and likely everything it was bargaining for. It doesn’t look at all like it was swindled.
Related coverage...
Atlantic Yards Report, Was FCR really "bilked" by indicted Yonkers pols (and shouldn't an unwitting Brooklyn Standard contributor be careful writing in the NYT about FCR)?
In his Noticing New York blog, Michael D.D. White lays out the evidence to suggest that the New York Times leaned over backwards to accommodate Forest City Ratner in its story about the indictments in Yonkers.
By the way, the Times contributor who wrote the article, Nate Schweber, was a prominent, though unwitting, contributor to Forest City Ratner's Brooklyn Standard Fall 2005 "publication," with his name attached to two articles that he didn't write (as well as two others that he did write, at least in some form).
Posted by eric at 11:21 AM
From the U.S. Attorney on the Yonkers case: "the developer enlisted the [now-indicted] Jereis," but he "demanded" a consulting contract from FCR
Atlantic Yards Report
Forest City Ratner says it's not a target in the Yonkers corruption case involving former Council Member Sandy Annabi and former Republican Party Chair Zehy Jereis, but the U.S. Attorney wouldn't confirm that.
According to the prepared remarks for U.S. Attorney Preet Bharara, which I received today, the clues regarding FCR's role are contradictory; one sentence suggests FCR was a mover behind the alleged dirty deal, while another suggests that "Developer No. 2" might have been extorted:
In June, the developer enlisted Jereis, who had been providing Annabi with tens of thousands of dollars in secret payments, to get Councilwoman Annabi’s vote.
...And for his part, Jereis demanded, and received, a so-called consulting contract worth $60,000 a year from the Ridge Hill developer immediately after Councilwoman Annabi switched her vote.
Did FCR blow the whistle?
According to unnamed sources talking to the Daily News (as noted by DDDB), it looks like FCR was playing along:
At no time during these meetings and agreements with Jereis did Ratner go to the FBI, according to two sources familiar with the investigation.
NoLandGrab: Oh, please. If Forest City was being extorted, Bruce could have worn a wire and exposed the plot. The feds ought to heed Deep Throat's Watergate advice: follow the money.
Posted by eric at 6:04 AM
Projects drew players, federal scrutiny
The Journal News [LoHud.com]
By Timothy O'Connor and Jonathan Bandler
More on the brewing scandal in Yonkers, involving a politician who received favors in exchange for her key vote to approve Forest City Ratner's Ridge Hill project:
U.S. Attorney Preet Bharara said Wednesday in announcing the indictments that the investigation was continuing.
One politician who didn't cave to pressure from Forest City Ratner is now talking to the media:
Just hours before Annabi would formally change her vote and approve the project, Jereis and a representative of the developer, Forest City Ratner, met with Councilman John Murtagh.
Jereis, a former Yonkers GOP chairman, spent most of the 45-minute meeting trying to get Murtagh to support the project. Murtagh said Jereis told him it would be good for him politically to join Annabi and switch sides.
"The entire conversation at that point was 'bizarro world,' " Murtagh said Thursday on Journal News columnist Phil Reisman's WVOX radio program. "He's politically astute, and for him to look at me with a straight face and say that suddenly switching my vote and my opposition to this project was, quote, good for me politically, you'd have to be a fool to believe."
...
Murtagh said Thursday that he was offered nothing to change his vote. In fact, he said, no efforts by anyone, including Pirro, Mike Spano, and representatives of the Ridge Hill developer, involved anything "untoward."Still, he said, he has a feeling there are more indictments to come in the case.
Posted by lumi at 5:35 AM
January 7, 2010
Yonkers pol Sandy Annabi took bribe to OK Ratner deal, feds say
NY Daily News
by Robert Gearty and Greg B. Smith
Has there ever been a more apropos federal indictment alias than Forest City Ratner's "Developer No. 2?"
Developer Bruce Ratner's company agreed to hire the cousin of a former Yonkers councilwoman if the pol dropped her opposition to one of his major projects, prosecutors and other sources say.
The stunning conflict emerged in the indictment Wednesday of Yonkers Councilwoman Sandy Annabi and her cousin Zehy Jereis, a former Yonkers official.
Annabi, Jereis and a local lawyer were hit with multiple charges, brought by Manhattan U.S. Attorney Preet Bharara, in a bribery and extortion scheme.
Ratner confirmed that his firm, Forest City Ratner, was the "Developer No. 2" named in the indictment. The project at issue was a huge residential/commercial project in Yonkers called Ridge Hill.
Annabi opposed Ratner's project. Then, in June 2006, Jereis was introduced to unnamed reps of Developer No. 2 who promised to arrange a meeting with Annabi, the indictment states.
After Jereis and Annabi met with Forest City reps at a Brooklyn restaurant, Jereis asked Forest City to give him a job, the indictment and sources state.
The potential quid pro quo emerged in a June 28, 2006, "agreement in principle" in which Developer No. 2 "agreed to give Jereis a job sometime after Annabi formally voted in favor of the Ridge Hill project," the indictment alleged.
Two weeks later, Annabi switched her vote. In October 2006, Developer No. 2 signed a contract hiring Jereis as a "real estate consultant" for $60,000 at $5,000 a month.
Jereis had no real estate experience and the contract was backdated two months.
Although the contract required Jereis to submit invoices, he didn't until word leaked of an FBI investigation in March 2007. Jereis then sent Forest City seven months worth of backdated invoices.
At no time during these meetings and agreements with Jereis did Ratner go to the FBI, according to two sources familiar with the investigation.
More coverage...
The New York Times, Ex-Official in Yonkers Faces Charges of Corruption
Oops! The Times forgot to mention that "Developer No. 2" was "Developer No. 1" of its Manhattan headquarters building!
A former Yonkers city councilwoman was indicted Wednesday on federal charges of accepting nearly $167,000 in cash and gifts in exchange for dropping her opposition to two contentious developments, including a $630 million project that is the city’s largest private undertaking.
...The investigation began in 2008, about two years after Ms. Annabi voted to enable a $630 million residential and commercial project by Forest City Ratner known as Ridge Hill, to move forward. Shortly after Ms. Annabi cast her vote, Forest City hired Mr. Jereis as a consultant at $60,000 a year.
AP via 1010WINS, Yonkers Councilwoman Accused of Accepting Bribes
Although the indictment incriminates the unidentified developers, Bharara would not discuss why they were not named in the indictment or charged.
...According to the indictment, the Ridge Hill developer, Forest City Ratner Cos., held a meeting with Jereis and Annabi during which Jereis asked for a consulting job. Annabi reversed her vote five days later and Jereis got a $60,000 position, it says.
LoHud.com, Yonkers residents express surprise, dismay over former Council member's indictment
Martin McGloin helped organize a group called Community First! to oppose the Ridge Hill Village project. McGloin said he was not surprised by the accusations against Annabi, who changed her opposition to both Ridge Hill and the Longfellow School at the last minute.
"I've read the indictment. Obviously they must have hard evidence for what they're putting in the indictment," McGloin said.
"There was a lot of back-room dealing among the council members with the developers," he said.
LoHud.com, Yonkers indictments: Greenburgh considers reopening lawsuit vs. Ridge Hill
The town may reopen its lawsuit against the Ridge Hill development, saying the project's environmental impact study may have been compromised if former Yonkers Councilwoman Sandy Annabi took a bribe to support of the controversial development.
Greenburgh filed a suit against the developers over concerns with the size and traffic impact of the mixed-use Yonkers project near the town's border. The town settled the case in 2007, though town Supervisor Paul Feiner said he and other board members were still concerned about the traffic impact. Outside legal counsel specializing in land use advised the town to settle since the Yonkers City Council supported the project, Feiner said.
...The Town Board could direct the town attorney to review possible legal action when it meets at 7:30 p.m. Wednesday at Town Hall, 177 Hillside Ave.
LoHud.com, Reisman: Scandal runs deeper than Annabi
This is the tip of the iceberg. It has to be.
No one who has spent any time watching Yonkers and its sad Byzantine history of cronyism, greed and shady deal making believes that the deal to smooth the way for a couple of major developments could possibly begin and end with only a vain councilwoman and the two political hacks.
There must be more.
...Preet Bharara, U.S. attorney for the Southern District said, at Wednesday's news conference that the federal investigation into Yonkers corruption is continuing. He did not discount the possibility of more indictments.
LoHud.com, Loss of Faith, Destruction of Trust
Columnist Phil Reisman follows up today's column (above) on his blog.
It’s really come to this. Things are so bad in the way of corruption, legislative gridlock and greed that David Paterson, the governor of the greatest state in the greatest country in the world, used his State of the State Address yesterday to lecture lawmakers on the myriad ways they’ve destroyed the people’s trust.
...His address to the 212-member den of thieves came just an hour or so after a federal indictment was handed down in White Plains accusing former Yonkers City Councilwoman Sandy Annabi of accepting $166,000 in bribes to, in effect, help grease the wheels for two major development projects. One of them was the $600 million Ridge Hill project, a massive undertaking by the Forest City Ratner group, which is the same outift, incidentally, that is remaking an entire neighborhood in Brooklyn.
Ridge Hill will now forever be associated with corruption—that’s how critical Annabi’s vote was. If the allegations against her hold up, then it can always be said that Yonkers can bought for the price of a condo, a Rolex watch and a couple of vacation trips.
Posted by eric at 5:35 PM
The journalism of verification: FCR's statement that it's not a target in Yonkers goes mostly unquestioned, though the feds won't confirm it
Atlantic Yards Report
So, after the stunning news yesterday that Forest City Ratner was the unnamed, unindicted "Developer No. 2" cited in a Yonkers corruption scandal, the developer issued a statement saying it had cooperated fully with federal prosecutors and "has been advised by the U.S. Attorney's Office that neither the company nor any of its employees is a target of the investigation."
Does that mean they're cleared? Not exactly.
The U.S. Attorney's office would not comment when I asked them to confirm the statement. LoHud.com reported that U.S. Attorney Preet Bharara "declined to comment on whether Forest City Ratner had broken the law by hiring Jereis or whether they were a target of the continuing investigation."
And, as I wrote, "not a target" could mean they're not a target now but could be in the future.
Still, other than AYR and the local LoHud.com (home of the Journal-News), the press did not try to verify Forest City Ratner's claim. The New York Times dutifully printed FCR's statement, without adding, as the newspaper did in a 5/5/08 article on the investigation, that Forest City Ratner "partnered with The New York Times to build its new headquarters."
The Daily News and the Observer also quoted the FCR statement without question. (I couldn't find coverage in the Post.)
Posted by lumi at 7:37 AM
VIDEO: Ridge Hill Village Rising to New Heights!
While a couple of pols and a political operative are being indicted for giving and receiving bribes to approve "Developer #2's" (aka Forest City Ratner) Yonkers Ridge Hill project, we're getting a kick out of this promotional video for the "visionary mixed use development, drafted and designed by the nationally renowned Forest City Ratner Company" featuring Yonkers Mayor Philip A. Amicone.
Posted by lumi at 6:30 AM
January 6, 2010
Update: FCR says it's not a target
Norman Oder has amended his earlier post on federal indictments connected to Forest City Ratner's Ridge Hill project with the following:
Update: FCR says it's not a target
"Forest City Ratner Companies has cooperated fully with the U.S. Attorney's Office during the course of its investigation and will continue to do so. In addition, Forest City has been advised by the U.S. Attorney's Office that neither the company nor any of its employees is a target of the investigation," said Ed Tagliaferri, Senior VP, Dan Klores Communications, in a statement.
Note that the U.S. Attorney's Office would not comment when I earlier asked the same question. After I received the statement from Tagliaferri, I asked the U.S. Attorney's Office to confirm that "neither the company nor any of its employees is a target," and was told there was no comment.
NoLandGrab: What, FCR worry? Let's keep in mind that the U.S. Attorney alleges that Forest City promised and then delivered a consulting contract to the guy who bribed a Yonkers Councilmember to change her vote and approve their project.
More coverage...
NY Observer, Corruption Charges in Yonkers Development May Have Links to Forest City Ratner
A former City Council member in Yonkers and two others were indicted Wednesday on charges of corruption in a case that may have links with Brooklyn development firm Forest City Ratner. The investigation by the U.S. Attorney's office centers around Yonkers Councilwoman Sandy Annabi, and two individuals who allegedly helped convince her to sell her votes on two development projects: Zehy Jeries, former head of the Yonkers Republican Party, and Anthony Mangone, an attorney.
One of those projects' developers appears to be Forest City Ratner, in connection with its planned Ridge Hill mixed-use project. Forest City was not named directly or charged in the indictment, with the papers referring only to "Developer No. 2" as the developer of Ridge Hill.
The indictment alleges that Developer No. 2 gave Mr. Jeries a consulting contract worth $60,000 in exchange for swinging Ms. Annabi to vote for the project. Ms. Annabi previously had been opposed to the project, though ultimately voted in its favor, after Forest City agreed to numerous concessions including paying more property taxes. Mr. Jeries also is charged with giving Ms. Annabi a $70,000 loan and more than $50,000 in other financial benefits from 2004 to 2008. (Ms. Annabi and Mr. Jeries are cousins.)
Runnin' Scared, Pol Charged With Corruption in Ratner (Atlantic Yards) Project in Yonkers
Forest City Ratner, currently trying to ram Atlantic Yards down Brooklyn's throat, is unnamed and unindicted and unmentioned even in the U.S. Attorney's official statement. But the case centers on its controversial Ridge Hill development. (Indictment here; "Developer No. 2" is Forest City Ratner.)
...All suspects are innocent until they're proven guilty or unless they somehow wriggle off the hook. Except for the New Jersey Nets, the condemned property owned by Bruce Ratner. The NBA team is currently 3-31, and not even eminent domain can save it.
Posted by eric at 4:53 PM
PRESS RELEASE: UNITED STATES ATTORNEY CHARGES FORMER DEMOCRATIC MAJORITY LEADER OF YONKERS CITY COUNCIL, FORMER YONKERS REPUBLICAN PARTY CHIEF, AND ATTORNEY WITH PUBLIC CORRUPTION CRIMES
Former Yonkers City Councilwoman Sandy Annabi Allegedly Received More Than $160,000 In Secret Payments; Defendants Charged With Conspiracy, Bribery, Extortion, False Statements, and Tax Crimes
PREET BHARARA, the United States Attorney for the Southern District of New York, JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation ("FBI"), and PATRICIA J. HAYNES, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service ("IRS"), Criminal Investigation Division, announced today the unsealing of an Indictment against SANDY ANNABI, the former Democratic Majority Leader of the Yonkers City Council, charging her with conspiracy, bribery, extortion, false statements, and tax crimes. The Indictment also charges ZEHY JEREIS, the former head of the Yonkers Republican Party, and ANTHONY MANGONE, a Westchester County attorney, with conspiracy, bribery, and extortion in connection with two real estate development projects within the City of Yonkers which were pending before ANNABI.
...
The Ridge Hill Development Project
The "Ridge Hill Development Project" was a project proposed by a large developer ("Developer No. 2") to develop an 81-acre tract of land to establish retail shopping, restaurants, office space, hundreds of residential housing units, and a hotel and conference center. ANNABI was an outspoken critic of the proposed Ridge Hill Project and voted against both the project and legislation that would allow the project to move forward despite her opposition. ANNABI, with two other City Council members and others, also filed a civil lawsuit to effectively block the Ridge Hill Project. As the City Council was considering the Ridge Hill Project, Developer No. 2 made repeated and unsuccessful efforts to convince ANNABI to vote in favor of the project.
On June 2, 2006, JEREIS was introduced to representatives of Developer No. 2, after which JEREIS told representatives of Developer No. 2 that he could arrange a meeting between them, ANNABI, and JEREIS to discuss the Ridge Hill Project. JEREIS and representatives of Developer No. 2 also had an agreement in which Developer No. 2 would give JEREIS a consulting job sometime after ANNABI formally voted in favor of the Ridge Hill Project. After two meetings held in less than two weeks, ANNABI reversed her opposition to the Ridge Hill Project and issued a press release -- drafted by JEREIS and representatives of Developer No. 2 -- informing the public of her support for the project.
Specifically, at a City Council meeting on July 11, 2006, ANNABI voted in favor of the zoning change necessary for the Ridge Hill Project. Shortly after ANNABI changed her vote on the Ridge Hill Project, JEREIS received the promised consulting contract from Developer No. 2 worth $60,000 over one year.
Click here to see the entire press release [PDF].
Posted by eric at 2:14 PM
Forest City Ratner, unnamed/unindicted, cited as giving indicted man consulting job after he got Yonkers Council Member to change vote on Ridge Hill
Atlantic Yards Report
A federal investigation of corruption in Yonkers has led to three indictments in connection with two real estate projects, one of them Forest City Ratner's Ridge Hill.
And while Forest City Ratner is neither named nor indicted, the investigation is ongoing and, at least as presented by federal prosecutors, the developer's conduct seems suspect. (An indictment, of course, is an allegation based on evidence, not a conviction.)
Contract in exchange for influence to change vote
FCR is cited as agreeing to provide Zehy Jereis, the former head of the Yonkers Republican Party, a $60,000 consulting contract after he got Yonkers City Council Member Sandy Annabi once a fierce opponent of the Ridge Hill project, to change her vote.
She once said that Forest City Ratner was “probably richer than God” and was “robbing the city blind,” and served as the lead plaintiff in a 2005 lawsuit objecting to the city's approval process--but then did an about-face a year later.
According to prosecutors, the sequence of events that included the changed vote mean Annabi, the former Democratic Majority Leader of the Yonkers City Council, has been charged with conspiracy, bribery, extortion, false statements, and tax crimes. Also, Jereis, the former head of the Yonkers Republican Party, and Anthony Mangone, a Westchester County attorney, were charged with conspiracy, bribery, and extortion.
NoLandGrab: Surely, no such shenanigans might have taken place with Forest City's Atlantic Yards project. Right?
Posted by eric at 2:09 PM
Feds: Councilwoman sold her vote 'for baubles and trinkets'
LoHud.com
by Timothy O'Connor and Jorge Fitz-Gibbon
Forest City Ratner's Ridge Hill project appears to be at the center of a federal investigation into political corruption in Yonkers.
Former Yonkers Councilwoman Sandy Annabi sold her vote “for baubles and trinkets,” federal investigators said today as Annabi and two connected political insiders were indicted on public corruption charges.
Annabi is accused of taking more than $160,000 in “secret payments” for casting the deciding council vote on two Yonkers development projects — the $630 million Ridge Hill development and the Longfellow development of two abandoned city schools.
Also indicted were former Yonkers GOP Chairman Zehy Jereis and political fixer Anthony Mangone, who U.S. Attorney Preet Bharara said conspired with Annabi to accept bribes and no-show jobs in exchange for pushing the development deals through the city council.
“Rather than keep her word, she betrayed Yonkers residents by selling the most important assets any elected official has: her integrity and her independence,” Bharara said at a midday press conference at U.S. District Court in White Plains.
According to the indictment, Jereis was given a $60,000 consulting job in exchange for Annabi switching her vote and backing the Ridge Hill project on July 11, 2006 — the deciding vote.
...In the winter of 2008, at least five Yonkers council members received federal subpoenas demanding records and ordering them to testify before a federal grand jury in White Plains. Annabi, a councilwoman at the time, would not say whether she had also been subpoenaed.
The subpoenas covered a range of topics, from the long-disputed $630 million Ridge Hill development to the Longfellow project, a redevelopment plan involving two shuttered city schools; and increased water rates and higher fees for building and fire safety inspections.
...Proposed by Forest City Ratner, Ridge Hill faced opposition largely over the issue of traffic from neighborhood groups, the Westchester County Planning Board and the neighboring municipalities of Greenburgh, Hastings-on-Hudson and Ardsley.
The City Council attempted to get around the county's opposition, which would require a so-called supermajority, or five members of the seven-member council, by changing the law to require only a simple four-vote majority.
When that law was struck down in court, the Ridge Hill development appeared in peril, but in July 2006 Annabi dropped her opposition to the development, citing an agreement by Forest City Ratner to pay an additional $10 million in property taxes over three years.
Posted by eric at 1:59 PM
January 1, 2010
Official Statement: Forest City Ratner to get 5% development fee, or $7 million minimum
Atlantic Yards Report
We've known since a July 2007 New York Times report that Forest City Ratner would get a 5% development fee while also owning a significant part of the Atlantic Yards project.
When Atlantic Yards was projected to cost $4 billion, that 5% fee would have represented $200 million. Now that AY is projected to cost $4.9 billion, that 5% fee would total $245 million.
But it could be a little more.
The Barclays Center Official Statement, prepared by underwriter Goldman Sachs, indicates that the annual reimbursement should not exceed the greater of $7 million or 5% of cumulative total Arena Project costs.
$7 million is 5% of $140 million. So if for some reason annual Arena Project costs are less than $140 million, Forest City Ratner could get a $7 million fee, which would represent somewhat greater than 5%.
Given that the arena is supposed to cost $1 billion and be built in less than three years, that seems not too likely, but you never know with Atlantic Yards.
So when Forest City Ratner says it plans to fully build Atlantic Yards because that's the only way to get a return on its investment, the development fee has to be part of the equation.
Posted by eric at 1:06 PM
December 30, 2009
New Long Island Rail Road Terminal draws raves
Park Slope Courier
by Stephen Witt
Speaking of upside down things at the Atlantic Terminal, the notorious Steve Witt heaps praise on the new LIRR terminal design, completely ignoring the god-awful Sarcophagi ringing the entrance.
Rays of daylight cascaded through the glass ceiling of the new Long Island Rail Road Terminal as Brooklyn resident Krystle James leaned against the twin staircases leading from the sub-ground level upto either Flatbush Avenue or Hanson Place.
“This is really nice,” said James, who was waiting for her train to Long Island to visit friends.
...After nearly six years of construction, the $116 million project is expected to officially open next week.
The project brought together the resources and coordinated planning of the Metropolitan Transportation Authority, the city’s Economic Development Corporation and developer Forest City Ratner to revitalize Brooklyn’s major transportation complex, according to a 2004 press release announcing the project.
FCR owns the Atlantic Terminal Mall, which leads into the new transit entrance.
If it took six years for Forest City, the MTA and the EDC to build a $100 million station entrance, how long might it take Forest City, the MTA and the ESDC to build the $4.9 billion-plus Atlantic Yards?
Oops, time to cue gratuitous Nets plug:
“I’ve seen them making this for a long time,” said Shatasha Brown of Flatbush as she walked through the new concourse with a friend and a young child in a stroller. “This is looking really cute, and it’s good they’re bringing a basketball team here. Brooklyn should have its own team like every other city has its own team.”
NoLandGrab: While the headline promises raves, the article delivers "really nice" and "really cute." Wait 'til they see the Sarcophagi.
Posted by eric at 10:03 PM
Old Glory inverted atop Ratner mall
Park Slope Courier
by Gary Buiso
In Ratnerville, up is down, private is public (is private), and wrong is right.
Keen-eyed last minute holiday shoppers may have thought something was awry on Dec. 24 if they looked at the state of Old Glory flying atop the Atlantic Terminal Mall. The flag was being flown upside down — a signal of dire distress. Was this a not-so-subtle comment on the state of the retail sector?
Joyce Baumgarten, a spokesperson for mall owner Forest City Ratner Companies, set the record straight, chalking up the topsy-turvy affair to an “honesthuman error.”She said it was only in the upside down position for a scant 20 minutes — just long enough for our eagle-eyed shutterbug to snap the flag’s sorry state.
According to the United States Flag Code, a set of advisory rules, the flag is flown upside down as a distress signal.
Posted by eric at 9:49 PM
Realty's best & worst of '09
NY Post "Between the Bricks"
by Lois Weiss
More looking back at the year about to conclude, and while the idea of giving someone a "brick" would not seem much of an award, this being the Post, we guess she means it as a compliment.
This Annus Horribilis is thankfully over, making it time for the Annual Golden Brick awards.
...Russian Brick to Bruce Ratner and Forest City Ratner for selling the Nets to a Russian billionaire and closing on the Atlantic Yards purchase despite years of NIMBY lawsuits.
Posted by eric at 9:17 PM
December 29, 2009
This cop calls in her own crime!
The Brooklyn Paper, Police Blotter
by Stephen Brown
Even cops aren't safe when it comes to Bruce Ratner's Brooklyn malls, where some employees, apparently, double as crooks. With neither mall built to its allowable Floor Area Ratio, and the blighting influence of crime readily apparent, the Atlantic Center and Atlantic Terminal would be prime candidates for eminent domain condemnation — except for the simple fact that state agencies with condemnation powers are in the business of serving developers like Bruce Ratner.
Cop caper
Even off-duty cops run into trouble at the notorious Atlantic Center Mall.
An officer shopping at the Burlington Coat Factory had her purse snatched after she absentmindedly left it on a clothing rack on Dec. 26.
...Trouble at Target
And there was more crime at the Atlantic Terminal Mall’s Target store, as well. Here’s a rundown of last week’s action:
• Security cameras caught an employee rifling through a customer’s wallet and taking her credit cards and cash on Dec. 19.
The crime occurred at the customer service desk of the chaotic department store at the intersection of Flatbush and Atlantic avenues, where the victim made a purchase and accidentally left her wallet behind at around 12:45.
Security cameras caught an opportunistic employee looking through the wallet and stashing it in her jacket, cops said. The suspect then brazenly used the stolen credit card at the same register where she was working.
• The next day, another unethical employee allegedly took advantage of a customer by passing credit card information to a friend, which then used it to buy merchandise at the store.
Posted by eric at 11:09 AM
Ratner exec identified as $4.1M Prime buyer
The Real Deal
Richard Pesin, an executive vice president with Forest City Ratner Companies, the group behind the controversial Atlantic Yards development project, has been identified as the purchaser of a $4.1 million penthouse apartment at the Prime, a condo at 333 West 14th Street.
Develop Don't Destroy Brooklyn notes that the property may be blighted due to "underutilization and unsafe conditions."
Posted by lumi at 5:45 AM
December 28, 2009
Christmas for kids at borough hall
YourNabe.com
When an article in the Courier has no byline, it can only mean one thing — this baby came straight from the press release.
Dozens of children in need received tender tokens of love when Borough President Marty Markowitz joined the New Jersey Nets and the Salvation Army for a holiday gift drive at Borough Hall.
Hoop stars Darryl Dawkins and Terrence Williams helped present “hundreds of toys” to youngsters whose families are served by the Salvation Army, and who were feted with a program of cheer which included a merry mingle with Kris Kringle.
The toys were among more than 1,100 donated by the Barclays/Nets Community Alliance — a partnership between Barclays Bank, the Nets and Forest City Ratner Companies — to the Salvation Army. The charity also funded children’s holiday parties at each of the five main Salvation Army centers serving Brooklyn.
Posted by eric at 10:51 AM
December 21, 2009
The Week in Crime: Special Shopper’s Edition
The Local [Fort Greene/Clinton Hill]
With just four shoplifting days to go, it appears that crooks are dreaming of a "blight" Christmas at Bruce Ratner's Atlantic Center and Atlantic Terminal malls.
* A woman tried to walk out of Target on Tuesday night with 215 unpaid-for items, including 101 health and beauty items, 66 things from the grocery department, 13 seasonal objects and 11 toys. Danita Gardner, 40, was charged with grand larceny.
* Grand larceny, Dec. 14: Woman waiting for bus near Pathmark is jostled in a crowd. Discovers on bus that her wallet, containing $250 cash, is missing.
* Assault, Dec. 15: 25-year-old woman charged with assaulting police officer trying to arrest her in front of Atlantic Terminal.
* Grand larceny, Dec. 18: Woman’s wallet, containing $100 cash, a $150 gift card and a notary license, removed from her jacket pocket at Daffy’s in Atlantic Terminal.
Posted by eric at 4:13 PM
December 17, 2009
Our cartoonist’s take on the MTA service cuts
The Brooklyn Paper
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Posted by eric at 10:08 PM
December 15, 2009
Mobile bandit seized
The Brooklyn Paper, Police Blotter
by Sabrina Jaszi
Holiday shoppers who want to avoid the "blight" of being a crime victim would do well to steer clear of Bruce Ratner's Atlantic Center and Atlantic Terminal malls.
Retail rampage
Shoppers beware! Atlantic Avenue clothing emporiums are rife with crime this holiday season. One thief even struck twice in the Marshall’s in the Atlantic Center Mall on Dec. 9.
That thief’s first victim was a high schooler who told cops that the sneak brushed by her diaper bag at 2 pm and took her wallet. She lost only loose change, she said.
But minutes later, the thief snagged an older woman’s bag from her cart. She later found the bag hanging from a fence, but $200 had been removed, along with all of her credit cards.
Related coverage...
The Local [Fort Greene/Clinton Hill], The Week in Crime: Thieves and Assailants
With all the crimes going down, the Brooklyn Paper had to call in some back-up from The Local.
* A 23-year-old man was punched to the ground Monday at 7:30 p.m. in front of 625 Atlantic Avenue and then repeatedly socked and kicked by three men while he was down. He was treated by emergency medical personnel for cuts, swelling and pain to his left eye. Israel Rodriguez Jr, 21; Luc Vincent, 19; and Robertson Valle, 27, were charged with gang assault in the first degree.
"625 Atlantic Avenue" is AKA "the Atlantic Center mall." Surely Times brass wouldn't have ordered The Local, which last week referred to the "Atlantic Mall" in its crime report, to obscure the scene of the crime(s) (which, after all, is owned by its development partner in its headquarters building) by using the street address instead of the more easily identifiable name?
* 12/8: A woman stole $1,463 in tops, panties and bottoms from the Old Navy department store in 625 Atlantic Avenue. The police arrested Victoria Perez, 38.
* 12/8: Woman, 71, discovered $130 in unauthorized credit card charges after her wallet was swiped in Marshalls at 625 Atlantic Avenue.
Posted by eric at 12:52 PM
December 10, 2009
FCE executives say Atlantic Yards is on schedule, bond details, sale next week
Atlantic Yards Report
Norman Oder listened in on today's Forest City Enterprises earnings call.
In a conference call today (webcast) with investment analysts, Chuck Ratner, CEO of Forest City Enterprises, parent of Forest City Ratner, expressed optimism about the Atlantic Yards project and said more details on the terms for the arena bonds would emerge “by the end of next week.” Another executive said bonds would be sold by early next week.
“In summary, we have several things yet to accomplish, and we fully expect to close this project by the end of the year,” Ratner said. “We are in a position to close because we have achieved some major milestones. The first was a letter of intent with an affiliate of Onexim Group, an affiliate of an international private investment fund, to create a strategic partnership for the ownership of the Nets and the development of the Barclays Center arena. This influx of new global capital is strong sign that others also see a value creation opportunity that we see in this great project.”
Other might say that Russian tycoon Mikhail Prokhorov—a big basketball fan--got a very good deal.
...Capital investment
FCE CFO Bob O’Brien at one point acknowledged that there is a significant investment that needs to go into Atlantic Yards as it goes forward.
An analyst asked, "Can you give an update on the arena... and expectations of capital investment in the project?"
Forest City Ratner President Joanne Minieri responded, “As Chuck mentioned, we are anticipating to close on the Atlantic Yards and the Brooklyn arena by the end of this year. We had always anticipated the necessary equity, which would in the neighborhood of around 200 million dollars, primarily in connection of the land and infrastructure… I think, overall, all of our targets are being met, and we continue to proceed accordingly for the year-end close. We’re out in the market, as you probably heard, on the bonds… and we expect to have them sold early next week. So, with that, I think, overall, the project is pretty much moving as we planned.”
Click through for some Forest City obfuscation on its missed Atlantic Yards mortgage payment and the big arena-naming-rights price cut.
NoLandGrab: Yup, the "project is pretty much moving" as Forest City planned, with the arena on target to open in 2006 2007 2008 2009 2010 2011 2012(?).
Additional coverage...
Crain's Cleveland Business, Forest City Enterprises CEO says market's worst 'may be behind us'
While noting challenges aplenty face real estate companies, Charles Ratner, president and CEO of Forest City Enterprises Inc. (NYSE: FCEA, FCEB) said today in a conference call with analysts that “the most difficult stretch may be behind us” in adapting to the recession and real estate credit crunch.
...While some economic reports show the recession ebbing, Mr. Ratner said that is “difficult to see” in the real estate business. He noted the company was unable to sell a portfolio of properties it was marketing to increase its cash position.
...The company also is pursuing federal stimulus funds for energy projects; allocations of federal New Market Tax Credits, which give investors a tax credit for investing in low-income areas; and public infrastructure projects that benefit its properties, such as a new interchange at its Stapleton mixed-use project in Denver.
Posted by eric at 6:59 PM
December 8, 2009
FCE anticipates "groundbreaking in the fourth quarter" (could be January); AY mortgage delayed (hard bargain or cash-flow problem?)
Atlantic Yards Report
OK, would you want to buy one-notch-above-junk bonds from a company that can't — or won't — pay its mortgage?
Forest City Enterprises (FCE), parent of Forest City Ratner, today announced third quarter earnings--up 24% from the same period of time last year--and decreased losses--$0.03 per share, compared with $0.19 per share in the third quarter last year.
There were two statements asserting that Atlantic Yards was on track, citing significant milestones, "while challenges remain."
Indeed, there are signs the company still faces cash flow difficulties or, perhaps, is just a hard bargainer. FCE delayed an 11/30/09 payment of $5 million on a $162 million mortgage secured by all land owned in the Atlantic Yards footprint and was granted an extension until December 10, with negotiations continuing about modifying the mortgage. (See highlighted text below.)
A groundbreaking on Atlantic Yards is "anticipated" for the fourth quarter; note that FCE's fiscal year ends January 31.
A conference call with investment analysts is scheduled for 11 am Thursday.
From the press release
The Company achieved the following additional milestones either during the third quarter or subsequent to the end of the quarter:
--In late September, Forest City Ratner Companies, the Company's New York-based subsidiary, and Nets Sports and Entertainment signed a letter of intent with an affiliate of Onexim Group, an international private investment fund, to create a strategic partnership for the development of the Atlantic Yards project in Brooklyn, and the Barclays Center arena, the planned home of the NBA's Nets. As part of the agreement, entities to be formed by Onexim Group will invest $200 million and make certain contingent funding commitments to acquire 45 percent of the arena project and 80 percent of the NBA team, and the right to purchase up to 20 percent of the Atlantic Yards Development Company, which will develop the non-arena real estate.
--On November 24, the New York State Court of Appeals issued a key favorable ruling in a lawsuit related to the Company's Atlantic Yards development project in Brooklyn. The suit challenged the State's use of eminent domain related to the project. The court rejected the challenge in a 6-1 ruling, clearing a significant legal hurdle for the project. Subsequently, during the week of December 1, the major bond rating agencies issued investment-grade ratings for $500 million in tax-exempt bonds to finance a portion of the construction of the Barclays Center arena. Both of these events are major positive milestones for the overall project, and while challenges remain, they enable the project to move forward with an anticipated ground-breaking in the fourth quarter.
(Emphasis added)
Warning from the 10-Q
A 10-Q form filed with the Securities and Exchange Commission stated:
...Subsequent to October 31, 2009, we have elected to delay a November 30, 2009 scheduled amortization payment of $5,000,000 on our $162,000,000 nonrecourse mortgage secured by all land owned in the Atlantic Yards footprint and were granted an extension until December 10, 2009. We have commenced negotiations with the lender to modify the terms of the mortgage but can give no assurance that these negotiations will be successful. If no agreement is reached under the nonrecourse loan between the parties, we can relinquish the land to the lender in lieu of payment of the mortgage.
(Emphasis added)
Additional coverage...
The Wall Street Journal, Forest City Enterprises Loss Narrows, But Company Cautious
The owner of commercial and residential properties reported a loss of $4.4 million, or 3 cents a share, for the quarter ended Oct. 31, compared with a year-earlier loss of $19.1 million, or 19 cents a share. On a continuing basis, the company swung to earnings of 1 cent a share from a loss of 15 cents.
Total revenue fell 7.3% to $306.1 million.
Analysts polled by Thomson Reuters projected a loss of 1 cent a share on revenue of $351 million.
Cleveland Plain Dealer, Losses narrow, EBDT up at Forest City Enterprises in the third quarter
Forest City, based in Cleveland, expects the rest of this year and 2010 to be challenging for the real estate industry, which has been battered by the recession, falling property values and a pullback on lending.
...The company announced quarterly earnings after markets closed today. Shares of Forest City's stock (NYSE: FCE-A) closed trading today at $11.50, down 45 cents or 3.8 percent.
Posted by eric at 9:59 PM
PRESS RELEASE: Forest City Reports Fiscal 2009 Third-Quarter and Year-to-Date Results
CLEVELAND, Dec. 8 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB), today announced EBDT, net earnings and revenues for the three and nine months ended October 31, 2009.
EBDT
Third-quarter EBDT (earnings before depreciation, amortization and deferred taxes) was $85.6 million, a 94.0 percent increase compared with 2008 third-quarter EBDT of $44.1 million. Year-to-date EBDT was $222.7 million, a 50.0 percent increase compared with $148.4 million for the first nine months of fiscal 2008.
On a per share basis, third-quarter 2009 EBDT was $0.52, a 23.8 percent increase compared with 2008 third quarter EBDT of $0.42. Year-to-date per share EBDT was $1.59, a 14.4 percent increase compared with $1.39 per share for the first nine months of 2008. Per-share data for both the third quarter and nine months of 2009 reflect the dilutive effect of new Class A common shares issued by the Company during the second quarter of 2009, and the "if-converted" effect of two convertible debt transactions executed during the third quarter.
For an explanation of EBDT variances, see the section titled "Review of Results" in this news release. EBDT and EBDT per share are non-Generally Accepted Accounting Principle (GAAP) measures. A reconciliation of net earnings (the most directly comparable GAAP measure to EBDT) to EBDT is provided in the Financial Highlights table in this news release.
Net Loss
The third-quarter net loss attributable to Forest City Enterprises, Inc. was $4.4 million, or $0.03 per share, compared with a net loss of $19.1 million, or $0.19 per share, in the third quarter of 2008. Net loss for the nine months ended October 31, 2009, was $36.9 million, or $0.27 per share, compared with $67.9 million, or $0.66 per share for the same period in 2008. In addition to the items discussed below that impacted EBDT and net loss, the net loss was also negatively impacted by increased impairment charges of $14.4 million for the third quarter (primarily related to the write-down of certain land holdings and to the impairment, prior to sale, of two assisted-living residential properties) and $25.4 million for the first nine months of 2009.
Revenues
Third-quarter 2009 consolidated revenues were $306.1 million compared with $330.4 million last year. Revenues for the nine months ended October 31, 2009, were $932.9 million compared with $960.0 million for the comparable period in 2008. The year-over-year revenue variance was impacted primarily by lower land sales and by reduced construction and development fee income from military housing, as early development phases were completed.
Liquidity
"For more than a year now, nearly every major action we've taken as a Company has been focused on improving liquidity and strengthening our balance sheet," said Charles A Ratner, Forest City president and chief executive officer. "Today, liquidity remains our highest priority. Since the beginning of the third quarter, we have executed a successful private debt exchange, issued and closed a new convertible debt offering, and reached agreement with our bank group on the principal terms of a new, two-year $500 million credit facility. These achievements, together with the equity offering we executed in the second quarter, have contributed to significantly increasing liquidity and managing near-term debt maturities."
Click through for more detail than anybody (except Norman Oder) would care to know.
Posted by eric at 9:49 PM
99 Cent robbery
The Brooklyn Paper, Police Blotter
by Sabrina Jaszi
Et tu, Bruce Ratner? If the presence of crime is a strong indicator of blight, your mall is guilty as charged.
Department steal
A thief ripped off a woman at the Marshall’s department store on Dec. 3.
The victim was shopping inside the discounter inside the Atlantic Center Mall at around 4:30 pm when the sneak took her purse off her cart while her back was turned. He got away with credit cards and a Blackberry.
Immature four
Four teenage thugs did more than pick on a younger teen after school on Dec. 4.
The 14-year-old victim said he was walking to the Atlantic Center Mall mall at around 3:40 pm, but when he was at the corner of Ashland and Hanson places, the older kids walked up and grabbed his digital musical player.
Related coverage...
The Local [Fort Greene/Clinton Hill], The Week in Crime: Stay Alert
The Local wants a cut of the action, too.
12/5: Woman, 19, reports Old Navy clutch with $17 stolen on the escalator at Atlantic Mall.
Posted by eric at 8:30 AM
December 7, 2009
Tomb of the Unknown Ratner, or a sneak peek at the future Barclays Center security perimeter?
NoLandGrab
For seemingly as long as some people can remember, what will be the main street-level entrance to the Long Island Railroad's Flatbush Avenue terminal has been under construction, and, more often than not, hidden behind scaffolding. Not long ago, however, the scaffolding came down, revealing a curved, windowed façade, framed in pale stone and fronting an atrium.
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Then, more recently, some scaffolding went back up, and crews began some work on the small plaza at the corner of Atlantic Avenue and Hanson Place. In the past few days, the nature of this work was revealed: a closely spaced series of enormous, intrusive, Sarcophagus-like — and butt-ugly — blocks.
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Our first thought was that the Brooklyn Museum was preparing an outdoor installation from its Egyptian collection, or that perhaps Green-Wood Cemetery had finally reached capacity. But then reality intruded, and we realized that we were looking at the Atlantic Terminal's new security perimeter — and perhaps, a test run for perimeter security at Bruce Ratner's planned Barclays Center basketball arena.
When several elected officials in November, 2007 called for an independent review of security plans for the arena, after Newark police required the closing of a busy street adjacent to that city's Prudential Center before and during events (and after Forest City Ratner misled journalists about the proximity of the arena to Flatbush and Atlantic Avenues), they were rebuffed by Forest City and city and state officials, and police spokesman John Kelly pointedly told the Brooklyn Daily Eagle that the NYPD didn't "foresee any street or land closures, sidewalk widening around the arena or the installation of bollards [emphasis, ours].
OK, but what about massive concrete and granite boxes the size of small cars, likely to frustrate pedestrians as much, or more, than terrorists?
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If the MTA and Forest City believe it's necessary to place Gaza-sized security outside the Flatbush Avenue terminal, which is occupied by perhaps a couple thousand people in transit at any one time, what might they have planned for the space surrounding the Barclays Center, which, assuming significant improvement in the play of the Nets, would hold 18,000+ seated patrons for two or three hours at a time?
As the photo below (taken by Michael D.D. White) of the model of the latest iteration of the Barclays Center indicates, the arena would nearly overhang Atlantic Avenue (at right in photo; that's Sixth Avenue in the foreground). Would the sidewalk along Atlantic be lined with barriers similar to the ones being installed at the Atlantic Terminal? Would other "publicly accessible" space be cordoned in the same manner?
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It's also worth noting that while NYPD spokesman Kelly didn't foresee the installation of bollards, the Barclays Center Arena Preliminary Official Statement anticipates the installation of "sidewalks, bollards and street trees" in the main entry plaza, or, as Bruce Ratner likes to call it, the "Urban Experience" outside the arena. So which is it?
The public has a right to know how allegedly public space will be configured. An independent security review need not reveal blast resistance and composition of materials, but it should certainly reveal whether or not sidewalks will be able to handle the flow of crowds, and, crucially, whether or not traffic would be restricted in any way. Because protecting a 21st century arena shouldn't depend on technology from Egypt's Fourth Dynasty. When Bruce Ratner promised "world-class design," we didn't think he meant the world circa 2500 B.C.
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Posted by eric at 10:06 AM
December 2, 2009
Forest City Enterprises Notice of Third-Quarter 2009 Earnings and Conference Call
PR Newswire
Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) will release its third-quarter 2009 financial results on Tuesday, December 8, 2009, after the NYSE close, and will hold a conference call with investors on Thursday, December 10, 2009 at 11:00 a.m. ET, to discuss these results. Investors are invited to dial into the conference call hosted by Charles A. Ratner, president and chief executive officer.
The conference call is scheduled for 11:00 A.M. ET, Thursday, December 10, 2009. A live webcast of the call will be available online at www.forestcity.net.
Use the following link to pre-register for this conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time.
To pre-register, go to:
https://www.theconferencingservice.com/prereg/key.process?key=PF4CEXKHN
To participate on the day of the call, dial 888-680-0860 and use access code 68778777, approximately five minutes before the call. Callers without a pre-registration PIN can press *1 to bypass the instructions and speak to a live operator. Tell the operator you wish to join the Forest City Third-Quarter Earnings Conference Call. (International callers, please dial 617-213-4852)
The call will be replayed from December 10, 2009, 2:00 P.M. ET to January 10, 2010, 11:59 P.M. ET. The replay number is 888-286-8010, access code 43038561. (International callers, please dial 617-801-6888) The webcast replay will be available at www.forestcity.net .
Posted by eric at 5:04 PM
Unfair Substitution of Fiction For Fact in the Atlantic Yards Dialogue
Noticing New York
A prevailing hallmark of the promotion for Forest City Ratner’s proposed Atlantic Yards Brooklyn real estate mega-monopoly is the extremely unfair way that fiction has been routinely substituted for and intermingled with what are theoretically the actual facts. Not only have the fictions enlisted to support this abusive eminent domain taking been patently false factwise; they have for the most part not even been believable.
Things That Are Not True About Atlantic Yards
One supreme work of fiction in the mix has been the AKRF “blight” study. With high-end condominiums recently developed and built within and immediately outside of the megadevelopment’s footprint it is clear that there was no blight. Another unfortunate way that the intrusion of fiction has been amplified is that for the Court of Appeals decision its official “record” of non-facts was closed as of late 2006 by which choice the court ignored all sorts of conspicuous subsequent events that contradicted the fictions on the record.
Here is a list of other significant fictions that Forest City Ratner and the state officials servicing that firm have unfairly intruded into the public discussion. The list is not exhaustive. To make it so would be a difficult challenge.
Click through for the lengthy list of fictions, and for a very interesting tale of overheard dialogue at the meeting approving the issuance of tax-exempt bonds for Baron Bruce's basketball barn.
Also...
Atlantic Yards Report, AY facts and fiction, from Noticing New York
Some of the fictions are more debatable than others--after all, the Atlantic Yards site likely would have an arena, thus different from the infamous site in New London.
But White and other critics/opponents have a lot of ammo, starting with incontrovertible deceptions like the crime analysis in the Blight Study.
Posted by eric at 9:53 AM
November 24, 2009
FOREST CITY RATNER PRESS RELEASE: FCRC Statement on NYS Court of Appeals Ruling on Eminent Domain Lawsuit Filed by Opponents of Atlantic Yards in Brooklyn
Courts Again Side with Atlantic Yards: Jobs and Affordable Housing to Come to Brooklyn
BROOKLYN, NY—Bruce Ratner, CEO and Chairman of Forest City Ratner Companies, issued the following statement today regarding the NYS Court of Appeals ruling in favor of the Atlantic Yards project in Brooklyn.
The Court's ruling upholds the State’s right to use eminent domain given the public benefits associated with the Atlantic Yards Development in Brooklyn.
“Once again the courts have made it clear that this project represents a significant public benefit for the people of Brooklyn and the entire City,” Mr. Ratner said. “Our commitment to the entire project is as strong today as when we started six years ago. Today, however, this project is even more important given the need for jobs and economic development.”
Mr. Ratner said construction activity on the yards will continue, with the intent that the Nets will play ball in the Barclays Center in the 2011-2012 NBA Season.
In addition to Barclays, which has the exclusive naming rights, eight companies have signed on as founding partners for the arena.
The courts have ruled consistently in favor of the development. Mr. Ratner explained as well that the arena and larger development are expected to create 16,924 union construction jobs and over 8,000 permanent jobs. The tax revenues that will be generated for the City and State during the construction period are expected to exceed $240 million and after construction reach approximately $70 million a year.
NoLandGrab: 8,000 permanent jobs?! That number is only inflated about three times over from the latest plan, and without the proposed office tower — Ratner himself asked a Crain's reporter a few weeks ago "can you tell me when we are going to need a new office tower?" — the true number is likely fewer than 1,000.
Posted by eric at 2:50 PM
November 23, 2009
On Forest City Ratner's monopolies and "the next great site in Brooklyn"
Atlantic Yards Report
To Michael White's very interesting Noticing New York piece on Forest City Ratner's efforts to corner a monopoly on prime Brooklyn land, let me remind readers that Chuck Ratner, CEO of parent Forest City Enterprises, on 9/9/05 told investment analysts:
"I will confess that it was less than two or three years ago we were sitting around in New York wondering where the next deals were going to come from. We had finished a whole bunch of office and we completed MetroTech and we didn't have the next great site in Brooklyn. That was one of the reasons we got so aggressive and creative, Bruce and his team did in this Atlantic Yards project. We saw that land sitting there for this last 10 years, realizing it would be a great opportunity if somebody could turn it on."
Posted by eric at 9:24 AM
November 19, 2009
Manhattan Awash with Stalled Construction Sites
DNAinfo
By Nicole Bode and Serena Solomon
Manhattan is awash in stalled or delayed construction sites. Some are frozen by the downturn, or hobbling along with the help of reduced union labor costs. Others drag on, bolstered by city programs, in the hope that better economic times will return soon.
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DNAinfo compiled a list of the top 10 sites around the borough where dismal financial conditions have hampered development or halted it entirely.
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One site that signed up for the plan was developer Bruce Ratner's Beekman Tower in the Municipal District, a Frank Gehry-designed apartment building that almost lopped off the top 36 floors of the planned 76-story building when financing evaporated earlier this year.Thanks to the labor savings, the project is now working overtime to reach its full height by the time it is slated to open in 2011.
The project landed on DNAinfo's list because it was forced to shut down for three months this spring while Ratner tried to drum up additional funding. The opening day for a new public school housed on the building's lower floors was pushed back from this fall to next fall, The Real Deal reported. A spokeswoman for the developer says the building's topping-off ceremony is on track for this Thursday.
Still, the agreement between developers and laborers doesn't address the newly-stringent regulations by banks who are demanding more collateral up front from developers than ever before.
And some experts predict the temporary activity created by reduced labor costs will bottom out once the projects are complete — leaving the next round of developers on their own.
Posted by lumi at 6:23 AM
Forest City in the News
The first two news items underscore the deep ties between Forest City Enterprises and local governments: the development company is about the hit the jackpot in Vegas, but common sense regains consciousness in Texas.
Las Vegas Sun, New city hall bonds have given project stimulating effect
Federal stimulus funds are slated to bail out a major Forest City Enterprises project in Las Vegas.
The Star-Telegram, Too many loose ends doom deal to put school auditorium at shopping center
The Mansfield, TX, Board of Ed rejected the city's plan to build an auditorium as part of a Forest City Enterprises mall project, choosing instead to build it next to a local vocational school.
The 5-1 vote, which came shortly before midnight, ended two months of closed-door discussions on a deal give the 5,500-seat center a more prominent site — at The Shops at Broad Street, a 1.2 million-square-foot retail complex planned for U.S. 287 and East Broad.
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City officials and the developer, Forest City, hoped the auditorium would help jump-start The Shops’ planning and development, which stalled during the recession.
CoStar Group, Forest City Promotes Ratner to President of Forest City West
Brian Jones, chairman of west coast development for Cleveland-based developer, Forest City Enterprises, is retiring from the company. In his place, Kevin Ratner, Forest City's current president of residential west, has been named as president of Forest City West.
Posted by lumi at 5:58 AM
November 18, 2009
Man on man crime
The Brooklyn Paper, Police Blotter
by Stephen Brown
The scene of this crime can't be pinned downed definitively, but it's noteworthy that the Brooklyn Paper is now referring to Bruce Ratner's emporium as the "notorious Atlantic Terminal Mall."
The Atlantic Yards blight study went out of its way to frame the project footprint as the hotbed of local crime activity, but the reality is that most area skullduggery is emanating from the Atlantic Terminal and its Ratner-owned neighbor, the Atlantic Center.
Target-ed
A Fourth Avenue woman had her wallet swiped off her baby stroller during a shopping expedition that started in the notorious Atlantic Terminal Mall on Oct. 30, cops said.
The woman, who, as fate would have it, works for the district attorney’s office, did not notice the crime for several days — until she checked her account and discovered that someone had made more than $1,000 in charges on her cards.
The thief might have taken the wallet off the stroller at Target, Party City, a nearby Key Food or the Associated Supermarket on Fifth Avenue — all stops on the 38-year-old victim’s itinerary that fateful day.
Posted by eric at 9:56 AM
November 14, 2009
Follow-up on Violence From Ratner Mall
The ESDC's blight study used to justify eminent domain for the proposed Atlantic Yards project claimed a high crime rate for the area, but most of it occurs in Bruce Ratner's malls adjacent to the site. A promotional event gone out of control this past week served to emphasize this point.
The Local - Buffalo Wings Exec: ‘It Was the Perfect Storm’
The Buffalo Wild Wings restaurant at the Atlantic Terminal mall had been trying for three weeks to address growing crowds of kids coming out for the Tuesday night 50-cent wings special, a top executive said in a telephone interview today.
But a confluence of forces — the restaurant’s location in a major transportation hub, the ability of social networking to rally people, and the interest of a large number of kids wanting to gather on the night before a school holiday — all combined to set the stage for the violence that broke out later that night in nearby Fort Greene, he said.
The Brooklyn Paper - Shooting ends chicken wing gravy train at Buffalo Wild Wings
By Stephen Brown
Buffalo Wild Wings has plucked the feathers off its weekly cheap wings promotion after hordes of rowdy students descended on the sports bar, resulting in two separate shooting incidents on Tuesday night.
The three teens caught in the crossfire were not seriously injured, but that did not stop some local leaders from calling for a crackdown on the spicy appetizer emporium inside the Atlantic Terminal Mall.
Councilwoman Letitia James (D–Fort Greene) pointed the finger at the management of the sports bar for recklessly promoting its 50-cent “Wing Tuesdays” to students.
“I want this Tuesday restaurant promotion stopped, or the lease of this business revoked,” James said.
Posted by steve at 6:56 AM
Costco Comes to Manhattan
GlobeSt.com
By Paul Bubny
This Forest City project is nearing completion. Fans of the developer will immediately recognize promises of low-wage jobs via big box stores coupled with government subsidies in order to reproduce a suburban shopping mall in New York City.
A 110,000-square-foot Costco opened its doors Thursday as the first tenant to set up shop at the East River Plaza in East Harlem. It’s the first Manhattan location for the warehouse club and the culmination of a 13-year process to develop the 500,000-square-foot retail center.
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"Given the tough economic times we face, East River Plaza offers a much-needed boost to the economy of New York City," says Bruce Ratner, chairman and CEO of FCRC, in a release. "East River Plaza brings jobs for local residents and generates tax revenue for the city and state. It also provides Manhattan's residents and small businesses with access to quality merchandise at wholesale prices."
Ratner says the project is more than 90% leased, and will generate approximately 2,000 permanent jobs when fully occupied. The Costco has about 400 employees, mostly from northern Manhattan.
NoLandGrab: We'd love to know who will be checking to see how many of those "approximately 2,000 jobs" materialze?
Posted by steve at 5:50 AM
November 12, 2009
First tenant at East River Plaza opens its doors
The Real Deal
Here's one Forest City Ratner project that has actually come to fruition.
East Harlem's new big-box retail shopping center, East River Plaza, officially opened today on FDR Drive, according to a press release. The 500,000-square-foot center, developed through a partnership between Forest City Ratner Companies and the Blumenfeld Development group, will include a Target, Best Buy, Marshalls, PetSmart and Old Navy. Costco, which occupies a little over a fifth of the plaza's total space, is the first tenant to open, bringing 400 new jobs to the area. Leasing at the center largely has been considered a success; according to developer Bruce Ratner, 90 percent of the retail space has been leased out. All told, the East River Plaza will create an estimated 2,000 jobs.
Posted by eric at 9:47 PM
November 10, 2009
Ripping the roof
The Brooklyn Paper, Police Blotter
by Sabrina Jaszi
Bruce Ratner may want to think about tightening up security in his two Fort Greene malls; with crime running rampant, he could run the risk of their being deemed blighted, and then they could be seized under New York State's liberal eminent domain laws.
Pursenapper
A shopping center prowler lifted a woman’s purse from the stroller that she was pushing through the Atlantic Terminal Mall on Nov. 4.
The victim was ready to spend at around 6 pm, but she stepped away from her stroller for just a moment, and when she returned, the handbag, which contained a Blackberry, was gone.
Luckily the baby was still there.
Posted by eric at 11:42 AM
November 6, 2009
Forest City goes one for two with Gehry
The Real Deal
by C.J. Hughes
For the megadeveloper Forest City Ratner Companies, the last few months can be seen as a tale of two projects.
The worst of times seems to have taken hold at Atlantic Yards, the proposed 22-acre development of apartments, offices and a basketball arena in Brooklyn. In June, Forest City dumped architect Frank Gehry, whose eye-catching designs helped generate much of the project's initial excitement.
And last month, the Empire State Development Corporation, the state authority backing the project, had to face the state's Court of Appeals in a case about the legality of its eminent-domain actions after being sued by a community group.
But in Manhattan, after a rocky start, it seems to be the best of times -- or at least somewhat more favorable ones, for Beekman Tower at 8 Spruce Street in the Financial District.
The 76-story rental tower will be the tallest residential building in New York. Unlike at Atlantic Yards, Gehry's design (his first residential project in New York) is getting built, despite its stumbles.
Posted by eric at 11:30 AM
Forest City in the News
Reuters, Forest City Community Development Entity Receives $55 Million in Tax Credit Allocation to Stimulate Investment in Low-Income Communities
From the press release touting what amounts to a federal bailout of Forest City Enterprises:
The allocation of $55 million will go toward providing financing for real estate development projects located in specific distressed and low-income communities. This is the third time FCCDE has received an NMTC allocation, for a total of $151 million in allocations under the program.
NoLandGrab: With the company going through hard times, the "allocation" comes just in time.
The NMTC program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making equity investments in designated community development entities, like FCCDE. The investor receives a credit, claimed over a seven-year period, totaling 39 percent of the cost of the investment. The U.S. Department of the Treasury's Community Development Financial Institutions Fund administers the NMTC program. Thirty percent of the program's $5 billion funding for the latest round of allocations came from the American Recovery and Reinvestment Act of 2009.
NLG: With all of the creative subsidies Forest City Enterprises manages to exploit, we're appalled that the company actually has to pay taxes. No wonder the company has been going through a rough patch.
Forest City Enterprises launches a new web site.
Posted by lumi at 4:39 AM
November 3, 2009
The Week in Crime: Choked and Robbed
The Local [Fort Greene/Clinton Hill]
by Kate Briquelet
Another day, another felony in Bruce Ratner's Atlantic Terminal mall — a major source of local crime that the Empire State Development Corporation wrongly and knowingly ascribed to the Atlantic Yards footprint to help stack the deck for "blight."
An employee at Guitar Center in the Atlantic Terminal mall reported a guitar worth $1,860 missing after conducting inventory.
Posted by eric at 6:54 PM
Forest City in the News
The Denver Post, Greene: Stapleton developer Forest City's poor planning pits park against school
"At Stapleton, the one thing we could never have planned for was the people."
So reads Forest City's website for the mega-development where its own lack of planning (you know, for the people) has prompted tensions over whether to build a park or a school.
The company is being showered with kudos for donating $5.5 million toward a third elementary school now that two others are overcrowded. Schools and other new projects there are funded by "tax-increment financing," a source of revenue that tanked with the economy. Swarms of young families have demanded the third school they were promised by the company.
Forest City's commitment to ante up the cash has quelled some of their uproar.
Still, residents point out that the company isn't the open- handed corporate citizen headlines suggest.
The catch is that Forest City is merely reallocating funds set aside to build a planned park. So residents might get a school, but the park they've been waiting for is on hold.
NoLandGrab: No surprises here — in Brooklyn, Forest City Enterprises has never been accused of people-friendly planning.
Posted by lumi at 5:11 AM
November 2, 2009
Forest City in the News
The Cleveland Plain-Dealer, Cuyahoga County government overhaul puts focus on campaign finance reform
Referendums to study campaign finance reform are on the ballot in tomorrow's election in Cuyahoga County, where Atlantic Yards developer Forest City Enterprises are big players:
Executives at Forest City Enterprises, a powerful Cleveland developer, don't seem to mind solicitations.
Albert Ratner, the company's co-chairman, and family members contributed $10,000 to Cuyahoga County Treasurer Jim Rokakis in his last election cycle in 2008, and they gave $14,000 to Russo in his last election cycle in 2006, reports show.
Charles Ratner, president and chief executive officer, contributed $2,000 to Rokakis. Sam Miller, another co-chairman, contributed $2,000 to Russo during the same elections.
Charles Ratner said he can't speak to why his colleagues contribute, but, "I do it because I believe strongly in the American political system and I have a great respect for people who devote their life to public service."
Posted by lumi at 4:34 AM
October 30, 2009
Forest City in the News
Associated Press, Forest City refinances office buildings in Mass
Real estate company Forest City Enterprises Inc. said Thursday that it closed on a $90 million refinancing for twin office buildings in its University Park in Cambridge, Mass.
The seven-year, fixed-rate refinancing represents about a 50 percent increase in principal over the prior financing, Forest City said in a release. Jeff Linton, a company spokesman, said additional terms of the deal were not being released.
The Cleveland Plain-Dealer, Forest City refinances two Massachusetts office buildings
The real estate company, based in Cleveland, has secured a seven-year, fixed-rate refinancing for the 45/75 Sydney Street buildings through two insurance companies. The new deal represents a 50 percent increase in principal over the prior financing for the properties.
Posted by lumi at 5:24 AM
October 28, 2009
Forest City in the News
PR Newswire, Forest City Closes Offering of $200 Million Convertible Senior Notes
From the press release issued by the parent company of Atlantic Yards developer Forest City Ratner:
Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced the closing of its offering of $200 million aggregate principal amount of convertible senior notes due 2016 (the "Notes"). This amount includes the exercise in full of the initial purchasers' option to purchase $25 million in aggregate principal amount of additional Notes to cover overallotments. Forest City received net proceeds from the offering of approximately $177.3 million, after deducting the initial purchasers' discounts, estimated offering expenses and the cost of the convertible note hedge transactions discussed below.
Retail Traffic, Forest City Issues $200M Notes
Real estate company, Forest City Enterprises, has sold $200 million of convertible senior notes, PR Newswire reports. Forest City raised net proceeds of about $177.3 million, after deducting the initial purchasers’ discounts, estimated expenses and the cost of the convertible note hedge transactions.
The notes, due 2016, were sold to qualified institutional buyers. The company is planning to use the proceeds to cut outstanding debt on its revolving $750 million credit facility and for general corporate purposes.
TradingMarkets, Forest City Enterprises raises $200 million in private placement
Forest City Enterprises, Inc., a US-based real estate company, has completed a private placement of $200 million aggregate principal amount of convertible senior notes due 2016.
Trading Markets, Forest City Enterprises Down 9.6% Since SmarTrend's Sell Recommendation
SmarTrend, our proprietary pattern recognition system, called a Downtrend for Forest City Enterprises (NYSE:FCE.A) on October 20, 2009 at $11.36.
Since then, Forest City Enterprises has returned 9.6% as of today's recent price of $10.27.
Posted by lumi at 3:11 AM
October 26, 2009
Forest City Announces Exercise of Overallotment Option by Initial Purchasers of Convertible Senior Notes
Reuters
Forest City Enterprises, the parent company of the developer of Atlantic Yards, wants everyone to know about its latest move to get its balance sheet in order:
CLEVELAND, Oct. 23 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that the initial purchasers of the Company's recently announced offering of $175 million aggregate principal amount of convertible senior notes due 2016 (the "Notes"), have exercised in full their option to purchase an additional $25 million aggregate principal amount of the Notes to cover overallotments.
With the initial purchasers' exercise of the full overallotment option, Forest City estimates that the net proceeds from the offering will be approximately $177.3 million, after deducting the initial purchasers' discounts, estimated offering expenses and the cost of convertible note hedge transactions. Forest City expects to use the net proceeds from the offering to reduce outstanding borrowings on the Company's $750 million revolving credit facility and for general corporate purposes, which, depending on prevailing market conditions, could include the repayment of debt with earlier maturities. The closing of the offering is expected to occur on October 26, 2009.
Posted by lumi at 6:47 AM
October 22, 2009
Newspapers Already Receive Subsidies
Reason Hit & Run
by Matt Welch
God Bless America — and subsidies!
And–never forget!–the aformentioned New York Times HQ was one of the more brazen examples you'll find of corporatism in the name of the little guy. From my 2005 column about it:
On September 24, 2001, as New York firefighters were still picking their comrades' body parts out of the World Trade Center wreckage, New York Times Co. Vice Chairman and Senior Vice President Michael Golden announced that the Gray Lady was ready to do its part in the healing.
"We believe there could not be a greater contribution," Golden told a clutch of city officials and journalists, "than to have the opportunity to start construction of the first major icon building in New York City after the tragic events of Sept. 11." Bruce Ratner, president of the real estate development company working with the Times on its proposed new Eighth Avenue headquarters, called the project a "very important testament to our values, culture and democratic ideals."
Those "values" and "democratic ideals" included using eminent domain to forcibly evict 55 businesses--including a trade school, a student housing unit, a Donna Karan outlet, and several mom-and-pop stores--against their will, under the legal cover of erasing "blight," in order to clear ground for a 52-story skyscraper. The Times and Ratner, who never bothered making an offer to the property owners, bought the Port Authority adjacent property at a steep discount ($85 million) from a state agency that seized the 11 buildings on it; should legal settlements with the original tenants exceed that amount, taxpayers will have to make up the difference. On top of that gift, the city and state offered the Times $26 million in tax breaks for the project, and Ratner even lobbied to receive $400 million worth of U.S. Treasury backed Liberty Bonds--instruments created by Congress to help rebuild Lower Manhattan. Which is four miles away.
NoLandGrab: Given this context, it's not so surprising that word of last week's Atlantic Yards eminent domain hearing never made it into the pages of The Times.
Posted by eric at 3:46 PM
October 21, 2009
Forest City in the News
The Cleveland Plain Dealer, Forest City to offer notes, refinances and extends loans
Forest City Enterprises Inc. (NYSE: FCE-A and FCE-B) plans to offer $175 million in convertible senior notes to certain institutional buyers, generating cash for purposes such as repaying money borrowed on the company's $750 million revolving credit facility.
The real estate company said it will issue notes that can be converted into shares of Forest City's Class A common stock. The notes are due in 2016.
The company provided a progress update Monday on its efforts to reduce debt and extend or refinance existing loans. The company said it has approximately 60 percent of the necessary commitments from is 14-member bank group to renew its revolving credit facility. That facility matures in March 2010.
Forest City also announced a handful of loan extensions and refinancings, including two in Greater Cleveland.
NoLandGrab: Based on this news, one gets the sense of how highly leveraged the Atlantic Yards developer is — no wonder the Ratners have to rush into a deal with a Russian oligarch to bail out the Brooklyn project.
The NY Times, A Difficult Birth for East Harlem Mall
Even by the often sluggish standards of development in New York City, East River Plaza, the big-box vertical mall under construction along the F.D.R. Drive in East Harlem, has proceeded at a glacial pace.
...
[W]orkers are finally preparing for the Nov. 12 opening of the shopping center’s first tenant: a 110,000-square-foot Costco wholesale warehouse club, the borough’s first. Target, Best Buy and Marshall’s will start moving in next spring. Of 485,000 square feet, only 30,000 are not yet spoken for.The opening is coming 15 years after the Blumenfeld Development Group, headed by Mr. Blumenfeld’s father, Edward, worked with Canyon Capital Realty Advisers of Beverly Hills, Calif., to buy the six-acre site, which stretches from 116th Street to 119th Street, for $3.1 million at a foreclosure auction. Five years later, the project was approved by the City Council. In 2004, Canyon Capital sold its interest to Forest City Ratner.
...
The project began to pick up speed after Forest City, a partner in the development of the headquarters building of The New York Times Company on Eighth Avenue, became involved. Having a well-connected local partner added strength to the project, Mr. Blumenfeld said.
GlenviewAnnouncements.com, Navy cancels plans for additional housing in Glenview
The U.S. Navy and its private development partner [Forest City Military Communities, LLC] have canceled three-year-old plans to build 118 new three- and four-bedroom units in Glenview for military personnel assigned to Naval Station Great Lakes, Glenview officials acknowledged Monday.
Posted by lumi at 5:33 AM
October 20, 2009
Two Boymelgreen firms threatened with bankruptcy
Problems mount for troubled developer Shaya Boymelgreen, who is alleged to be $200,000 behind in his rent at his Brooklyn headquarters, 752 Pacific St.
Crain's NY Business
by Theresa Agovino
More shenanigans at 752 Pacific Street.
A company claiming to be a tenant in Shaya Boymelgreen's American headquarters in Brooklyn filed to push two companies controlled by the embattled developer into Chapter 7 bankruptcy last week. The tenant's legal move was made to avoid being evicted along with Mr. Boymelgreen, whose firm was slated to be removed from 752 Pacific Ave. Tuesday.
The order for that eviction, in turn, came after Mr. Boymelgreen lost a legal battle with the landlord of the building, which stands within the footprint of the huge Atlantic Yards development. The landlord, Henry Weinstein, says Mr. Boymelgreen is about $200,000 behind in his rent but that he has no knowledge or record of the developer leasing space to subtenant.
Mr. Boymelgreen's tenant, 752 Pacific St. Corp., didn't want to be ousted so it filed the petition to stop the eviction process and open a dialogue with Mr. Weinstein. The two companies named in the suit once controlled the leases to 752 Pacific Ave. and a neighboring parking lot but lost them in a lawsuit with Mr. Weinstein.
...“Boymelgreen never gave us any indication of subtenants,” Mr. Weinstein said. “We just assume this is some kind of fraud.”
Mr. Weinstein added that he is talking with authorities about moving ahead with the eviction. On Oct. 8, the Brooklyn Sheriff's office slapped a five-day eviction notice on the building, which Mr. Boymelgreen began leasing in 1999.
Mr. Weinstein said he sued Mr. Boymelgreen in 2006 after learning the developer sold his 40-year lease on the building to Forest City Ratner without Mr. Weinstein's knowledge. Forest City needs to raze the building so it can construct its project on the rail yards, which is slated to include an arena and 16 residential towers.
In May, the New York state Court of Appeals ruled that Mr. Weinstein could evict Mr. Boymelgreen and that Forest City was given illegal assignment to Mr. Weinstein's properties. Mr. Weinstein said Mr. Boymelgreen hasn't paid rent since June.
Posted by eric at 9:47 PM
October 15, 2009
Inspector Grabit
The Brooklyn Paper, Police Blotter
by Ben Muessig
With blight at issue in yesterday's NYS Court of Appeals hearing on the Atlantic Yards eminent domain case, we should point out that a key aspect of the "blighting conditions" cited in the Empire State Development Corporation's blight study was crime in the project footprint — a claim that was proved patently untrue. The real ground zero for local crime? Bruce Ratner's Atlantic Terminal and Atlantic Center malls.
Targeted!
A crook snatched a 53-year-old woman’s credit cards while she shopped at Target at Flatbush and Atlantic avenues on Sept. 30.
In a crime that has become a regular staple of our police blotter, the thief grabbed the charge cards between 7 pm and 7:30 pm and made $136.14 of unauthorized purchases.
Posted by eric at 10:54 AM
Forest City in the News
Dallas Morning News, Dallas City Council approves subsidy packages for Deloitte, Continental Building
Forest City just lined up more subsidies for a project in Dallas:
The Dallas City Council approved two major subsidy packages Wednesday aimed at drawing workers and residents to downtown.
A $17.5 million tax-increment subsidy was approved for Cleveland-based developer Forest City to restore the vacant and decaying Continental Building on Main Street.
...
In 2005, Forest City received $68 million in city subsidy, mainly for redevelopment of the Mercantile Building, which has since become one of downtown's largest apartment complexes.The deal became one of the richest tax subsidy packages in Dallas' history but proved to be too little to restore both the Mercantile and the Continental as intended.
So the council returned to the subsidy table for the Continental on Wednesday, with the hope its redevelopment will bring downtown more of what it desperately needs – residents.
The $17.5 million in tax increment money – paid out over many years – will be used to help repay federal loans Forest City also needs for the deal.
NoLandGrab: Forest City Enterprises CEO Charles Ratner has already stated the developer's intention to seek more subsidies for Atlantic Yards.
Chicago Sun-Times, Mercy Medical Center: Chicago's clout hospital
Forest City was a key player in an insider land deal in Chicago involving two Chicago aldermen.
PR Web, Mall Seeking Top Trendsetters!
Just in time for the holidays, Forest City's Pittsburgh mall is drumming up some excitement with "Project: Style." The four top contestants will win a $150 gift card to the mall.
Posted by lumi at 4:33 AM
October 13, 2009
Feeling the pressure: FCR VP in April said, "I continue to be a freaked-out developer with an arena that must start this year"
Atlantic Yards Report
From an email from Forest City Ratner Sen. VP Jane Marshall to the Department of City Planning's Winston Von Engel:
"Excellent. I continue to be a freaked out developer with an arena that must start this year; I hiccup 'tech memo', 'master closing', 'amanda must like interim conditions', and to that end must discuss with you tomorrow. Thanks."
To decode Marshall's shorthand, the arena must start this year if it is to rely on tax-exempt bonds and (likely) fulfill a naming rights agreement.
Marshall may be a little less freaked out right now. But the clock is still ticking.
NoLandGrab: It's a small comfort that the developer is feeling the pressure, when residents of the surrounding neighborhoods have been feeling the pressure of Atlantic Yards for nearly six years already.
Posted by lumi at 5:36 AM
October 12, 2009
Forest City in the News
The Dallas Morning News, Downtown Dallas redevelopment plan to cost millions more than expected
The parent company of Atlantic Yards developer Forest City Ratner is trying to renegotiate a sweetheart deal with the City of Dallas, seeking millions more dollars in tax incentives and federal housing loans to rehab a downtown office building into condos.
To redevelop the Continental, Forest City is asking City Hall to approve a $22.5 million city tax subsidy and a $7.6 million federal housing loan.
Las Vegas Review-Journal, Las Vegas could arrange city hall construction financing by year's end
The Mayor of Las Vegas is still trying to pass the complicated land-swap/new City Hall construction deal with Forest City Enterprises.
Posted by lumi at 6:01 AM
October 7, 2009
Realistic? In KPMG report, FCR's projections for condo sales prices: $1217/sf in 2015, $1369/sf in 2019
Atlantic Yards Report
More Atlantic Yards fantasy — the projected sales prices for project condos.
The Empire State Development Corporation (ESDC) has finally released the Atlantic Yards market study by KPMG, which stated, in the words of an ESDC lawyer, that it was "not unreasonable" for the 14 residential buildings (sans Site 5 and Building 1) to be absorbed in the officially announced decade.
The upshot: Forest City Ratner is counting on sales prices of $1217/sf in 2015 up to $1369/sf in 2019.
Is that realistic? Keep in mind that the Kahr report commissioned by the Council of Brooklyn Neighborhoods was skeptical of even the $850/sf (in 2006 dollars) assumed in a 2006 KPMG report. The Kahr report cast huge doubts on the official timetable.
"Modest inflation factor"?
Even though the average high sales price in the three surrounding neighborhoods is $970/sf, the new KPMG market study states that only a "modest inflation factor" would allow the expected prices to be reached:
Mindful that these prices are based on transactions that have occurred over the past 12 months during a severe recession, the value ranges for Fort Greene ($480 - $720), Park Slope ($500 - $950) and Prospect Heights ($470 - $1,225) lend support for the FCRC’s projected sale prices when a modest inflation factor is applied given these future sales prices.
Click thru for more — including the not-so-redacted sales projections.
NoLandGrab: We hope KPMG does a better job of protecting things like clients' social security numbers, but regardless, the real story here is the Atlantic Yards project's continued reliance on pie in the sky.
Posted by eric at 4:46 PM
Still waiting for the Times and the Public Editor to notice the FCR-ACORN connection
Atlantic Yards Report
This past Sunday, as I noted, New York Times Public Editor Clark Hoyt, in his column about ACORN, passed on an opportunity to mention Forest City Ratner's bailout of the embattled organization.
Linked from his column was his blog, The Public Editor's Journal, which posted the letters referenced in the column.
The blog, unlike the column, accepts comments. I posted the comment at right. (Click to enlarge.) According to the official policy, "Comments are moderated and generally will be posted if they are on-topic and not abusive." This one was never approved.
Atlantic Yards Report commenter "brokeland2003" posts: "Why is the Times protecting ACORN and Ratner? Your comment was clearly on topic and not abusive."
Posted by eric at 12:23 PM
October 6, 2009
Lobbying firm hosts $1000 (minimum) fundraiser for Senator Sampson at FCR's MetroTech offices
Atlantic Yards Report
Bruce Ratner makes an in-kind contribution.
Forest City Ratner offices at MetroTech are the site tonight for a fundraiser (minimum contribution: $1000) supporting Senator John Sampson, leader of the New York State Democratic Conference.
The evening is sponsored by the Albany-based lobbying firm of State & Broadway. (Click on graphics to enlarge.)
Forest City Ratner for years avoided direct political contributions, preferring to rely on lobbying. However, in January 2008, the company gave $58,420 to the Democratic Assembly Campaign Committee's Housekeeping account.
So this indirect support might be seen as a way of maintaining influence, given the need for future tax breaks and other governmental goodies for projects like Atlantic Yards.
NoLandGrab: We guess that $1,000 a plate buys Sampson's ignorance of the rude treatment — orchestrated by Forest City operatives — heaped on his colleague, Sen. Bill Perkins, at the May 29th State Senate hearing on Atlantic Yards.
Posted by eric at 6:57 PM
Forest City Ratner's prominent place (allegedly) in Bertha Lewis's contacts list
Atlantic Yards Report
The right-wing Red State blog was leaked a list of contacts for ACORN CEO Bertha Lewis, and Forest City Ratner is notably prominent in the word cloud, which shows frequency of contacts.
States Erick Erickson:
Above is a word cloud of the associations in the Bertha Lewis contacts list we received. Some are legitimate business dealings. Forest City Ratner, for example, is both bailing out ACORN and relying on its support for its construction projects. But others are more intriguing.The larger the name, the greater the frequency of the name appearing in the contacts list. For many years it has been speculated that SEIU and ACORN share a common foundation. This seems to suggest as much. In fact, in at least one appearance on the contacts list, an SEIU official has an ACORN email address.
FCR's prominence
Erickson focuses on ACORN's political connections, but I consider Forest City Ratner's presence just as intriguing. FCR is more prominent than any newspaper--an obvious contact for a media-savvy organization--or governmental group.
The association with FCR may be a legitimate (if highly controversial) business dealing, but it is notable how important it seems to Lewis and thus ACORN.
Posted by eric at 11:04 AM
October 2, 2009
A Gehry Tower Rises
Beekman: The Ratner/Gehry Project That Wasn't Dropped
NY Observer
by Eliot Brown
 |
To anyone who treks west over the Brooklyn or Manhattan bridges each morning, a quick glance to the area just south of the Municipal Building will reveal a new addition to the Lower Manhattan skyline: a skinny, tiered concrete skeleton that's rapidly climbing upward.
The apartment tower-to-be—67 stories as of Wednesday—is a high-end rental building developed by Forest City Ratner, the firm that is desperately trying to build a new Nets basketball arena and accompanying 16-tower development near Downtown Brooklyn. And it is also—as the distinct, undulating aluminum façade now rising on the building's lower half might suggest—designed by Frank Gehry, his first residential high-rise.
(Forest City, to much criticism, dropped Mr. Gehry earlier this year from the Brooklyn project after years of planning, design and salesmanship in an attempt to significantly lower costs.)
On Wednesday, we got to take a look inside the tower, simply called Beekman, where Bruce Ratner, Forest City Ratner chairman, led us up to snap some photos a few floors shy of the top.
The photo above is by Mr. Brown, for The Observer.
Posted by eric at 11:09 AM
October 1, 2009
Forest City in the News
CoStar Group, Village at Gulfstream Park Sets Grand Opening Date
Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) has set the grand opening date for The Village at Gulfstream Park on February 11, 2010. The 490,000-square-foot (includes 80,000 sq. ft. of office space), high-end retail and entertainment destination is currently under construction on US1, just east of I-95 in Hallandale Beach, FL. According to its website, this is the first phase of the development -- it is planned to eventually be 1 million square feet, including 1,500 residences.
The Eagle Tribune, Gov. Patrick touts Haverhill's revival during visit
Massachusett Governor Deval Patrick made an appearance at yesterday's opening ceremony for a Forest City project:
The governor's visit included the official ribbon-cutting for the Hamel Mill Lofts.
Forest City Residential Group invested $80 million to rehabilitate four buildings that housed the Hamel Leather Co. until 1974.
The state assisted the project by providing $1,447,599 in low-income housing tax credits.
"This was about partnership," Patrick said.
NoLandGrab: "Partnership" is code word for massive public subsidy.
Posted by lumi at 6:45 AM
September 30, 2009
Forest City in the News
TradingMarkets, Forest City Enterprises Up 118.2% Since SmarTrend's Buy Recommendation
If you had listened to SmarTrend's "proprietary pattern recognition system," back in January 2009, you would have been up 118.2% on the stock in the parent company of Atlantic Yards developer Forest City Ratner.
There's no mention that the stock is still way down from when it nearly hit $70 back in April 2007.
The Boston Globe, From crumbling to chic
On the once-contaminated site of a decaying shoe factory, a thriving neighborhood is growing with the opening of hundreds of chic apartments, part of a renaissance in this Merrimack River mill city, which has seen plenty of hard times.
Longtime residents like Richard Lynch never believed the crumbling brick buildings and trash-filled parking lots near downtown could be recreated as modern housing with exposed brick, wood beams, and even a cyber cafe.
Today, however, developers, residents and government officials - including Governor Deval Patrick - are scheduled to celebrate the official opening of the 305-unit, four-building Hamel Mill Lofts complex, one of several Haverhill developments spurred by state and federal incentives.
...
Forest City Residential Group, the Hamel Mill Lofts developers, calls the $80 million complex a public-private partnership, because so many state and federal incentives were used to fund the project. For instance, the development was built with the help of Massachusetts’ five-year-old “smart-growth’’ law, formally known as 40R.
Posted by lumi at 6:19 AM
September 28, 2009
Forest City in the News
Denver Post, Developer Forest City wants to donate money to build Stapleton school
With tax revenue declining, local officials are scrambling to figure out how to build another school at Forest City's Stapleton project. The Cleveland developer has pledged to, "take $5.5 million earmarked for a park and instead donate the money for a new school in the neighborhood. John Lehigh, president of Forest City Stapleton Inc., also wants to contribute the land for the future school, which the neighborhood desperately needs."
The Eagle-Tribune, Haverhill gets final $1.7 million for parking garage
The announcement that Haverhill, MA is to receive $1.7M to build a downtown parking garage will be made at, "at an event that is also to celebrate the completion of a portion of the Hamel Mills Lofts complex. That housing development is located in a series of renovated factory buildings that formerly housed the L.H. Hamel Leather Company. The state provided millions worth of historic tax credits to help Forest City Residential Group build the complex."
Posted by lumi at 4:54 AM
September 25, 2009
Forest City in the News
RealNEO, TAX REFORM SHOULD GO BEYOND CORRUPTION ISSUE
If there’s going to be an investigation of the integrity of commercial property appraisals here, we ought to also probe tax reductions awarded to downtown property owners by official County and State of Ohio agents.
County Treasurer Jim Rokakis, concerned about the validity of commercial property appraisals because of the corruption charges involving County Auditor Frank Russo, has requested a probe by state officials. Rokakis apparently doesn’t trust the values on commercial properties. Who would?
The values given properties, of course, provide the measure of the taxes property owner’s pay. The lower the value the lesser taxes are due to be paid.
...In recent writings, I’ve been pointing out that owners at the Tower City complex and the Ritz-Carlton hotel – both controlled by Forest City Enterprises businesses – have been requesting value reductions this year as they have in past years.
...We really need – as a community and as a state – to look not only to rigged tax valuations because of outright corruption reported in recent days but to the practice of giving wealthy interests lower and lower valuations on the properties.
NoLandGrab: The opposite of that scam is going on in Brooklyn, where assessed land values in the Atlantic Yards footprint are soaring in order to justify the Payments in Lieu of Taxes needed to pay off arena bonds.
FoxBusiness.com, Forest City Enterprises Up 99.8% Since SmarTrend's Buy Recommendation
SmarTrend, our proprietary pattern recognition system, called an Uptrend for Forest City Enterprises (NYSE:FCE.A) on July 23, 2009 at $6.42.
Since then, Forest City Enterprises has returned 99.8% as of today's recent price of $12.83.
FCE.A opened at $13.08 in NYSE trading this morning.
Brownstoner, New Website, Logo for 80 Dekalb
80 Dekalb is getting sooooooo close. With just about every window in place, the 36-story rental project from Forest City has put up its splash site. There's no pricing info yet, but you can check out the nifty new logo and motto. And how about that url! Nice 4-letter dotcom: dklb.com.
Posted by eric at 9:08 AM
September 24, 2009
Cops snuff out pre-teen crime wave
The Brooklyn Paper, Police Blotter
by Ben Muessig
The crime wave continues at Bruce Ratner's Atlantic Terminal mall — still considered crime-free by the Empire State Development Corporation.
Target is a bull’s-eye
A pickpocket snatched a 31-year-old’s pocketbook from the Target at the corner of Flatbush Avenue and Fourth Avenue on Sept. 18.
In the latest incident at the national retailer, the crook grabbed the purse — which contained the victims IDs, keys, credit card, Metrocard, cellphone, iPhone, and $102 — at around 1:45 pm somewhere between the fitting room and the shoe section.
Got Gershed
Thieves stole at least three bicycles within the confines of the 88 Precinct, committing a crime that will forever be known as “getting Gershed” in honor of The Brooklyn Paper’s bike-crazy editor, who has been a repeat victim of bicycle theft.
• A bad guy heisted a folding bike from its spot locked near the Atlantic Terminal Mall on Sept. 15.
Purse curse
A thief snatched a woman’s wallet as she exited the Atlantic Terminal Mall on Sept. 19.
The crook jostled the woman’s bag and grabbed her Gucci wallet as she left the shopping center. The thief used the victims credit cards to buy Metrocards, police reports indicated.
NoLandGrab: With the MTA hiking fares at the same time it's offering deep discounts to Bruce Ratner, it's little surprise that purse-snatchers are buying Metrocards with stolen credit cards.
Posted by eric at 10:45 AM
September 23, 2009
Still No Place in New York for Qaddafi’s Tent
The New York Times
by Joseph Berger
This item about where Libyan leader Muammar el-Qaddafi might pitch his tent while in New York for U.N meetings could better be titled "Lies (And the Lying Liars Who Tell Them)."
New York, of course, has several arenas big enough to house a large tent. There is the old Yankee Stadium, which sits unused while the Yankees are heading for the playoffs in their new home next door. There is also a site near Downtown Brooklyn that may one day become the home of basketball’s Nets — Atlantic Yards.
Joe DePlasco, a spokesman for Forest City Ratner, the site’s developer, said Colonel Qaddafi “could do it but he’d probably be hit by a train.”
“Most of Atlantic Yards is being built over the Long Island Rail Road, which is a functioning railyard. So it would be rather precarious for a tent.”
NoLandGrab: For crying out loud. DePlasco is so used to lying about Atlantic Yards that, even for some throw-away story that has nothing to do with the toxically controversial project, he can't help but to make the patently false claim that "most of Atlantic Yards is being built over the Long Island Rail Road."
It's not. The 8.3-acre Vanderbilt yard comprises less than 40% of the 22-acre Atlantic Yards project footprint.
Is this important in the context of the Qaddafi story? Not at all. But it illustrates how lying about Atlantic Yards has become habitual among project supporters. And the truth is, Ratner has created several acres of empty, rubble-strewn lots in Prospect Heights — more than enough room to pitch a tent.
More coverage...
Atlantic Yards Report, Times quotes DePlasco as saying most of AY "is being built over the Long Island Rail Road"
Posted by eric at 9:43 PM
Wiggle room for Ratner and a reason for ongoing scrutiny: expedited funding for closing and a potential tax break for five towers
Atlantic Yards Report
With the ESDC, what you see is not necessarily what you get. Norman Oder digs into the paperwork from the board meeting at which the ESDC approved the Modified General Project Plan for Atlantic Yards, and new twists keep popping up.
The memo to the Empire State Development Corporation Board of Directors on September 17 described--but didn't quite explain--why developer Forest City Ratner would get the remaining promised $40 million in state and city payments accelerated:
Expedited State funding and City funding (described above) is being requested to achieve the goal of closing on the initial phase of the Project by the end of the calendar year.In other words, FCR needs the money because it's got cash-flow difficulties.
And, as I describe below, the lesson of the Times Square redevelopment is that continued scrutiny of the deal is required, because, even after initial passage, the deal keeps changing.
More tax relief?
There even more wiggle room in another section of the memo. The rent for the 16 non-arena development leases would be as follows:
$1 per year; provided that the tenants for Site 5, Block 1129 and portions of Pacific Street between Carlton Ave. and Vanderbilt Ave. must also pay PILOT [payments in lieu of taxes] equal to full real estate taxes unless otherwise agreed to by the City.
(Emphasis added)Block 1129, the southeast rectangle of the project site, would include four towers, and Site 5 would include one tower. Wouldn't Forest City Ratner argue that, if the other buildings are tax-exempt--because they would be built on the currently tax-exempt MTA railyard--shouldn't the others be too? The Bloomberg administration has been accommodating, despite the mayor's claim of no more direct funding.
Note that the memo disregards Building 15, which would be built on Block 1128, east of Sixth Avenue between Dean and Pacific Streets, on land that is also not tax-exempt. Was it just an oversight or is there no plan to construct that tower any more?
NoLandGrab: Sure, we sound like a broken record, but this is yet more evidence that a Supplemental Environmental Impact Statement is absolutely necessary — along with a never-gonna-happen real cost-benefit analysis by the ESDC.
Posted by eric at 11:03 AM
James Stuckey - Developer and Former Economic Development Official - Is New Leader of NYU Schack Institute of Real Estate
NYU School of Continuing & Professional Studies
Where are they now?
The New York University School of Continuing and Professional Studies (NYU-SCPS) today announced the appointment of James P. Stuckey as divisional dean of the NYU Schack Institute of Real Estate, the University’s home for graduate and continuing professional education and applied research in real estate, construction management, and related fields.
Throughout his 30-plus-year career as a public official and real estate executive, Stuckey has led some of the most complex and storied development in recent New York City history, including Forest City Ratner Company’s Atlantic Yards project in Brooklyn.
Click thru if you'd like to read the (no surprise) rather lengthy press release.
NoLandGrab: Professor Stuckey? Like a kid in a candy store.
Posted by eric at 10:50 AM
September 22, 2009
PRESS RELEASE: Barclays/Nets Community Alliance Partners with Camp Sunshine to Support Hematology and Oncology Program
Special Session Offered for families from Brooklyn, New York
CASCO, Maine—Today, Camp Sunshine announced it has received support from the Barclays/Nets Community Alliance, which includes a partnership among Barclays, the Nets and Forest City Ratner Companies. This support is enabling a special session at Casco, Maine based Camp Sunshine in October for families from Brooklyn, New York who have children afflicted with hematology and/or oncology. Camp Sunshine offers children with life-threatening illnesses and their families free camp experiences, giving the entire family the opportunity to connect and rebuild relationships strained from the pressures of the illness.
Support from the Barclays/Nets Community Alliance will fund the entire session at Camp Sunshine including transportation from Brooklyn to Maine, and back. The Alliance support is part of their commitment to investing $1 million per year in non-profits that work to improve the lives of Brooklyn-area youth through sports and other activities, including healthcare and education.
“Camp Sunshine is a great resource for families dealing with a child who has cancer. The idyllic setting on Sebago Lake is the perfect backdrop for family connections, and is the perfect venue through which we can help sick children and families from Brooklyn,” explained Gerard LaRocca, Chief Administrative Officer, Barclays Capital.
At the October 2009 Hematology and Oncology Session, 40 families are expected to attend. A number of families have signed up already, but there are still more openings. Interested families are encouraged to contact the camp at (207) 655-3800, or via their website at www.campsunshine.org.
“Support from the Barclays/Nets Community Alliance is tremendous,” said Matt Hoidal, executive director of Camp Sunshine. “An important long-term benefit of Camp is the social network, and thanks to the Alliance, Brooklyn families will be able to make connections they can take home with them, in addition to enjoying a much-needed break.”
Posted by eric at 11:29 AM
If Forest City Ratner has breached its deal with ACORN, why has ACORN maintained support?
Atlantic Yards Report
ACORN, we should remember, has stuck by Forest City Ratner even though the developer has likely breached the deal ACORN signed.
A reader points out that, in writing about public comments by the president of New York State ACORN, I left out part of the May 2005 Housing Memorandum of Understanding, agreed to "take reasonable steps to publicly support the project by, among other things, appearing with the developer before the Public Parties, community organizations, and the media."
The ACORN obligation
The preamble states:
As long as the Project will include the ACORN/ATLANTIC YARDS 50/50 Program as described in paragraph 1, ACORN agrees to take reasonable steps to publicly support the project by, among other things, appearing with the developer before the Public Parties, community organizations, and the media.The 50/50 program
What was described in paragraph 1?
Developer shall develop fifty (50%) of the Residential Project as affordable housing in accordance with the ACORN/ATLANTIC Yards 50/50 program. Based on a projected number of units of 4,500 the affordable commitment will be 2,250 units.However, just a week after the press conference announcing that deal, Forest City Ratner announced changes, proposing either an addition of 1500 market-rate condos while maintaining the same amount of office space, or reducing the office space and planning for 2800 condos. Now the number of proposed condos has been reduced to 1930.
As noted in Paragraph 5 of the MOU, if the number of units in the project should increase "for any reason that the Developer determines to be economically necessary," the developer and ACORN would try to follow the 50/50 program.
Have they done so? Forest City Ratner has agreed to build 600 to 1000 affordable for-sale units, not matching the announced 1930 condo units. But that agreement has never been part of documents approved by the Empire State Development Corporation.
Posted by eric at 11:13 AM
September 17, 2009
ESDC agrees to allow a project cut by one-third; affordable housing depends on availability of subsidies
Atlantic Yards Report
Forest City Ratner provided the bait, now the Empire State Developerment Corporation delivers the switch.
According to the Technical Memorandum issued by the Empire State Development Corporation in June, the Atlantic Yards project (residential version) was to be 7,961,000 square feet, including a 850,000 square foot arena.
However, according to board materials distributed today, the project would include a 675,000 square foot arena and "improvements containing at least Four Million Four Hundred Seventy Thousand (4,470,000) gross square feet (exclusive of the square footage of the Arena)."
That's a total of 5,145,000 square feet, or a little less than 65% of 7,961,000 square feet.
What about affordable housing?
That 4,470,000 gross square feet presumably could not include 1930 condos, 4500 units of mixed-income rentals (2250 subsidized "affordable" units), and an office tower.
What could be cut? Obviously, if the condo market and office market don't improve, they'd be cut. What about the rentals?
The proposed development agreement also includes "no less than Two Thousand Two Hundred Fifty (2,250) affordable housing units, subject to governmental authorities making available to Party B or its applicable successor or assign, after good faith review by the applicable administering agency, affordable housing subsidies consistent with then applicable programs rules and standards then generally available to developers of affordable housing units."
(Emphasis added)In other words, the affordable housing gets built only if there are subsidies. And there's no proof, as I've written, that the ESDC has done due diligence to check whether such subsidies would be available.
NoLandGrab: [Still speechless].
Posted by eric at 4:11 PM
In spite of the State Funding Agreement, ESDC will now pay Ratner's "soft costs" and speed up $25 million
Atlantic Yards Report
Norman Oder has a scoop, and here it is, in full.
In testimony today before the board of the Empire State Development Corporation (ESDC), project supporter John Holt of the Carpenters Union said, "[Developer Bruce] Ratner's not asking you for a handout. He's asking for a hand in partnership."
Well, that partnership has just gotten a little easier for Forest City Ratner, given that the developer will get $25 million in state money faster and can use the funds for purposes previously disallowed in funding agreements signed in September 2007.
Statement at meeting
ESDC Senior Counsel Steve Matlin said, "We are requesting authorization to amend, as necessary, the city and state funding agreements. Pursuant to board authorization, ESDC entered into a funding agreement with a Forest City affiliate in 2005 to provide up to $100 million in funding for infrastructure improvements. Approximately $75 million has been disbursed or is pending disbursement. We are seeking authorization to amend the funding agreement to allow the corporation to advance the remaining funds at closing. The total state funding commitment to be made available by ESDC will remain unchanged."
According to Section 3.02 (b) of the State Funding Agreement, p. 9-10, the ESDC would not advance State Funding Payments
which (1) would reimburse Soft Costs, (2) aggregate more than the Eligible State Project Costs actually incurred as of the date of such request, (3) would result in the aggregate State Funding Payments disbursed pursuant to this Section 3.02 exceeding the aggregate City Funding Payments disbursed by ESDC pursuant to Section 3.04 hereof, (4) would result in the sum of (x) the aggregate State Funding Payments disbursed pursuant to this Section 3.02 and (y) the aggregate City Funding Payments disbursed pursuant to Section 3.02 hereof, exceeding fifth percent (50%) of the Eligible Project Costs actually incurred as of the date of each request.Changes made
According to board materials just released, however, that's changed:
It is proposed that ESDC enter into an amended State Funding Agreement with Forest City to permit the Corporation to disburse the balance of the State funds at closing for eligible costs – including soft costs incurred by Forest City in connection with the design and engineering of the infrastructure improvements and certain site preparation costs (e.g. demolition costs) related to the development of the Arena or Vanderbilt train yard.Maybe that's why another supporter, Travis Lock of the Salvation Army, testified today, without irony, "It is my sincere hope this morning that you would move forward with this project, the Atlantic Yard projects, on behalf of the Forest City Ratner Corporation."
(Remarks as delivered)
NoLandGrab: [We're speechless].
Posted by eric at 3:48 PM
Forest City's Performance Softens in 2Q
Morningstar.com
by David Rodziewicz
A Morningstar analyst combs through the Atlantic Yards developer's parent company's 2Q report and concludes:
Although the company has made some headway on reducing debt and pushing back maturities through asset sales and its first-quarter equity issuance, we still think Forest City has a long slog ahead. With debt maturities still around $1.6 billion over the next couple years and interest coverage below 2 times, we think the company still has room to deleverage. With fundamental declines in portfolio performance likely over the next couple years, we think the deleveraging process will be a difficult one. In our opinion, additional equity issuances are likely over the next few years as property sales in a declining real estate environment prove insufficient to reduce Forest City's debt levels.
Posted by lumi at 5:32 AM
September 16, 2009
Court Street Cinema Fire, Again
Brownstoner
Forest City's Court Street Cinema was the scene of a fire for the second time in six weeks.
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The UA Cinema on Court Street in Brooklyn Heights had a small fire incident on Saturday that left none injured. According to the Brooklyn Heights Blog, a popcorn machine was the cause of the fire, but the sprinkler system kept it from getting out of control. The incident did fill the theater with smoke and force everyone in the theater to evacuate. Almost the exact same sequence of events occurred last month—a small fire caused by a faulty popcorn machine. Perhaps it's time for UA Cinema to invest in some new popcorn machines?
NoLandGrab: OK, Bruce Ratner can't pop popcorn in his theater without starting a fire, and we're counting on him to keep crowds of 18,000 people safe in a building that the NYPD would surely classify as a High Tier security risk? The city's decision to cut back on its promise of heightened security measures at Goldman Sachs' new lower-Manhattan HQ is sure to add fuel to the, ahem, fire.
NY Post, City to 'unsafe' Sachs: Pay for protection
Goldman Sachs, the wealthiest bank on Wall Street, is locked in a bitter battle with city and state officials over the number of cops available to patrol its gleaming new world headquarters at Ground Zero.
The bank is close to completing its $2.4 billion, 43-story skyscraper on Vesey Street in Battery Park City and says it will be ready to move in by the end of this year.
But the big move could be delayed as the city and state scale back an expensive security agreement with the bank. The squabble is dealing yet another blow to the redevelopment of Ground Zero -- and possibly putting taxpayers on the hook for $320 million if the Goldman-government accord collapses.
...One key incentive was the promise to provide Goldman with a much higher level of security than usually given to a Wall Street firm. Under the terms of the contract, the city pledged manpower, and the state was in charge of security infrastructure such as blockades, surveillance equipment and guard stations.
But now the city has told Goldman it will scale back the number of cops -- pointing to budget woes and arguing that the higher levels are not yet necessary, given the long delays in opening office buildings at the World Trade Center site.
Sources also said the state is so far behind in its infrastructure plans that the NYPD would be unable to use the number of cops outlined in the deal, even if it had them to spare.
NLG: Don't worry, we're sure the security experts at Forest City will protect us if the city and state won't. Butter on your popcorn?
Posted by eric at 8:00 PM
September 12, 2009
How to Make Us Care About the LIRR: With This Thing!
Curbed
The entrance along Hanson Place to the Long Island is a many-years-delayed public benefit that was promised as part of Bruce Ratner's Atlantic Center and Atlantic Terminal malls. Curbed has posted a picture of the inside of the entrance as it slowwwly makes it way to completion.
The Atlantic Yards megaproject has distracted us from the long overdue completion of the new Long Island Rail Road entrance pavilion just across Flatbush Avenue, wedged into the Atlantic Center mall. It was supposed to be done in 2007, but "unforeseen site conditions" delayed the target date to, hey now, this fall! As anyone who's wandered the Atlantic Avenue/Pacific Street transit hub (while it's still called that) knows, the construction has become a confusing mess over the years. But here's the thing: Has it all been worth it? Check out the startling reveal above of the work-in-progress station, complete with sky views up to One Hanson Place's dome and a cool pixel-like thingamajig...
Posted by steve at 5:02 AM
September 11, 2009
Lots of crime at Flatbush and Atlantic
The Brooklyn Paper, Police Blotter
by Ben Muessig
Lawlessness was rampant last week in Bruce Ratner's two local malls, which the Empire State Development Corporation famously (and falsely) claimed was devoid of such acts in the Atlantic Yards blight study.
Target: Target
An armed robber heisted $1,300 from the Target department store on Atlantic Avenue on Sept. 2.
The perp masqueraded as a customer when he purchased in item at around 6:15 pm — but once the cashier opened the register he revealed his true intentions.
“Give me the hundreds. I have a gun,” he told the employee.
The victim handed over the cash, and the crook fled from the store, which is near the corner of Flatbush Avenue.
Marshall law
Thieves ransacked the Marshall’s department store on Atlantic Avenue on Sept. 6, implementing their own form of “Marshall law” in at least two purse snatchings. Here are the shocking details:
• A crook grabbed a handbag from a shopper’s cart inside the shop, which is between Fort Greene Place and South Portland Avenue, at around 3:30 pm.
The bad guy got away with the victim’s wallet, credit cards, IDs, and $250.
• Just 45 minutes later, a perp heisted another purse from a shopping cart.
Posted by eric at 6:23 PM
September 10, 2009
Forest City Enterprises: Good News, Bad News
The good news is that Atlantic Yards developer Forest City Enterprises (FCE) is losing less money than last year, the bad news is that FCE is still hemorrhaging money.
The Plain Dealer, Loss narrows at Forest City during the second quarter
Forest City Enterprises Inc. lost $1.8 million during the second quarter, an improvement from the real estate company's $8.4 million loss a year before.
Forest City said Tuesday that it lost 1 cent per share during the three months that ended July 31, compared with a loss of 8 cents per share during the second quarter of 2008. Earnings before depreciation, amortization and deferred taxes were $95.5 million, up 8.1 percent from $88.3 million a year before. EBDT, a measure used by analysts and investors, strips out factors including gains and losses on sales of rental properties, divisions and other investments.
...
Revenue for the six months that ended July 31 was $629.8 million, down from $632.6 million a year before.Forest City (NYSE: FCE-A) reported its earnings after markets closed Tuesday. Shares of the company's stock were trading at about $9.86, up 7.9 percent or 72 cents, just after 11 a.m. today.
Atlantic Yards Report, Forest City reports better results, but continued losses, including losses on the Nets
Analysis of FCE's quarterly earnings report includes this bit of where the continued losses incurred by the NJ Nets:
Revenues were down slightly from last year, but so were costs. FCE said in the press release, "Reduced losses on the Nets provided a pre-tax EBDT increase of $3.0 million."
What does that mean? According to a 10-Q document filed with the SEC:
Our equity investment in The Nets incurred a pre-tax loss of $8,307,000 and $18,988,000 for the three and six months ended July 31, 2009, respectively, representing a decrease in allocated losses of $241,000 and $3,033,000 compared to the same periods in the prior year. Generally accepted accounting principles require us to report losses, including significant non-cash losses resulting from amortization, in excess of our legal ownership of approximately 23%. For the six months ended July 31, 2009 and 2008, we recognized approximately 51% and 57% of the net loss, respectively, because profits and losses are allocated to each member based on an analysis of the respective member’s claim on the net book equity assuming a liquidation at book value at the end of the accounting period without regard to unrealized appreciation (if any) in the fair value of The Nets. For the six months ended July 31, 2009, we recognized a lower share of the net loss than in the prior year because of the distribution priority among members.
Included in the losses for the six months ended July 31, 2009 and 2008 are approximately $10,238,000 and $13,544,000, respectively, of amortization, at our share, of certain assets related to the purchase of the team. The remainder of the losses substantially relate to the operations of the team. Comparable to prior years, the team is expected to operate at a loss in 2009 and will require additional capital from its members to fund the loss.
(Emphases added)
Posted by lumi at 6:31 AM
September 9, 2009
Forest City in the News
PRNewsWire, Forest City Reports Fiscal 2009 Second-Quarter and Year-to-Date Results
According to the Forest City Enterprises press release, losses are down compared to last year:
The second-quarter net loss attributable to Forest City Enterprises, Inc. was $1.8 million, or $0.01 per share, compared with a net loss of $8.4 million, or $0.08 per share, in the second quarter of 2008. Net loss for the six months ended July 31, 2009, was $32.5 million, or $0.26 per share, compared with $48.8 million, or $0.47 per share for the same period in 2008.
...
The second-quarter net loss attributable to Forest City Enterprises, Inc. was $1.8 million, or $0.01 per share, compared with a net loss of $8.4 million, or $0.08 per share, in the second quarter of 2008. Net loss for the six months ended July 31, 2009, was $32.5 million, or $0.26 per share, compared with $48.8 million, or $0.47 per share for the same period in 2008.
FoxBusiness.com, Forest City Enterprises (FCE.A) Bullish Technical Alert - Trend Up 35.4%
Forest City Enterprises (NYSE:FCE.A) is trading 2.3% higher (up $0.21 to $9.13) today on volume of 512,709 shares. The stock has traded within a 52-week range of $3.26 and $40.49.
Forest City Enterprises is currently above its 50-day moving average of $7.10 and above its 200-day moving average of $6.48.
DDDB.net, Forest City Quarterly Results Claim Arena Construction Would Start in 2009. Impossible.
Develop Don't Destroy Brooklyn, the group leading the fight against Bruce Ratner's controversial Atlantic Yards megaproject, has some news for investors and analysts.
It's official, Forest City is delusional and doesn't mind deluding its investors and analysts. From Forest City Enterprises second quarter results:
...Forest City ended the second quarter with seven projects under construction with a total cost of $2.1 billion at the Company's pro-rata share ($2.5 billion at full consolidation). With the exception of the Barclays Arena at Atlantic Yards in Brooklyn, and the fee-development construction of a new City Hall project in Las Vegas, the Company does not anticipate commencing construction on any additional projects in 2009.
It is impossible for arena construction to start in 2009.
FCE investors and anaylsts can take that as a tip.
TradingMarkets.com, Forest City reports losses narrow to $1.8 million in second quarter
BizJournals.com, Fidelity Investment’s office wins national award
Developer Forest City won a green building award for an office building in the company's Mesa Del Sol project in New Mexico.
Posted by lumi at 5:40 AM
September 8, 2009
Forest City in the News
REMINDER: Forest City Enterprises is due to release second-quarter earnings today, followed by a conference call with investors on Friday. press release
Washington Business Journal, Harris Teeter eyes Forest City's The Yards
The Harris Teeter grocery chains plans to open a store near Nationals Park after signing a letter of intent with developer Forest City Washington Inc., according to sources close to the deal.
The Matthews, N.C.-based chain already has two stores in the city....
The store near the ballpark will be 50,000 square feet in the ground floor of a building planned for 401 M St. SE as part of Forest City's major mixed-use waterfront development, The Yards.
Posted by lumi at 5:04 AM
September 6, 2009
Forest City In the News
Reuters, Forest City Enterprises Notice of Second-Quarter 2009 Earnings Conference Call
Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) will release its second-quarter 2009 financial results on Tuesday, September 8, 2009, after the market close, and will hold a conference call with investors on Friday, September 11, 2009 at 11:00 a.m. ET to discuss these results. Investors are invited to dial into the conference call hosted by Charles A. Ratner, president and chief executive officer.
The conference call is scheduled for 11:00 A.M. ET, Friday, September 11, 2009. A live webcast of the call will also be available online at www.forestcity.net .
Use the following link to pre-register for this conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time.
To pre-register, go to: https://www.theconferencingservice.com/prereg/key.process?key=PHJGA4XH7
To participate on the day of the call, dial 888-713-4205 and use access code 38602262, approximately five minutes before the call. Callers without a pre-registration PIN can press *1 to bypass the instructions and speak to a live operator. Tell the operator you wish to join the Forest City 2(nd) Quarter Earnings Conference Call. (International callers, please dial 617-213-4862)
The call will be replayed from September 11, 2009, 2:00 P.M. ET to October 11, 2009, 11:59 P.M. ET. The replay number is 888-286-8010, access code 94172948. (International callers, please dial 617-801-6888). The webcast replay will be available at www.forestcity.net.
If you have questions, please call AnnMarie Fenske at Forest City, 216-621-6060.
SOURCE Forest City Enterprises, Inc.
AnnMarie Fenske of Forest City Enterprises, +1-216-621-6060
Posted by steve at 8:52 AM
September 2, 2009
Forest City in the News
SmarTrend, Forest City Enterprises (FCE.A) Bullish Technical Alert - Trend Up 40.4%
Forest City Enterprises (NYSE:FCE.A) is trading 2.3% higher (up $0.21 to $9.46) today on volume of 92,210 shares. The stock has traded within a 52-week range of $3.26 and $40.49.
Forest City Enterprises is currently above its 50-day moving average of $6.90 and above its 200-day moving average of $6.43.
SmarTrend is bullish on shares of FCE.A and our subscribers received an Uptrend alert on July 27, 2009 at $6.74, which has returned 40.4% to date.
Press Release, via Reuters.com, Forest City Announces Loan Extension and Tenants for Ridge Hill
Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that Forest City Ratner Companies, its New York-based subsidiary, has reach an agreement with a 13-member bank group on a two-year extension and modification of the $557 million construction financing for the retail/mixed-use Ridge Hill project, currently under construction in Westchester County, New York.
The financing, which originally matured in August 2010, will now have an initial maturity of August 2012, with two 12-month extensions available.
Cleveland Plain Dealer, Forest City gets extension on $557 million in financing for New York project
Associated Press, viaForbes.com, Forest City unit modifies construction financing
Posted by lumi at 4:37 AM
September 1, 2009
Tracing the deceptive property ownership map back to Forest City Ratner
Atlantic Yards Report
Norman Oder sheds a little more light on the Great Property Control Swindle.
Not unlike the way that the Empire State Development Corporation (ESDC) puts its name on Atlantic Yards Construction Updates produced by developer Forest City Ratner (FCR), evidence suggests that the map of property ownership in the AY footprint also comes directly from the developer.
I earlier today suggested that the ESDC was misleading people by using an 11/1/06 map to describe current ownership. And I wrote in May that the ESDC seemed to be taking FCR's cue in presenting facts on the map.
But it may be much simpler: ESDC is simply reproducing what Forest City gives them.
NoLandGrab: Good grief! The ESDC is either totally incompetent, or Bruce Ratner really is pulling all the strings in Albany.
Posted by eric at 8:58 PM
August 31, 2009
FCR consultant on Ridge Hill--a project still under investigation--now works for Senate Democrats
Atlantic Yards Report
How Lowe can you go?
In the Daily Politics, Liz Benjamin suggests that State Senator Bill Perkins, who held a hearing on Atlantic Yards, might have reason to be wary of new Democratic Senate Campaign Committee (DSCC) staffer Melvin Lowe.
Benjamin noted that Lowe "has provided consulting services to developer Bruce Ratner on the Atlantic Yards project in Brooklyn"--news to me--and that Perkins is concerned, given that he feels "more answers" are needed regarding AY.
Lowe, who's worked for several government officials and campaigns, "will be providing 'oversight' at the DSCC," Senate Democratic spokesman Paul Rivera told Benjamin. The DSCC wants to retain and build on a slim Democratic majority, a crucial priority for state Democrats in 2010.
Posted by eric at 10:05 PM
Forest City Press Release: Forest City Announces Loan Extension and Tenants for Ridge Hill
Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that Forest City Ratner Companies, its New York-based subsidiary, has reach an agreement with a 13-member bank group on a two-year extension and modification of the $557 million construction financing for the retail/mixed-use Ridge Hill project, currently under construction in Westchester County, New York.
The financing, which originally matured in August 2010, will now have an initial maturity of August 2012, with two 12-month extensions available.
"We're extremely pleased to announce this important step for our great Ridge Hill project, which is gaining momentum and attracting strong interest from top-tier retailers," said Charles A. Ratner, Forest City Enterprises president and chief executive officer. "I want to congratulate our New York team on this achievement.
"We deeply appreciate the commitment demonstrated by all of our lenders, and in particular, the Agent banks, Bank of America, N.A., KeyBank Real Estate Capital, and ING Real Estate Finance. Their support reflects the great location and extraordinary quality of this project, as well as the deep relationships we have built over the years. It also highlights our continuing ability as a company to proactively manage our debt maturities in the current economic and financial-market conditions," Ratner added.
NoLandGrab: Forest City's "ability as a company to proactively manage" its "debt maturities" appears to be necessitated by Forest City's inability to meet its obligations without some leniency from its lenders.
Posted by eric at 12:43 PM
August 28, 2009
Who's cleaning up Pacific Street blight? Forest City Ratner
Atlantic Yards Report
In September 2007, some AY opponents bushwhacked a clean-up along Pacific Street between Fifth and Sixth Avenues.
Last Saturday, when I took a tour group around Prospect Heights, that stretch of Pacific Street looked pretty trim. But the stretch between Sixth and Carlton avenues looked pretty messy, even though a large residential building, Newswalk, occupies most of the street opposite it.
Now, however, it's been cleaned up, as the sequence of photos below shows. And who's responsible for removing this Pacific Street blight? As the name on the blue car indicates, Commons Associates of MetroTech Center--an organization led by Forest City Ratner.
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Be sure to read the comments section for some revealing backstory about the condition of the sidewalk.
Posted by eric at 9:00 AM
August 27, 2009
NY KATRINA COUPLE FETED
NY Post
By Jennifer Fermino
Bruce Ratner's sister garnered some ink for post-Katrina largesse:
Four years after Hurricane Katrina devastated the Gulf Coast, the governor of Mississippi is honoring an Upper West Side couple who helped raise $3.1 million for a community center.
Gov. Haley Barbour is feting Ellen Ratner, sister of real-estate developer Bruce Ratner, and her partner, Cholene Espinoza, today in his mansion for their work in creating the center in Pass Christian, which features dance classes, a yoga studio and the only public pool for 30 miles.
Espinoza -- a former pilot who was supposed to have flown aboard ill-fated United Flight 93 on 9/11 before a schedule change -- personally donated $130,000 to buy the land.
Posted by lumi at 5:34 AM
August 26, 2009
Forest City in the News
Washington Business Journal, San Juan hires Forest City Washington
Forest City Washington Inc., the local subsidiary of Forest City Enterprises Inc., has won a contract to provide real estate advisory services to the city of San Juan in Puerto Rico.
The company, which is developing the mixed-use waterfront development The Yards in Southeast D.C., announced a month ago that it would advise D.C. on another major Southeast property on the Anacostia River, Poplar Point.
For San Juan, the company will serve as program manager for a 21-block waterfront district to include new housing, offices, hotels, retail, parking, parks and a marina. The 100-acre site includes almost two miles of waterfront and is located east of the Old San Juan district, according to the company.
Cleveland Plain Dealer, Forest City picked as program manager for 21-block waterfront project in Puerto Rico
Forest City, a real estate company based in Cleveland, will provide management services for the project in exchange for fees. The company was selected for the job by the Puerto Rico Department of Economic Development and Commerce and the Puerto Rico Tourism Company. The proposed project could involve homes, a hotel component, offices, retail, parking and public parks, including a marina.
Responding to a tightening on credit for commercial real estate and a near-halt to development nationwide, Forest City largely has shelved new construction in favor of reducing its debt and managing its existing properties. The company has been exploring ways to make money by providing advisory and management services -- rather than putting shovels in the ground.
PR Newswire, Forest City Named Program Manager for Redevelopment of San Juan, P.R. Waterfront
"We are honored to be selected and extremely excited to provide our full array of development management services for the redevelopment of San Juan's waterfront," said Charles A. Ratner, Forest City president and chief executive officer. "This is precisely the type of project - including elements of urban infill, revitalization and waterfront redevelopment - that Forest City has experience with and does well. This selection also reflects our continued strategic expansion into asset management and third-party advisory services," he added.
Cleveland Plain Dealer, National real estate group to honor Forest City for green building
A Forest City Enterprises Inc. partnership has been tapped to receive a national award for sustainable development of an office building in Albuquerque, New Mexico.
...
Forest City's project is part of a massive community being developed through a public-private partnership in Albuquerque. The lead developer is Forest City Covington, a joint venture between Forest City Enterprises of Cleveland and Covington Capital Corp. The partners are being recognized for their work on a two-story office building for Fidelity Investments.The developers aim to have the building certified "Gold" through the U.S. Green Building Council's Leadership in Energy and Environmental Design program. LEED certification, which takes into account factors including energy savings, water use, building materials and interior environment, comes at four levels: Certified, Silver, Gold and Platinum.
Posted by lumi at 5:02 AM
August 25, 2009
Forest City in the News
SmarTrend, Forest City Enterprises (FCE.A) Bullish Technical Alert - Trend Up 21.6%
Forest City Enterprises (NYSE:FCE.A) is trading 2.6% higher (up $0.21 to $8.20) today on volume of 185,517 shares. The stock has traded within a 52-week range of $3.26 and $40.49.
Forest City Enterprises is currently above its 50-day moving average of $6.61 and above its 200-day moving average of $6.46.
Yonkers Tribune, President Lesnick, Behind Closed Doors, Ridge Hill, SFC Yonkers, Councilmember Gronowski By Hezi Aris
Delays at Bruce Ratner's Ridge Hill development might be a cautionary tale for political leaders in Yonkers who are counting on the next megadevelopment deal to save their city... or not:
In light of the Journal News article divulging the non-paying, and now delayed 2011 completion date for the Forest City Ratner Ridge Hill development, one must wonder how Yonkers will survive the fiscal hemorrhaging it is undergoing, especially because there is no prospect for additional funding to relieve the exhausted, taxpaying homeowner for the next three to five years forward.
Posted by lumi at 5:41 AM
August 24, 2009
Yonkers' Ridge Hill opening postponed
The Journal-News
By LEN MANIACE
Like Atlantic Yards, the construction timeline for Bruce Ratner's other regional megaproject is slipping:
While construction is well under way on the massive Ridge Hill development above the New York State Thruway, hopes for opening the mixed-use complex by this year's holiday shopping season have evaporated in the national recession.
The new projected opening? 2011.
Officials at Forest City Ratner Cos. say the lagging construction schedule at the $685 million retail and residential development is due to the company's wish to time the opening to a better economy, rather than from trouble obtaining financing or attracting tenants.
...
Construction began in 2007, and through most of that year Forest City Ratner officials talked about opening the 1.2 million-square-foot complex in late 2009. But in June, the developer's quarterly report pegged the opening somewhere between the third quarter of 2010 and sometime in 2011, an estimate that Pesin recently conceded was somewhat optimistic.
Posted by lumi at 5:51 AM
August 21, 2009
2,000 Brooklyn Kids Getting New Backpacks, School Supplies
Brooklyn Daily Eagle
by Mary Frost
Nashay, Nasir and Precious are just three out of 2,000 disadvantaged Brooklyn kids who are receiving backpacks filled with essential back-to-school supplies, thanks to the National Association for the Advancement of Colored People’s (NAACP) annual Back-to-School/Stay-in-School Program.
...Karen Boykin-Towns, president of the NAACP’s Brooklyn Branch, said, “Despite the tough economy, we are pleased to deliver on our commitment of providing 2,000 free backpacks to our neediest students.” She added that her daughter advised her to reach out to Thirteen when she was trying to find sponsors to help fill the backpacks. WNET/Thirteen, partnering with Brooklyn’s NAACP for the first time, supplied “Cyberchase” activity books, pencils and bookmarks – and the huggable, larger-than-life “Digit,” from PBS’s award-winning math series “Cyberchase.”
...Sponsors of the event include Brooklyn Public Library, Con Edison, Council of School Supervisors & Administrators, DELBAC Inc., Everlast, Forest City Ratner, G&B Foundation, Independence Community Foundation, Neighborhood Improvement Association, Polytechnic Institute of NYU -- Center for Youth In Engineering & Science, Pratt Institute – America Reads, Rent-A-Center, Society of Hispanic Provisional Engineers, Society of Women Engineers, National Society of Black Engineers and Verizon. [emphasis, ours]
Wow, imagine how many backpacks and essential school supplies could've been given to needy kids if the city and state weren't sinking hundreds upon hundreds of millions of dollars into Forest City's basketball arena project!
Posted by eric at 11:22 AM
So who is the meanest corporation on the planet?
CUACC (Citizens United Against Corporate Corruption
OK, have you already guessed the answer?
Some residents of the Pavilion Apartments in Chicago are not too enamored of their landlord.
Hands down our winner is........
FOREST CITY ENTERPRISESEVERY picture we took here was from just ONE of their properties. These are just a small sampling of the hundreds of pictures we took altogether. The economy cannot be used as an excuse for the years of deterioration here.
Click thru for some gnarly photos of black mold.
Related coverage...
NeuLandlord, Forest City Enterprises MAYDAY MAYDAY
Posted by eric at 10:02 AM
August 14, 2009
After breaking with developer, Bloomfield must pay $4.8 million
The Star-Ledger
by Halley Bondy
After a Superior Court judge upheld a $4.8 million arbitration ruling against Bloomfield, the township has to pay it to a company that some officials said single-handedly slowed downtown development plans.
Two weeks ago, the township issued a bond with a 1.4 percent interest rate to pay the $4.8 million, according to redevelopment consultant Ken DeRoberts. The money will pay Forest City, a Cleveland-based development company that took the township to arbitration last year after it was terminated as the city's primary redeveloper. Bloomfield appealed to a Superior Court judge who upheld the ruling in June.
"I see this as a burden on the taxpayers of the town," said councilman Robert Ruane. "We have still not seen one shovel in the ground."
Bloomfield's mayor Raymond McCarthy and five council members--not including Ruane--issued a joint statement Monday that the developer "failed our community, wasted our time and resources and destroyed our confidence in their ability to help move our community forward."
NoLandGrab: New Jersey's top court ruled against the Bloomfield/Forest City plan to use eminent domain in 2007. Seems like governments have to learn the hard way that getting into bed with Forest City ain't a recipe for success.
Posted by eric at 9:37 AM
August 13, 2009
Forest City Enterprises (FCE.A) Bullish Technical Alert - Trend Up 15.6%
FOXBusiness.com
Forest City Enterprises (NYSE:FCE.A) is trading 4.1% higher (up $0.31 to $7.79) today on volume of 91,140 shares. The stock has traded within a 52-week range of $3.26 and $40.49.
Forest City Enterprises is currently above its 50-day moving average of $6.48 and above its 200-day moving average of $6.63.
Posted by eric at 10:26 AM
August 12, 2009
This crime is half-baked
The Brooklyn Paper, Police Blotter
by Mike McLaughlin
Criminals strike (again!) where the Empire State Development Corporation would least expect it.
Pedal meddle
Lock-busting hooligans stole two of four bicycles that a woman claims she had locked at the Atlantic Terminal plaza on Flatbush Avenue on Aug. 6.
The woman shopped in the galleria from 3:40 pm to 4:20 pm, but when she exited the mall, between Hanson Place and Atlantic Avenue, she found a clipped bike lock and discovered that two of her velocipedes were missing.
NoLandGrab: Fortunately, the victim still had two bicycles remaining to get her where she was going.
Posted by eric at 11:04 AM
Forest City in the News
Bradenton Herald, Arbor Park developer avoids foreclosure
Forest City dodges a foreclosure in Florida.
The developer of a stalled residential and commercial project in northern Manatee County has avoided foreclosure, according to court records.
Orion Bank has dropped its lawsuit seeking to foreclose on the 483-acre Arbor Park project after reaching a settlement with the developer, Palmer Investors LC, court records show.
Details of the settlement were not disclosed, and several attorneys involved in the case declined comment Monday.
But a Tampa attorney representing Palmer Investors — a joint venture between Medallion Homes and Forest City Enterprises Inc., a real-estate development company based in Cleveland — said Orion agreed to modify the loan terms.
The attorney, William Dufoe, referred other questions to Forest City. Calls to the company were not immediately returned.
PR Newswire, Forest City Announces Major Pittsburgh Office Tenants
Two new tenants and a renewal in Pittsburgh prompt Forest City CEO Chuck Ratner to claim it's "further evidence of the strength of our office portfolio nationwide, which continues to perform well, even under current economic and market conditions."
HorseRaceInsider, Another 13 Tenants Announced for The Village at Gulfstream Park; 45 in All, and Counting
Forest City Enterprises announced the names of another 13 restaurants and stores – ranging from steak houses to a surf shop – that will take up residence at The Village at Gulfstream.
The Village is expected to have its grand opening Feb. 11, the Thursday after Super Bowl XLIV, which will be played in nearby Dolphin Stadium, about nine miles due west of Gulfstream Park.
Posted by eric at 9:37 AM
August 7, 2009
Forest City in the News
PR Newswire, Forest City Announces New Tenants for The Village at Gulfstream Park
According to a Forest City Enterprises press release, the retail space is "70 percent leased" at the company's mixed-use office-park/mall attached to the Gulfstream thoroughbred racetrack.
The Miami Herald, Tenants announced for Village of Gulfstream
When the Village at Gulfstream Park opens in Feb. 2010, visitors will be able to surf the waves, experience a Parisian cabaret and taste Moroccan cuisine.
These experiences are some of the latest tenants announced Wednesday by Forest City Commercial Development for the Hallandale Beach retail and entertainment complex, which has been struggling in its leasing efforts because of the economy.
The newest 13 tenants include Adrenalina, an extreme sports retailer featuring the FlowRider surfing ride; Paradis Latin Miami, a cabaret establishment, and Ta-Zin, Moroccan cuisine and entertainment.
Other new names: Apricot Lane, Aventura's Finest Hand Car Wash, Bartini's, Bobby Chan, Claudio, Claudio Shoes, Lilly McKay, Roxstar, Shoe Freak and Via Montenapoleon.
Posted by lumi at 5:00 AM
August 6, 2009
Brownstoner: Hold off on angry letters and glassed up
City Officials Call for Atlantic Yards Disclosure
If you have an angry letter for City Council Members David Yassky and Bill de Blasio regarding their apathy towards the Atlantic Yards development, hold off on stamping and sending it.... According to the press release from the Prospect Heights Neighborhood Development Council, they are "calling on the Empire State Development Corporation to fully disclose plans for the Atlantic Yards project, including an updated site plan, and prepare a supplemental environmental impact statement (SEIS) for public review."
Development Watch: 80 Dekalb Getting Close
The 36-story development that Forest City Ratner is building at 80 Dekalb Avenue topped out in May and, according to this photo we snapped yesterday, is almost all glassed up. It looks like they changed the facade a little on the upper floors, replacing the exterior panels with windows, doesn't it?
Posted by lumi at 6:39 AM
August 5, 2009
The best and worst deals
The 15 biggest winners and losers since the crunch
The Real Deal
by Sarah Ryley
Next month will mark the one-year anniversary of the fall of Lehman Brothers — a date often referred to in "pre-" and "post-" terms in the New York City real estate market. With that in mind, The Real Deal zeroed in on the 15 best and worst deals since Wall Street's collapse and the earlier onset of the credit crunch.
The deals were selected based on interviews with real estate professionals, published reports from the past year, research and an informal survey.
...Best: Bruce Ratner's pending purchase of the Vanderbilt Yards site in Brooklyn from the MTA for $100 million
Instead of charging developer Bruce Ratner $100 million in one lump sum for the right to build over Brooklyn's 8.5-acre Vanderbilt (Atlantic) Yards site, as originally agreed, the MTA announced in June that Ratner could pay just $20 million upfront to close on the portion of the rail yards beneath his planned arena for the Nets. Payments for the rest of the property, if he continues building, could be spread over 20 years, starting at $2 million a year in 2012 and jumping to $11 million in 2016 at an implied 6.5 percent interest rate, according to financial services firm Keefe, Bruyette & Woods.
The original $100 million purchase price was already far below the yard's appraised value, which the MTA justified by the additional $345 million Ratner promised he would make in infrastructure improvements. Under the new agreement, however, Ratner is not obligated to spend as much on those upgrades.
Schechtman said that while the purchase price of the land may be high in today's market, "the built-in financing over a 20-year period, at a time when there is an absolute absence of construction and land financing, makes this a real coup."
NoLandGrab: Wow, what a steal for The Bruce! And since the seller is a public corporation, Bruce's "real coup" means a "real screwing" for taxpayers. Of course, this is one deal that's still a long way from being "done."
Loyal NLG readers will recognize Sarah Ryley's byline from her days covering Atlantic Yards for the Brooklyn Daily Eagle.
Posted by eric at 10:03 AM
Forest City Enterprises (FCE.A) Bullish Technical Alert - Trend Up 8.7%
TradingMarkets.com
Aug 04, 2009 (SmarTrend(R) Spotlight via COMTEX) -- FCE.A | Quote | Chart | News | PowerRating -- Forest City Enterprises (NYSE:FCE.A) is trading 1.3% higher (up $0.09 to $7.33) today on volume of 165,054 shares.
The stock has traded within a 52-week range of $3.26 and $40.49.
Forest City Enterprises is currently above its 50-day moving average of $6.35 and above its 200-day moving average of $6.85.
SmarTrend is bullish on shares of FCE.A and our subscribers received an Uptrend alert on July 27, 2009 at $6.74, which has returned 8.7% to date.
Posted by lumi at 5:31 AM
Minor injuries, major horror, in Court Street multiplex fire
The Brooklyn Paper
By Robert Voris
Though this didn't make the first cut of Tracy Collins's Forest City Ratner boycott list, the development company's UA multiplex on Court Street made the news when a fire forced evacuation and caused several injuries:
At long last, it was the right time to yell “Fire” in a crowded movie house as the United Artists multiplex on Court Street was briefly consumed by smoke during a crowded afternoon screening on Tuesday.
Chaos engulfed the movie theater shortly after 2 pm, as patrons, some covering their mouths, had to find their own way to the smoky lobby of the Bruce Ratner-owned 12-screen theater at State Street in Downtown.
Eight minor injuries, mostly from smoke inhalation, were reported in the fire, which apparently started in the popcorn maker and quickly forced the evacuation of all 11 floors of the building.
...
The movie theater was last in the news earlier this year when owner Ratner put it on the market, though he did not find a buyer.
Posted by lumi at 5:12 AM
August 2, 2009
Moody's says FCE's bond rating is junkier, but that doesn't affect the arena bonds--yet
Atlantic Yards Report
Norman Oder examines how credit ratings for developer of the proposed Atlantic Yards project, Forest City, might affect its ability to finance an arena.
Develop Don't Destroy Brooklyn points out:
Forest City City Enterprises [FCE], the Cleveland-based parent of Forest City Ratner which is looking to float a $680 million bond for its proposed Barclays Center Arena, was given a B3 or "junk" debt rating, with a negative outlook, by Moody's [Investors Service].But Standard & Poor's last October downgraded its rating of FCE's senior unsecured debt to junk status, as well, from BB- to B+. (At that point, FCE stock was trading at $11.91. Now it's at $7.14, after a recent uptick.)
Any difference between the ratings? And does it affect the arena?
The answer, according to the finance blogger Gari N. Corp, is yes, but only somewhat.
Does the downgrade matter?
His response: Moody's cut FCE by a little more. B3 on the Moody's scale is like B- on the S&P scale. Which is to be expected, given the bad news out of the commercial real estate business in the period between the two downgrades.
The downgrade matters, but it isn't everything. The arena financing will need to stand and fall on the credit rating of the arena. In good times for the developer, it doesn't want a terrible project dragging on its balance sheet. In bad times, the project doesn't want the parent's troubles distracting it.
But liquidity (access to capital) is important for a developer. It might need to fund cost overruns or revenue shortfalls with additional equity, and if it can't, the project has to borrow more cash just to sit around in case lenders need it. A rating cut makes it more difficult and expensive for the developer to raise money for this sort of thing. And it does, whatever the agencies say, edge a developer closer to bankruptcy, because it can't get access to financing, because some of its debt agreements might have clauses that say the developer has to repay some of its debt at a certain level (not common these days, but it happens). The agencies don't like their ratings becoming self-fulfilling prophecies, and they'd say that a weak company will fall anyway.
I'd start getting worried when FCE's rating has a C in it somewhere.
Posted by steve at 9:21 AM
July 30, 2009
Forest City in the News
Moody's downgrades Forest City to B3; outlook negative
[Full text, after the jump]
Approximately $1.1 billion of securities affected.
New York, July 29, 2009 -- Moody's Investors Service today lowered the senior unsecured debt ratings of Forest City Enterprises, Inc. to B3 from B1, and maintained the rating outlook on negative. This rating action was driven by the continuing weakness in Forest City's credit metrics, particularly its fixed charge coverage (at 1.2x for Q1'09) and net debt/EBITDA (at 16.8x in Q1'09), as well as by persistent challenges in both the real estate market and the credit environment.
The Cleveland Plain-Journal, Forest City Enterprises chosen for advisory team for Washington, D.C. project
Forest City Enterprises Inc. has been tapped for a team that will provide advisory services, in exchange for fees, to the District of Columbia related to a planned waterfront development in Washington, D.C.
The real estate company, based in Cleveland, largely has shelved development and focused on cleaning up its finances during the recession. Forest City also has been exploring new ways to make money, expanding into asset management and other fee-based, third-party services.
Washington Business Journal, Forest City to advise D.C. on Poplar Point
D.C. Mayor Adrian Fenty’s economic development team has selected Forest City Washington Inc. as real estate adviser for the planning of Poplar Point, the company announced Wednesday.
“We’re honored to have been selected as part of this team to assist the District in moving this important project forward,” said Charles Ratner, president and CEO of Cleveland-based Forest City Enterprises Inc., of which Forest City Washington is a subsidiary. Partners in the advising roll are Wall Development LLC, Atlanta-based Strategic Advisory Group, Los Angeles-based AECOM Technology Corp. and Smoot Construction Corp.
The team “will assist the District with master planning, entitlements, financial feasibility, phasing strategies, infrastructure financing and disposition of the project.”
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Moody's downgrades Forest City to B3; outlook negative
Approximately $1.1 billion of securities affected.
New York, July 29, 2009 -- Moody's Investors Service today lowered the senior unsecured debt ratings of Forest City Enterprises, Inc. to B3 from B1, and maintained the rating outlook on negative. This rating action was driven by the continuing weakness in Forest City's credit metrics, particularly its fixed charge coverage (at 1.2x for Q1'09) and net debt/EBITDA (at 16.8x in Q1'09), as well as by persistent challenges in both the real estate market and the credit environment.
The current rating reflects the slowdown in Forest City's core portfolio performance in tandem with the broad economic deterioration: its retail and residential sectors posted negative same property NOI growth of -1.0% and -1.8%, respectively, in the first quarter of 2009. Its office portfolio; however, performed better with same property NOI growth of 4.4%, buoyed by long-term leases and strong results from its life sciences assets. Forest City also faces a significant, although materially curtailed, development pipeline in excess of $2 billion with $777 million in remaining costs. Positively, construction financing is in place for all except $6.4 million, with a portion of the remaining financing ($158.5M) subject to certain leasing hurdles. In addition, Forest City will need to re-finance $159 million of secured debt in its fiscal 2009, which is a reduction from $242 million at YE08.
Nevertheless, Forest City's portfolio continues to benefit from well-laddered lease expirations and no significant tenant exposures. Also, the firm's largely non-recourse borrowing strategy allows it a measure of flexibility when addressing upcoming maturities. Positively, Forest City raised $330 million of equity in May 2009, which allowed the firm to pay down most of its outstandings under the line of credit and meaningfully enhanced its liquidity.
The negative rating outlook reflects the deterioration in debt protection measures experienced by Forest City, as well as Moody's expectation of further weakness in the company's credit profile and earnings over the next several quarters due to the recessionary economic environment and very constrained capital markets.
The rating outlook is likely to return to stable once Forest City's fixed charge coverage has stabilized at above 1.2x and debt/EBITDA is closer to 14x. Maintaining sound liquidity would also be important for the outlook to be stabilized. A downgrade would be precipitated by continued earnings deterioration and resulting further pressure on leverage and coverage metrics, as well as any breach of covenants or liquidity challenges.
Moody's last rating action with respect to Forest City was on December 19, 2008, when the ratings were lowered to B1 from Ba3 and the rating outlook was maintained on negative.
The following ratings were lowered with a negative outlook:
Forest City Enterprises, Inc. -- Senior unsecured debt to B3 from B1, senior unsecured shelf to (P)B3 from (P)B1, senior subordinate shelf to (P)Caa2 from (P)B3, subordinate shelf to (P)Caa2 from (P)B3, junior subordinate shelf to (P)Caa2 from (P)B3, and preferred shelf to (P)Caa2 from (P)B3.
Forest City Enterprises, Inc. [NYSE: FCE-A] is a national real estate company that is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. At April 30, 3009, its assets totaled $12.6 billion.
The principal methodology used in rating Forest City was the Rating Methodology for REITs and Other Commercial Property Firms, which can be found at http://www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating Forest City can also be found in the Credit Policy & Methodologies directory.
CREDIT RATINGS ARE MIS'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS DO NOT CONSTITUTE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS ARE NOT RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. CREDIT RATINGS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MIS ISSUES ITS CREDIT RATINGS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
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Posted by lumi at 5:03 AM
July 29, 2009
Forest City Announces $325M in New Financings and Extensions
The CoStar Group
The announcement of refinancing and extensions of company debt casts doubt on Forest City Enterprises claim that suspension of construction at Atlantic Yards was rather due to lawsuits (not like we believed them in the first place):
Cleveland-based Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) announced that since the beginning of 2009, it has secured or completed six new financing and eight extensions of maturities, totaling approximately $325 million. The six new financings, which totaling approximately $70 million, were secured against several of Forest City's multi-family developments. The eight extensions, which total approximately $255 million, were related to the developer's Orchard Town Center in Westminster, CO; Central Station in Chicago; Tangerine Crossing in Tucson, AZ; Sidney Street at University Park in Cambridge, MA; two community projects in Manatee County, FL; and a Marriott hotel in Charleston, WV.
Posted by lumi at 5:04 AM
July 27, 2009
Forest City in the News
FOREST CITY FINANCIAL
While Atlantic Yards developer Forest City Enterprises has claimed that litigation has been holding back construction on the megaproject in Prospect Heights, here's more evidence that delays are due to serious cash-flow problems:
PR Newswire, Forest City Announces $325 Million in New Financings and Extensions
"Proactively managing our debt and working closely with our lenders are key to preserving and enhancing liquidity, which continues to be our highest priority," said Charles A. Ratner, Forest City president and chief executive officer. "These transactions - as well as others previously announced - demonstrate the strength of our lending relationships, the skill of our finance teams, and our ability to continue to effectively manage our non-recourse, property-level debt."
The six new financings, which total approximately $70 million, include the following:
- A $27.2 million, 35-year HUD refinancing of Easthaven at the Village, a 360-unit apartment community in Beachwood, Ohio. The refinancing closed after the end of the Company's April 30, 2009, first quarter.
- A $23.3 million, 10-year refinancing, through Fannie Mae, of St. Mary's Villa, a 360-unit, federally assisted housing complex in Newark, New Jersey.
- Three separate transactions, totaling $15.9 million, through Freddie Mac, for Cleveland-area apartment communities: Parmatown Towers and Gardens, Independence Place I and Big Creek. Maturities on the refinancings range from seven to ten years.
- A three-year, $3.4 million financing for the fourth phase of development of Cobblestone Court Apartments, a 400-unit apartment community in Painesville, Ohio. This transaction closed after the end of the Company's April 30, 2009, first quarter.
The eight extensions of existing financings, which total approximately $255 million, include the following:
- A 17-month extension of a $99.2 million construction loan for the Company's Orchard Town Center retail center in Westminster, Colorado, near Denver. An additional one-year extension is also available.
- A one-year extension of $62.6 million in financing for 45/75 Sidney Street, a pair of connected office buildings in the Company's University Park at MIT project in Cambridge, Massachusetts. This extension closed after the end of the Company's April 30, 2009, first quarter.
- A two-year extension on a $25.3 million land loan for the Company's Central Station mixed-use development in downtown Chicago.
- Two-year extensions on land loans of $15.3 million and $21.1 million for adjacent, planned-community projects in Manatee County, Florida, south of Tampa. Both extensions closed after the end of the Company's April 30, 2009, first quarter.
- An automatic, one-year extension on $18.0 million in securitized financing for the Company's Charleston Marriott, a 352-room hotel in downtown Charleston, West Virginia.
- A two-year extension on an $8.1 million land loan for the Tangerine Crossing planned community development in Tucson, Arizona.
- A two-year extension on a $5.3 million land loan for the Company's Legacy Lakes planned community in Aberdeen, North Carolina.
Denver Business Journal, Forest City gets construction-loan extension for Orchard Town Center
The Orchard Town Center outdoor shopping center in Westminster is among the Forest City Enterprises Inc. projects involved in $325 million in new financings and extensions of existing financings obtained by the developer, Forest City said Friday.
Orchard Town Center received a 17-month extension of a $99.2 million construction loan for the project, plus the option of another one-year extension.
The extension is the largest dollar amount of a total of 14 financings that publicly traded Forest City (NYSE: FCEA/FECB) has done since the beginning of its fiscal year, Feb. 1.
Cleveland Plain Dealer, Forest City closes $325 million in financings, loan extensions
The real estate company, based in Cleveland, has been trying to build up cash, pay off debt and extend existing loans as they come due. Forest City said Friday that it has closed six financing or refinancing deals, totaling nearly $70 million, since the start of its fiscal year
IT'S NOT EASY BEING GREEN
KHON.com, Wind Power Tested for Military Housing
While Forest City Enterprises is blowing hot air in Brooklyn, the company is running tests to determine the viability of wind power generation at military housing developments in Hawaii:
"We hope to understand how the wind operates here off of Pearl Harbor and eventually try to generate power using wind energy,” said John Wallenstrom, senior vice president of military housing for Forest City Military Communities Hawaii.
A 164-foot tall meteorological tower or “MET” is measuring wind speed to see how well smaller wind turbines could work here. The same test will get underway soon at other housing Forest City manages on the Marine Corps base in Kaneohe.
Posted by lumi at 5:21 AM
July 23, 2009
Forest City in the News
SmarTrend, Forest City Enterprises (FCE.A) Bearish Technical Alert - Trend Down 3.8%
Forest City Enterprises (NYSE:FCE.A) is trading 3.2% lower (down $0.20 to $6.05) today on volume of 79,408 shares. The stock has traded within a 52-week range of $3.26 and $40.49.
Forest City Enterprises is currently below its 50-day moving average of $6.41 and below its 200-day moving average of $7.51.
SmarTrend is bearish on shares of FCE.A and our subscribers received a Downtrend alert on May 14, 2009 at $6.29, which has returned 3.8% to date.
BisNow.com, WARNER: DC SHOULD BE “ENERGY CAPITAL”
From BisNow's Breakfast & Schmooze gathering in DC on Tuesday:
Two of commercial real estate’s favorite people: Forest City president Debby Ratner Salzberg and JBG managing partner Mike Glosserman.... Debbie said in the fall she thought the world was coming to an end but now believes we will be able to hobble along.
The Riverdale Press, Espada's Finances
State Sen. Pedro Espada Jr. received thousands of dollars this year in campaign donations from real estate interests, recently filed state records show.
...
Lobbyist Richard Lipsky, who is now representing the Atlantic Yards development firm and the Retail & Wholesale Department Store Union to the city, had $5,000 for Mr. Espada.
Posted by lumi at 4:47 AM
July 22, 2009
Thieves that prey together
The Brooklyn Paper, Police Blotter
by Mike McLaughlin
The once-devoid-of-any-criminal-activity Atlantic Terminal Mall was a crime scene last week.
Ax not
Thieves stole several guitars from a music store in the Atlantic Terminal Mall on two occasions last week.
Police were called to the Guitar Center, which is on Flatbush Avenue between Hanson Place and Atlantic Avenue, on July 13 and July 16 after employees realized that six electric guitars and two acoustic pieces were missing.
Posted by eric at 1:00 PM
July 21, 2009
Forest City in the News
BisNow, DC Commercial Real Estate
Reminder: Tomorrow [7/21/09] is Bisnow's big Breakfast & Schmooze at the Reagan Building! Join two of real estate’s top figures, JBG’s Mike Glosserman and Forest City’s Debby Ratner Salzberg, with Senator Mark Warner, FBR co-founder Russ Ramsey, Clinton Budget Director Alice Rivlin, new Burke & Herbert CEO Hunt Burke, and top lobbyists to hear the latest on federal stimulus and the economy. Recession-busting prices! Sign up!
The Cleveland Leader, RTA Takes Us for the Wrong Ride
If you think that the Ratners have landed a sweet deal with the Metropolitan Transportation Authority, check out what they have going in Cleveland:
Despite the fact that these RTA [Regional Transit Authority] facilities help Tower City, RTA pays some $1 million a year to Forest City Enterprises, owner of Tower City. It’s annual fee for RTA’s use of space into Tower City. RTA pays an addition $32,000 to “reimburse” Tower City for central plant operations. It even pays a utility charge for use of the escalators! There’s room for negotiations here to lower costs.
Isn’t it time to renegotiate these fees lower since there’s less use and Tower City seems to always get reductions of its property taxes?
Posted by lumi at 4:49 AM
July 13, 2009
Forest City in the News
The Cleveland Plain Dealer, Years-long Terminal Tower renovation nearing completion
Forest City Enterprises, development company for Atlantic Yards, can do preservation and renovation when they want to.
At 79, Terminal Tower is older than Superman and may well be the first tall building he leapt in a single bound.
...
A years-long renovation project by its owners, Forest City Enterprises, is close to completion. An 80th birthday party, a year from this month, will showcase the work that has taken place since 1997 - a total makeover from top to bottom, inside and out. With a reverence for the classical interior and beaux-arts facade, every window and every elevator have been replaced, every surface has been repaired, replaced, polished or painted. All of this without disturbing the peregrine falcons that have nested on a 12th-floor ledge, or upsetting the ghost left behind by master plasterers above the main entry's majestic barrel-vaulted ceiling.
Associated Press, D.C. commercial property market resisting downturn
Even as the recession continues to squeeze commercial real estate owners across the United States, the impact on the nation's capital has been significantly less severe.
Washington's edge? Uncle Sam.
...
"Over (last) summer things started to go flat and got progressively softer," [Hessam Nadji, managing director at Marcus & Millichap Real Estate Investment Services] said.Yet developers are forging ahead with new retail projects like The Yards, which will add 400,000 square feet for shops and restaurants. The 42-acre project is being built by Forest City Washington Inc. in the Capitol Riverfront district and also will feature some 1.8 million square feet of office space and 2,800 residences.
Posted by lumi at 6:01 AM
July 11, 2009
Forest City Enterprises (FCE.A) Organized Trend Formed: 22.4% Move in 57 Days
TradingMarkets
We're not the only ones noticing that the stock price is still slipping for the developer of the proposed Atlantic Yards project.
Forest City Enterprises (FCE.A) Organized Trend Formed: 22.4% Move in 57 Days SmarTrend's proprietary algorithms detected bearish price action on shares of Forest City Enterprises (NYSE:FCE.A) which generated a Downtrend alert on May 14, 2009 at $6.29.
Since the alert, FCE.A has trended 22.4% lower as of today's recent price of $4.88.
Posted by steve at 6:45 AM
July 7, 2009
Superstore Me: Guilt, Rituals and Red Bags
The NY Times
THEATER REVIEW | 'BEHIND THE BULLSEYE'
By Jason Zinoman
When Target opened in 2004 at [Bruce Ratner's] Atlantic Terminal Mall in Brooklyn, this Minnesota-based superstore, trying to fit in, threw an invite-only party where a D.J. and local celebrities (including Maggie Gyllenhaal and Lizzie Grubman) mingled among two floors of Gatorade, kitchen appliances and reasonably priced consumer goods.
...
Target has not attracted the controversy of the nearby Atlantic Yards project, which plans to add a stadium and a new skyline of towers to downtown Brooklyn. But for some locals it’s part of the out-of-scale corporate sheen that threatens the spirit of their leafy borough. Anxiety about this development is stylishly illustrated in “Behind the Bullseye,” an intimate Target polemic that looks like one of Reverend Billy’s nightmares staged by Robert Wilson on a budget.
NoLandGrab: Three Points
1. Target is in reality a designer big-box store, adding to developer Bruce Ratner's collection of superstores that now litter NY cityscape.
2. For more proof that appearances matter, one could say that the Frank Gehry-designed Atlantic Yards project had not attracted the controversy as the off-the-shelf Atlantic Yards project Bruce Ratner is now proposing.
3. The Times should know by now, it's an "arena," not a "stadium."
Posted by lumi at 5:31 AM
July 3, 2009
Forest City Enterprises (FCE.A) Channel Alert: 3.3% Move in 49 Days
FoxBusiness.com
Jul 02, 2009 (SmarTrend(R) Spotlight via COMTEX) ----SmarTrend's proprietary algorithms detected bearish price action on shares of Forest City Enterprises (NYSE:FCE.A) which generated a Downtrend alert on May 14, 2009 at $6.29.
Since the alert, FCE.A has trended 3.3% lower as of today's recent price of $6.08.
SmarTrend is actively monitoring Forest City Enterprises for any change in trend direction.
NoLandGrab: In case folks at Forest City didn't notice, but two of the three related-ads that appeared with this item were for "penny stocks" — ouch!
Posted by lumi at 5:16 AM
June 30, 2009
Read the fine print: Investment analysts in bed with Forest City look positively on post-dealmaking Forest City
Atlantic Yards Report
A New York Observer piece yesterday, headlined Analysts: New Atlantic Yards Deal A 'Significant Positive' for Forest City Ratner, brought highly unsurprising news.
From the report by investment firm Keefe, Bruyette & Woods (KBW):
While many of the details have not been completely outlined publicly, we believe staging a takedown of the land and paying for the air rights portion starting in 2012 is a significant positive for Forest City. While the stretched-out takedown and payments will require a higher total outlay (implied 6.5% annual interest rate) over the 19-year period starting in 2012, this reduces current cash outlays in 2009 and near term. In addition, this means that Forest City's takedown of the additional parcels (or air rights) will be more closely matched with vertical development of stages of the project."
...Who does KBW work for?
Consider analyst McGrath's concern for the public interest, when she chortled with approval when learning that FCR's Beekman Tower would, in the words of Forest City Enterprises executive Bob O'Brien, take advantage of "the beauty of the Liberty Bonds, tax-exempt rates and all market-rate units."
The report also states:
KBW either expects to receive or intends to seek compensation for investment banking services from Forest City Enterprises Inc. during the next three months. During the past 12 months, KBW acted as a manager or co-manager in an offering of equity securities of Forest City Enterprises Inc.That's not an unusual entanglement for an investment firm, but it also gives reason to think KBW isn't inclined to be tough on Forest City.
Posted by eric at 9:33 AM
June 29, 2009
Forest City in the News
The Cleveland Leader, How Hypocritical Can Sam Miller Get Before We Laugh Him Out of Town
Forest City Enterprises co-chairman and Treasurer Sam Miller says he’s willing to donate to the Cleveland libraries if budget cuts are made by the State of Ohio. Sam says that he will donate to keep libraries in poor areas open if the cuts are made.
Cleveland's watchdog journalist Roldo Bartimole explains how, Forest City Enterprises depends on reductions in property and sales tax to keep the company's projects fiscally viable. As these reductions starve local municipalities of the tax revenue used to provide basic services, the budget gap is made up by suckers who pay their full share of taxes, with Forest City occasionally tossing around some bread crumbs.
Associated Press, via CBS2.com, Las Vegas Mayor Losing Support For City Hall Plans
Another Forest City Enterprises politically backed boondoggle may be fizzling out. This time the local unions are against the project:
Las Vegas Mayor Oscar Goodman's visions of a revitalized downtown may be in trouble as he loses support for a new city hall.
A re-imagined downtown with two new casinos, busy office towers and a mass transit line can't happen without a new hall, Goodman says.
...
Goodman is hoping to finance the project using bonds that are based on the city making annual lease payments on the new building. City officials estimated the cost of the city hall at $150 million last year.
...
The plan Goodman backs would give developer Forest City Enterprises a parcel to build a hotel-casino in part for building the new city hall. The current city hall and an adjacent 12 acres owned by the city would then be put up for development.
Posted by lumi at 4:58 AM
June 28, 2009
Where Geography Matters
The New York Times, Editorial
The Times opines against — sort of — the selling of subway-station naming-rights to Barclays.
After five years of trying, the Metropolitan Transportation Authority has sold the naming rights to a subway station. As of 2012 the M.T.A. will add the name Barclays to the Brooklyn station currently known as Atlantic Avenue-Pacific Street.
Yes, Barclays as in the British bank. Or more to the point, as in the British bank that bought the naming rights to the sports arena being built as part of the Atlantic Yards project. The buyer in this case is Forest City Ratner, the developer for Atlantic Yards. It will pay $200,000 a year for 20 years.
We know that is a goodly sum and times are very tough for the M.T.A. But there’s reason to be skeptical about all of this, which probably explains why it took so long to sell even this one.
...The names of subway stations are beautifully utilitarian just as they are, shifting only as rapidly as the streets above them shift. The names of their sponsors are likely to shift with the economic climate, and somehow adding a name like Barclays to what is, after all, a public transit station — in Brooklyn — feels even more dissonant.
NoLandGrab: The Times remains silent, however, on the MTA's sell-out of straphangers for Forest CIty's benefit. And whoops — they must've forgotten that the very same company is their business partner.
Posted by eric at 11:17 PM
June 16, 2009
Résumé Review
Crain's NY Business
by Ware Sykes
Crain's occasionally features a resumé, and some advice as to how to punch it up.
NAME
RENAD JABAJI
OBJECTIVE
A managerial career in construction and real estate development
EXPERIENCE
Forest City Ratner Cos., Manhattan, 2006-March 2009. Project development coordinator: analyzed and assessed subcontractor estimates for Barclays Center, Brooklyn; obtained substantial savings in construction schedules for Beekman Tower, Manhattan; value-engineered foundation and road design for significant savings for Ridge Hill, Yonkers
...EXPERT ADVICE
In the current economic environment, employers are looking for people who can generate revenue and save money. In your cover letter and when you're speaking with recruiters, emphasize that you not only have the skill set they need but that you also have the ability to deliver projects on time and under budget.
link [May require a subscription]
NoLandGrab: "On time and under budget?" The Barclays Center is neither.
And why would Forest City have laid off someone working on the arena three months ago (assuming that's why Ms. Jabaji left)?
Posted by eric at 2:46 PM
June 12, 2009
Forest City in the News
Arizona Daily Star, Gladden Farms buys up debt
The master-planned community Gladden Farms has avoided foreclosure on roughly 625 acres of undeveloped land, buying up its debt from lender GMAC Financial Services at a negotiated price.
Terms of the deal were not disclosed, but Dean Wingert, senior vice president of Ohio-based Forest City Enterprises, its developer, said Gladden Farms paid off its debt at a discount of slightly more than 50 percent, enabling it to commit to finishing the community despite a massive housing downturn.
"We basically paid them less than 50 cents on a dollar than what we owed them," Wingert said. "The foreclosure proceedings have all been canceled, and we have re-committed and re-evidenced our long-term interest in the property."
NoLandGrab: Is there a pattern emerging here? Forest City is seeking to pay the MTA only $20 million of the $100 million it promised to pay at closing for the Vanderbilt rail yard.
San Francisco Business Times, Oakland, Concord Smart Places To Grow
The Greenbelt Alliance, a Bay Area advocate of open spaces and vibrant communities, released a research report called "Room to Grow" in which it outlines specific areas including Oakland and Concord that are ripe for infill development.
Infill development refers to building new structures in places that have already been built out. The idea of making cities more dense has gained significant traction as people look for ways to commute less and have more amenities near home.
...One example is Oakland's Uptown neighborhood where major residential developments like Forest City's Uptown apartments, Signature Properties' Broadway Grand and Essex Property Trust's The Grand have added hundreds of new units and spurred dozens of new restaurants and bars in areas that used to empty parking lots and boarded up buildings.
NLG: Holy contextually appropriate development, Batman! We're pretty sure that if Forest City had proposed an infill project like that in Prospect Heights, it would be occupied by now. But they went for overkill, not infill.
Maryland Community Newspapers Online, Vying for bio
Forest City's Biopark business is doing better than its basketball portfolio, marginally.
"There is some competition between us," said Scott Levitan, senior vice president and development director for the Science + Technology Park at Johns Hopkins, developed by the Forest City-New East Baltimore Partnership. The first of five planned buildings in that biopark near medical giant Johns Hopkins opened about a year ago, and the 280,000-square-foot, $100 million facility is 50 percent occupied, with an additional 20 percent committed to leases, he said.
NLG: The Science + Technology Park at Johns Hopkins was the beneficiary of eminent domain takings.
Posted by eric at 11:58 AM
June 10, 2009
What's new with the mothership in Cleveland?
Norman Oder of Atlantic Yards Report listened in on yesterday's first quarter conference call with investment analysts.
Forest City executives to investment analysts: everything's fine with AY
Unlike past conference calls, Atlantic Yards does seem to be on the minds of some investment analysts, though Forest City executives still contend that the project is still on.
During the Q&A, about 30 minutes into the call, Analyst Sheila McGrath asked for an update on New York projects, including Atlantic Yards.
[Forest City Ratner President Joanne] Minieri responded: As it relates to Atlantic Yards, yes, there’s been a lot of press on Atlantic Yards, but we maintain, we’re committed to the project. We’re targeting a second part of the year master closing. We’re moving toward finalizing all the necessary negotiations with the public parties. We’re working very closely with Barclays and Goldman [Sachs] on the arena bond financing that is anticipated to occur so that we can go vertical on the arena. You probably have read today that we’ve announced the new architects on the arena. We are moving quickly to complete the design and cost estimates for that. That will enable us to meet our timetable for a second-half master closing.
Not only were the new architects announced, they were denounced. Minieri did not mention that there would be a new General Project Plan, and that there are pending appeals and potential new lawsuits.
What should $20 million buy? How much walking-around money do FCE family members have?
Though Forest City Ratner wants to short change the Metropolitan Transportation Authority, by only paying $20 million up front for the portion of the Vanderbilt Yard it needs to build the arena, instead of the $100 million as promised, family members of the parent company scrounged up $20 million to purchase more stock from the recent offering, intended to raise more capital to deal with the company's crushing debt burden.
Posted by lumi at 6:25 AM
June 8, 2009
Forest City Posts Smaller 1Q Loss; Occupancy Rates Down
Dow Jones Newswires via WSJ.com
Buffeted by the New Jersey Nets' $13-and-a-half million quarterly operating loss, Forest City Enterprises lost more money in the last quarter than Wall Street analysts expected them to — though not quite as much as they lost a year ago.
Forest City Enterprises Inc. (FCEB) reported a narrower fiscal first-quarter loss as the real-estate investment trust posted weaker-than-expected results amid largely weaker occupancy rates.
...For the quarter ended April 30, Forest City reported a loss of $30.7 million, or 30 cents a share, compared with a prior-year loss of $40.4 million, or 39 cents a share. The bottom line benefited from reduced project write-offs and increased rental-property income, but that was partially offset by $8.7 million in job-cut charges and $10.7 million in other write-downs.
Revenue rose 2.6% to $313 million.
The mean estimates of analysts surveyed by Thomson Reuters were for a 17-cent per share loss on revenue of $346 million.
Here's the official Forest City press release. CEO Chuck Ratner is not too bullish on the near-future for his line of business:
"As we have stated now for several quarters, we continue to be cautious in our outlook," Ratner said. "While we believe efforts to stimulate the economy will have a beneficial impact over time, we see no measureable improvement in current conditions, and we believe the recession will continue to deepen, particularly for real estate, before the economy turns around. As a result, we expect to see continued softness in fundamentals, particularly in retail and, to a lesser degree, in residential."
However, he's gung-ho about Forest City's "great" Atlantic Yards project:
"In mid-May, a significant legal victory was achieved for the Company's Atlantic Yards project in Brooklyn, when the Appellate Division, Second Department, unanimously upheld New York State's right to use eminent domain to acquire property at the site, given the significant public benefit associated with the project. This was an important win and affirmation for Atlantic Yards, and effectively removes one of the few remaining obstacles to moving forward with this great project."
More coverage...
Cleveland Plain Dealer, Forest City says losses narrowed, EBDT rose in first quarter
Executives at Forest City and Forest City Ratner Cos., the company's New York arm, also have said they plan to break ground this year for a new arena in Brooklyn for the New Jersey Nets. The arena is part of the company's much-delayed Atlantic Yards project. Last week, Forest City announced that architect Frank Gehry will not longer design the arena. Gehry, the master-planner for Atlantic Yards, has been replaced with architectural firm Ellerbe Becket, which has designed sports facilities including Quicken Loans Arena.
As of right now, Wall Street appears unimpressed by Forest City's results: shares are trading down 25 cents, or 3.52%.
Posted by eric at 12:05 PM
So, Daniel, how was YOUR weekend?
The Brooklyn Paper
By Gersh Kuntzman
When you're "Atlantic Yards most dogged critic," the price of admission to developer Forest City Enterprises's annual stockholder's meeting in Cleveland is just a few shares.
Daniel Goldstein of Develop Don’t Destroy Brooklyn, went to Cleveland on Friday to confront development company officials on why their project should be abandoned.
As one might expect, company officials were not persuaded.
Goldstein listed a litany of recent problems with the project, followed by a question:
“You don’t own the land you need or have the financing you need to construct the arena or the rest of the project. Yet you claim you will finance it, break ground this year and open the arena in 2011, which is already an impossibility. This means the losses from keeping the team in Meadowlands will continue to mount. “You also have a looming end-of-year IRS deadline to issue the tax-exempt arena bond, and missing the deadline would cost Forest City an estimated $150–190 million, likely spelling doom for the project.
“Given all of these challenges, can you let the Forest City Enterprises shareholders know [the] contingency plans if and when you don’t break ground in 2009 and can’t open the arena in Brooklyn in 2011?”
The answer came from Forest City Enterprises Co-chairman Al Ratner:
“The company does believe that it will start the project during this year,” he said, declining further comment because, he said, of ongoing litigation.
Posted by lumi at 6:28 AM
June 6, 2009
Daniel Goldstein of DDDB Attends Forest City Annual Meeting
Develop Don't Destroy spokesman Daniel Goldstein attended yesterday's Forest City Enterprises' annual meeting to ask questions about the status of the proposed Atlantic Yards project. It makes sense to travel to Cleveland since state officials here in New York keep much about the project a secret.
Atlantic Yards Report, DDDB’s Goldstein goes to annual meeting in Cleveland, publicly asks Forest City questions, gets shrugged off
Goldstein was the first and only questioner. He spoke respectfully but his words were not those of a happy investor but of a company critic. (Had he been speaking at last Friday’s oversight hearing, supporters orchestrated by Forest City Ratner would have quickly shouted him down.)
“My name is Daniel Goldstein. I am shareholder. Thank you for allowing me to speak,” he said, noting he’d have a comment and then some questions. [Goldstein bought a few shares earlier this year to be able to attend.]
Forest City, he noted, is losing some $30 million a year owning the New Jersey Nets. The AY project is being redesigned, faces new political approvals, and faces a “staunch and widespread opposition.” (Well, it also has a lot of political juice.)
He cited ongoing litigation, diminished political support, and an “extremely challenging economic environment for an $800 million arena and 6400 housing units.”
Yesterday, he noted, it became official that architect Frank Gehry was no longer designing the arena, thus raising questions about the $400 million naming-rights deal with Barclays and thus the arena revenue model.
Forest City doesn’t own the land it needs or have the financing it needs to start the arena, he pointed out. “Yet the company claims it will finance the project, break ground and open the arena in 2011,” Goldstein said, suggesting that losses will continue to mount.
...
Forest City has an end of year deadline for tax-exempt arena bonds that would save the developer at least $150 million, Goldstein said, then offering questions:
- Given all of these challenges, can you let Forest City shareholders know what contingencies you have if you can’t break ground in 2009 and can’t open the arena in 2011?
- And why has Forest City chosen this particular project, “fraught with so many major obstacles,” as the only development to begin vertical construction this year?
FCE Co-Chairman Albert Ratner, on the webcast, seemed nonplused. “The company does believe that it will start the project during this year,” he said. Then, he calmly evaded the rest of the questions by claiming that ongoing litigation precludes further discussion of the issue.
Of course ongoing litigation did not deter an announcement about Gehry yesterday.
Even if construction begins in this calendar year, Forest City can’t open the arena in 2011—Ellerbe Becket arenas take 27+ months to build—so that’s a question that should be asked again and again of those promoting the project.
The Plain Dealer, Atlantic Yards opponent, Daniel Goldstein, shows up at Forest City Enterprises' annual meeting
Executives at Forest City Enterprises Inc. got a bit of a surprise Friday when the most vocal opponent of the company's Atlantic Yards project in Brooklyn, N.Y. showed up at the annual shareholders' meeting.
But an exchange between Daniel Goldstein and Forest City Co-Chairman Albert Ratner was short and polite, doing little to detract from the meeting's generally upbeat tone. Goldstein, whose apartment sits in the path of the project, raised questions about Forest City's ability to pull off the $4 billion, 22-acre development.
Ratner responded simply: Forest City believes it will start the project this year, beginning with a new arena for the New Jersey Nets basketball team. Then, citing outstanding litigation, he ended the conversation.
Posted by steve at 6:31 AM
June 3, 2009
FCE Press Release: Forest City to Webcast 2009 Annual Meeting of Shareholders
PR Newswire
CLEVELAND, June 3 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc., (NYSE: FCEA) (NYSE: FCEB) today announced that the Company will webcast its 2009 annual meeting of shareholders beginning at 2:00 p.m. Eastern time on Friday, June 5, 2009. The annual meeting is being held at the Ritz-Carlton hotel in Cleveland.
The business portion of the meeting will be followed immediately by management presentations. The meeting and presentations will be broadcast live over the Internet through an audio-only webcast on the Company's website. To access the live broadcast, please visit the investor relations page of the website, www.forestcity.net. A webcast replay will also be available on the website, beginning approximately 24 hours after the live meeting concludes.
Posted by eric at 4:03 PM
June 1, 2009
Forest City in the News
GlobeSt.com, $42 Million Forest City Project Breaks Ground
WASHINGTON, DC-Ground was broken yesterday on a piece of one of the District’s largest development projects – a waterfront park overlooking the Anacostia River. The 5.4-acre development is being built for $42 million in a public private partnership with Forest City Washington. It is part of the District’s plan to transform 42 acres of the former Southeast Federal Center site into an urban waterfront destination.
AP (via Forbes.com), DC mayor breaks ground on waterfront park
Mayor Adrian Fenty has broken ground for a waterfront park to be located between Nationals Park and the historic Navy Yard on the Anacostia River.
The Park at the Yards is part of Washington's largest development project. Fenty broke ground for the $42 million park Thursday, along with officials from private developer Forest City Washington and the General Services Administration.
Washington Business Journal, Forest City breaks ground on D.C. park
The Yards is the only public-private partnership in the country being built on federal land, which was made available by Congress in 2000. Altogether, Forest City and its partner, MacFarlane Partners, plan 2,800 residential units, 1.8 million square feet of offices and as much as 400,000 square feet of retail.
Dallas Observer Blogs, Forest City's "Not Ready" For Mercantile Continental to Become Landmark. Or Apartments Either. Not Just Yet.
Forest City is dragging its heels in hopes that two of its historic properties in Dallas are not encumbered by protective landmark status.
Posted by lumi at 5:03 AM
May 29, 2009
Savings on Labor Allow Work on Residential Skyscraper to Resume
The New York Times
by Charles V. Bagli
The Beekman is back!
Two months ago, work stopped abruptly at the 37th floor of the 76-story Beekman Tower as the developer Bruce C. Ratner desperately sought to cut costs on the project, a glass and stainless steel apartment building in Lower Manhattan.
Just as abruptly, work resumed this week on the tower, which will be the architect Frank Gehry’s first skyscraper and the tallest residential building in the city.
The developer, who had threatened to cap the building at 40 stories, said he was able to retain Mr. Gehry’s distinctive wavy-wall design and the tower’s full height, while paring labor expenses and taking advantage of falling prices for construction materials and appliances for the tower’s 900 apartments.
Posted by eric at 7:50 PM
Forest City in the News
Dallas Observer, This Evening, Talk of Designating Two Downtown Buildings as Historic Landmarks
Forest City tried to double-dip in Dallas’s subsidy pool through a landmark designation, and now they may be sorry they did so.
Noticed something interesting on the Landmark Commission Designation Committee's agenda for today's 5:45 p.m. confab: the re-initiation of historic designation proceedings for two downtown buildings, the Mercantile Continental Building on Commerce Street and the Dallas National Bank Building on Main Street (otherwise known as The Joule). That's re-initiation -- as in, both buildings were, at one time, being vetted to see if they deserved designation and should be afforded the attendant protections and stipulations that come with such a title. But the initiation proceedings were terminated -- by the very folks who initially approached the Landmark Commission about starting 'em up in the first place.
Katherine Seale, executive director of Preservation Dallas and a member of the Designation Committee, says that three years ago, the owners of both properties approached the Landmark Committee about designation. Forest City Enterprises, of course, owns the Continental, which sits just across the street from their Merc re-do, while Tim Headington is the oil man who sunk a small fortune into the circa-1925 Gothic revival skyscraper known as the Dallas National and rebranded it The Joule.
The Designation Committee found both more than worthy of historic designation -- each met at least eight of the 10 criteria -- and recommended moving forward. But representatives for both owners yanked their request for designation, Seale says, because officials with the city's Office of Economic Development told the owners they wouldn't be eligible for historic property tax credits, since both were receiving tax increment financing district money for their respective redos. (Forest City, which has promised 140 residential units in the Continental Building, is set to receive $10 million from the Dallas Connection TIF; The Joule, $8.5 million from the City Center TIF.) Messages have been left with Karl Zavitkovsky, head of Economic Development.
"So the property owners asked the nominations to be withdrawn," Sea