No Land Grab

July 2, 2009

Ratner promises Atlantic Yards arena redesign

The Forest City Ratner chief said the Atlantic Yards basketball arena renderings leaked to the media last month were premature and do not reflect his intentions for the project.

Crain's NY Business
by Erik Engquist

Promises, promises.

So, Bruce, you'd have us believe that you spent a bunch of money to produce several renderings to submit to the Department of City Planning (whose commissioner, Amanda Burden, leaked them to the press) that do not reflect your "intentions for the project?" Uh, wha?

Bruce Ratner, chief executive of Forest City Ratner, has told senior members of the Bloomberg administration that the Atlantic Yards basketball arena renderings leaked to the media last month were premature and do not reflect his intentions for the project, city sources say. While Mr. Ratner is said to have reaffirmed his commitment to a "world-class" design, he faces the challenge of improving it without substantially raising the cost.

Frank Gehry had designed a $1 billion arena that impressed architecture critics but proved unaffordable when the economy tanked and credit markets froze. Missouri-based architectural firm Ellerbe Becket was brought in and proposed a $772 million arena that resembled an airplane hangar. To say that the design did not meet the expectations of Amanda Burden, chairwoman of the City Planning Commission, would be a vast understatement.

"One of the key goals of the Atlantic Yards project was to transform an area with development that incorporates world-class architecture, a dynamic streetscape, and significant public amenities," she said in a statement issued by her spokeswoman. "Bruce Ratner has given the city a commitment that he will design the Atlantic Yards in a way that respects both the letter and the spirit of what was envisaged in 2006, when the project received its original approval."

article

NoLandGrab: Bruce Ratner has twisted the truth about Atlantic Yards so often that it has now become habitual. And Amanda Burden really needs to come out in public and say what she supposedly says in private: that Atlantic Yards was a bad idea that has only gotten worse.

Posted by eric at 3:34 PM

June 29, 2009

As Arenas Sprout, a Scramble to Keep Them Filled

The NY Times
By Charles V. Bagli

...those who study sporting facilities say empty seats may become even more commonplace here, as New York faces a glut of sports arenas.
...
At least two of the existing arenas already lose money, and experts say further casualties are almost guaranteed.

The article takes account of the existing and planned arenas — Bruce Ratner's Barclays Center, Newark's Prudential Center, the Izod Center in the Meadowlands, the Nassau Coliseum, and Madison Square Garden — and explains how each, especially Ratner's arena, is hoping to cannibalize the others.

article

Atlantic Yards Report, The Times's "arena glut" story suggests Barclays Center is on the way, marginalizes IBO's analysis as the work of "critics'

An article in today's New York Times, headlined As Arenas Sprout, a Scramble to Keep Them Filled, makes some valuable points, including the money-losing (Newark) Prudential Center's need to attract the Nets and/or have the Izod Center close down, but deserves several footnotes, since it in some places frames the Barclays Center too generously.
...
The Times skates over an important issue:

The competition in the New York area is not just for fans and performers, but also for public subsidies, corporate sponsors and well-heeled tenants for luxury suites.

More importantly, the Times neglects to question whether, given the glut of arenas, federal tax-payers, via tax-exempt bonds, should subsidize a new arena to tune of $100 million-plus.

Also of great importance is that this article undermines the report, authored by Andrew Zimbalist and commissioned and released by Bruce Ratner, that predicted that a new Nets arena would be a net gain for the public, provided that it would "host 224 events during the year (assuming the eventual closing of CAA, no new arena in Newark, no NHL and no minor league hockey events at the Atlantic Yards arena.)"

Crain's NY Business, Top Row

The Yanks are filling a smaller share of home-game seats, vs. 90.7% in "08, though their new home holds fewer fans.

Trailing the pack of local pro teams, Bruce Ratner's NJ Nets reportedly only filled 75.8% of their seats during the 2008-09 season.

Posted by lumi at 5:55 AM

June 23, 2009

MTA says arena would open in 2012, not 2011

Atlantic Yards Report

Oops, an MTA official let slip something we knew all along:

It was an aside during the presentation yesterday by Metropolitan Transportation Authority Chief Financial Officer Gary Dellaverson, but he clearly said (upon review of my recording) that "now until 2012 is the anticipated construction of the arena."

That's the date that I've been using as a best-case scenario for an arena opening, even as Forest City Ratner still claims it could open in 2011.

article

NoLandGrab: This kinda stuff never stopped Atlantic Yards developer and NJ Nets owner Bruce Ratner from misleading the public and press about the arena opening date before. We don't expect Ratner to be stricken by a bout of honesty any time soon.

Posted by lumi at 6:59 AM

June 18, 2009

Web readers ask: What WAS that pro-arena editorial?

BrooklynPaper.com, Letters

Readers of The Brooklyn Paper were overwhelmingly dismayed — actually, stronger words are required — by last week’s editorial supporting Bruce Ratner’s now-Frank Gehry–less basketball arena plan (“Just do it,” editorial, June 12). In fact, we got more comments than we’ve ever received on an editorial. Here’s a fair synopsis.
...

“Gehry or not, Brooklyn doesn’t need this arena. The economic development in this part of Brooklyn was just fine before the city and Ratner became involved. This is a land and power grab, not an opportunity for economic development. Please, spare us Brooklyn Paper’s editorial crying. Crying for the corrupt and powerful is no way to live.”

Charles, Park Slope

“Brooklyn has muddled along without a major league sports franchise for decades. It will do fine with or without Ratner’s pick-pocketing. Good riddance to the abuse of process, lack of transparency, and back-room deals by those who don’t make the borough their home.”

Freddy, Park Slope

Read on for plenty more where those came from.

Posted by eric at 11:16 PM

June 16, 2009

So, where would they put the practice facility? And would the team bond with Brooklyn?

Atlantic Yards Report

With some lack of precision, [SportsBusiness Journal] reports:

In addition, the Nets are building a practice facility next to Barclays Center, on the corner of Flatbush and Atlantic streets, something that was not part of Gehry’s design. The add-on ties in with the team’s effort to form a close bond with Brooklyn’s 2.5 million residents by having the players spend more time on-site, Yormark said.

Well, Flatbush and Atlantic are avenues, not streets. If the practice facility does occupy that wedge area, then it could block any plans for the once-promised Urban Room. (Maybe they could call it the Urban Room.)

Attached practice courts are nothing new in NBA arenas. They're included in the Conseco Fieldhouse in Indianapolis (model for Brooklyn), the TimeWarner Center in Charlotte, and the Verizon Center in DC, among others.

article

Posted by lumi at 5:32 AM

June 15, 2009

Evoking Brooklyn like never before

Nets Daily has posted some excerpts from a SportsBusiness Journal update on the Conseco Fieldhouse, we mean new Barclays Center, complete with some novel new spin from Nets' CEO Brett Yormark.

SportsBusiness Journal, Nets’ arena vision: ‘Brooklyn brand’ [Subscription required]

With sports architect Ellerbe Becket officially replacing renowned civic designer Frank Gehry on the New Jersey Nets’ Barclays Center project, the Nets are redeveloping their venue plans by focusing on the “Brooklyn brand.”

Nets Daily, Yormark Provides Details on Arena Design…and New Practice Facility

Before flying off to China Saturday, Brett Yormark provided Sports Business Journal with details on the new Barclays Center design…and a Brooklyn practice facility. The design includes a tighter seating bowl entered from street level, a mix of large and “mini-suites”, more in-house TV feeds, and plenty of natural light, said Yormark. Bottom line: “the building is now going to evoke Brooklyn like never before.”

Nets Daily, Excerpts: Sports Business Journal on New Arena Design

Yormark needs to rethink his alleged "I only sleep three hours a night" routine, because every time he opens his mouth, he sounds more and more delirious.

Gehry had never designed a big league arena before Nets owner Bruce Ratner called, whereas Ellerbe brings experience in building multiple NBA arenas that will help get the job done in time for a planned 2011 opening.

NoLandGrab: That was the whole point — the big sell on the arena was that it would be Gehry's first big-league arena. And Metrotech will freeze over before a Brooklyn arena opens in 2011.

"The biggest change is that the building is now going to evoke Brooklyn like never before,” he said. “There’s such a legacy there. Wherever I travel, it is an international brand. They wear it on their hats and on their chests. We’re going … to brand Brooklyn in a big-time way, and it will start with the look and feel of the building."

NLG: Yes, nothing evokes Brooklyn like a knock-off of an Indianapolis design knocked off from another Indianapolis design. There is, however, a Brooklyn, Indiana. Brooklyn, New York is pretty well branded already, no?

The 18,000-seat arena’s two suite levels will be called the Brownstones and the Lofts.

NLG: In memory of the brownstones and lofts Ratner is tearing down?

Here's confirmation that the Urban Room is d-e-a-d.

In addition, the Nets are building a practice facility next to Barclays Center, on the corner of Flatbush and Atlantic streets, something that was not part of Gehry’s design. The add-on ties in with the team’s effort to form a close bond with Brooklyn’s 2.5 million residents by having the players spend more time on-site, Yormark said.

NLG: Nets players are sure to be psyched that they'll have to drive in from their homes in New Jersey on off-days, too. And nothing says "lively public space" like a closed practice facility.

Is it just us, or is this whole plan getting weirder and weirder by the day?

Posted by eric at 10:40 AM

June 11, 2009

Gehry or not, Brooklyn needs this arena

The Brooklyn Paper, Editorial

Indianapolis knock-off or no, the Brooklyn Paper is gung-ho for Bruce Ratner's arena.

Bruce Ratner’s bid to save his Atlantic Yards basketball arena by simplifying its design was predictable, but for our part, we’ll stick with consistency: Whatever serious reservations we’ve had about the larger Atlantic Yards project, the plan for the arena — though no longer the grandiose one envisioned by Frank Gehry — still merits support.

Consistently wrong, that is.

The arena remains what we have always said it is: a fundamentally vital civic project in the right place at the right time.

Um, wrong place (Brooklyn's most-congested intersection), wrong time (when actual vital things, like schools, mass transit and city services are being slashed).

Now the timing better fortifies our long-held position. In the current economic climate, it would be foolhardy to walk away from both the economic development opportunity and heightened civic identity offered up by the arena and the Nets.

Now here's where it gets silly. Did the Brooklyn Paper miss the big news from the State Senate hearing two weeks ago, you know, the bit where the city's Independent Budget Office declared the arena a money-loser for the taxpayers? Now that's an economic development opportunity.

Read on to hear how Brooklyn won't be whole without its very own mediocre pro franchise, how Frank Gehry's arena design was like ladies' undergarments, and the caveats. And boy, are there caveats.

Posted by eric at 11:57 PM

The Post notices that the Brooklyn arena couldn't be open until the 2012-13 season

Atlantic Yards Report

Norman Oder is happy to see any acknowledgment from the mainstream media — even from an obscure NY Post blog — that there's no way the Nets will be playing in Brooklyn in 2011.

I've been encouraging everyone to do the math about the best-case arena opening. Now there's finally a mainstream media acknowledgment, albeit online and somewhat in passing, that the earliest Brooklyn basketball season would be 2012-13, not 2011-12.

The observation came from an unbylined "web editor" writing in a New York Post sports blog, The Back Page, about the prospects for Cleveland superstar LeBron James moving to the Nets....

article

NoLandGrab: Yes, we know, that "obscure NY Post blog" surely has oodles more readers than we do, but that's what we're callin' it.

Posted by eric at 11:20 PM

Nets’ New Sponsor Comes in High Def From China

City Room
by Charles Bagli

Nets' CEO Brett Yormark isn't letting the Gehry debacle get him down — he's fixin' to announce a new sponsor. How does he do it?

The New Jersey Nets may not have gotten final approval or the financing for their proposed $800 million arena at the Atlantic Yards project near Downtown Brooklyn, but the team has rounded up another lucrative sponsorship deal, with Haier, the giant appliance manufacturer from China.

The agreement with Haier, which makes the National Basketball Association’s official high-definition television, is expected to be announced within the next several days, according to an executive who was briefed on the deal. The company will have a store within what would be known as Barclays Center, which is part of a planned 22-acre development near Downtown Brooklyn.

The Nets already have a $400 million naming rights deal with Barclays Bank. The team has also signed eight other “founding partners,” or sponsors, including Anheuser-Busch, Cushman & Wakefield, Emblem Health and Phillips-Van Heusen. There will be a Jones Soda Shoppe and a Foxwoods club. Those deals are worth more than $100 million.

The value of the Haier deal is unknown.

article

NoLandGrab: How does The Times know it's “another lucrative sponsorship deal” if the “value of the Haier deal is unknown?” Because Brett Yormark said so? They really ought to know better by now.

Hope this one works out better than Yi Jianlian.

Posted by eric at 10:57 PM

More farewells to Frank

We have to admit, even we're starting to tire of this storyline.

Crain's NY Business, Gehry off the case in Brooklyn

The company plans to use a number of architects to design individual buildings, according to the statement, which noted that Mr. Gehry remained the master planner.

NoLandGrab: It's quite funny that Gehry's only remaining role is that of "Master Planner," something his entire career demonstrates he is clearly not.

The Business of Sports (SunSentinel.com), Arena design: economics v. art

But those that chose to be different have successfully built sports venues that represent their communities, ones for which fans can immediately identify their place. Think PNC Park overlooking the Allegheny River in Pittsburgh; the old brick warehouse that’s part of Oriole Park at Camden Yards in Baltimore; and, even American Airlines Arena, overlooking Biscayne Bay.

Isn’t making progress correcting bad decisions of the past? Do we want to regret a decision that was made based on economics? Miami Arena, anyone? The pink elephant was obsolete when it opened in 1988, lost its tenants and was demolished last year.
...

“Unfortunately the world we live in today is very different than what it was three or four years ago when we hired Frank," Nets chief executive Brett Yormark said Wednesday according to the piece. "The world is more simplistic. It's not as grand and glitzy. And I'm not sure that design would have been appropriate right now, as much as we all loved it. I think the design that we have now is very appropriate. It speaks to Brooklyn."

I’m not so sure.

Posted by eric at 6:19 PM

Clock ticking on Nets move to Brooklyn

NorthJersey.com
by John Brennan

The Nets have just over six months left to wrap up their planned move to Brooklyn, Nets Chief Executive Brett Yormark said today.

“We have to break ground this year for various reasons,” Yormark said during a panel discussion at the audience at the annual Sports Facilities and Franchises event in Manhattan.

One reason is the Dec. 31 expiration of an IRS provision allowing tax-free bonds to be issued for construction of the team’s proposed Barclays Center in Brooklyn.
...

Yormark was asked during the panel discussion what would happen if the Dec. 31 deadline was not met.

He said that he asked Ratner the same question when being interviewed for the job several years ago. He said he was told, “There are no other options.”

A few hours later, Devils principal owner Jeff Vanderbeek said Newark’s Prudential Center could be an option if the Brooklyn plan falls through.

“We’ve always said that we would” share the Newark arena, he said when asked about the idea by an audience member. “We’d welcome them with open arms. I think that they certainly would do very well here.”

article

Posted by eric at 8:20 AM

Is ESDC approval a "formality"? The truth and fallacy of Yormark's observation--plus a 2012 best-case arena opening date

Atlantic Yards Report

Nets CEO Brett Yormark is caught in a truth, but we expect him to recover:

As the Record, reported:

[Yormark] also said approval by the Empire State Development Corp. for a revamped construction plan was a “formality” to be finalized later this month.

Yormark added that public hearings would follow this summer, “also as a formality.”

Well, he's right--and he's wrong. Few doubt that the ESDC will "adopt" a revised Modified General Project Plan, setting forth a 60-day process, including a public hearing, and board approval.

But it's not just a formality. It gets the ESDC to state, on the record, whether it predicts a ten-year buildout, as before, and how many buildings might be constructed at first. And it opens up the ESDC to potential litigation.

article

Posted by lumi at 5:43 AM

June 10, 2009

Jay-Z: “September We Break Ground”

Nets Daily

Either Jay-Z blundered, or the Nets really think that they are going to break ground on a new arena in Brooklyn in SEPTEMBER (as in after August and before October).

The Nets haven’t been very specific about when they’ll break ground for the Barclays Center, saying only “this fall” or “later this year”. Jay-Z, who owns a small piece of the team, gave a little more detail Tuesday. At the end of an interview on his latest album, he twice said ground breaking will take place in September, adding “We went through all the law proceedings and we refined the drawings”.

article

See below for reaction to the "refined" drawings.

Posted by lumi at 6:56 AM

June 9, 2009

It Came from the Blogosphere... (More Ourousoff fallout edition)

Brooklyn Born, An open letter to Nicolai Ouroussoff

The Brooklyn blogger gives Nicolai Ourousoff a nod for admitting, albeit just a tad, his complicity in this debacle, but isn't having any of this we're-all-in-this-together nonsense.

Now the part where I become conflicted to a personal degree is where I want to point out how hypocritical it is of the lead architectural critic of the New York Times to basically say I played a part in the process of selling the public on celebrity/aspirational architecture that is out of scale for it's intended surroundings and may actually be harmful when complete; but then end his article as if we all need alter our behavior and learn from this failing project.

To end on that note is to cast responsibility on everyone as if we are all equal players in this play.
...

I am tired of people in positions of responsiblity not being responsible and then offering a "what we all need to learn from this..." message when in fact we all didn't support this mess.

The Local [Fort Greene/Clinton Hill], Arena Fallout, Cont’d.

Times architecture critic Nicolai Ouroussoff’s willingness to admit having drunk and served up the Kool-Aid on the Atlantic Yards arena does not get him off the hook, Brooklyn Born writes in an interesting open letter to Mr. Ouroussoff.

Golden Icing, Atlantic Yards – a disappointing update

For all my critiques of Gehry’s proposal, the plan described here is far worse.

Creative Contact, Gehry Departs, Brooklyn Rejoices?

Since its conception, the entire Atlantic Yards project has been a center of controversy - too big, too flashy, too costly - and this recent bit of news does not help.

TEXTSCAPE, Worst possible outcome for Atlantic Yards

Despite the skepticism and abuse of some of my friends, I'd been a fan of Atlantic Yards.
...

Now we have the official announcement of Gehry abandoning the project and of the project going to Ellerbe Becket. All the potential urban congestion issues with none of the compensations of great architecture. Atlantic Yards will now join the less than mediocre Atlantic Terminal/Atlantic Center and the single story big box windowless stores across Flatbush.

The Cleveland Leader, Forest City Walloped by New York Times Critic

Ouroussoff writes that the arena design for the Nets team would make it “fit more comfortably in a cornfield than at one of the busiest intersections of a vibrant metropolis.”

Ouch!

Develop Don't Destroy Brooklyn, Dear Barclays Bank: This is Worth $400 Million to You??!!

DDDB wonders how Barclays likes its arena now.

Posted by eric at 5:24 PM

How Many Different Ways Can Nicolai Ouroussoff Say ‘Do Not Want’?

The Daily Intel
by Chris Rovzar

For those of you overwhelmed with all the Gehry vs. Ellerbe media buzz, the New York Magazine blog boils down Nic Ourousoff's lament about the new Atlantic Yards arena design to little more than Tweet length:

The new "colossal, spiritless" stadium is "a blow to the art of architecture" that "should enrage all those who care about this city." It is "a shameful betrayal of the public trust." Its "low-budget, no-frills design embodies the crass, bottom-line mentality that puts personal profit above the public good" and would "fit more comfortably in a cornfield than at one of the busiest intersections of a vibrant metropolis." "As glamorous as a storage warehouse," it "lacks the sense of mystery and surprise that was such an essential part of the Gehry design … adding nothing." If it is ever built, "it will create a black hole in the heart of a vital neighborhood."

Also, it's fat. Ugh.

article

Posted by eric at 4:34 PM

It came from the Blogosphere...

Who Gives A Shit, It's Gone, Yet Another Reason to Root Against the Nets

I'm not going to go into all the many, many ins-and-outs of the highly contentious Atlantic Yards development project, which consists of a new arena for the New Jersey Nets and 16 residential/office towers right in the heart of Brooklyn.
...

By my unofficial tally, however, there are probably 1,000 or so reasons to be against the project. But until developer and Nets owner Bruce Ratner had the gaul to fire architect Frank Gehry in favor of Ellerbe Becket, the architectural equivalent of trading Michael Jordan for Kerry Kittles, nobody of institutional import dared to chime in against Ratner's plan. Enter the New York Times, whose line in the sand is, apparently, bad architecture...

Realty Collective, Atlantic Yards arena scrapped in favor of Tractor Supply Company

In a stunning turnaround, Forest City Ratner released their latest plans for what was to be the Nets stadium at Atlantic Yards - Brooklyn's first Tractor Supply Company. The new proposal may finally unite community groups, civic leaders, and the developers.

Given Brooklynites' deep commitment to sustainable living and local organic produce, Tractor Supply Company may finally fill the need for small farm vehicles, manure spreaders, and rototillers currently unmet by other big box chains. The new design is fresh and rural, and sends a meaningful message for these bleak economic times - thumbing its nose at "fashion" and "quality."

Brownstoner, Ouroussoff, Tell Us How You Really Feel

New York Times architecture critic Nicolai Ouroussoff doesn't mince words in reviewing the new design for the Atlantic Yards Arena.

WCWP Sports, Nets, Atlantic Yards Ditch Gehry -- Get Gymnasium

Damn, Nicolai. That's cold... but true.

Pray extra hard tonight, people. This cannot be built.

Curbed, New Nets Arena Renderings Make Critic No Less Angry

...not only does the new Barclays Center threaten to destroy the neighborhood, but it could also wreak havoc on the entire city and architecture as a whole.

Only the Blog Knows Brooklyn, Times on Ratner: A Stunning Bait and Switch

In yesterday's New York Times Nicolia Ouroussoff wrote a scathing piece about Forest City Ratner's decision to change architects on the Atlantic Yards Project.

Taunter Media, Bait and Switch

It seems they had a bit of a change of heart, and decided to go with something a bit more Oversized Costco:

Actually, that’s not quite fair. It is simply a relocated Conseco Fieldhouse, which nicely saves everyone the trip to Indianapolis:

Tropolism, Atlantic Yards: The First Post

Instead, the project has simply been redone, shorn of its residences and shops and now it's simply become one of those deadening black holes in the city, just like "Madison" "Square" "Garden". It's a classic, bald-faced bait-and-switch, which is a cute New York way of saying that Forest City Ratner are crooks. They have stolen the public's patience and benefit of the doubt in exchange for their own personal profit. The effect of which is that this part of Brooklyn will be dumb and cold and dead until 2050 when some even more stupid gyration will have to happen in order to renovate the dumb thing that might get built right now.

NY Times City Room, The Atlantic Yards Development: Two Designs, Many Opinions

Nicolai Ouroussoff’s assessment of the new scheme for the Nets arena in Brooklyn, which replaces a more elaborate and expensive Frank Gehry design, has drawn a lot of reader comments — he’s apparently not the only one with strong feelings.

Nets Daily, Architecture Critic Laments New Arena Design

Amazingly, there are actually a couple Atlantic Yards-related blog posts today that don't mention Nicolai Ourousoff or the new arena design.

The Angry New Yorker, DO THE MATH! BLOOMTURD’S NUMBERS READY TO DROP!

Atlantic Yards ranks #3 among TANY's reasons why the Mayor's re-election bid is about to come undone.

Curbed, Brooklyn's New Tallest Gets a Name: The Brooklyner!

Atlantic Yards gets a mention in this story about Brooklyn's excitingly named new tallest building.

For all the hubbub that was created when Frank Gehry designed his Miss Brooklyn skyscraper at the Atlantic Yards to replace the Williamsburgh Bank Building as Brooklyn's tallest building (before it was eventually downsized), the Clarrett Group's 111 Lawrence Street has flown relatively under the radar.

NoLandGrab: Downsized? As of now, Miss Brooklyn is non-sized.

Posted by eric at 1:54 PM

Battle Between Budget and Beauty, Which Budget Won

The NY Times
By Nicolai Ouroussoff

Calling it "a shameful betrayal of the public trust"," The Time's architecture critic blasts Bruce Ratner's arena bait and switch.

Whatever you may have felt about Mr. Gehry’s design — too big, too flamboyant — there is little doubt that it was thoughtful architecture. His arena complex, in which the stadium was embedded in a matrix of towers resembling falling shards of glass, was a striking addition to the Brooklyn skyline; it was also a fervent effort to engage the life of the city below.

A new design by the firm Ellerbe Becket has no such ambitions. A colossal, spiritless box, it would fit more comfortably in a cornfield than at one of the busiest intersections of a vibrant metropolis. Its low-budget, no-frills design embodies the crass, bottom-line mentality that puts personal profit above the public good. If it is ever built, it will create a black hole in the heart of a vital neighborhood.

Ouroussoff later adds:

A massive vaulted shed that rests on a masonry base, the arena is as glamorous as a storage warehouse.
...
Building this monstrosity at such a critical urban intersection would be deadly. Clearly, the city would be better off with nothing.

Refreshingly, instead of taking the simple-minded tack of blaming project opponents, Ouroussoff acknowledges one of the early criticisms of the arena:

I suppose we should have seen this coming. The scale and location of the project posed serious challenges — challenges that could not be solved by the conventional development formulas. Arenas are notorious black holes in urban neighborhoods, sitting empty most of the year and draining the life around them. And in this case, the arena would dominate a major intersection and anchor a dense 22-acre residential development several blocks to the east.

The Times also published a closer preview of the arena design (above) than the rendering released late last week.

article

Atlantic Yards Report, NYT critic Ouroussoff wakes up, calls new arena design a "stunning bait-and-switch" and a "shameful betrayal of the public trust"

Norman Oder chronicles Ouroussoff's conversion:

OK, in July 2005 New York Times architecture critic Nicolai Ouroussoff enthused that Frank Gehry's Atlantic Yards plan "may be the most important urban development plan proposed in New York City in decades." (I thought he missed a few things.)

In June 2006, he wrote a more pensive if hardly tough assessment of the project,

In March 2008, he wrote something of an elegy, urging Gehry to leave the project, predicting blight (accurately, it terms out), and even seeming to emerge as a project opponent.

Today, however, he pulls out the big rhetorical guns, calling Forest City Ratner's decision to trade Gehry's arena for a more pedestrian design by Ellerbe Becket a "stunning bait-and-switch" and a "shameful betrayal of the public trust."

Posted by lumi at 6:40 AM

AYR twofer

Here are two quickies from Atlantic Yards Report:

What should $20 million buy? What can Forest City afford?

On one hand, Atlantic Yards developer Forest City Ratner is trying renegotiate a deal with the Metropolitan Transportation Authority (MTA), hoping to only cough up $20 million up front for the arena portion of the railyard, instead of the entire $100 million. On the other hand, the parent company wants investors to know that the company is on better financial footing.

NoLandGrab: So can't the company afford the $100 million, or is this another bait and switch?

So, when did the ESDC conclude that AY wouldn't take ten years? A debate in court

Yesterday, attorney George Locker tried unsuccesfully to get a judge to add a recent statement from an Empire State Development Corporation executive to the record in hopes of reopening a case from last year:

Was it only in April, when ESDC CEO Marisa Lago publicly predicted [Atlantic Yards] would take "decades"? Or was it earlier?

That distinction was at the heart of a 20-minute argument in state Supreme Court yesterday, during which attorney George Locker, who represents eight rent-stabilized tenants in two buildings within the Atlantic Yards footprint, [updated/corrected 7:20 am] unsuccessfully tried to vacate the decision that rejected his request that the ESDC hold a new hearing to re-approve the project.
...

After the hearing, however, Locker was nonplused. Given that the ESDC is expected to issue a revision of GPP on June 24, a new public hearing would in fact be held, thus mooting his appeal.

Posted by lumi at 6:15 AM

June 6, 2009

Bloomberg, who once said we don't have to settle for the conventional, now praises new arena design, ignores other AY changes

Atlantic Yards Report

Earlier today, on the radio show Live from City Hall with Mayor Mike and John Gambling, Mayor Mike Bloomberg offered expected support for Forest City Ratner's vastly changed design for the Atlantic Yards arena and arena block, saying the new design was more affordable.

Bloomberg, not unexpectedly, did not bring up the loss of the planned office building that was supposed to bring significant new revenues, or the attached Urban Room. Nor was he asked about the Independent Budget Office testimony that the arena would actually be a money loser for the city.

Nor did anyone bring up that the reported $800 million price tag is significantly more than the $637.2 million figure announced when the project was approved in December 2006. No one has explained why the cost of the arena has gone up so much.

Bloomberg did say that Forest City Ratner and architect Frank Gehry "decided to part company," even though Gehry, at least in some accounts, remains the project's master-planner. But Bloomberg sure sounded like he got his information secondhand.

link

Posted by steve at 6:49 AM

June 5, 2009

Atlantic Yards Nets Arena: From "World Class" to Provincial Crass

Gothamist
by John Del Signore

The Conseco Fieldhouse, er, new Barclays Center, is not dazzling the folks over at Gothamist.

So redesign it they did, if by redesign you mean a banal homage to any number of unremarkable "field house" arenas across America; places where you can watch college ball, check out weekend flea markets, and sometimes see Ice Capades. But that last diversion won't even be an option for New Yorkers, because unlike Gehry's design, the Ellerbe Becket reboot doesn't include a rink. Of course, there's nothing inherently wrong with a modest, utilitarian hangar like this, but after all Ratner's talk about Gehry's "world class" designs, and all the legal battles and controversy and threats, this is best they could come up with for Brooklyn?

It's tempting to call it a joke, but it's on taxpayers and Brooklyn residents and businesses the city has been trying to relocate for years. In a press release announcing the new design, Ratner blames opposition groups for delaying this boondoggle for so long that the "slowing economy" finally made the more ambitious designs untenable. Develop Don't Destroy, the developer's main foe, fires back, and sees the whole debacle as a bait and switch:

[Forest City Ratner] should blame themselves for their arena going from really bad to worse... Here's our explanation: Forest City Ratner's reckless incompetency as a mega-developer, leading to an inability to manage costs. Because if incompetency is not the reason, then it is very likely that Ratner never intended to construct a Gehry-designed arena, but rather used the starchitect for publicity to gain respect and applause from cultural critics and media elites, and get the project approved. And then, throw the Gehry design under the bus.

article

Posted by eric at 1:04 PM

Gehry: Going, going, going... gone (Part Deux)

Lots of news coverage today. Here are a few stories that have come in over the past couple hours — or managed to wriggle through our usually trusty boondoggle net.

NY1, Famed Architect Departs Atlantic Yards Project [with video]

The group Develop Don't Destroy Brooklyn, which has been fighting the project, is calling on Governor David Paterson to stop the development. They say it will not deliver on Ratner's promises.

"This is just one more piece of evidence that they never intended to build it the way they said they would," said Candance Carponter of Develop, Don't Destroy Brooklyn. "It's really, at this point, the icing on the cake, because one of the main draws was Frank Gehry and obviously he was too expensive or they couldn't build the plan they wanted and it's another bait and switch from Forest City Ratner."

WNYC Radio, Developer Replaces Architect of NJ Nets Arena

Ratner used Gehry's name liberally while winning government approvals for Atlantic Yards. But in the end the developer couldn't afford the world-famous architect. Gehry's design would've cost nearly a billion dollars. Instead, Ratner has turned the project over to Ellerbe Becket, a lesser-known firm that's designed NBA arenas in Memphis, Tennessee, and Charlotte, North Carolina. The developer says Ellerbe Becket's design will be "more limited in scope" and images will be shown later this month. Ratner's office hasn't said whether Gehry will continue as architect for any of the other 16 buildings at Atlantic Yards.

The Architect's Newspaper, Gehry'd Away

Asked for a timeline on the rest of the project, which includes 16 residential and office towers in addition to the arena, the [Ratner] spokesperson said that remained undecided, as the first priority was finishing the arena. But the spokesperson also suggested that Gehry Partners’ involvement might have come to an end. “Frank might design one of the buildings later, I don’t think it’s impossible,” the spokesperson said. “But right now, he just the master planner.”
...

Gehry had long been seen as a linchpin to the project’s success, touted on the Atlantic Yards website and by numerous politicians. At the announcement of the project in December 2003, Borough President Marty Markowitz declared, “Brooklyn is a world-class city, and it deserves a world-class team in a world-class arena designed by a world-class architect.”

NorthJersey.com, Nets replace renowned architect Gehry as Barclays Center designer

The more modest design may help in reducing the overall cost, but it could make it more difficult for the Nets to market the arena to potential sponsors as an internationally renowned project. Nets Chief Executive Brett Yormark said last year he was pitching the Barclays Center to potential European corporate partners not as an arena but “as a landmark.”

The Nets, who have a year-to-year lease to remain at the Meadowlands’ Izod Center, are running out of time to break ground in time for a fall 2011 opening in Brooklyn.

GlobeSt.com, Gehry Off the Job at Atlantic Yards

As recently as last Tuesday, Ellerbe Becket principal Bill Crocket told GlobeSt.com, "we are working with Forest City Ratner, doing analysis, and as far as when any decision is going to be reached, I can’t tell you." He added that he didn’t think any decisions about timing, or anything else, had been made at that point. But that was Tuesday, and as has been the case at Atlantic Yards, events change almost daily.

NoLandGrab: It would be more accurate to say "stories change almost daily."

Posted by eric at 12:13 PM

It Came from the Blogosphere... (Frank, we hardly knew ye edition)

Brownstoner, Gehry Officially Off Yards Project

Unfortunately for all of us, The Times describes the new design as bearing a resemblance to Conseco Field as well as an "airplane hangar."

Curbed, The De-Frankified Barclays Center React-o-Matic!

Curbed serves up a round-up of some reactions to the Gehry news, with a Bob Guskind-esque headline, who, it so happens, was honored last night with a posthumous award for community service by the Park Slope Civic Council.

Following yesterday's formal announcement of the junking of starchitect Frank Gehry's Atlantic Yards arena for a cheaper design, a look at how the Interweb is reacting to the new Barclays Center, aka The Hangar.

The Local [Fort Greene/Clinton Hill], Arena Plan: Gehry Out, Ellerbe In

Our colleague Charles Bagli reports over on the mother Web site that Forest City Ratner has formally dropped Frank Gehry’s plan for a billion-dollar arena at Atlantic Yards in favor of a more modest $800 million model designed by the Missouri architectural firm Ellerbe Becket.

Gothamist, It's Official: No Gehry At Brooklyn Nets Arena

Ratner has stated he hopes to break ground on the arena this year; his opponents doubt that will happen.

Runnin' Scared, Atlantic Yards Scales Back; Gehry's Playhouse Gives Way to "Airplane Hangar"

Of course, scaling back the project doesn't mean scaling back what it demands of the city: Ratner is asking to be permitted to pay the MTA only a fraction of the cost of air and land rights needed for the project upfront, with the remainder to be tendered when the big bucks start rolling in. It's beginning to get around that this scheme is going to cost more than benefit the city, and even longtime booster Mike Bloomberg is getting cold feet. And as for the neighbors, forget it. Sometimes it seems like the only people left in Brooklyn who want this thing are the people who run the borough and the people who want to run it.

Not Another F*cking Blog, Gehry’s out, Becket’s in, as Atlantic Yards arena architect

I’d love to be a fly on the wall by the water cooler across the pond at Barclays. They had said they were willing to toss $20,000,000 per year for 20 years (that’s $400,000,000!) at Forest City Ratner for the honor of having their name and logo plastered all over a Gehry design. Becket? Who? Airplane hanger??! They have lots of web site updating to do over at www.barclayscenter.com.

In the Crease [Newsday.com], No hockey in Brooklyn

Scratch one more prospective site for the Islanders to move, if they are in the mood to move. According to a story in the New York Times today, the new plan for the Nets' arena at the proposed Atlantic Yards development in Brooklyn does not include accommodations for a hockey rink.
...

Atlantic Yards, like Charles Wang's Lighthouse development proposal on the Nassau Coliseum grounds, has been delayed far beyond the developer's intentions. Lawsuits and the recession have plagued the Brooklyn plan. It will be interested to see which site gets a shovel in the ground first--or if either ever does.

Islanders crazy, Brooklyn we go small

With the situation on the Island being uncertain and the recent court victory for Ratner, fans have now plotted Brooklyn on their wish lists for alternative homes of Islanders hockey. But the notion that Brooklyn could be the new home for hockey might not be a reality anymore.

Nets Daily, Gehry Design Out, New Design Like Pacers Arena

Curbed LA, Gehry's Brooklyn Arena Design Replaced

Curbed, Frank Talk on Atlantic Yards

Posted by eric at 11:31 AM

PRESS RELEASE: FOREST CITY RATNER COMPANIES AND GEHRY PARTNERS ANNOUNCE ALTERATION TO ATLANTIC YARDS RELATIONSHIP

Frank Gehry, Who Produced Overall Master Plan, Relinquishes Role as Architect of the Barclays Center

NEW YORK, June 4, 2009 - Forest City Ratner Companies (FCRC) and Gehry Partners today announced a mutual agreement in which Pritzker Prize winning architect Frank Gehry, who produced the master plan for the Atlantic Yards development in Brooklyn, will no longer serve as the architect for the arena to be called the Barclays Center.

As the master planner for the Atlantic Yards development, Frank Gehry created a blueprint for what will be a vibrant new urban community blending an arena, housing, retail and commercial space, as well as six acres of landscaped public open space.

FCRC also announced that it has retained the award-winning architectural firm Ellerbe Becket to design the Barclays Center, which will be the home of the Nets basketball team and host over 200 concerts and family shows annually. The new arena design will incorporate all of the approved design standards.

"I have an immense gratitude toward Frank Gehry for his amazing vision, unparalleled talent and steadfast partnership," said FCRC Chairman and CEO Bruce Ratner. “Both at Atlantic Yards and with the Beekman tower in lower Manhattan, he has continually produced beyond our expectations. Throughout this process - as litigation produced delay; as rising construction costs impacted the budgets of all developers; and a slowing economy altered expectations - Frank and his team have shown remarkable flexibility and professionalism, making cost-effective revisions as needed. The current economic climate is not right for this design, and with Frank’s understanding, the arena is undergoing a redesign that will make it more limited in scope.”

Mr. Gehry said, "We remain extremely proud of our work on the Atlantic Yards master plan and on the original arena, which we designed in close collaboration with Forest City Ratner. While there are always regrets at designs not realized, we greatly appreciate our ongoing relationship with Bruce and his team."

link [PDF]

FCRC hopes to unveil the new images of the Barclays Center in late June and intends to break ground later this year in anticipation of a completed arena in time for the Nets to play the 2011-2012 NBA season in Brooklyn.

Ellerbe Becket has designed some of the world’s most notable and successful sports and entertainment facilities, most notably Conseco Fieldhouse in Indianapolis,IN, Qwest Field in Seattle,WA, and the Guangdong Olympic Stadium in China.

“Ellerbe Becket has been responsible for designing some of the finest sports and entertainment venues in the world,” said NBA Commissioner David Stern. “From Conseco Fieldhouse to FedExForum, Ellerbe Becket has created a first-class fan experience in all of its buildings. I am excited for Ellerbe Becket to design a world-class arena for Brooklyn and I look forward to opening night at the Barclays Center.”

Mr. Ratner said, "Working with Ellerbe Becket, I am confident that we will meet all of our design objectives while providing a dynamic environment and the best sightlines for basketball fans and spectators for all events.”

About Forest City
Forest City Ratner Companies (FCRC), a wholly owned subsidiary of Forest City Enterprises, owns and operates 31 properties in the New York metropolitan area. Forest City Enterprises, Inc., a $10.9-billion NYSE-listed national real estate company, is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.

About Gehry Partners
Gehry Partners, LLP is a full service firm with broad international experience in academic, commercial, museum, performance and residential projects. Frank Gehry established his practice in Los Angeles, California in 1962. The Gehry partnership, Gehry Partners, LLP, was formed in 2002 and employs a large number of senior architects who have extensive experience in the technical development of building systems and construction documents, and who are highly qualified in the management of complex projects. Every project undertaken by Gehry Partners is designed personally and directly by Frank Gehry.

About Ellerbe Becket
Ellerbe Becket is internationally recognized as a leader in the architecture, engineering and interior design industries. The firm’s sports practice specializes in the design of facilities that are renowned for providing outstanding patron experience. With offices worldwide, the firm has designed more arenas than nearly any other architectural firm, including 15 new arenas for the NBA and NHL in the past two decades. Ellerbe Becket brings together fans, athletes, and sponsors through the design of iconic venues that are efficient to build, own and operate. 2009 marks Ellerbe Becket's 100th anniversary. For more information, visit www.ellerbebecket.com.

Posted by eric at 10:44 AM

Guess what: the Brooklyn arena, accommodating Ratner's short-term goal, would be too small to fit in hockey

Atlantic Yards Report

We gave Norman Oder short shrift yesterday in our haste to publish links to his posts, which deserve a fuller treatment.

Now that architect Frank Gehry is off the Atlantic Yards project, forget Gehry’s dream to design an arena that could accommodate not just basketball but hockey.

Value engineering, sources tell me, means scrapping Gehry’s design to make the building smaller, without space for professional hockey.
...

But the failure to leave space, at least, for hockey means one potential source of additional tax revenues--and arena activity--would be precluded. So Ratner's decision might not benefit the city and state in the long-term.

article

NoLandGrab: The all-out rush to build an arena — any arena, even an off-the-shelf, already-done-in-Indianapolis arena — could seriously affect Ratner's ability to sell luxury suites. Would you rather buy a suite in the basketball-only Conseco Fieldhouse, um, we mean Barclays Center, or in Madison Square Garden, the World's Most Famous Arena™, and get hockey games, too?

Posted by eric at 9:16 AM

June 4, 2009

Atlantic Yards Report non-Gehry Arena Coverage

Here are two from AYR regarding this afternoon's startling Atlantic Yards news:

NYT: Gehry, as predicted, is gone from the Brooklyn arena; it will look like Indianapolis or "airplane hangar"

Guess what: the Brooklyn arena, accommodating Ratner's short-term goal, would be too small to fit in hockey

Posted by eric at 5:14 PM

New Nets arena could cost city money

Arena Digest

With a name like Arena Digest, they could still be objective, right?

Now, with the price of the arena rising to $950 million, this advantage could be gone, according to a preliminary opinion from the city's Independent Budget Office.

Could be, we say, becuse IBO officials actually didn't perform any sort of financial analysis. They were going with their gut feelings about the project and looking only at the arena, not the total Atlantic Yards project.

So this "news" may not be as significant as the New York tabloids would have us believe -- or, rather, we'll be waiting for the real analysis with real numbers.

article

NoLandGrab: Actually, the IBO did perform a financial analysis, and they're the only official entity that has done so with any degree of credibility (we assume that Arena Digest would prefer the NYC EDC method of cost-benefit analysis, which assigns a $0 value to costs and then subtracts it from wildly inflated "benefits").

Keep in mind that IBO looked only at the arena because all of the other elements of the Atlantic Yards project are up in the air: size of project, amount of office space, mix of housing, public contribution, timing, etc., etc. Of course, come to think of it, the cost of the arena and the identity of its architect are up in the air, too.

Posted by eric at 10:17 AM

Daily News follows up on IBO revelation; FCR stonewalls, NYC EDC repeats claim of cost-benefit analysis

Atlantic Yards Report

AYR follows up on today's Daily News story.

As for the New York City Economic Development Corporation, it repeated the argument it made to WNYC:
...by only analyzing the arena - and not the 16 residential and commercial towers also proposed for the site - the IBO had released inconclusive information. "In light of new conditions, the city is updating a cost-benefit analysis, and any decisions related to the project will be informed by this revised analysis with the goal of ensuring a significant net positive fiscal impact to the city," said EDC spokesman David Lombino.

Well, there's little evidence the rest of the project will be built in a timely fashion, if ever, so the arena is a legitimate, if incomplete, subset, even though Lombino is correct in suggesting there should be a full analysis.

But there's no evidence the city has done a real cost-benefit analysis as opposed to just adding up benefits.

article

NoLandGrab: When David Lombino says "any decisions related to the project will be informed by this revised analysis with the goal of ensuring a significant net positive fiscal impact to the city," does he mean that they want to ensure that the analysis shows a net positive impact? Or the project itself? Based on the NYC EDC's past sleight of hand, we're betting they just want to make the numbers look good.

Posted by eric at 8:21 AM

June 2, 2009

Not So Suite: Ratner's Faulty Arena Revenue Model

Develop Don't Destroy Brooklyn

No new luxury suite sales over a one year period, and now a reduction in the overall number of luxury suites. Clearly there is no demand for Barclays Center suites. Luxury suites are the raison d'être for building a new arena.

The lack of demand and the reduction of suite sales demands attention towards Ratner's revenue model for paying back the arena bond holders. The revenue model appears to be faulty, making the $800 million arena bond more risky for the bond holders and New York State which would be on the hook if there were to be a default.

article

NoLandGrab: We're pretty sure this raises no flags in the NYC EDC's sophisticated financial analysis model.

Posted by eric at 12:04 PM

May 31, 2009

For Nets, Barriers to Brooklyn Fall Slowly

The New York Times
By Richard Sandomir

The Times gives its assessment of the state of the Atlantic Yards fight.

Will the Nets ever play basketball in Brooklyn?

The question is impossible to answer nearly six years since Bruce C. Ratner hatched the idea when he led the successful bid to acquire the Nets for $300 million.

Troubled by litigation, Forest City Ratner, Ratner’s real estate development company, has not fully cleared the full 22-acre site where the arena, the Barclays Center, would rise.

No work has been done since the end of last year on land that is a hodgepodge of empty lots and buildings and the Long Island Rail Road’s Vanderbilt Yards. Forest City has neither begun to pay the Metropolitan Transportation Authority the $100 million they agreed to for development rights over the yards — and is, in fact, negotiating the price sharply downward — nor begun to move the tracks to a far end of the site.

Brett Yormark, Nets CEO wants us know that, this time, really, truly, he double-swears that the proposed arena will be built:

“It’s done, inevitable, it’s imminent, it’s going to happen this year,” said Brett Yormark, the Nets’ chief executive. After a number of failed predictions for when the Nets would move into the arena, he said: “We’re on schedule. There’s more certainty than there’s ever been.”

His confidence rests on two factors. First, a state appellate court’s May 15 dismissal of a lawsuit filed by an alliance of 21 community groups, Develop Don’t Destroy Brooklyn. If the appeal it expects to file fails, the state can use eminent domain to seize the remaining properties.

Second, the recession that appeared to level the hope of financing the arena is abating, opening up clogged credit markets to the possibility of selling up to $600 million in bonds.

...

But Forest City must break ground by Dec. 31 to meet the Internal Revenue Service’s deadline to sell tax-exempt bonds. If the developer misses the deadline, financing costs will leap. “Bruce and I have never talked about missing that deadline,” Yormark said.

The same deadline appears to loom for the 20-year, $400 million naming-rights deal between the Nets and Barclays. Barclays extended the sponsorship beyond last year because of continued construction delays, but a spokesman refused to say if it would do so again.

Daniel Goldstein, a leader and spokesman of Develop Don’t Destroy, said he did not believe Forest City would meet the deadline, not with his group’s appeal of the eminent domain decision and intention to file more lawsuits to delay the project until its death.

“They’re not going to get financing this year or control of the land this year,” Goldstein said during an interview in his condominium on Pacific Street, which would be about midcourt of the proposed arena. He, his wife and baby daughter are the only occupants of the nine-story building, the other 30 unit owners having long ago accepted Ratner’s buyout offers.

“I don’t even think they know what will make them give up,” he said.

article

Meanwhile, the Nets continue to be a financial drain on Forest City:

Since acquiring the Nets, Forest City Enterprises, Ratner’s parent company, has sustained pretax losses of $111.9 million, including $76 million in the year ended Jan. 31.

The team’s dozens of investors have sustained $353 million in pretax losses, about half of it from amortization. Forest City became responsible for 54 percent of the team’s losses in the year ended Jan. 31, a larger share than it had ever absorbed. On the positive side, it has future sponsorship commitments for the arena of $500 million, 80 percent of it from Barclays.

And where is Frank Gehry? He was supposed to be the architect for the arena, except that now he isn't.

The team desperately needs the arena, which was designed by Frank Gehry. But to reduce its cost to $800 million or less, it could lose Gehry, the architect of the Guggenheim Museum in Bilbao, Spain. The arena was to be sheathed in glass and topped with a running track and an ice skating rink. But Forest City has consulted with other architects, including Ellerbe Becket, in Kansas City, Mo., to slash the price and make it easier to finance.

...

Gehry, who declined to comment through a spokesman, recently cast doubt on the Atlantic Yards, for which he is the master architect, ever coming to fruition. He quickly retracted his statement. But if the shape and look of the arena changes enough to meet economic needs, it may not meet Gehry’s standards.

Posted by steve at 7:31 AM

Net the Nets: New York must get behind a new basketball arena for Brooklyn

The Daily News

At least in the past, this editorial might have included some promised benefits from underwriting out-of-scale private development. Now it's just down to subsidies for pity's sake.

Slowed but undefeated, developer Bruce Ratner is striving to advance Atlantic Yards, a project that would bring a sports arena, the NBA Nets and thousands of apartments to Prospect Heights, Brooklyn.

New York should hope he succeeds. And the MTA, which agreed to sell Ratner most of the property for the project for $100 million, must be flexible as well in getting the deal done.

The economic meltdown forced Ratner to scale back his $4.2 billion dream. So the spectacular, eccentric design by famed architect Frank Gehry will likely give way to a more traditional arena shorn of Gehry's trademark folds and curves. And Ratner has asked the MTA to extend payments on the $100 million sale price.

That shouldn't be a stretch for the MTA, which hit a similar bump last year while trying to develop the Hudson Yards on Manhattan's West Side. The agency worked with the builder to stretch payments and delay closing as the credit markets crashed.

Ratner will likely need similar cooperation to get Atlantic Yards on track, while giving the MTA revenue it would otherwise lose. Let's make a deal.

link

NoLandGrab: Here's the deal being proposed: Give public subsidies to a billionaire developer and receive an arena that returns ... nothing.

Posted by steve at 7:18 AM

May 27, 2009

Architectural firm Ellerbe Becket tapped to reevaluate Frank Gehry's Atlantic Yards arena design

NY Daily News reporter Jotham Sederstrom has some additional details about yesterday's Sports Business Journal report that Missouri-based design firm Ellerbe Becket has been working on Forest City Ratner's Nets arena:

Ellerbe Becket... was tapped last fall to reevaluate the extravagant arena design [Frank] Gehry conceived for developer Forest City Ratner to lure the NBA's New Jersey Nets to Brooklyn.
...
Headquartered in Kansas City, Ellerbe Becket is known for designs that are more cost-efficient than Gehry's projects, which tend to be full of ruffles and flourishes.
...
The firm, which has designed basketball arenas for the NBA's teams in Memphis and Charlotte, was hired around the same time Gehry axed nearly every one of his employees who had been working on the stalled project.

A Forest City Ratner spokesman Tuesday insisted the firm had been hired to implement cost-cutting measures for the estimated $800 million arena, but observers familiar with how Frank Gehry works suspect that could soon change.

"Because Gehry's designs are fairly complex, any real changes would probably end up looking like an Ellerbe Becket project," said a former Gehry architect who worked on Atlantic Yards until being laid off late last year. "[Gehry's projects are] relatively difficult to execute."

Ratner spokesman Joe DePlasco said a reevaluation of Gehry's design would be completed by July, at which point Ratner will determine whether the world-famous architect would remain on the project.

article

Posted by lumi at 5:35 AM

A Gehry arena or an Ellerbe Becket arena?

Atlantic Yards Report

Yesterday, Sports Business Journal reported that Kansas City-based arena design firm Ellerbe Becket has been working on Bruce Ratner's arena for the Atlantic Yards megaproject.

Well, there's serving as a consultant and serving as a lead designer. Ellerbe Becket may have been working on the AY arena for three years, but it's unlikely that the firm's role entered the foreground until [architect Frank] Gehry laid off his staff just before last Thanksgiving (as the Daily News reported).

If Barclays bought naming rights in 2007 with knowledge that Ellerbe Becket was helping, the firm surely expected to see Gehry's name on the arena.

So, even if the news won't "wreck the arena's financing model," as DDDB alleged, state officials surely should be able to tell the public who's designing the arena. Right?

And what about the cost and timing of the arena?

Check out the rest of the article for "Bobbo's" (aka "Net Income") latest pot shot at Norman Oder, who proves to be more resourceful than the pseudonymous Nets fan.

NetsDaily.com, Kansas City Firm Redesigning Barclays Center
PlanNYC.org, Nets Arena Designer In Question
DDDB.net, Bye-bye Frank Gehry. Hello Ellerbe Becket?

Posted by lumi at 4:37 AM

May 26, 2009

Brooklyn Bound?

Sports Business Journal: Breaking Ground
by Don Muret

Don’t be surprised if Ellerbe Becket becomes the lead designer for Barclays Center, the Nets’ much-delayed arena project.

Renowned civic architect Frank Gehry originally designed the building. Kansas City-based Ellerbe, designer for the two newest NBA arenas, in Charlotte and Memphis, has been consulting for the Nets for the past three years and is making adjustments to arena blueprints to see how it can be built at a lower cost.

Team officials declined to confirm Ellerbe’s involvement or whether Gehry is still part of the project.
...

Ellerbe Becket principal Bill Crockett said, “Our work has been ongoing, and we have not been advised of what they will accept and when it will be released.”

link

Posted by eric at 11:08 AM

May 18, 2009

How Brooklyn lost LeBron: Rabid development foes killed shot at getting superstar James

NY Daily News

A rabid editorialist laments the passing shot at getting LeBron James in Brooklyn, as if it were "the worst thing to happen to Brooklyn since the Dodgers left."

Brooklyn, you could have had a shot at such greatness because James will be a free agent in summer 2010. And the borough was poised to be in the running with a new Nets arena.
...
But plans for a sports and entertainment venue ran into rabid obstructionists who fought the arena and associated housing construction as though it would be the worst thing to happen to Brooklyn since the Dodgers left.

On Friday, the 23rd court in a row ruled in favor of developer Bruce Ratner, primary owner of the Nets. He vowed once more to get the project going. Great. The city needs the arena and the housing. But now the best case is that Ratner will get an arena open for the 2011 season. Long after James likely signs with another team.

So now, we can imagine James getting a brownstone in Bed-Stuy or Fort Greene. Imagine him tutoring kids at local schools. Imagine him doing for the once-lousy Nets what he's done for the once-lousy Cavs.

link

NoLandGrab: You can imagine many things, once you drink the Kool-Aid.

Contrary to what the editorial implies, Atlantic Yards Report points out that developer Bruce Ratner "is delaying the housing on his own," along with the fact that LBJ would have to take less money to sign with the Nets than he'd get from the Cavaliers, something the *Daily News" must've forgotten with all their frothing.

Posted by lumi at 6:16 AM

Excitement in the Blogosphere over court ruling

A few bloggers are excited about Bruce's plans to take peoples' homes to build an arena for the Nets.

Two bloggers who support the NY Islanders effort to build a mixed use office-housing-arena megaproject see a "Lighthouse" at the end of the tunnel:

Let There Be Light(house), Can-Do vs. Can't-Do

Honestly, I can't see the point of anything other than a Can-Do mentality. I would rather be the person constantly trying to move forward than the person desperately trying to stop others from moving forward. Which do you want to be? We have an option to do something truly great. The Atlantic Yards project took a step forward despite enormous odds because of a Can-Do mentality, and it's time to re-inject some of that spirit into Long Island. If we don't, some other community will Can-Do our young people, our sports team, and our economic future right out from under our noses.

NYI Point Blank, AN ARENA DEVELOPMENT GROWS IN BROOKLYN Seems only Long Island can’t get it done

If Ratner actually gets his deal done and a shovel in the ground in October, it will be a profound accomplishment against stacked odds. The Nets will join the Yankees and Mets and Giants and Jets in moving into the 21st century and moving into state-of-the-art homes that will help them flourish for generations.

And then there will be the Islanders.

situatedlaundry, My Brooklyn Nets
Another blogger is less sangiune about the project, but any concerns are trumped by the coming of pro sports, "even if it's basketball."

Posted by lumi at 5:37 AM

May 17, 2009

After city/state claim cost of arena is trade secret, Ratner volunteers a number to the Times

Atlantic Yards Report

For the purposes of publicity, Bruce Ratner can give an estimate of the cost of the proposed Nets arena. However, the ESDC keeps the actual number a secret to New Yorkers who are expected to subsidize the project.

There are two curious aspects to the New York Times's report yesterday, in the context of an article on the Atlantic Yards eminent domain case, on the price tag for the AY arena.

First, the Times identified the cost of the arena at $800 million, later adding, regarding Bruce Ratner, that "[h]e has also said he wants to pare the projected $1 billion cost of the arena by about $200 million."

But the arena had previously been said to cost $950 million and, while rounding up to $1 billion may be convenient, $50 million isn't chump change. So I'm going to call the price tag $750 million until further notice.

...

More importantly, Times reporter Charles Bagli apparently didn't have to file a Freedom of Information Law (FOIL) request to get the cost estimate.

...

So, how come the cost is not a trade secret any more? There's a public policy issue here. As I wrote, if the cost is now a secret, that suggests that developers and public agencies can announce one set of numbers to the public, then turn around and keep the actual numbers secret.

link

Posted by steve at 9:06 AM

May 8, 2009

NY transit riders still risk more hikes

Reuters.com

Reuters published this story just hours before Lee Sander was forced to resign as Executive Director of the MTA by Governor David Paterson.

Asked whether the MTA's rail yards in Brooklyn would see a basketball arena next year, part of a residential-office complex planned by developer Forest City Ratner, Sander said only: "I'm not in the arena business."

article

NoLandGrab: It appears that Sander, who had nothing to do with the rigged agreement to sell the Vanderbilt Yard to Bruce Ratner, was the fall guy for Albany's lack of meaningful action on the MTA funding crisis. Rather than scapegoating a capable public servant, perhaps the Governor should instead be pulling the plug on the MTA's worst land giveaway ever.

Posted by eric at 1:35 PM

May 6, 2009

NBA's Stern asserts groundbreaking this summer, but he didn't check with the ESDC

Atlantic Yards Report

Norman Oder speculates about The Commish's sources.

From the Newark Star-Ledger:
[NBA Commissioner David] Stern was confident the Nets' Brooklyn relocation project, the future of which has been in doubt, would break ground this summer. "Yes, they will, I'm told," he said. "I'm sure."

Well, he's probably been listening to Nets CEO Brett Yormark, whose track record is not so good.

Empire State Development Corporation CEO recently said that the project would generate "a substantial number of construction jobs - commencing in 2010," which I interpret as an acknowledgment that groundbreaking--at least other than purely symbolic--wouldn't happen until next year in the best-case scenario.

article

Posted by eric at 10:56 PM

NBA commissioner David Stern confident New Jersey Nets will break ground this summer in Brooklyn

The Star-Ledger
by Jenny Vrentas

Gathered in a ballroom of the Mandarin Oriental hotel in Manhattan, within miles of new stadiums already built or on the horizon for each of their sports, the commissioners of Major League Baseball, the NBA, NFL and NHL faced an obvious question: In this terrible economy, how much of a burden will teams bear after opening their palaces?

"It's hard work, and it's going to be harder certainly now," NBA commissioner David Stern said at Wednesday morning's "Future of Sports" panel. "But it will have a period of readjustment, and it will continue to go."

That was the overriding mentality as the commissioners -- whose leagues pull in a combined annual revenue of $21.2 billion -- discussed the effect of these trying economic times on professional sports. While adjustments need to be made, the leagues are still moving forward.

In no area is that more relevant than New York, where the Devils, Mets and Yankees have all recently opened new venues, the Giants and Jets are completing their joint stadium, and the Nets have plans to begin construction of their new home.

Stern was confident the Nets' Brooklyn relocation project, the future of which has been in doubt, would break ground this summer. "Yes, they will, I'm told," he said. "I'm sure."

article

NoLandGrab: Sure he's sure. Not to mention that asking the commissioners of the four major sports leagues about how their franchises might really be faring is like asking Jim Cramer if stocks are a buy.

Posted by eric at 10:42 PM

May 2, 2009

Just Miles Apart, 2 Arenas Compete

The New York Times
By Jeffrey C. Mays

This article talks about the tricky political game being played out in New Jersey as politicians struggle to decide what to do about two state-owned arenas. In this difficult economy, New Jersey politicians can neither quite justify the expenditure of taxpayer money for the Izod Center, nor risk the backlash that would result from closing it in favor of Newark's Prudential Center. Part of the mix is what is to become of the New Jersey Nets, who currently make their home at the Izod Center.

The Izod Center, which opened in 1981 at the cost of $85 million, is operated by the New Jersey Sports and Exposition Authority and was financed with public dollars. The New Jersey Nets basketball team has a lease at the arena until 2013, but team officials said they plan to relocate to a Frank Gehry-designed arena in downtown Brooklyn in time for the 2011-2012 season. There is growing doubt about whether that arena will be completed.

article

Posted by steve at 7:20 AM

"It Still Hurts When You Lose."

CFO Magazine
By Vincent Ryan

There's plenty to give your b.s. detector high readings in this Q&A with New Jersey Nets CFO Charlie Mierswa.

What will the move to Brooklyn mean for the financial growth of the organization?
Everything changes when we get to Brooklyn — I would expect us to be one of the most valuable teams. The difference is the density of the population. Also, we will be in control of the building. Just look at the sponsor values when we move to Brooklyn versus what we're able to garner in New Jersey; it's night and day.

The arena will be a destination in the center of Brooklyn, with clubs and amenities that you can't find in other buildings in the marketplace, because they were built 20 or 30 years ago. It's more than just basketball. There will be concerts and family shows. It will be another market for artists to play in.

Do you anticipate any problems raising the funds to build the stadium?
The project has the political support that it needs, and the reason is the number of jobs it's going to bring. The recent financing that the Mets and Yankees did — municipal debt with PILOT payments [payments in lieu of tax] — that's the same vehicle we are going to use. The Yankees's $370 million issue was oversubscribed. Clearly there's an appetite for that kind of financing. We met with the rating agencies and they were very enthusiastic. All we need is the green light. We expect to get it in the next three or four months. We think we will prevail in the remaining lawsuits.

Political support for Atlantic Yards did not come from the paltry number of projected arena-oriented jobs, but from the "Affordable Housing" component of the project. Nobody knows if or when such housing might appear. Does Mierswa's comment indicate that Forest City Ratner is too busy trying to keep the project afloat to control the statements coming from its own team? Also, any discussion of project finances that doesn't take into account the U.S. economy and Forest City's financial health is woefully inadequate.

But you're also scaling back the architectural plans for the arena, right?
We're going through a process of "value-engineering" the stadium plans. That will bring down construction costs to a level that will facilitate the financing. There's no question it will continue to stand as a landmark in Brooklyn; it will also be economically viable in this marketplace.

"Value engineering" translates to "Frank Gehry is no longer part of this project."

article

Posted by steve at 6:37 AM

April 28, 2009

Nets Plan “Sky Banners” in IZOD Corners

The word from NetsDaily.com is that Sports Business News (subscription only) is reporting that Bruce Ratner's crack sports-marketing team has figured out how to monetize thousands of empty seats:

The Nets have rented four 52′ high by 20′ wide projection screens they plan to hang in the four corners of the IZOD Center next season. The “sky banners” will display advertising expected to bring in as much as a half million dollars a year. They will be spread over entire sections and reduce the number of upper level seats by as many as 1,000. During sellouts, the banners can be removed.

NoLandGrab: It's clear that the Nets have given up trying to fill up the Izod Center with NJ fans that are way past caring for a team that is obsessed with moving to Brooklyn.

Posted by lumi at 4:44 AM

April 24, 2009

Touchy subject: Yanks kick MLS after ticket remark

AP via Yahoo! Sports

Mention those empty seats at Yankee Stadium at your own risk.

Don Garber did.

A day after the Major League Soccer commissioner raised the subject, New York Yankees president Randy Levine blasted back.

“Don Garber discussing Yankee attendance must be a joke,” Levine said Friday. “We draw more people in a year than his entire league does in a year. If he ever gets Major League Soccer into the same time zone as the Yankees, we might take him seriously.

“Hey Don, worry about Beckham, not the Yankees. Even he wants out of your league,” he said.

NoLandGrab: Hey Randy, how 'bout you worry about filling your absurdly priced empty seats — and fixing your flawed poor home-run-derby excuse for a $1.5-billion stadium?

“When I mentioned the New York Yankees yesterday, my comments were part of a larger assertion that all businesses—even the most successful sports entities—are experiencing some impact from the economic downturn,” Garber said through a league spokesman.

“The Yankees are one of the world’s strongest sports brands and the context of my comments about a few empty seats at Yankee Stadium was to illustrate the economic challenges we are all facing,” he said.

article

NLG: The obnoxious Levine is overreacting just a tad, no? Garber is dead-on in his estimation of the sports recession, and his comments are one more reminder of how foolish New York State officials' continuing support of an expensive new arena in Brooklyn really is.

Posted by eric at 7:34 PM

Newark Mayor Booker: "I believe the project in Brooklyn is not going to work"

Atlantic Yards Report

Newark's Mayor continues to be bullish on the notion of the New Jersey Nets ending up in, um... New Jersey — Newark, to be exact.

Last night, the WBGO radio show Newark Today with Mayor Cory Booker, was supposed to focus on environmental issues, but, as with shows in February and March, discussion of the Nets was inevitable.
...

"Let me tell you exactly what I think is going to happen," Booker continued. "I believe the project in Brooklyn is not going to work and not going to go forward. I believe the team's going to be put up for sale. I think there's going to be a national competition for it, because people want the team, from Seattle to New Jersey. I think New Jersey cannot afford to lose the Nets, so we're working double time to make sure that, when that opportunity comes, it's bought by New Jersey investors with the intention of putting the team in Newark."

article

Posted by eric at 5:23 AM

April 22, 2009

The sports bubble pops, and the Nets can't help but notice

Atlantic Yards Report

The layoffs of staffers working on sponsorships for the New Jersey Nets apparently reflect the new reality.

There are already many questions related to the planned Brooklyn arena, among them Frank Gehry's role and the cost of construction.

Given the example of the new baseball parks, there's less of an appetite for luxury suites. That would mean a decline in both revenues for the developer and the taxes expected. It also suggests that a new cost-benefit analysis is in order.

article

Posted by eric at 10:34 PM

Green for the Masses

Majora Carter: Forget the polar bears and focus on the jobs.

Newsweek interviews the Bronx's queen of green, Majora Carter, who explains why the big bucks go to the big boys, like Bruce Ratner.

For those of you who may be unfamiliar with Carter's work, check out the entire interview. The following is the bit with the Atlantic Yards reference:

You've talked a lot about work at the municipal level. Where does the money for these projects come from? Is that where the big battles are?

Yes, because the real vittles go to the folks who have power in any municipality. Poor people don't. In a sad way, it was completely telling that when the funds came down to New York from the stimulus package, Alfonse D'Amato was right up there trying to advocate for funds for the Atlantic Yards project. I was like, excuse me? If nobody's watching that, then how do we make sure the jobs are going to people who desperately need them? How do we make sure we're reversing the environmental degradation that we've done to the ghettos of our country? There are people who really know how to milk the system. The result is they've clustered huge amounts of noxious facilities in communities like ours all these years, at huge expense to public health and air quality.

NoLandGrab: To Carter's point, Bruce Ratner proposes to build a 19,000-seat stadium at the intersection of Flatbush and Atlantic Avenues. Flatbush Avenue runs adjacent to neighborhoods with some of the highest childhood asthma rates in the nation.

Posted by lumi at 5:11 AM

April 17, 2009

Future Home of the Nets

The Brian Lehrer Show

WNYC reporter Matthew Schuerman tosses a healthy dose of cold water on the likelihood of Forest City Ratner being able to issue bonds for the planned Barclays Center arena in a must-listen segment focusing on New Jersey's arena civil war and the Nets' foundering move to Brooklyn.

If the Nets aren't going to Brooklyn, Newark better get them. That's what Newark mayor Cory Booker says. WNYC reporters Bob Hennelly and Matthew Schuerman talk about the political wrangling going on around the future home of the Nets.

link

Posted by eric at 3:01 PM

April 16, 2009

Truce talks underway in dispute between Prudential, Izod centers

The Star-Ledger
by Ted Sherman

That's "Truce talks," not "Bruce talks," but there's a very good chance those have been going on too.

Truce talks have broken out in the arena wars. After nearly two years of fighting over which will be the state's premier entertainment venue, the New Jersey Sports and Exposition Authority -- operator of the aging Izod Center in the Meadowlands -- and the Prudential Center in Newark are quietly trying find a way to co-exist without destroying each other.

The two sides have been talking behind the scenes about a possible joint agreement that would give the Sports Authority responsibility for the day-to-day running of the new arena in Newark, executives on both sides said today.
...

The Prudential Center, known as "The Rock," is home to hockey's New Jersey Devils, who began their NHL playoff run tonight. The New Jersey Nets, who play at Izod, say they are moving to a propose[d] arena in Brooklyn but critics say the structure is underfunded and will never be built. The team has agreed to play two pre-season games at the Prudential Center, but insists it has no intention of moving to Newark.

article

Posted by eric at 12:49 PM

As Thomas Resurfaces, Knicks Rebuild a Franchise

The New York Times
by Harvey Araton

What's Isiah Thomas have to do with the Nets? Nothing. What do the Knicks have to do with the Nets? Not much, other than that they wiped the floor with the Vince Carter- and Devin Harris-less Nets in last night's season finale — and unlike their cross-Hudson rivals, they appear headed in the right direction.

Speaking of uncertainty, at least the Knicks have a home in which they don’t feel imprisoned and which isn’t being swallowed by an indoor skiing and entertainment complex.

Pity the Nets; despite the infusion of young talent at point guard (Devin Harris) and center (Brook Lopez), they remain residentially stuck between a horrible place, the Meadowlands, and a hard place, Brooklyn. If shovels aren’t soon in the ground for the proposed arena, they’d be wise to relocate soon to the Rock, as Newark’s Prudential Center is called, if they want to compete for free-agent talent.

article

NoLandGrab: Unless Nets' minority owner Jay-Z is ready to ink LeBron James to a six-record contract and cut him in on his LiveNation gig, the chances of LBJ ending up in a Nets' uni in 2010 look close to nil.

Posted by eric at 12:30 PM

Arena, 2012? New 2010 groundbreaking estimate suggests even that date may be cutting it close

Atlantic Yards Report

In his series on questions needing answers for an eventual State Senate Committee hearing on Atlantic Yards, Norman Oder thinks that the official arena opening date might be out of reach:

Yesterday, it was revealed that Empire State Development Corporation (ESDC) CEO Marisa Lago predicted that construction jobs be generated in 2010, thus indicating that groundbreaking would occur then.
...
How long would the arena take to build? Let's say, for example, that arena construction begins in February. Should the arena take 24 months, as with many arenas around the country, the arena could indeed be finished well in time for the 2012-13 basketball season, which begins in October.

But what if the arena takes two-and-a-half years to construct, as Forest City Ratner CEO Bruce Ratner has said? That would get the arena finished in August, again early enough for 2012.

And what if the arena takes 32 months to build, as indicated in the Final Environmental Impact Statement, according to my reading. That would push an opening date until early October--and any delay in groundbreaking could jeopardize that opening.

article

Posted by lumi at 6:36 AM

April 15, 2009

Newark Mayor: If Nets Aren't In Brooklyn, Then Newark

Gothamist
By Jen Chung

Newark Mayor Cory Booker is not happy with plans to improve the Izod Center at the Meadowlands. According to the Star-Ledger, Booker sent a letter to NJ Governor Jon Corzine, "Should the Nets not build their project in Brooklyn, the Nets' long-term home in New Jersey cannot be Izod. It must be Newark."

article

Posted by lumi at 5:31 AM

April 14, 2009

New York Stories

With two facilities opening this week and more on the way, can sports’ biggest marketplace support them all?

Sports Business Journal
by Bill King

Yankees COO Lonn Trost is having trouble sleeping these days.

Trost suspects that this would have been the case even if the economic weather hadn’t turned as it did, breeding the “perfect storm,” as he often calls it. It was during an economic boom that the Yankees planned, built and priced the most expensive stadium to date: a vast, $1.5 billion stretch of polished stone and steel.

They will open the park on Thursday, amid the worst financial unraveling since the Great Depression, a time of fiscal and psychic realignment that has some companies rethinking the way they entertain clients.

This is not something anyone would have predicted or planned for.
...

“Is the activity as high-paced as you’d want opening a new facility? Absolutely not,” said Jeff Wilpon, Mets chief operating officer and son of principal owner Fred Wilpon. “But it’s still pacing ahead of last year, and I think in the end we’ll pick up because of word of mouth.

“Considering that the economy hasn’t gotten any better, that’s not so bad. We’ll be fine.”

This is not simply the story of two big league ballparks built in one environment and opening in another, though that would bear watching, even by itself. No, this is about an entire sporting city under construction, a place where the hard hat is running neck-and-neck with the ball cap, as no fewer than half a dozen teams try to make good on billions of dollars in facility upgrades at a time when purse strings are pulled tight.

And where the handful who haven’t yet put shovels in the ground hope against hope that they still can.

Like the would-be developer of Atlantic Yards?

And then there is Nets owner Bruce Ratner, still angling to build a $950 million arena as part of a $3.5 billion project in Brooklyn, and Islanders owner Charles Wang, who wants to pull off a similar play on a smaller scale with his NHL team on Long Island.

NoLandGrab: Officially, it's a $4 billion project.

From the time that it became clear that this glut of inventory would hit the market in a short span, the teams took the position that New York, as the capital of American business, could absorb it. Today, each still speaks confidently about his own endeavors. But privately, each wonders about the larger picture.

We’ll be fine, but those guys?

One man’s “we” is another man’s “those guys.”

article

NLG: Obviously, there's no regional entity overseeing and coordinating the need for arenas and stadiums, but there should be. And with the Yankees still advertising the availability of ticket packages just two days short of opening their new ballpark, the market for more sports facilities doesn't seem too rosy.

Posted by eric at 11:14 AM

As Newark mayor takes swipe at Izod, facility glut in NY area must make Brooklyn boosters a tad uneasy

Atlantic Yards Report

Last week Sports Business Journal reported that the Izod Center at the Meadowlands might be getting an upgrade, equipping it for the unlikely future of an ever-extended Nets residency.

Yesterday, Newark Mayor Cory Booker fired back, sending a forceful letter to Gov. Jon Corzine:

It is fiscally irresponsible, particularly in these difficult economic times, for the State of New Jersey to expend a single additional public dollar or incur additional debt to support an outdated facility to retain the Nets when a state-of-the-art, world class center already exists in Newark. I urge you to veto the NJSEA minutes and not let this project move ahead.
...
Meanwhile, an article yesterday in Sports Business Journal focused on the rivalry for sponsorship and attendance among the new and coming sports facilities in the New York area.

article

Posted by lumi at 6:50 AM

April 12, 2009

Spend $10,600 on the Yankees — or for College or a Car?

The New York Times
by Vincent Mallozzi

Recession? What recession?

With the celebrated arrival of Citi Field, I can barely afford to raise a family of Mets fans.

But for me and my three sons, things could be a lot worse.

After all, we could be Yankees fans.

Now let’s suppose the four of us wanted the best seats in the house across the street from the one that Ruth built. A single ticket for a premium Legends Suite seat, on the field level behind the dugouts and home plate, goes for $2,650. For me and the boys, that amounts to $10,600 to watch nine innings of Yankees baseball, or $1,177.77 per inning, if you’re keeping score at home. That princely sum is three times as much as Ruth earned — in his first full season with the Red Sox, $3,500 in 1915.

By contrast, the Mets’ top ticket is $695. Can anybody here afford this game?

“I think if anybody in any business had known where the economy was going to go, they would have done things differently,” Hal Steinbrenner, the Yankees’ general managing partner, told reporters before the team’s first exhibition game at the stadium. “There’s no doubt that small amounts of our tickets might be overpriced.”

Might be overpriced?

article

NoLandGrab: Don't look to the Barclays Center for bargains — "bunker" suites in Bruce Ratner's planned Nets arena are allegedly priced at $540,000, or a mere $13,170 per game.

Posted by eric at 3:25 PM

April 7, 2009

What about that 850,000 square foot arena?

Atlantic Yards Report

Have plans for Ratner's landmark Frank Gehry-designed arena been secretly altered?

More than a week later, the official Atlantic Yards and Barclays Center (bottom) sites still promise an 850,000 square foot arena, even though developer Forest City Enterprises, in a Form 10-K filed with the Securities and Exchange Commission filed on March 30, no longer promises an arena of that size.

Then again, the last update on the AY Construction Updates page is from October.

article

Posted by lumi at 6:35 AM

April 6, 2009

State looks to keep Izod in step with Meadowlands upgrades

Sports Business Journal
by Don Muret

The New Jersey Sports and Exposition Authority plans to select an architect in the next few weeks to design upgrades to Izod Center, but it’s not a ploy to keep the Nets from leaving the Meadowlands.

The idea is to keep the arena up to date as construction continues on Xanadu, the $2 billion retail and entertainment project next door, and a new rail line opens this summer with service to the sports complex, said Dennis Robinson, the authority’s president and CEO.

The Nets have been trying for the past five years to build Barclays Center in Brooklyn. Team owner Bruce Ratner has said publicly that the project will break ground this year and open for the 2011-12 season. Their lease at Izod Center expires at the end of the 2012-13 season.

“They know we are very interested in having the Nets remain at Izod Center long term should the Brooklyn project not materialize,” Robinson said.

article

NoLandGrab: Sinking money into an arena that may be teamless in a couple years doesn't seem like a very good investment, but NJSEA CEO Robinson doesn't sound convinced that the Nets are Brooklyn-bound.

Posted by eric at 8:50 PM

April 3, 2009

Campaign beats drum for downtown Bklyn

Effort comes as area’s pricing edge is under threat.

Crain's NY Business
by Amanda Fung

Crain's reports on the new Downtown Brooklyn marketing campaign — and is considerably less sanguine on the future of Atlantic Yards than the Brooklyn Daily Eagle's Dennis Holt.

The Downtown Brooklyn Partnership is launching its first major marketing campaign to promote the area as an ideal business district. It comes at a time when the area’s key commercial attraction—its long-running pricing edge—is being dulled by shriveling office rents in Manhattan.

The multi-year campaign uses the tagline: “It’s the Moment.” It includes print ads in real estate trade publications and a new Web site, which features short video clips of area residents and commercial tenants. Among them is someone who is still years away—at best—from working in the neighborhood: New Jersey Nets star guard Devin Harris. The NBA team is expected to move into the planned Barclays Center arena in the Atlantic Yards, if and when the project is built.

article

NoLandGrab: It's a little odd that the second video among 22 clips on the campaign web site features the Nets' Harris; if the Downtown Brooklyn Partnership's top "reason why" is a project that hasn't yet broken ground (and may never), they have an uphill battle ahead of them.

And if there's any public money in this campaign, chalk it up as yet one more subsidy for Bruce Ratner.

Posted by eric at 5:19 PM

March 31, 2009

Islanders have boro view

NY Daily News
By Nicholas Hirshon

CHARLES WANG isn't ruling out Queens in his power play to win a swanky new rink for the Islanders.

While the city is trying to force Willets Point property owners to sell by threatening to use eminent domain, Queens leaders are hoping to lure the NY Islanders hockey team:

Queens leaders hope to lure the Islanders as part of redevelopment plans for Willets Point, a gritty industrial zone of auto body shops. But Wang said the 62-acre tract near Citi Field "isn't even in the priority list."
...
The Queens Chamber of Commerce is pitching Willets Point as an ideal spot for the four-time Stanley Cup champions given its proximity to highways and the No. 7 train.

Meanwhile, Wang hasn't given up on the NJ Nets:

Wang, who bid on the New Jersey Nets in 2003, told the crowd "it would be wonderful" for the hoops troupe - which played at the Coliseum from 1972 to 1977 - to return to Uniondale.

Nets owner Bruce Ratner's plans for an arena in Brooklyn are struggling amid dried-up financing, but team spokesman Barry Baum insisted the franchise will still move there.

article

Posted by lumi at 5:32 AM

March 25, 2009

The Nets' Chief Exaggeration Officer

WFAN

New Jersey Nets President and CEO Brett Yormark made an appearance on WFAN radio today with midday hosts Joe Benigno and Evan Roberts, and much of the talk revolved around Frank Gehry's diminishing confidence in the future of Atlantic Yards.

Ever the fabulist optimist, Yormark repeated his claim that the Nets would be in Brooklyn for the 2011-2012 season. And then he blew some more smoke at the credulous Benigno and Roberts, telling them that the project would create "17,000 construction jobs" and an outlandish "8,500 permanent jobs."

The problem with those claims is that they're not true. Even Forest City Ratner claims only 15,000 construction jobs, and those are actually job-years, arrived at by multiplying 1,500 constructions jobs by 10 years of build-out. As for the permanent jobs, FCR's most recent claim is 3,000 jobs, and Atlantic Yards Report has poked big holes in that number — Norman Oder calculates 2,418 permanent jobs, with only 725 of those being new office jobs. That is, if FCR actually builds an office tower, which it says it won't until it has a tenant for at least half the space.

Yormark also claims a record of 22-0 in Atlantic Yards court decisions, which he cites as the reason for optimism about clearing the remaining legal hurdle and breaking ground this year. But with Yormark's Nets sporting a record of 30-41 and sitting 3-1/2 games out of the NBA Eastern Conference's 8th and final playoff spot, he might do well to concentrate a bit more on basketball and a little less on real estate prognostications.

Listen to the interview

Posted by eric at 11:14 PM

March 13, 2009

Nets’ Yormark Says Team Move to Brooklyn ‘Will Happen’ in 2011

Bloomberg News
by Mason Levinson

You've got to admire Pollyanna Brett Yormark's enthusiasm. You just have to wonder why.

The New Jersey Nets are committed to moving to a yet-to-be-built Brooklyn arena for the 2011-12 National Basketball Association season, overcoming economic concerns and legal opposition, team Chief Executive Officer Brett Yormark said.

“It will happen,” Yormark said in an interview for Bloomberg Television’s “For the Record,” which will air tonight. “We’ll be there for the ‘11-’12 season. We’ve pre-sold 20 percent of our suites. We’ve got eight of our 14 founding partnerships already completely signed. Next week, we’ll announce our ninth.”

article

NoLandGrab: Yormark's boast about having pre-sold 20% of the still-on-the-drawing-board arena's suites glosses over the reality of the situation. You see, nearly a year ago, in early May, 2008, Yormark also boasted about having pre-sold 20% of the suites, to "friends and family." At the time, we questioned what "friends and family" really meant.

Bottom line, in the past ten-and-a-half months, the Nets have apparently not enticed anyone else — friend, family or, more importantly, otherwise — to join the ranks of suite buyers.

We should also note that when Yormark was first boasting about the suite pre-sales, he was also claiming the Nets would be moving to Brooklyn at the start of the 2010 season.

Posted by eric at 7:40 PM

March 10, 2009

Alan Paul in SLAM: "Newark just makes too much sense to ignore"

Atlantic Yards Report

SLAM mag Far Post blogger Alan Paul, who's written some good stuff from his (former) base in Beijing, hit the Izod Center Sunday not so much to see the Nets play the Knicks but to catch exactly how the Nets were putting together an evening of Chinese culture.

The aim was to lure Chinese fans of Nets forward Yi Jianlian, but Paul, now back in his New Jersey home, concluded that his different worlds came together in some unexpected ways.

He connects the dots between China, the Meadowlands, and Brooklyn:

One bizarre, somewhat troubling thing you see all the time in China are boondoggle-like public construction projects. Fly into any decent-sized city anywhere in the country and you are likely to find at least one giant public building built with grandiose vision but hazy purposes. Stadiums and arenas that no one uses, for example, dot the country....

So when I drove up the NJ Turnpike to Exit 16 and saw the bizarre Xanadu complex rising out of the former Continental (now Izod) Arena parking lot, I felt just like I was back home in China! What an insane project. And to see it going up now, with the state –where I live and pay taxes — in such desperate financial straits and essential services being curbed.. well, it’s just nuts. And then I pulled into the complex and saw the new Giants Stadium rising next to the old Giants Stadium and thought about the fact that the Nets are supposed to pull out of here soon — not to move to the beautiful new Prudential Center down the road in downtown Newark but to a fantastical, not-even-close-to-being-built $1 billion arena in Brooklyn and the mind just boggles.

article

Posted by lumi at 6:59 AM

New Jersey Nets Moving to the Prudential Center? It Might Actually Happen

The Bleacher Report
By Juni Ramos

Bruce Ratner's NJ Nets need a new arena, Newark actually has one — go figure.

Does Brooklyn even want the Nets? The answer is an astounding "no." There has been much outrage and protest to the building of the billion-dollar new stadium in Brooklyn.

Okay, I just said "build a new stadium." The Prudential Center is a new stadium! And it’s very well done, as I can say from personal experience. I went to a New Jersey Devils game and got my first glimpse of where the Nets could be winning basketball games.

article

Posted by lumi at 6:24 AM

March 8, 2009

When Arenas Collide

The Star-Ledger
By Ted Sherman

The Izod Center and the Prudential Center are only 8 miles away from each other in New Jersey. This is causing a conflict wherein both arenas are competing for the same events. (Events like the circus, the ice shows and concerts are much more profitable for these arenas than sporting events.) The uncertainty of the status of the proposed Barclays arena is part of the mix as to whether to keep both Izod and Prudential open or at least find a way so that they cooperate, and not compete.

Last week's announcement that the New Jersey Nets, who call Izod home, will play two preseason games at Prudential next fall fueled new speculation that the team will abandon a five-year quest to move to Brooklyn and make a deal to play basketball in Newark. At the same time, it reignited a debate over the competition between the state-operated arena in the Meadowlands and the new arena, nicknamed "the Rock," that was intended to spark a renaissance in the state's largest city.

"I believe we need to start looking at this as a regional issue," said Newark Mayor Cory Booker. "Ultimately having a very old arena and a new arena cannibalizing each other is just not a productive thing for our state."

Prudential Center officials say they are not at war with Izod, but it was always their expectation that Izod would close once the Devils and Nets left the Meadowlands.

New Jersey Senate President Richard Codey wants to see the two arenas cooperate, and also wants to see the Nets stay in New Jersey despite stated intentions by the Nets to do otherwise.

Codey's greater concern is to see the Nets stay in New Jersey -- and, for him, to move to Newark. "It's time they fish or cut bait. They've been in a holding position on the tarmac for more than five years and it's not right," Codey said. "The Nets need a first-class arena."

The Nets, however, say that arena will be in Brooklyn. Team chief executive Brett Yormark said the vision has not strayed from a planned $1 billion Frank Gehry-designed arena there, and they expect to break ground on the project by this summer, despite the worsening recession that has affected major commercial development nationwide.

"Even in a challenging economy, we are doing multiyear deals and seven-figure deals for Brooklyn. That's where we're going," said Yormark. "I wish the Prudential Center well and I want them to be successful there. But our intention is to go to Brooklyn."

article

NoLandGrab: Does anyone believe that, even if it is built, the Brooklyn arena will be designed by Frank Gehry? It's pretty clear he's no longer involved.

Posted by steve at 11:15 AM

Will Brits Bail Out Barclays to Help Build Billion Dollar Brooklyn Arena?

Develop Don't Destroy Brooklyn

An article in The New York Times about British banks receiving bailout money got the folks at DDDB speculating what might happen if Barclays Bank, which has a $400 million naming-rights deal for the proposed Barclays Center arena, took this aid. Could the naming-rights deal be in jeopardy?

Barclays Bank, an England-based firm, has a $400 million naming rights deal with Forest City Ratner for the proposed Barclays Center Arena as part of the Atlantic Yards project. Of course, being English, Barclays is not eligible for TARP funds. But they are eligible for the British Bailout. Barclays declined to be involved in the first round of bailouts in Britain, but now The Times reports that there is mounting pressure on Barclays to accept toxic asset purchases by the British government.

From the sound of it, Barclays will eventually be bailed out by the British government.

...

The British, who are much more no-nonsense than us Yanks, are not going to look too kindly on a bailed out bank putting $400 million into a billion dollar arena across the drink in Brooklyn, in a neighborhood that doesn't even want the thing.

link

Posted by steve at 11:10 AM

Arena or Hole in the Ground?

NetsDaily

This blog entry looks at an article appearing in The Wall Street Journal and another in the Star-Ledger. Much discussion ensues.

The controversy over Atlantic Yards seems to be coming to a head: The last major court decision is expected soon. Bruce Ratner says an arena ground breaking will follow. Meanwhile, Newark makes an ever louder pitch for the Nets. The latest: a conservative analyst decries the whole process as a public-private partnership gone terribly wrong and an economic analysis of the IZOD vs. the Rock.

A Hole Grows in Brooklyn - Julia Vitullo-Martin - Wall Street Journal

When Arenas Collide - Ted Sherman - Star-Ledger

link

Posted by steve at 11:05 AM

March 5, 2009

Brooklyn or bust

The Daily Blahg [NY Daily News]
by Filip Bondy

Nets' management really, really hates it when anybody asks about Newark, because Bruce Ratner remains determined to get his team to Brooklyn in two years. Ratner will never move the team to Newark. However, if the Atlantic Yards project stalls much longer, he may be forced to sell the franchise because of huge losses.

This makes the Nets' announcement so odd about playing two preseason games this fall at the Rock. Barry Baum, a spokesman for the team, says the commitment was debated among executives for this precise reason, that they feared it would start rumors about a possible move there. But money is money, and the Nets just couldn't sell preseason tickets at the Meadowlands.

A very specific report has been circulating around the team that Ray Chambers and Lewis Katz are preparing to invest $150 million with Ratner, as part of a contingency deal. If he can get the Brooklyn arena done in two years, fine. Otherwise, Chambers and Katz would purchase the team and move it to Newark.

But again, the Nets strongly deny such an agreement. They continue to fight off a bunch of legal challenges to their Brooklyn project. "We've won 22 of 23 cases and we'll win the last one," Baum says.

He sounds certain. Two years from now, Baum will either look like a truthsaying visionary or a naive flack.

article

NoLandGrab: This is the first we've heard of a possible deal with former Nets' owners Chambers and Katz, and the first time we've actually heard a Forest City executive admit that they haven't won every court battle.

Posted by eric at 3:14 PM

March 3, 2009

Nets ticket prices won't go down next year, except when they do

Atlantic Yards Report

Sports Business Journal reports that the New Jersey Nets are among at least 19 teams (out of 30) that are expected not to raise season-ticket prices next year.

Of course, there's still a lot of flexibility regarding tickets sold on a per-game basis. Some are free or nearly so; at other times, as the advertisement below indicates, discounts are keyed to perceived popularity of the opponent.

Even in games against the (defending champion) Boston Celtics and Cleveland Cavaliers, the teams with the second- and third-best records in the league, discounts are 20-25%.

article

NoLandGrab: NJ Nets ticket promotion idea — receive a pair of Nets tickets with your next purchase of a gallon of milk!

Posted by lumi at 4:16 AM

March 2, 2009

Calling all Nets sponsors

NYDailyNews.com
by Jotham Sederstrom

Developer Forest City Ratner has announced a sponsorship deal that could pour millions into the ailing Atlantic Yards project - if it ever gets built.

MetroPCS, a wireless phone company, will join eight other corporations as sponsors of the New Jersey Nets, the NBA basketball team Bruce Ratner hopes to bring to Brooklyn to play in a new arena at Atlantic Yards.

Last week's announcement came on the same day as opening statements in a lawsuit against the $4.2 billion project, and followed a flurry of setbacks, including word that the Frank Gehry-designed arena could be scaled back to save money.

"I think they're trying to save a sinking ship, and I think they're trying to put their best face forward," said Councilwoman Letitia James (WFP-Prospect Heights), an opponent of the 22-acre arena/residential/commercial project.

article

Posted by eric at 4:09 PM

February 19, 2009

Mayoral Hopeful Wants Islanders in Brooklyn

Spin Cycle [Newsday blog]
by Bill Murphy

The Brooklyn Islanders?

That’s something more than a whimsical thought when it’s pushed by a politician who would like to be mayor of New York City less than two years from now.

“I’m looking for the Islanders moving to Brooklyn,” U.S. Rep. Anthony Weiner (D-Kew Gardens) said Thursday morning on WFAN Radio. Weiner, an avid hockey player who is among a handful of Democrats vying to challenge Mayor Michael Bloomberg in 2010, said he thought the current economy made it unlikely that the entire Atlantic Yards project would be built as planned, but there probably would be a new arena to house the Nets basketball team.

As Newsday reporter Steve Zipay recently pointed out, “the numbers show — and have shown for decades — that economically viable arenas generally have two professional sports teams as anchors.”

article

NoLandGrab: Since we already have four arenas in the area (Madison Square Garden, the Izod Center, the Prudential Center and Nassau Coliseum), and only five NBA and NHL teams (the Knicks, Nets, Rangers, Devils and Islanders), it would seem we already have more arenas than we need. And the same goes for mayoral candidates.

Posted by eric at 10:24 AM

February 16, 2009

Is it possible for Atlantic Yards arena price tag to be cut (nearly) in half? And what would that mean?

Atlantic Yards Report

New York Times reporter Charles Bagli, who last March almost casually broke the news that the price tag for the Atlantic Yards arena had reached $950 million (from $637.2 million as approved in December 2006), last Friday slipped in another cost estimate with major implications.

In a CityRoom blog post taking off from the news that Gramercy Capital Corporation had extended the terms of a loan to Forest City Ratner, Bagli wrote last Friday:

Forest City has indicated that it will delay building its planned office tower or the first of the residential buildings, but it is still hoping to start construction later this year on the arena, which was designed by the architect Frank Gehry. Knowing that it could not obtain financing in the credit markets for an arena costing $1 billion, Forest City has put engineers to work trying to cut the price in half. (Emphasis added)

That's a pretty dramatic reduction, and it raises a question: what would a $500 million arena look like? It likely wouldn't look like the $950 million arena (right), as depicted in desgins released last May.

Norman Oder ponders the costs and implication for the arena sponsors.

article

Posted by lumi at 5:32 AM

February 6, 2009

Build the arena — with fed money!

The Brooklyn Paper Publisher Ed Weintrob thinks Federal stimulus aid should go to build the new basketball arena for Bruce Ratner's NJ Nets.

Yes, The Brooklyn Paper has repeatedly argued that the financing scheme for the Nets arena was unfair to New York taxpayers. But if Washington money is channeled our way, that argument over subsidies to the project would be muted.

Bottom line: If we don’t get the money, Peoria will.

Just as we need to move past finger-pointing and blame-throwing in Washington and on Wall Street, we need to look forward in Brooklyn and remove vitriol from all sides of the Atlantic Yards discussion.

Constructing the arena and bringing the New Jersey Nets to Brooklyn would quickly create construction jobs, boost the commercial district along Flatbush Avenue, and restore the spirit of optimism that built Brooklyn.

Isn’t that what an economic stimulus package is supposed to do?

link

NoLandGrab: Hey, don't stop here! The lucrative business of professional sports is having as tough of a time as any industry. Maybe we can funnel some stimulus bucks to the new arena for the Orlando Magic and use Federal tax money to stimulate a new arena for the Sacramento Kings.

Atlantic Yards Report, Shocker: Brooklyn Paper editorializes for federal bailout of Ratner's arena

In his point-by-point examination of Weintrob's editorial, the "Mad Overkiller" Norman Oder calls it a "shocker" and notes that, "The editorial is signed by publisher Ed Weintrob, an unusual move, so we don't know if the sentiments are shared by editor Gersh Kuntzman, who has written many of the other editorials...."

Weintrob's argument is essentially that the money's there, so, why not throw some to Brooklyn. Our pork is better than theirs. And while some others--say, Yonkers--decorously request federal money for infrastructure to support private development projects, Weintrob wants the project itself to get a bailout.

NoLandGrab: Aside from setting a bad precedent, one problem with Weintrob's argument is that the Feds would be bailing out a pro sports team, whose value would skyrocket if moved to a new arena in Brooklyn. Perhaps, as in the bailout of the banking system, US taxpayers could become shareholders in the team?

Posted by lumi at 6:05 AM

January 26, 2009

Go away Islanders

LI Biz Blog
By David Reich-Hale

The New York Islanders decision to play an exhibition game in Kansas City later this year fueled speculation that the team could be relocating if the Town of Hempstead doesn’t move on site approvals for the Hub.

Though the Islanders haven't had much to get excited about in recent years, the addition of an NBA franchise might make a possible new arena more profitable:

Finally, here’s an interesting note in the column, and a rumor that’s quietly spread throughout the area: If Bruce Ratner’s gigantic plan to build an arena in Brooklyn for the New Jersey Nets falls apart, he could decide to partner with Wang and move the Nets to Long Island. If that happens, a new Nassau Coliseum becomes that much more enticing.

However, Ratner could just as easily move the team to Newark, where the New Jersey Devils play.

link

Posted by lumi at 4:38 AM

January 22, 2009

HM Yards

Gumby Fresh

This blog entry, looking at things from a financial perspective, speculates as to whether, Barclay's Bank would continue with an agreement for naming rights for the arena in the proposed Atlantic Yards project. Financial problems could result in the bank becoming nationalized. The entry concludes:

I don't have much of an insight into the mind of Alistair Darling, the Chancellor of the Exchequer, and now, presumably, the Grand Vizier of All UK Banks. I mean I've tried to stare into his mind and the colour difference between his hair and eyebrows has freaked me out. We'll have to wait for Barclays to fall into the welcoming arms of the government to see how it will play out, but if I were Mister Ratner I'd try and get the funding agreement active before my compatriots start asking awkward questions.

link

Posted by steve at 8:11 AM

January 19, 2009

Will the Nets Ever Move To Brooklyn?

The Biz of Basketball
by Matt Wiesenfeld

It wasn't that long ago that the Nets were perceived to be a team on the come. Vince Carter came to town and Jay-Z was sitting court-side giving them the kind of 'cred' generally reserved for the Knicks and Lakers. Building on top of this was talk of a brand new arena as part of a revitalization project in Brooklyn, which hasn't hosted a major sports franchise since the Dodgers left 50 years ago.

However the recent news on this project leaves many in doubt that it will ever be completed. The project calls for several high rise buildings in addition to the proposed stadium and its progress and challenges are well documented on Atlantic Yards Report.

Further clouding the issue, according to the New Jersey Star-Ledger, is that the Nets have announced that they are negotiating to play some preseason contests at the Prudential Center in Newark, leaving some to speculate that it could be a potential landing point for the franchise. What this might do to the Atlantic Yards project is not clear though it would not be a huge leap to think this is an indicator that the team believes the project might never be completed.

article

NoLandGrab: The Nets have since said they were not considering the Prudential Center, which, given their track record, means they very likely are considering it.

Posted by eric at 4:14 PM

January 15, 2009

Brooklyn Borough President Marty Markowitz: Ratchet down Yards arena

Daily News
By Jotham Sederstrom

This article reflects the effort by Borough President Marty Markowitz to keep the proposed Atlantic Yards project alive by echoing ideas that the developer proposed a week earlier.

The glitzy, world-class pro basketball arena slated for the Atlantic Yards project is now likely to be merely "functional," Borough President Marty Markowitz told the Daily News Wednesday.

In his strongest language yet, Markowitz called on developer Forest City Ratner to eliminate the costly flourishes and glassy facade of the Frank Gehry-designed NBA basketball arena in the face of an economic meltdown.

"We don't have to be rocket scientists to know that the awe-inspiring arena project designed by Frank Gehry has now become ... It's just not doable," said Markowitz.

The final, bizarre touch is a quote from Forest City flack Joe DePlasco, who implies that calls to change the proposed arena design originated with Markowitz, when it's clear to those following the Atlantic Yards fight that proposed changes come from Ratner:

"We look forward to discussing the borough president's proposal with him and continuing to work with him and others to bring this project to fruition," said DePlasco.

article

Atlantic Yards Report, Is arena value engineering also a security upgrade? Marty drops hint

Norman Oder adds this observation on what the proposed changes in the Daily News item might mean:

Maybe that that would make the AY arena more like Madison Square Garden and less like Newark's Prudential Center, and thus not pose dangers that require street closings.

Posted by steve at 6:56 AM

January 13, 2009

RUSTY START FOR METS

NY Post
By Ikimulisa Livingston and Rich Calder

Hundreds of millions in taxpayer subsidies just doesn't buy what it used to.

They were going for an old-time feel - but not that old!

Spanking-new, $850 million Citi Field is already beginning to rust.

A Post reporter spotted brown water from a rusty beam creeping down the wall of the front entrance of Citi Field's main gate in Flushing, Queens, on 126th Street. The Mets are set to move there in April.

Rob Bedelis, a mechanical engineer who helped build the Milwaukee Brewers' Miller Park, said Citi Field shouldn't be rusting a little over two years after the start of construction.

"It's a sign of the quality of workmanship," he said. "If I were a fan, I wouldn't be too thrilled. This might be cosmetic and not structural, but fans are paying a lot of money for baseball tickets."

From the comments section:

zodiax wrote:

Just think what the problems would be if "value engineers" had used cheaper materials, like they are proposing for the new Nets home.

article

Posted by eric at 11:22 AM

January 11, 2009

IZOD Center? How about we start calling it the U NOD OFF Center

NY Daily News
JULIAN GARCIA

But instead of fighting each other, the team and its fans should point the finger at ownership and those executives who promised more than five years ago to relocate to Brooklyn but have so far managed only to move to a town called limbo.

Delay after delay, mostly due to legal issues, has continuously pushed back the start of construction of a proposed downtown Brooklyn arena that is supposed to be part of a larger development project, Atlantic Yards. However, spokespeople for team owner Bruce Ratner continue to say that the Nets will be playing in Brooklyn before the end of 2011.

And I'll be the Nets' starting center by then.

article

Atlantic Yards Report comments:

Indeed. Maybe he's done the math, too, or just stopped believing Nets CEO Brett Yormark.

Posted by amy at 10:57 AM

January 9, 2009

A Letter to the Editor of the Newark Star-Ledger

Atlantic Yards Report

The Star-Ledger prints a letter to the editor from Norman Oder, which sets down the more modest facts of Norman Oder's initial encounter with Brett Yormark, who at the time was boning up on Brooklyn to try to impress then-prospective employer Bruce Ratner:

The article claims that Yormark "hired a tour guide for a fairly large sum." Yormark's memory is faulty. The sum was about $100 and we spent less than two hours; he didn't have the time to get out of his vehicle, for example, to see Prospect Park.

At that time, the Atlantic Yards project had not gone through any public evaluation, and I knew relatively little about it. Yormark's certainty that the project would be officially approved helped provoke me into later launching a watchdog blog about it.

article

NoLandGrab: What we love about Brett Yormark is that the guy is larger than life: he hired Norman Oder for "9-10 hours," he works 18-hour days, etc. We'll grant Yormark true superhero status when he can rub two of Ratner's dimes together to make twenty cents.

Posted by lumi at 5:15 AM

January 7, 2009

Brett Yormark, remixed: Nets CEO's shifting predictions on arena opening date

Atlantic Yards Report

If you ever wanted to know what Norman Oder does for fun, check out his fantasy interview with Nets CEO Brett Yormark:

A good salesman always sounds convincing, even if underlying facts change the spiel, and New Jersey Nets CEO Brett Yormark is at the top of the game.

In three radio or TV interviews over less than 15 months, Yormark offered unwavering predictions about the opening date of the Atlantic Yards arena (aka Barclays Center) in Brooklyn. First, he said 2009, then 2010, then 2011.

Just take a listen to this one-minute audio file. I’ve interpolated my own questions into the remix, but the original quotes come from the interviews transcribed below.

article

Posted by lumi at 5:29 AM

December 19, 2008

Heartwood Studios: digital storytelling used (still?) to market the Barclays Center

Atlantic Yards Report

Heartwood Studios, which offers "Digital Storytelling® through Visual Extravaganza®!" is--or at least was--working on marketing the Barclays Center and suites there.

article

http://www.hwd3d.com/portfolio/real_estate/nets.php

Posted by lumi at 4:25 AM

December 18, 2008

In Pictures: 10 Ways The Economy Is Squeezing Sports

Forbes.com

How is the economic crisis reverberating through pro sports? From sponsorships drying up to ticket sales slipping to international expansion moving to the back burner, a look at the year ahead:
...

#8 New Venues and Naming Rights

Two new sparkling NFL stadiums are going up soon, neither of which has secured a naming-rights deal as of yet. The new digs for the Dallas Cowboys (opening in 2009) and the New York Jets and Giants (2010) will get a corporate logo slapped up at some point, but not for the kind of dollars the clubs expected at this time last year. Meanwhile, will the Barclays Center in Brooklyn, N.Y., the supposed new home for the NBA Nets, ever get built?

view the slideshow

Posted by eric at 6:37 PM

December 15, 2008

Carbonation-related cognitive dissonance at the Izod Center

Atlantic Yards Report

Jones Soda, the official carbonated beverage of Bruce Ratner's yet-to-be-built Barclays Center arena in Brooklyn, is being advertised during Nets home games in "the Swamp" (Izod Center), even though Pepsi has the carbonated sugar-water contract in the Meadowlands.

Norman Oder wonders if New Jersey Nets marketing officials are trying to "make sure that Jones is happy," in light of revelations that Jones executives "have been talking about how to pull out of the Barclays Center deal."

article

Posted by lumi at 5:35 AM

December 12, 2008

The $1 hot dog? Not at the Izod Center--not even close

Atlantic Yards Report

Recently, NJ Nets CEO Brett Yormark touted the NBA's plans to make the sport more family-oriented, citing the one-dollar hot dog.

Norman Oder brought his wallet and stomach to Wednesday night's game at the 'Zod:

Last month, New Jersey Nets CEO Brett Yormark was interviewed by the unskeptical Alexis Glick of Fox Business News.

When Glick asked how the cost to take a family to a sporting event could be made more affordable, Yormark replied thusly:

Well, the NBA has been very proactive in providing opportunities for anyone to come see an NBA game. There are teams out there that have tickets priced at 5, 10, and 15 dollars. There are opportunities to go to the concession stand and buy a hot dog for a dollar now. And all that is an opportunity to bring in as many people as possible. ...
I checked out the Izod Center on Wednesday night. A hot dog now costs $4.25.

article

Posted by lumi at 4:37 AM

December 8, 2008

Could roof help bring team to USTA stadium?

Sports Business Journal
by Don Muret

Arthur Ashe Stadium, future home of the New York Islanders? Maybe the Nets?

Far-fetched, perhaps, but Danny Zausner, managing director of the U.S. Tennis Association, threw out those scenarios as his group prepares to issue a proposal in January seeking architects to plan a retractable roof for the 22,547-seat U.S. Open venue.

The roof, which could cost $100 million, would protect the stadium’s playing surface and eliminate the rain delays and washouts that have plagued the tournament in recent years. The USTA has not determined how to pay for the roof, Zausner said.

“Maybe there’s an NBA opportunity,” he said. “Once we start looking at that type of price tag, we need to see what other benefits there are to having a roof.”
...

Seven years ago, when the USTA began studying the feasibility of enclosing the facility, officials had brief talks with the NBA about bringing another team to New York to play in a covered Ashe stadium, and the Nets’ situation came up in the conversations. The USTA did not speak directly to the Nets, Zausner said. “They were very preliminary discussions, and it was before Bruce Ratner planned the Nets arena as the foundation of a much larger development in Brooklyn,” Zausner said.

Ratner’s $4 billion Atlantic Yards project, first announced in 2003, has encountered problems with financing and neighborhood opposition. The USTA site is not an option, a Nets spokesman said, stating that construction in Brooklyn will start in the spring after the final lawsuit is resolved, with the arena opening in 2011.

article

NoLandGrab: An existing facility that could be adapted for a fraction of the price of a new arena, adjacent to a subway line and a Long island Railroad station, with ample parking? Of course it's "not an option."

Posted by eric at 1:17 PM

Citing delays, financially-troubled Jones Soda wants to pull out of Brooklyn arena sponsorship

Atlantic Yards Report

With Jones Soda on life-support, one wonders where the Nets will find another soda purveyor willing to pay the team $1.7 million a year for distribution rights in an arena that's looking increasingly shaky with each passing day.

A decline in the fortunes of Seattle-based Jones Soda and the delays in the promised Atlantic Yards arena have led Jones, which in November 2007 was announced to be the official soft drink provider at the Brooklyn arena, to explore pulling out of the deal, thus jeopardizing the planned Soda Stoop & Shoppe.

article

NoLandGrab: What the heck is a "Soda Stoop," anyway?

Posted by eric at 11:22 AM

Net Loss: Jones Soda wants out of NBA Deal

Downtown Dispatch
By Wild World News - Seattle

More heartburn for Bruce Ratner:

Documents obtained by the Downtown Dispatch, the Belltown Messenger's blog, reveal that Seattle's Jones Soda Co. is attempting to terminate their marketing agreement with the New Jersey Nets, another diminishment of market share for the carbonated candy, bubble gum soda and caffeinated energy-drink powerhouse which is progressively downsizing itself out of existence.
...
All the world looks on the NBA as being trendy and youthful and bursting with energy, and of course Jones Soda would want to be associated with that. But in an email dated November 12, 2008, CEO Jones asks company Manager of Legal Affairs Paula McGee if she can "please study whether we can get out of this [New Jersey Nets] deal due to delays and questionable future of this project."

Seems Jones execs aren't happy with rumors that the New Jersey Nets may – against all common good sense – stay in New Jersey.

So much for the glee and optimism of a Jones press release from November 2007 announcing that they had won the rights to sell soda at the New Jersey Nets' new arena in Brooklyn, New York "when it opens in 2009." The Newark Star-Ledger now reports that the move won't happen until 2012, if ever, and that maverick Newark mayor Cory Booker is working to keep the team in town. Evidently Jones Soda paid, handsomely, for some sort of business arrangement with the Nets which would allow them to vend their soda in a stadium which may never exist, but only in a city where the Nets will never play. Different.

Jones Executive Vice President of Sales Tom O'Neil concedes, "The Nets are losing $40M a year. They aren't going to want to release us or even help us get out of the deal. They need our money. From my perspective on this we need to play hard ball and pull out based on all the changes, delays and unsupported financing ..."

Jones also has deals with the Seattle Seahawks (13-18 since the Jones deal became official on July 1, 2007) and the Portland Trail Blazers. Both teams are owned by Paul Allen, the principal developer in the South Lake Union neighborhood in which Jones is headquartered.

article

NoLandGrab: We presume this signals the end of the embarrassingly stupid Ye Olde "Jones Soda Shoppe."

Posted by lumi at 6:11 AM

December 1, 2008

Special report: Jazz staying put

Team executives say renovations are likely but relocation isn't

Salt Lake Tribune
by Steve Luhm

Bruce Ratner makes his way into a story about the Utah Jazz and the future of their aging arena.

In an era of unparalleled operating costs, NBA teams like the Jazz must maximize revenue streams, which includes income directly tied to their arenas.

If a building doesn't contribute to a team's bottom line, it's more than an inconvenience. It could be the death of a franchise in that particular city.

In Seattle, arena issues were cited by the Sonics' new owners as their reason for moving the team to Oklahoma City.

In New Jersey, owner Bruce Ratner's up-in-the-air plan to move the Nets to Brooklyn is based partly on the shortcomings of the outdated Izod Center.

In Sacramento, voters have been hesitant to help replace Arco Arena, leading to criticism by commissioner David Stern and rumors that the Kings might be the next team to relocate.

article

NoLandGrab: Imagine if you had to tear down your house every 25 years or so because it became outdated. Bet you wouldn't do that unless you were getting some generous help from the taxpayers.

Posted by eric at 9:31 AM

November 18, 2008

LeBron James to New Jersey or Brooklyn? No, and not quite

Atlantic Yards Report

In the run-up to tonight's New Jersey Nets home game against the Cleveland Cavaliers, a lot of sportswriters are speculating whether Cavaliers superstar LeBron James, who becomes a free agent in 2010, would stay put in Cleveland, just down the road from his hometown of Akron, or move to the bigger cities of New York or Los Angeles, where he could become even more of a brand.
...

The Record's Al Iannazzone speculates:
So does James, because of his strong relationship with Jay-Z, forgo the Knicks, wait another season and play for his meager 2010 salary to align his star with the hip-hop mogul and part-owner of the Nets one year later in Brooklyn?

It would have to be a perfect storm.

First, the Nets have to make sure they’re in Brooklyn. Two, they may have to clear more money...

But the arena can't get built by 2011. My calculation is that, even if lawsuits are cleared by mid-2009, the 32-month construction timetable suggests a best-case opening in March 2012.

article

More coverage...

Cleveland Plain Dealer, Cleveland Cavaliers forward LeBron James fielding contract questions

Bergen Record, Could LeBron be a Net?

Posted by eric at 10:35 AM

November 14, 2008

BANK: WE WON'T BAIL OUT ON NETS ARENA

NY Post
By Rich Calder

Barclays bank vowed yesterday not to exercise an out clause and kill its record $400 million naming-rights deal for the venue, the centerpiece of developer Bruce Ratner's $4 billion Atlantic Yards project.

The deal was contingent on Ratner's having financing for his entire project - which also includes 16 towers of residential and office space - set by the end of this month. That is now impossible because of pending litigation to block the project.

But sources told The Post that Barclays agreed to an extension.

article

The Star-Ledger, Harris ready to help New Jersey Nets

Seeking to dispel doubts about the Atlantic Yards project, the Nets issued a short release yesterday quoting Barclays Chief Administrator Officer for the Americas that reiterated the bank's pledge to carry on. "Barclays is unwavering in its commitment to the Barclays Center, and we are very pleased with our long-term alliance with our great partners," said Gerard LaRocca, whose institution has committed $400 million to the deal.

Posted by lumi at 6:14 AM

November 13, 2008

Barclays still committed to Nets' planned new home

Watchdog [Newsday Sports blog]
by Neil Best

Barclays asserts that it still is fully committed to the Nets' planned new arena, The Barclays Center, even given these difficult times for banks and stuff.

The race is on to begin construction before LeBron James signs with the Knicks.

Click below for the assertive news release.

Barclays, a leading global financial services company and the naming rights partner for the future Barclays Center, today affirmed its commitment to the future arena in Brooklyn and the updated timeline for a 2009 groundbreaking. The Barclays Center, which is designed by Frank Gehry, will be the world-class home of the Nets.

"Barclays is unwavering in its commitment to the Barclays Center and we are very pleased with our long-term alliance with our great partners, the Nets and Forest City Ratner Companies (FCRC)," said Gerard LaRocca, Chief Administrative Officer, Americas, at Barclays Capital, the investment banking division of Barclays PLC. "We are very excited about being part of the continued renaissance of Brooklyn and we eagerly look forward to opening night at the Barclays Center."

Since we announced our 20-year naming rights partnership in January 2007, Barclays has offered nothing but resolute and great support," Nets Chief Executive Officer Brett Yormark said. "We deeply appreciate our partnership with such a well-respected and distinguished company, which shares our love for Brooklyn and our strong sense of community."

article

NoLandGrab: It's great that Barclays is "unwavering" in its commitment, but the release doesn't make clear that they're remaining contractually committed to the naming-rights deal.

There is news here, though, in the assertion that "Barclays continues to play a major role as the co-lead in the financing of the Barclays Center," a role that seemed to have been the exclusive domain of Goldman Sachs. Divvying up the underwriting doesn't exactly scream "done deal" now, does it?

“We are thrilled to have Barclays as a partner,” said Bruce Ratner, chairman and CEO of Forest City Ratner Companies, a subsidiary of Forest City Enterprises, Inc., and the chairman of Nets Sports and Entertainment, LLC, which owns the Nets. “The Barclays Center will be one of the most spectacular sports and entertainment arenas in the world. Even more importantly, it is a centerpiece of a development that will bring thousands of jobs and affordable housing units to Brooklyn.” Forest City Enterprises (NYSE: FCEA and FCEB) has an equity interest in Nets Sports and Entertainment.

In addition to its naming rights commitment, Barclays continues to play a major role as the co-lead in the financing of the Barclays Center. Momentum for the Barclays Center continued recently when the Internal Revenue Service issued a new regulation that confirms that tax exempt bonds may be used to finance the arena.

The multifaceted partnership among Barclays, the Nets, and FCRC includes the Barclays/Nets Community Alliance, which invests $1 million per year in local non-profits that work to improve the lives of young people in Brooklyn and surrounding communities through sports and other activities, including education and health care. Last month, the Barclays/Nets Community Alliance unveiled a new playground at Public School 19 in the Williamsburg section of Brooklyn, which marked the first of eight Brooklyn playgrounds that the Alliance will fund with a grant to Out2Play, Inc., a non-profit dedicated to building and refurbishing playgrounds throughout the New York City public school system.

Posted by eric at 7:16 PM

November 12, 2008

Traffic slows for suites at new Yankee Stadium

How suite it isn't: Traffic slows for luxury boxes next season at new Yankee Stadium

AP via CNN Money

The New York Times reported little more than a month ago that the faltering economy wasn't having a negative effect on the sales of new luxury suites, but that was before things got really ugly on the economic front. Now, even New York's pre-eminent sports franchise is having some trouble moving the merchandise.

Selling suites may not be so sweet a business for the New York Yankees in these tough economic times.

Seven luxury boxes down the foul lines priced at $600,000 remain available for the 2009 season, the first at the new Yankee Stadium. The team still had seven available in August, too.

"There's no getting away from the fact that the world is different than it was, so traffic slows," chief operating officer Lonn Trost said Tuesday. "So you don't have 10 people banging on the door. You may only have two people."

article

NoLandGrab: With the projected supply of New York-area luxury suites increasing by more than 50%, to nearly 700, according to that Times story, the Yankees' news can't bode well for a team trying to float $800 million in new bonds to build a suite-laden basketball arena in Brooklyn.

Posted by eric at 9:56 AM

November 6, 2008

An Interview With the Star Ledger’s Dave D’Alessandro

The Big Lead

The sports blog's interview with the Newark paper's hoops reporter inevitably comes around to the Nets' future plans.

Q: Will the Nets ever make it to Brooklyn? The delays have us thinking no. If that’s the case, then do you think LeBron stays in Cleveland, or winds up with the Knicks? Or can you imagine him playing in New Jersey? Is there even a darkhorse for his services, or is he the type who bigger-than-sports star must be in one of the NBA’s major markets, like LA, Chicago, or NY?

The political momentum is such that there may be no turning back at this point, and the linchpin in this deal – sharp guy named Brett Yormark – asserts that the financing is there, and that his partners are content to see it through. Even Barclays, which actually turned down Gordon Brown’s handout, seems to be hanging in there. Maybe that’s just a company line, but the signs are that they’re still going to break ground. . . . uh, some time in the coming century.

article

Atlantic Yards Report, Listening to Yormark: sports reporter says Brooklyn deal is a go

Norman Oder throws a little cold water on D'Alessandro's assertion, considering the source of his info.

While I agree that the "Atlantic Yards is dead" meme is way overstated, I also think anything Yormark says should be taken with a grain of salt. After all, he's the guy who last year said the arena would break ground in the fall of 2007 and open in 2009.

And of course, there's chatter on Nets Daily: Dave D. on Brooklyn…and New Jersey

Posted by eric at 11:00 AM

Yuma voters reject new arena

ArenaDigest.com

Hey lookie, when given the chance to decide on whether or not to proceed with planning and negotiations for a new arena, voters in Yuma, AZ rejected the idea.

article

But we digress. The main reason for the link to ArenaDigest.com is that news of the IRS ruling allowing Bruce Ratner to receive triple-tax-exempt bond financing for a new arena in Brooklyn is the lead story on this week's podcast.

Posted by lumi at 5:27 AM

October 29, 2008

Spike Lee Says Nets to Brooklyn "Not a Done Deal"

Develop Don't Destroy Brooklyn noted that even movie director and Knicks-überfan Spike Lee thinks that the Nets will never make it to Brooklyn.

Spike Lee was on MSNBC's "Morning Joe" show this morning discussing politics and the NBA. He said that he'd discussed LeBron James's decision where to go if he leaves the Cleveland Cavaliers.

Lee said, "The man told me himself that his decision would not be based upon his friendship with Hova, Jay-Z. And also it's not a done deal that the Nets are moving to Brooklyn either."

The "Morning Joe" hosts responsed, "Yeah, yeah."

[Lee's remarks on LeBron, "Hova" and the Nets start around 1:10]

Posted by lumi at 5:44 AM

Jets sell just 620 of 2,000 seat licenses

Crain's NY
By Hilary Potkewitz

The New York Jets’ unprecedented online auction of personal seat licenses ended Monday night at 10 p.m., with the team selling just 620 of the 2,000 available seats in the exclusive “Coaches Section” of their new stadium.

The auction brought in $16 million over the course of nine days, team owner Woody Johnson announced Tuesday, with an average price of about $26,000.
...
Jets executives say they are ecstatic about the results of the auction, the first of its kind and the largest sale ever on Stubhub.com. “We knew this would be a pioneering event right from the start,” said Mr. Johnson. “That’s who the Jets are, we take calculated risks, and this one paid off.”

But the team had to adjust its plans once the auction went live because bidding activity plummeted by mid-week. Mr. Johnson attributed the drop to people being at work and not able to commit to the constant monitoring of an online auction. Initially, the team released 40 to 50 seats at a time, but by Wednesday they had reduced the lots to 20 seats.

Management decided not to extend the auction past the advertised end-date, however.

article

NoLandGrab: Pro sports teams and leagues across the nation have been keeping their eye on the Jets sale of personal seat licenses, which help teams offset the cost of building new stadiums, arenas and ballparks. From our nose-bleed seats at NoLandGrab it's hard to say what last week's sale portends for team owners like Bruce Ratner.

Last year, Norman Oder reported that "Forest City Ratner expects $20 million in revenue from 4500 'Personal Seat Licenses' (PSLs) sold at $4500 each."

Posted by lumi at 5:34 AM

October 28, 2008

Sources: Foreign owners eye Nets

Yahoo! Sports
by Adrian Wojnarowski

Could Atlantic Yards become "Caspian Yards" or "Persian Gulf Yards?" One thing we do know — those repeated denials of Nets' sale talks are starting to ring hollow.

With tens of millions of dollars in annual operating losses and a $3.5 billion Brooklyn arena and real estate deal in peril, New Jersey Nets owner Bruce Ratner has listened to overtures of two prospective foreign ownership groups, two league executives with knowledge of the talks told Yahoo! Sports.

The most serious advance, sources say, were made in recent months by Russian oligarchs, tycoons invested in the country’s oil industry. The Russians’ working plan would’ve been for full ownership of the Nets and control of the Atlantic Yards project in Brooklyn, one source said.

Also, a Middle Eastern group, based in Dubai, expressed interest to the NBA and Nets ownership.
...

So far, Ratner has resisted selling the franchise as he tries to revive the floundering arena project in Brooklyn. Most league officials have grown increasingly pessimistic that the economic climate will allow Ratner to obtain the hundreds of millions of dollars left to finance the construction. [NBA commissioner David] Stern declared optimism about the Nets getting the arena financed and moving to Brooklyn, but many others believe the situation is dire and ultimately unlikely to happen.

article

Posted by eric at 11:32 PM

October 27, 2008

Longshots

NY Daily News
By Mitch Lawrence

Posted by lumi at 5:21 AM

In basketball saga, is Brooklyn more like Oklahoma City or Seattle?

Atlantic Yards Report

Could it be that it is only smaller cities that need major league sports to feel "major league"?

Bruce Schoenfeld's New York Times Magazine article yesterday, headlined Where the Thunder Comes Dribbling Down the Plain, describes the transformation of NBA's Seattle SuperSonics into the Oklahoma City Thunder, and the latter city's embrace and support of the team.

The lessons for Brooklyn, I think, are mixed. Unlike some other medium and large cities, where existing major league teams suck up attention and media coverage, Brooklyn's in a big enough market to support a team, should the Nets ultimately move here.

However, the Atlantic Yards saga suggests that New York behaved more like Oklahoma City than Seattle, offering political support, lobbying, and public funds to attract the team and built the arena, while in Seattle voters approved a measure, proposed by a group called Citizens for More Important Things, that ensured that any public money toward a new arena would have to generate legitimate financial returns.

article

Posted by lumi at 5:09 AM

October 22, 2008

Tax-Exempt Bonds: The Evening Wrap

Here's the rundown on today's coverage of the IRS's decision to tighten a "loophole" on the use of PILOTs to finance arenas and stadia — only the Yankees, Mets and, maybe, the Nets, have slipped the knot.

Gothamist, Atlantic Yards Project Gets Big Bond Break from IRS

These New York teams may be hard-pressed to find investors who will buy the bonds, given the current Wall Street turbulence. Not so incidentally, the ruling comes four days before Yankees president Randy Levine and city officials are expected to testify at a Congressional hearing investigating the tax-exempt financing of the new $1.3 billion Yankee Stadium. Representative Dennis Kucinich, who is holding the hearing Friday, has threatened to prosecute officials if they lied about the value of the land the new stadium occupies.

State Assemblyman Richard Brodsky, a Westchester Democrat, slammed the IRS decision, telling the Times and the AP, "This is the same kind of socialism for the rich, and capitalism for the rest of us that’s gotten us into the current economic mess...The rules don't apply if you've got enough juice."

Curbed, Atlantic Yards Crap Tossing V.3.5: Financing Edition

The IRS issued a ruling yesterday that has monstrously huge implications for anyone that will ever want to build a stadium or arena ever again (don't go to sleep yet...this is big). You wouldn't know it in NYC, though, because even though it impacts the new Yankee Stadium and Citi Field, it's playing out as an Atlantic Yards story. At issue is whether tax-free financing can be used to build Frank Gehry's $950 million arena. (Leaving aside the issue as to anyone will ever finance a facility that is sure to go above $1 billion given traditional Gehry cost overruns in the middle of one of the most massive credit meltdowns in history.) The ruling creates a loophole for projects that are "substantially in progress," while banning it for new ones.

The Angry New Yorker, Tax Free Stadiums

Hey if I want to build myself a new house, think I can get me some tax free bonds to pay for it?

Brownstoner, Treasury Dept. Hooks Up Ratner Big-Time

One potential snag for FCR: The new regs require that the bonds be issued by December 31, 2009.

Gowanus Lounge, So, Does Mr. Ratner Get Tax-Free Bonds for Atlantic Yards?

The key phrase is that it grandfathers in projects “substantially in progress.” We can see lawyers and bureaucrats arguing this point about Atlantic Yards until we live in Green-Wood Cemetery.

Be sure to check out Gowanus Lounge's reflections on the ethics of subsidizing arenas.

Develop Don't Destroy Brooklyn, Ratner Spokesman Vs. Treasury Department Spokesman on IRS Regulation

Bloomberg News, New York Yankees, Mets Get Approval for Tax-Exempt Bond Funding

Village Voice [Runnin' Scared blog], Atlantic Yards Gets Tax Break, Or Not

The Times spoke to Daniel Goldstein of DDDB, who "said it appeared to him that federal tax officials went out of their way to help the developer," the paper writes, "which he said 'makes no sense' when the federal government is in the midst of a costly bailout of the banking industry." Actually it does make sense: the bailout is an attempt by the powerful to restore a failed, obviously unsustainable confidence scheme to viability; this tax break (if it is a tax break), ditto.

Posted by eric at 9:18 PM

Treasury Gets Tough On PILOTs

Tighter Regs Issued As House Panel Opens

The Bond Buyer
by Peter Schroeder

Some industry insight into yesterday's IRS ruling, including the news that said ruling increases the risk for buyers, which might in turn make the bonds tougher to sell — unless you're George Steinbrenner, Fred Wilpon, or Bruce Ratner.

The Treasury Department yesterday issued more restrictive final regulations for bonds issued by payments in lieu of taxes, just three days before a House panel is scheduled to hold a hearing questioning the use of PILOTs to finance the new New York Yankees stadium.

But the rules contain a transitional provision that appears to enable the New York Yankees, Mets and Nets to continue to issue PILOT bonds as planned without having to comply with the new rules.
...

David Caprera, a partner at Kutak Rock LLP in Denver, said the new regulations will require a shift in how many market participants view PILOTs.
...

Since the PILOTs must be tied to taxes, Caprera said the new regulations shift a small amount of risk to the bondholder, who cannot be guaranteed a fixed payment, and unexpectedly low tax revenues could jeopardize a timely payment.

article

Posted by eric at 1:39 PM

Bailout! Feds save Ratner millions with new ruling

The Brooklyn Paper
by Sarah Portlock

"Joe the Plumber" has been all the rage for the past week. Now, courtesy of the U.S. Treasury Department, we bring you "Bruce the Plunderer."

The Treasury Department has bailed out Bruce Ratner.

In a much-anticipated ruling issued late Monday, the federal agency exempted Ratner’s Atlantic Yards project from a ruling that bars the use tax-free bonds to finance stadium projects.

Atlantic Yards was apparently exempted because it is “substantially in progress” — a term defined as having received “preliminary approval of the government” and involved “significant expenditures” before Oct. 19, 2006; and having a finance plan in place that contemplated the use of tax-free bonds.
...

“It’s a slight of hand that allows the city to stick it to taxpayers on behalf of developers,” said Neil DeMause, author of “Field of Schemes,” which focuses on the massive public cost of stadium financing.

article

Posted by eric at 1:11 PM

October 21, 2008

New IRS rules stoke Atlantic Yards fight

The Internal Revenue Service issued rules Tuesday on whether the Nets basketball arena planned for Brooklyn can access $800 million in triple tax-free bonds.

Crain's NY Business
by Erik Engquist

The Internal Revenue Service issued rules Tuesday that dictate whether the Nets basketball arena planned for Brooklyn can use $800 million in triple tax-free bonds. The developer, Forest City Ratner, says it can; arena opponents say it cannot.

A layman’s reading of the IRS rules seems to support the position of the developer and its partner in state government, the Empire State Development Corp.

The issue—which like everything else concerning Forest City’s Atlantic Yards project will probably be decided in a courtroom—could determine whether the arena gets built. Forest City has said it could get private financing to build the $950 million venue, but that might not be possible in the current credit market.

The IRS rules say one condition that the arena must have met is that “a governmental person took official action evidencing its preliminary approval of the project before October 19, 2006.” The board of ESDC, the state’s development agency, approved the general project plan of Atlantic Yards in July 2006.

But the arena’s opponents will likely challenge that stipulation.

“The general project plan wasn’t legally binding, and it wasn’t anything that [Forest City Chief Executive Bruce] Ratner could legally rely on to do his project,” said Daniel Goldstein, a spokesman for project opponents.

article

NoLandGrab: So if Atlantic Yards already had "preliminary approval" in July of 2006, why did we all stand in line for hours for the public hearing for the Draft Environmental Impact Statement on August 23, 2006, endure a fractious, mismanaged hearing, and submit volumes of written testimony?

We knew the whole process was bogus, but this takes the cake.

Posted by eric at 9:41 PM

Tax snag arises in Brooklyn Nets development

Reuters
by Joan Gralla with Ilaina Jonas

Does she or doesn't she?

Some media outlets are reporting that today's IRS ruling on the use of tax-exempt bonds applies to Bruce Ratner's Atlantic Yards arena, while DDDB contends that it doesn't. Reuters plays it down the middle.

Brooklyn's Atlantic Yards developer Forest City Ratner Companies on Tuesday said it believes it will be able to get the benefit of tax-free debt under new Internal Revenue Service regulations that govern so-called payments in lieu of taxes.

But a civic group, called Develop Don't Destroy, which in the past has sued to block the project that includes an arena for the Nets basketball team, hotel and apartments disagreed, saying the new tax rule "disqualifies" this debt.

The developer is seeking as much as $950 million of municipal bonds that will be repaid by so-called payments in lieu of taxes.

article

Posted by eric at 9:24 PM

October 19, 2008

No bridge to Brooklyn

NY Daily News
Mitch Lawrence joins Mike Lupica in getting in on the Atlantic Yards action. Good thing there is a sports section to take up the important urban planning stories...

Instead of putting a shovel in Brooklyn's soil, they're sprinkling dirt, rather liberally, on Bruce Ratner's dream of moving the Nets to the Atlantic yards.

That's good for North Jersey and the 38 fans who still turn out to watch a team that lost whatever relevance it had when Jason Kidd forced his way to Dallas.

But it's bad for Jay-Z when he tries to sell LeBron James on playing in Newark.

Not that there's anything wrong with the Nets heading down Route 21 and settling into the Prudential Center. Becoming co-tenants again with the Devils in their state-of-the-art facility has always made the most sense, even if Ratner continues to hold out hope that Devin Harris will one day run a break in a Frank Gehry-designed building in Brooklyn.

The more Ratner tries to keep his dream alive, the more he finds himself caught between The Rock and a hard place. Having alienated North Jersey fans long ago with his grand plans to bolt the Meadowlands, he has to realize that he's just giving them another reason not to buy tickets. It's not as if they need another one these days. The rotten economy is reason enough to stay home.
...
Ratner always thought he could waltz right into Brooklyn by 2009, but residents never lined Flatbush Ave. to toss roses his way. No matter how much David Stern lent his support to the project, lambasting the antiquated Meadowlands every chance he got, the Nets had about as much chance of settling in Brooklyn as they had of beating the Lakers in the 2002 Finals.

Now with Wall Street in chaos, Ratner can't get the financing to make Brooklyn work, so it's status quo, meaning the Nets get to stay in East Rutherford and play before a lot of empty seats.

article
NoLandGrab: In fact, residents did line Flatbush last night, but not to throw roses. Pictures from this year's successful Walk Don't Destroy will be forthcoming!

Posted by amy at 12:24 PM

October 7, 2008

It came from the Blogosphere...

Runnin' Scared [Village Voice blog], Times: Luxury Boxes Selling OK. (Also Selling on Craigslist.)

Of course some people are sub-leasing luxury box seats at Craigslist, so far on their terms only ("Offers below face value [$115/ticket] will not be replied to"). We'll see if their price moves in the months ahead. If things get hairy, maybe the Stadia will let us roll in our own keg.

Nets Daily, Zo’s Take on His Time With Nets Revealing but Incomplete

In his autobiograpy, “Resilence: Faith, Focus, Triumph”, Alonzo Mourning writes briefly about his time–actually two times–in New Jersey, first after his diagnosis with kidney disease, then after his kidney surgery. Although Mourning paints a negative portrait of the Nets management, and particularly Bruce Ratner, he does not repeat his claim that Rod Thorn and Lawrence Frank had tried to kill him by playing him too many minutes after his transplant.

Nets Daily, Luxury Suites Still Selling, but Delays Hurting Nets

Omnivore, Brooklyn, arenas, Tampa Rays Baseball & The Future…

Blogger Ron Bronson believes the Nets will never call Brooklyn home... but that baseball's Tampa Bay Rays will.

But you better believe that the deal will get done and the ghosts of ol’ Ebbets Field will be stirred up again as a new baseball stadium gets put in the same spot where Bruce RATner thought he could put a basketball arena for a team that’s been largely irrelevant since its inception.

Where will the Nets go?

Newark, where they should’ve been all along.

NoLandGrab: Not even Frank Gehry could figure out how to shoehorn a baseball stadium onto a parcel that's not really even large enough for an arena.

New York Real Estate Journal, Special Olympics to honor Minieri of FCRC and Moudis of Ted Moudis

Posted by eric at 1:08 PM

Economic Downturn Isn’t Slowing Luxury Box Sales

The NY Times
By Katie Thomas and Richard Sandomir

With the economy in crisis and Wall Street in turmoil, will local sports teams be forced to place vacancy signs on the scores of luxury suites being built in their new stadiums?

Don’t expect a stampede for the bleachers just yet, several team executives and industry observers said recently. They noted that the concentration of corporate headquarters in New York — combined with the marquee appeal of locations like Yankee Stadium — meant that demand for luxury suites was not likely to fade anytime soon. At some of the new stadiums, the suites are already sold out.

At the bottom of the pack, Bruce Ratner spokesperson Barry Baum tries to put on a happy face, despite the fact that they can't officially break ground until they in fact own the land needed to build the arena.

Teams whose stadiums are further from completion face more uncertainty, [editor and publisher of Revenues from Sports Venues Jim] Grinstead said. In particular, he said the Nets’ project faced competition from arenas like Madison Square Garden. “That’s where the sales challenge is,” he said.

But Barry Baum, a Ratner spokesman, said that about 30 percent of the 128 planned suites were leased. Once ground is broken for the arena next year, “we expect to have a flurry of interest,” Baum said.

article

NoLandGrab: The original version of this Times story read "once ground is broken for the arena later this year...." That is widely seen as an impossibility, given lawsuits facing the Atlantic Yards project.

Sour Times for Suites; Ratner Flack Misses Atlantic Yards Memo
Develop Don't Destroy Brooklyn politely catches Baum in a fib:

Just last week Bruce Ratner told The Times and The Sun that he can't break ground for at least another six months, which would decidely not be "later this year."

And if Baum is fibbin' about the groundbreaking, why should anyone believe him about unverifiable sales figures?

As for that 30 percent and holding number. In May The Times reported that the Nets marketing guru Brett Yormark claimed 20 percent had been leased. Now they say it's 30 percent? Forgive us if we are not the only ones who think that's as believable as Baum saying they are "breaking ground" later this year.

Posted by lumi at 6:37 AM

October 6, 2008

Season preview: New Jersey Nets

SI.com
by Paul Forrester

Sports Illustrated is not high on the Nets' chances for the 2008-2009 season, listing the following at #2 under "reasons for worry":

Risky plan. The not-so-hidden subtext to the Nets' recent moves -- the trades of Kidd and Jefferson, the acquisition of Simmons, the stockpiling of draft picks -- is an expected push to lure LeBron in 2010. A key element to the effort is the Nets' supposed impending move to Brooklyn, where owner Bruce Ratner has been planning to build a new arena in the borough that LeBron playfully referred to as his favorite in New York. Originally set to open in 2006, the proposed arena has hit a number of legal snags, largely from community residents fighting the project. Now with the economy in a downward spiral, the financing for the $950 million initiative is in jeopardy. That could leave LeBron potentially playing in the swamps of New Jersey, which, as Kidd will attest, is a far cry from the headlines of New York City. We'd assume the front office hasn't placed all his eggs in the LeBron basket, because if the arena falls through, the Nets will need a Plan B.

article

NoLandGrab: Attention Bruce Ratner — in case of emergency, click here for Plan B.

Posted by eric at 9:51 PM

October 3, 2008

Nets stuck with Jersey address?

The Jersey Journal, Editorial

Remember when the New Jersey Nets of the NBA was expected to move out of the Meadowlands Sports Complex to a Frank Gehry-designed arena in Brooklyn?

It is quite possible the Nets will be staying with us a bit longer. The Wall Street crisis and legal problems are close to making a worst case scenario a reality for team owner Bruce Ratner.
...
Having already spent millions, Ratner will not give up his Brooklyn dream. Considering the expensive uphill climb he faces, the Nets owner would be wise to make a deal with the New Jersey Devils for the Nets to play in the new Prudential Center arena in Newark with the idea of keeping the franchise in New Jersey another decade, or longer. Any financing Ratner eventually obtains could go into that part of an already scaled-down version of Atlantic Yards that he cares about - skyscrapers and apartments.

link

Posted by lumi at 8:01 AM

September 29, 2008

Atlantic Yards Faces Another Delay

City Room [NY Times Blog]
by Charles Bagli

The developer of the ambitious Atlantic Yards arena and residential complex in Brooklyn said Monday that the project could be delayed for another six months after a state appellate court failed to dismiss a court challenge brought by opponents of the $4 billion project.

Earlier this month, the developer Bruce C. Ratner vowed that he would break ground in December on the long delayed project, where he plans to build an office tower, 15 apartment buildings and a basketball arena for the Nets.

The developer has fended off a number of lawsuits brought by critics of the project over the past two years. He and state officials had expected that the state Appellate Court would also dismiss the latest suit, which sought to block the state from using eminent domain to seize private property for Mr. Ratner’s project.

Instead, the court denied a motion to dismiss the suit, opening the door for oral arguments in the case next spring.

article

NoLandGrab: Ratner and the Empire State Development Corporation rolled the dice, and they crapped out. If they hadn't gambled on a dismissal, they could have moved the case along much more quickly. Is it possible that deteriorating conditions in the lending market forced them into making a bad bet?

More coverage...

TheDeal.com, Barclays deals with Lehman staff, plans to hire 1,500 more

Off the beaten track, Barclays gave a shout-out to Brooklyn, saying it remains committed to a proposed basketball arena at the Atlantic Yards despite an unfavorable court ruling on the $950 million project.

Runnin' Scared [Village Voice blog] Setback for Atlantic Yards: Motion to Dismiss Denied

The Stop Shopping Monitor, Major setback for Atlantic Yards

Newark Star-Ledger, Nets' move to Brooklyn may face further delay

The Knickerblogger, Ratner Suffers Setback, the Conspiracy Theory Version

Posted by eric at 5:48 PM

Atlantic Yards Groundbreaking on Pause for 6 Months

Eminent domain lawsuit allowed to go forward

WNYC Radio
by Matthew Schuerman

While the plaintiffs lost a similar case in federal court, the state proceedings will delay the project right as a recession is threatening.

The project's developer, Forest City Ratner, had announced that a groundbreaking on the Barclays Center basketball arena would take place by the end of this year.

But a ground can't be broken before the project secures financing, and the financing won't come before all litigation is resolved. In an official statement today, the developer, Forest City Ratner, says it is confident it will build the arena.

article

Posted by eric at 4:39 PM

Barclays committed to Brooklyn arena

Court setback imperils Atlantic Yards ground breaking but bank statement is a boost.

Crain's NY Business
by Matthew Sollars

Barclays Bank says it is committed to the planned basketball arena at the Atlantic Yards project despite a court setback which imperils a planned ground breaking.

A state Appellate Court panel Monday rejected a plea by the state’s Empire State Development Corp. and Forest City Ratner to dismiss a lawsuit alleging the use of eminent domain violates the state constitution. A group of 9 property owners and tenants opposed to the project filed the state suit after a similar lawsuit arguing eminent domain violated the U.S. Constitution was rejected by the U.S. Supreme Court in June.
...

“While the Appellate Division Second Department’s decision to hear the case may delay the project for approximately six months let me be clear that the project will go forward,” Mr. Ratner said, in a statement.

The developer also stressed that the project could boost the city during an economic downturn. "Atlantic Yards will be built and it will create thousands of needed jobs and affordable homes," he said.

Barclays Bank has agreed to pay an estimated $20 million per year for the naming rights to the proposed arena, and is believed to have a clause which allows it to back out the deal if construction on the arena is not started by the end of November.

“We look forward to breaking ground with our partners in Brooklyn,” said a Barclays spokesman.

article

NoLandGrab: Talk is cheap. Let's see what Barclays does when the end of November comes around — will they be donning hard hats and wielding silver shovels in Prospect Heights, or mailing in their cancellation notice while trying to grapple with the increasingly grave global financial crisis?

Posted by eric at 4:23 PM

September 26, 2008

Knicks May Get Even Worse Before They Get Better

NY Sun
by Martin Johnson

This look at the future of the Knicks includes a misguided reference to Bruce Ratner's planned Nets arena.

The Nets appear to have taken an intentional step backward as part of a rebuilding effort that they hope will lure LeBron James to their lineup when the team opens its new Brooklyn arena in 2010.

article

NoLandGrab: We were going to correct the mistake above, but America's Public Editor, Norman Oder, beat us to the punch in the Sun's comments section.

Submitted by Norman Oder, Sep 25, 2008 10:39

The Brooklyn arena won't open in 2010. Now 2011 looks like a best-case scenario.

Posted by eric at 12:54 PM

September 24, 2008

Barclays Preview

An alert reader called our attention to this photo from Dealbreaker and noted, "Lehman Brothers' HQ grants us a glimpse of Flatbush and Atlantic's dystopian future."

Curbed.com offered up the requisite snark:

And who would've thunk that the Barclays name would be splashed all over a Midtown skyscraper before Brooklyn's Barclays Center even got out of the ground? They might want to rethink those naming rights and save a little cash.

NoLandGrab: According to The New York Times, Barclays can opt out of the naming-rights deal for Bruce Ratner's Nets arena in Brooklyn, if the deal isn't closed by November.

Posted by lumi at 5:49 AM

Finance…and Now Politics…Complicating Arena Schedule

Nets Daily

Sports Business Journal thinks arenas with financing in place are in good shape, but those still waiting for deals — like the Nets’ Barclays Center — could face delays. SBJ says “financial support remains in doubt for building a new arena in Brooklyn” … in spite of the Nets’ oft-stated claim that ground will be broken by year’s end. Meanwhile, a change in control of the New York State Senate may hurt the project.

article

NoLandGrab: Could a change in the State Senate really alter the way NY State wields the power of eminent domain when Assembly Speaker Sheldon Silver, arguably the most powerful pol in NY, is a supporter of the project?

On the other hand, the question about what deals will get done and which ones will have to wait for better times is one to watch. Gumby Fresh recently noticed that Goldman Sachs, the same firm working on the Nets arena financing, "closed a pretty solid, if somewhat subsidy-larded financing for the Louisville Arena the other day."

Posted by lumi at 5:45 AM

September 21, 2008

Injuries no excuse for Yankees' demise

Kingston Daily Freemen
Stan Fischler

* WILL THE NETS EVER GET THEIR ARENA IN BROOKLYN?

I hope not.

As a native Brooklynite, I never liked the grandiose plans of turning the Downtown area into the mega-development that Bruce Ratner planned. Something about it smelled worse than the Staten Island landfill. Still does. Opposition has remained steadfast and, in the end, may scuttle a project that never should have been.

MAVEN'S VERDICT:

The Brooklyn arena will never happen. Ratner, who never gave a hoot about hoops, will sell the team and it will wind up in Newark, where it belongs.

article

Posted by amy at 11:12 AM

September 19, 2008

LUXE SUITES SOUR

NY Post
by Holly M. Sanders

How suite it isn't!

New York sports teams banking on high-priced sales of luxury suites at an unprecedented number of new stadiums and arenas could feel the pinch from the Wall Street meltdown.

Five teams - the Jets, the Giants, the Yankees, the Mets and the Nets - are building expensive venues with more luxury suites, hoping to draw corporate clients.

In the past, the Street could be counted on to be a big buyer of premium seats, but selling to financial firms has suddenly become a lot tougher in the wake of Lehman Brothers' bankruptcy, Merrill Lynch's shotgun wedding to Bank of America and the crisis of confidence shaking Morgan Stanley.

"With all these stadiums trying to sell luxury seats, personal seat licenses and season tickets, this is horrible timing," said Robert Tuchman, head of sports entertainment firm Premiere Corporate Events.
...

The Nets have sold roughly 30 percent of the 128 suites at the new Barclays Center and count financial institutions among those buyers. The suites have averaged around $300,000. The team has eight more potential buyers booked to visit its showroom, a spokesman said.

article

NoLandGrab: We think the Post means "the Nets claim they have sold...." We can't imagine we're the only ones who find it hard to believe that in this financial climate, some three dozen entities would plunk down deposits on suites in an arena that may never exist.

Posted by eric at 3:30 PM

BARCLAYS PAID $400M FOR BROOKLYN ARENA NAMING, $250M FOR LEHMAN!

Room Eight
by Barry Popik

Did Barclays sign up for Brooklyn arena naming rights knowing it would be bottom-fishing for a U.S. brokerage operation?

In January 2007, Barclays paid $400 million (over 20 years) for the right to name the Brooklyn Nets arena at the Atlantic Yards the "Barclays Center." This week, Barclays paid just $250 million for Lehman Brothers' entire United States operation!

The big question here is: Was this always Barclays' plan, to take over an American investment house on the cheap?

The January 2007 announcement that the Brooklyn arena would be named the Barclays Center made no sense at the time, but makes perfect sense now. At the time, it was the most expensive naming of any sports arena ever. Barclays had no banks whatsoever in Brooklyn and a limited presence in New York City.

article

NoLandGrab: Had Barclays been as astute as Barry Popik suspects, it's unlikely they'd have had to write down billions of sub-prime mortgage losses of their own during the past year.

Nor is Barclays acquiring Lehman's "entire" U.S. operation for just $250 million. They're buying bits and pieces, and are paying an estimated $1.5 billion for Lehman's Manhattan headquarters building and two data centers. And as finance expert Gumby Fresh has pointed out, the Lehman purchase doesn't do much at all to help Barclays establish a retail presence in the U.S.

Still, it does appear to be a good deal for the British mega-bank.

Posted by eric at 11:01 AM

September 18, 2008

A House Marked by 8 Years of Local Financial Change Now Falls Into British Hands

The New York Times
by Patrick McGeehan

In an article about Barclays' announced acquisition of the now-bankrupt Lehman Brothers' midtown headquarters, The Times offers up a 90% discount to the British bank on its purchase of naming rights for the Brooklyn arena planned by Bruce Ratner.

Barclays has agreed to pay $40 million for the naming rights to the arena planned for Brooklyn that is supposed to be the next home of the New Jersey Nets basketball team. It would be called the Barclays Center. But long before the arena is built, there could be another Barclays center a couple of blocks north of Times Square.

article

NoLandGrab: The actual naming-rights price tag is $400 million, which you'd expect The Times to know, what with Ratner being co-owner of the paper's own headquarters building.

Posted by eric at 1:32 PM

September 17, 2008

Sell the Naming Rights and You May Sell Much More

The NY Times

After the Allianz naming-rights deal for the Jets-Giants Stadium fell through, Times columnist Clyde Haberman ponders the cringe-factor of other deals, including the mystifying deal between Bruce Ratner, who has been courting Brooklyn's African-American community, and Barclays Bank, which still hasn't outrun its past:

The dollar-fueled passion to sell one’s name (and reputation) to the highest bidder has landed more than one enterprise in hot water. At the least, it has led some to come under unwelcome scrutiny.

After the Enron debacle, the Houston Astros decided that it wasn’t wise to play baseball in a place called Enron Field. Their playground is now called Minute Maid Park, Minute Maid being a division of the Coca-Cola Company — no model of purity itself, having paid tens of millions of dollars to make charges of racial and gender bias go away.

Closer to home, the planned arena in Brooklyn for the Nets basketball team will bear the name of the British bank Barclays. The bank has had to fend off charges, which it calls untrue, that it has historic roots in the slave trade. Of themselves, the allegations may be heavy baggage for a company to carry into Brooklyn, with its huge African-American population.

For $20 million a year, Citigroup bought the naming rights to the Mets’ new stadium in Queens, Citi Field. Citibank, a division of Citigroup, cannot claim to have always had clean hands. As recently as 11 years ago, a federal government report said that blacks applying for home mortgage loans at Citibank were three times more likely to be rejected than whites, often even when incomes were comparable. Of 12 banks studied, Citibank ranked the worst in this regard.

article

Posted by lumi at 6:08 AM

September 16, 2008

Brutally weird: ESDC blames project opponents for using name "Barclays Center"

Atlantic Yards Report

Huh? Developer and team-owner Bruce Ratner splashes the name "Barclays Center" all over town and in the press, but according to papers filed by the Empire State Development Corporation, it's the project opponents' fault that the "publicly owned" arena appears to be a private enterprise??

In the brief from the Empire State Development Corporation (ESDC), amid a dispute over whether a "civic project" must be publicly owned or leased to an entity with a civic purpose, the state agency strains credulity with a posture of baffling obtuseness:

Finally, Appellants labor to fortify their argument by calling the Arena the ‘Barclays Center.’ There is no record evidence that this name will be used, although this name has been reported in the press.

...

If there's "no record evidence," shouldn't the developer's efforts (see screenshot) to call the arena the Barclays Center hold any weight? What about the efforts of Brooklyn Borough President Marty Markowitz, as in his 2007 State of the Borough address? Indeed, the appellants note that the ESDC tries to minimize the name despite the presence of the BarclaysCenter.com web site.

article

NoLandGrab: Keep in mind that the public doesn't see a dime from the $400 million naming-rights deal.

Posted by lumi at 4:35 AM

September 14, 2008

Allianz and Barclays: Joined at the hip

Fans For Fair Play

The official verdict in the Wide World of New York Stadium Naming Rights?

1) The Holocaust is offensive.

2) Slavery, English colonialism, apartheid, the Congolese civil war, supporting the Mugabe regime...not so much.

After an amazingly brief explosion of justifiable anger at New Jers-- er, New York's two NFL teams' potential naming-rights deal with Allianz, the deal is dead.
...
Bruce Ratner's Atlantic Yards project down the same trash-strewn path when they inked a $400 million deal with Barclays Bank, whose history includes involvement with the U.S. slave trade, South African apartheid, European colonialism, the Congolese civil war and support for Robert Mugabe's internationally condemned regime in Zimbabwe.

In fact, Ratner went further -- he actually completed the deal. The Giants and Jets, no models of sports-industry decency, actually did the right thing and told Allianz to take a hike.
...
If the Allianz deal was killed after a 48-hour whirlwind of indignation, CYA maneuvers, and a corporation made to capitulate with its tail between its legs, why is Bruce Ratner's deal with Barclays still alive eighteen months later?

article

Posted by amy at 3:31 PM

September 12, 2008

It came from the Blogosphere ...

The first two secondary sources below reporting on this week's NY Times update on Bruce Ratner's controversial Atlantic Yards project zeroed in on the Times's headline, announcing the groundbreaking in December, but left all the doubts and hurdles from the article on the cutting room floor:

AOL NBA Fanhouse, The Nets Begin Digging Up Brooklyn in December

The developers behind the new Barclays Center that will host the Nets whenever they get moved to Brooklyn are pretty serious about building this thing.

NoLandGrab: Like wow — we're not the only ones who think that Ratner is "pretty serious about building this thing!"

Hoops World, Brooklyn Ground-Breaking Set

This basketball blog mentions "Barclays Center" but doesn't note that Barclays has an option to walk away from the deal if the financing isn't closed by November. Such contract intricacies are better left to trading caps and figuring out who gets LeBron James:

After a series of delays, New Jersey Nets' owner and real-estate developer Bruce Ratner told government officials that the Atlantic Yards project in Brooklyn will break ground in December. A $4-billion endeavor, the Yards will feature Barclays Center, an arena designed by Frank Gehry, along with 16 towers of apartments and offices.
...
With the arena getting started, the move for the Nets is inevitable. Although this departure won't be nearly as dramatic or troublesome as the Sonics move, it's something to keep an eye on nonetheless, especially with LeBron James' scheduled free-agency coming up.

SLAM, Is the Nets’ Brooklyn Home Finally Getting Built?
It appears that someone at Slam actually read the article:

At last, the Nets’ long discussed move to Brooklyn seems to be getting off the ground. In about three months, principal team owner Bruce C. Ratner plans to start on the construction of his massive business complex.

As the linked story points out, however, there are a million and one things to consider - a craptacular economy, the angry citizens of Brooklyn, financing issues, etc. - before a single shovel can be dug into the ground.

SmartBrief, Developer hopes to break ground on Brooklyn project in December

Being unaffiliated basketball, this blog is less sanguine about news of the groundbreaking.

Developer Bruce Ratner said he will start construction on a large-scale Brooklyn project in December. The Atlantic Yards site will include thousands of apartments and offices in 16 towers built around a basketball arena for the Nets. Observers note that the soft economy and debt markets may affect Ratner's ability to meet his deadline.

Posted by lumi at 5:30 AM

September 10, 2008

Naming Rights and Historical Wrongs

The New York Times
by Richard Sandomir

The Times's business-of-sports columnist sees big problems with a brewing deal to sell naming rights to the new Giants/Jets football stadium to the Holocaust-tainted German company Allianz, but he failed to express any similar concern over Bruce Ratner's selling of naming rights to Barclays, the British bank with Holocaust — and slavery- and war-profiteering — problems of its own.

The Giants and the Jets face moral and public-relations questions as they negotiate the possible sale of the naming rights to their new stadium with Allianz, a Munich-based insurer and financial services company with disturbing connections to Nazi Germany.

Allianz insured facilities and personnel at concentration camps like Auschwitz and Dachau. Kurt Schmitt, its chief executive in the 1930s, served as Hitler’s second economics minister and can be seen in a photograph from a rally wearing an SS-Oberführer’s uniform and delivering the Nazi salute with Hitler standing in front of him.

Like other insurers in Germany at the time, Allianz followed anti-Semitic policies by terminating or refusing to pay off the life insurance policies of Jews, and sent cash that was due beneficiaries and survivors to the Nazis.
...

A deal with Allianz would not be easy to sell publicly, like Citigroup’s with the Mets. The possibility of an Allianz Stadium will make some people cringe, especially in a market that is home to many Jewish people, and in which the Tisch family, which owns half of the Giants, has supported many Jewish causes.

article

NoLandGrab: One can argue that the Allianz and Barclays situations are not wholly equivalent, but in his January 2007 column about the Barclays deal, Sandomir devoted a scant two sentences to critics' concerns about Barclays' past: "[Demonstrators] also said Barclays profited from the slave trade yet is aligned with Ratner, who is marketing his team to African-American fans. A company spokesman said Barclays had not been involved in slavery."

The Times's headline writers may also want to consult the paper's own archive before plunging again into the murky waters of naming rights, given the similarities between the headlines on today's Sandomir column and this January 2007 column by George Vescey: Naming Rights and Wrongs Transcend Time Zones.

Posted by eric at 4:40 PM

It came from the Blogosphere... (Atlantic Yards bedside vigil edition?)

Not surprisingly, the Blogosphere is abuzz in the wake of this morning's New York Times article.

Gothamist, Ratner Vows to Break Ground on Atlantic Yards in December

Gothamist doesn't quite share Bruce Ratner's "mission accomplished" optimism.

That plucky developer Bruce Ratner is still rallying for his $4 billion plan to turn the MTA rail yards in downtown Brooklyn* into a sports arena, office and residential complex designed by Frank Gehry!
...

All in all, the article is a study in contrasts, with the obstacles facing Ratner seemingly more insurmountable than ever, especially given the tanking economy. Yet the developer seems to be projecting Rumsfeldian confidence.

* The rail yard is not in downtown Brooklyn — it lies between Prospect Heights and Fort Greene; additionally, the rail yard only represents about 38% of the project footprint.

Curbed, Atlantic Yards Volcano Rumbles in Time for the Fall Season

Brownstoner, Plans to Break Ground on Yards, But What About Phase II?

Bavatuesdays, I heard the news today, oh boy…

This eulogy for Coney Island's Astroland finds a little solace in the increasingly murky future of Atlantic Yards.

Gowanus Lounge, Atlantic Yards Project Needs $100M More in Public Subsidy, Etc.

Yonkers Tribune, The Atlantic Yards Deal Is Coming Undone

The Neighborhood Retail Alliance, Net Gains Coming

Lobbyist Richard Lipsky must've read the Times article this morning while sporting his rose-colored glasses, though we do detect a softening in his tone.

But instead of sinking hundreds of millions of public dollars into a pro basketball arena to inspire "the thousands of young people that are playing ball in Brooklyn harboring the dream of playing professionally," dare we say it would make more sense to spend that money on schools, so the 99.9% of those young people who won't end up in the NBA at least have a fighting chance?

Nets Daily, Optimism Mixes with Doubt on Arena Ground-Breaking

Posted by eric at 10:31 AM

Brooklyn Arena Builder Plans to Break Ground in December After Delay

The NY Times
By Charles V. Bagli

This must-read update on Bruce Ratner's controversial Atlantic Yards arena-'n'-high-rise megaproject contains two breaking-news bombshells:

1. Ratner has been trying to close on the deal and has been telling the press all year long that the company plans to break ground in November because "the naming rights contract [with Barclays Bank] requires Forest City to close on the land and the financing by the end of November."
   
   [Ratner is now telling the Times's lead real estate reporter that groundbreaking will be in December.]

2. Bruce Ratner is asking for MORE OF YOUR MONEY TO BUILD THE ARENA.

Mr. Ratner has asked government officials recently for as much as $100 million in additional cash for the project, citing rising costs and problems in the bond markets, according to two officials who would speak only on the condition of anonymity because they were not authorized to discuss the negotiations. The city and the state have already agreed to provide $300 million in subsidies and tens of millions in tax breaks.

[More specifically, the tally is $305 million ($100 million from the state and $205 million from the city).]

article

NoLandGrab: For the online version of the article, the photo is captioned, "Bruce C. Ratner in Brooklyn at the Atlantic Yards, which he has hopes to transform." Technically, he is overlooking "the Vanderbilt Yards."

"Atlantic Yards" is the brand name Ratner made up for the project he hopes to build, which, as you can tell by the photo, hasn't been built.

From Develop Don't Destroy Brooklyn (DDDB), Atlantic Yards: The Deal is Coming Un-done

The group spearheading the legal fight against Ratner's landgrabbing megaproject highlights three important points from the Times article, the two listed above and the issue of whether or not the IRS will reopen the tax loophole to allow for tax-exempt bond financing.

Citing Ratner's troubles, the group calls for a time-out on demolitions so that alternative plans can be considered:

The Atlantic Yards project is hanging by a thread, yet Ratner continues to demolish a whole section of Prospect Heights and spend taxpayer dollars on project-specific infrastructure work. It's time for that to stop. It's time to move forward with a new feasible and superior vision to develop the rail yards.

DDDB thought that Joe DePlasco was "spun by his own spin for too long," when the Ratner pr flack sounded a little punch-drunk in the Times, calling Atlantic Yards "the most exciting project in the country and the most exciting arena in the world."

Atlantic Yards Report, Times: Barclays naming deal has November deadline; FCR seeks $100M in subsidies

Some analysis of the Times article from Atlantic Yards watchdog Norman Oder:

It's doubtful that [November] deadline will be met; while it doesn't mean that the Barclays Center deal is on death row, it could lead Barclays to reconsider and/or renegotiate the deal. (FCR wouldn't comment.)

The article also states that CEO Bruce Ratner "has asked government officials recently for as much as $100 million in additional cash for the project, citing rising costs and problems in the bond markets," according to anonymous sources. (Remember, Chuck Ratner of parent Forest City Enterprises told investment analysts in April that "we still need more" subsidies.)

NoLandGrab: Regular readers will remember that the Chuck Ratner quote was excavated out of a transcript and reported on by Oder.

Despite the article's fairly critical view, Oder suggests that Bagli should have been more skeptical:

The article doesn't define "break ground." While the developer obviously could hold a ribbon-cutting ceremony, it's hardly guaranteed that pending legal cases would be dismissed, or that additional appeals or legal challenges wouldn't emerge.

The article quotes Daniel Goldstein of Develop Don't Destroy Brooklyn: “There’s no way they’ll get control of the land they need, get the financing, end the litigation and break ground by December." Indeed, even in the event the two lawsuits are cleared this year, it would still take additional time to acquire properties via eminent domain.

Note that the Times's phrase "will feature" suggests that the current plan for 16 towers is a go; evidence suggests the project is seriously in flux.

Oder fills in some blanks in response to DePlasco's confidence-building quote:

The FCR spokesman Joe DePlasco offers some spin:

While it is a tough market, we have secured more than $1.5 billion in construction loans this year so far,” Mr. DePlasco said. “And this is the most exciting project in the country and the most exciting arena in the world.”*

Well, part of that total is Liberty Bonds; another part is state housing bonds. Such tax-exempt bonds are a much better deal than taxable bonds.

NoLandGrab: In other words, the "construction loans" cited by DePlasco come from government programs and were NOT secured in the actual marketplace, which presumably will take a less sanguine view of the project.

Posted by lumi at 5:40 AM

September 9, 2008

"BREAKING": Nets arena behind schedule

Norman "the Mad Overkiller" Oder has spent the past couple o' years telling anyone who is listening that the arena is behind schedule.

Even weirder still, by the time that Bruce Ratner gets around to fessing up, the schedule usually has already slipped even further, instantly casting doubt on anything Ratner's henchmen have to say.

This week, reporters Erik Enquist and Matthew Sollars at Crain's NY Business catch on [full article posted by Develop Don't Destroy Brooklyn]:

Forest City Ratner still insists that it can break ground on its Brooklyn basketball arena this year. Reality says otherwise. It will be at least 2009 before state courts stomp out two lawsuits challenging the project's environmental impact statement and use of eminent domain.
...
Financing projects is "almost impossible" while litigation is pending, Forest City Chief Executive Bruce Ratner has said.

Norman Oder skips the chance to say, "I told you so," and instead offers a comparison with recent coverage in The Daily News:

Atlantic Yards Report, Crain's finds FCR's projections out of line with reality

By contrast, the Daily News last month reported Forest City Ratner CEO Bruce Ratner's statement that the arena would open in 2011, with groundbreaking next year, then doubled back to give the last word to other company representatives who claimed it would open earlier and groundbreaking would occur this fall.

Posted by lumi at 4:36 AM

September 6, 2008

Nets bonds to launch in November

ProjectFinance

Goldman Sachs is close to launching an $800 million bond issue for the Nets basketball team's new arena, the Barclays Arena, in Brooklyn, New York. According to sources close to the financing, the underwriter is now in the process of having the project rated, and expects the financing to be in place by the end of November 2008. The new 850,000 square foot arena will be part of a larger residential and retail complex at Flatbush and Atlantic Avenues, called Atlantic Yards, for which total expected investment is around $4 billion, and for which the developer is Forest City Ratner. The New Jersey Nets plan to relocate from Meadowlands Stadium in East Rutherford, New Jersey, and would then be known as the Brooklyn Nets.

link

Atlantic Yards Report sees more questions than answers in this "one-paragraph squib:"

For one, how easy is it to rate bonds for risk when major lawsuits remain outstanding?

The next question is whether the bonds will be tax-exempt or taxable. The assumption would be that he developer would prefer tax-exempt.

However, the strategy under which the Empire State Development Corporation (ESDC) and developer Forest City Ratner seek tax-exempt bonds for the Atlantic Yards arena has been acknowledged by the chief counsel of the Internal Revenue Service (IRS) as a “loophole” the agency moved quickly to eliminate.

Also, Rep. Dennis Kucinich (D-OH), who chairs the Domestic Policy Subcommittee of the House Committee on Oversight and Reform, has asked the IRS and Treasury Department to desist from approving any more sports facility deals based on payments-in-lieu-of-taxes, or PILOTs, pending further clarification of their policies.

Does Goldman Sachs believe that the IRS and Treasury Department will have clarified their policies by then?

Posted by amy at 2:27 PM

September 4, 2008

Barclays Sees Sponsorships Opening Doors in U.S.

Brand Week

Under [Barclays President Bob] Diamond's tutelage, Barclays—one of the U.K.'s largest consumer banks—has vastly increased it sports sponsorship portfolio, including: purchasing title to soccer's English Premier League in 2004; acquiring title in 2005 to the PGA Tour's The Barclays golf event in the New York area, which is the kickoff for the FedEx Cup playoffs; buying the naming rights to the 18,000-seat Barclays Center in Brooklyn, N.Y., (where the NBA's New Jersey Nets plan to relocate) for a reported $400 million, one of the most expensive naming rights deals ever. Diamond sat down with Brandweek's managing editor Chuck Stogel during The Barclays golf event in New Jersey to have a chat.
...
BW: Naming rights have become very popular across the entertainment venue landscape. What was the Barclays strategy in signing on with the new arena in Brooklyn, and how will you leverage the cost?

BD: We would not have done it if we thought it was expensive. We think it was an outstanding deal both for [real estate developer and Nets owner] Bruce Ratner and his businesses, and for Barclays. The revival of Brooklyn is so important for the greater New York area. It's the hub of transportation, just below the Brooklyn Center. It's the engagement with professional basketball and the 'New York' Nets, who also travel to London to play games. So, again, it's on many, many levels that we found an opportunity to invest in our brand in a major center of operations, the greater New York area.

article

NoLandGrab: "Brooklyn Center," "THE hub of transportation," "New York Nets"??? LOL, if you've got $400 million to throw around, you don't really have to understand or justify what you're buying.

We were wondering what Nets guard Vince Carter was doing in London this week.

Posted by lumi at 4:03 AM

August 30, 2008

Atlantic Yards Report : Zimbalist, Plus Daniel Ratner and the Legion of Doom

The Atlantic Yards Report gives further reason to doubt Andrew Zimbalist, author of the deeply-flawed report, Estimated Fiscal Impact of the Atlantic Yards Project on the New York City and New York State Treasuries (commissioned by Forest City Ratner).

There is also an additional look back at some absurdity from the DEIS Hearings of two years ago.

In 2006, as well, Zimbalist's ($73K) testimony was disallowed in court

Zimbalist's testimony got bounced from a 2006 case where he was hired by the city of Anaheim.

A 1/26/06 article in the Los Angeles Times explained that Zimbalist would not be allowed to testify, according to the trial judge. The newspaper reported: *In analyzing the effect of the Angels' name change, Zimbalist calculated the city had foregone $138.5 million by signing a long-term lease with the team rather than demolishing the stadium, selling the land and reaping taxes from property development.

But that analysis does not offer "the proper measure of damages" in a breach-of-contract case, Orange County Superior Court Judge Peter Polos ruled. If the Angels have broken their lease by adding "Los Angeles" to their name and dropping "Anaheim" from use, he said, the damages should reflect the value of the actual benefits lost by the city.*

Zimbalist's Seattle bill was $61,296

Zimbalist's bill for services rendered to Seattle are recounted. The mony was poorly spent as his testimony was discounted in court.

Last month, I reported, based on press accounts in Seattle, that expert witness Andrew Zimbalist cost the city of Seattle $17,753 in its effort to hold the new owners of the Seattle SuperSonics to their local lease.

Actually, as the Post-Intelligencer reported yesterday, the total was $61,296, including $59,540 on time spent preparing his report and his 50 minutes of testimony, with the rest going to plus travel expenses.

The point here is that Zimbalist's report advocating for Atlantic Yards deserved some close public scrutiny.

From the DEIS hearing: "Daniel Ratner" and the Legion of Doom

The testimony of an "eccentric fellow named William Stanford, Jr." is reviewed as part of a revisit of 2006's DEIS hearing on Atlantic Yards

Stanford often sounded like a nut, calling his antagonist "Daniel Ratner" (a combo of Bruce Ratner and Daniel Goldstein?), threatening to attack with pro wrestling moves, and charging the aforementioned Ratner with drug smuggling.

But he also made some earthy good sense, questioning the scheduling of a forum on Primary Day with "Are you stuck on stupid?"

...

MR. WILLIAM STANFORD: Thank you for holding this forum. By holding this forum you just gave me a better reason to give Daniel Ratner a flying full nelson off the top rope courtesy of the Legion of Doom.

Posted by steve at 9:30 AM

August 27, 2008

Game. Sauté. Match.

The NY Observer
by Chris Shott

The "debacle at Atlantic Yards" makes a cameo appearance in this Observer story about the massive catering operation at the U.S. Open, run by Levy Restaurants, the Chicago-based food-service giant tapped to provide chow at Bruce Ratner's Barclays Center — should it ever get built.

In 2010, the company plans to make its second foray into the coveted New York market, after signing on to handle concessions at the forthcoming Barclay Center, future home of the NBA’s Brooklyn Nets, at developer Bruce Ratner’s controversial Atlantic Yards complex in Prospect Heights.

“I think the building’s going to be spectacular,” said Mr. Lansing. “You know, a lot of the arenas, historically, have been, well, not cookie-cutterish because they’re all a little bit different, but they follow a similar mold. But when you have Frank Gehry design an arena and really break the mold—that’s pretty ambitious.”

He added, “Some of the things that we’re going to do with the Nets are going to be revolutionary.”

Of course, it will also feature the usual Brooklyn staples. Can you say egg creams? “Absolutely,” Mr. Lansing said. “We know Brooklyn pizza, you know, we get it. We understand the locals. We understand what they want.”

article

NoLandGrab: Hmmm. Not "cookie-cutterish?" They "understand the locals?" So the Nets are hiring a mega-caterer from the Midwest to serve "Brooklyn pizza" and egg creams?

Commenter Norman Oder also points out that Levy might need to rebook those 2010 tickets for, say, 2011.

Posted by eric at 11:14 AM

As new stadiums spring up, grumbling over ticket prices (but is that the real issue?)

Atlantic Yards Report

There's been some vigorous discussion on the New York Times web site in response to yesterday's front page article, headlined New Stadiums: Prices, and Outrage Escalate, about how four new stadiums coming online in the next few years have raised ticket prices and also added revenue-raising elements like personal seat licenses--both of which are likely for the Atlantic Yards arena, which goes unmentioned in the article.

The article is sympathetic to the elite of sports fans who have season tickets, while some online commenters suggest that fans should be paying for new stadiums. Others point out that the stadiums receive public financing and tax breaks, and that "professional sports leagues are government sanctioned cartels" with competition limited. Moreover, season tickets are often a tax deduction.

And what about the Nets? As I wrote last year: "Thanks significantly to 170 new high-priced suites, the “blended average ticket price” for Nets games would go up dramatically, 73% for regular-season games and 64% for playoff games, upon the team's move." The number of suites has been reduced to 130, but you can bet the average ticket price would skyrocket.

article

Posted by eric at 10:39 AM

August 20, 2008

It Came from the Blogosphere...

Nets Daily, Barclays Center Updates Renderings

Nets Daily notes the new renderings on the Barclays Center web site, sans the irony pointed out by Atlantic Yards Report, but nods to AYR nonetheless:

Critics jumped on the new renderings, saying they show Bruce Ratner is commercializing a public space.

NoLandGrab: We critics do not accuse Bruce Ratner of commercializing a public space. Rather, we criticize the counting of the obviously private "Urban Room" as "publicly accessible open space."

Kristen's Brooklyn, NY Blog [About.com], A Walk Around the [Brooklyn] Blog

The About.com Guide to Brooklyn gives kudos to A Walk Around the Blog for profiling the likes of Atlantic Yards photobloggers Adrian Kinloch and Tracy Collins.

Noticing New York, Dear Mr. Bloomberg, . . . . . the Harm and the Foul

Michael D.D. White revisits a letter he sent last year to Mayor Bloomberg regarding the folly of Atlantic Yards.

Posted by eric at 11:20 AM

August 19, 2008

MAAC Madness in Brooklyn

The Full-Court Press

Back in July, we promised that we'd post The Full-Court Press's analysis of an as-yet-unbuilt Brooklyn arena as possible future site of the Metro Atlantic Athletic Conference basketball tournament. Then we missed the post, which appeared on August 7th. Here are some highlights.

Our series gets a little more intriguing today, because Brooklyn is the first potential site we'll look at that has never hosted the tournament. Unlike some of the other potential sites, which could have been options but weren't strongly considered, Brooklyn is new to the mix because Atlantic Yards, the future home of the Nets, is still being constructed.
...

Atlantic Yards will be nearly brand new in 2012, will be accessible on the NYC Subway, and is an easy commute on the LIR for MAAC fans on Long Island. So were I at the table when the discussions were going on, it'd be at or near the top of my list of neutral sites.

article

NoLandGrab: One possible reason Atlantic Yards hasn't been considered as a site in the past is because it doesn't exist. Nor is it "still being constructed" — construction has yet to begin, and the soonest any construction could actually begin would likely be some time in 2009. Which means it would most likely be "not nearly finished" by the 2012 MAAC tourney, rather than "nearly brand new."

The Full-Court Press's look at the Prudential Center in Newark also mentions Atlantic Yards. "The Rock" may have an advantage as a potential MAAC tournament site, seeing how it's, um, real.

Posted by eric at 1:24 PM

If Barclays Center gets built, how long before it's obsolete?

Atlantic Yards Report

Norman Oder continues his conversation with Field of Schemes author and blogger Neil deMause.

Q. Economist Mark Rosentraub, in your book, says something like, if you’re not prepared for major changes in your sports facility by its second decade, you’re being pollyanish. Let’s say Frank Gehry’s designing the best arena of its time. How long would it last before it needs to be reworked?

A. Well, [Seattle's] Key Arena was rebuilt in '94; now the Sonics are trying to move to Oklahoma City, that’s 14 years. [They have since gotten the OK to move.]

It depends on what you mean by reworked--torn down and rebuilt, or have some new things added? I think there will always be new technology that teams want, or new things that someone else will come up with and will make more revenue, and they’ll say, we need some of those too, the question is what you can retrofit, how much it costs and who pays for it.

At one point, I asked that to Rod Fort, an economist at the University of Michigan. His response was, Well, from the perspective of the owner, if you’re not paying for it, I don’t see anything wrong with a new arena every year.
...

I don’t think there's any way of knowing. I think the answer is: it’s when the team owner, whoever it happens to be, thinks they can realistically come back and demand something. That could be five years, it could be 30 years--but there’s always going to be something they don’t have.

article

NoLandGrab: If history is any guide, Bruce Ratner will not be bashful about holding his hand out to the taxpayers.

Posted by eric at 9:09 AM

August 12, 2008

Are we talking arena 2012? Four-year deal at Izod Center offers hint

Atlantic Yards Report

Last week, Norman Oder broke the story that even Bruce Ratner believes that the arena won't be finished before mid 2011. Instead of thanking Oder for saving them the trouble of having to explain the inevitable and obvious construction delays, Ratner spokesperson Bruce Bender objected to Oder's analysis, though he didn't deny that Bruce said what he said.

That's old news — this week, Norman Oder detects a hint that Ratner might be planning for 2012:

Credit NoLandGrab for noticing a Newark Star-Ledger report that Vonage Holdings will pay more than $1 million in a four-year deal to put its name on the concourse of the Izod Center. That four-year stretch would end before the 2012-13 season.

Of course, deals can be broken, especially ones that are relatively puny compared to the $400 million Barclays Center naming rights deal. Still, it's notable that the press release from the Nets called it simply a "multi-year deal" but the Star-Ledger pinned it down to four years.

Read the rest of the article, which includes "happy talk" from Nets marketing wunderkind Brett Yormark.

Posted by lumi at 4:40 AM

August 11, 2008

City owns stadiums,but teams to cash in

MetroNY
by Patrick Arden

Here's an instance where benefits from publicly-owned stadiums in New York City go to the teams. In this case, the issue is the sports memorabilia that will be created when Shea and Yankee stadiums are demolished. Even though New York City owns these facilities, the city is splitting the take with the teams.

Another example of this kind of behavior on the part of the government is how, although the proposed Nets arena will be publicly owned, the Nets will collect all of the more than $300 million from the arena naming rights to be paid by Barclay's Bank.

Other places have netted millions by selling everything from chairs to urinals. But New York’s ballparks promise bigger paydays before the wrecking ball, said Dan Rosenthal, chief operating officer for Schneider Industries, which handled the dismantling of the old Busch Stadium in St. Louis. While Busch sales totaled $8 million, estimated proceeds from Yankee Stadium are already pegged as high as $50 million.

Taxpayers own both Yankee and Shea stadiums, but the city has decided to divvy up the take with the teams. A mayoral spokesman said the split with the Mets favors the city 70 percent to 30 percent. The Mets will promote the sale on its Web site, on TV and at games. “It’s city property,” explained the team’s Dan Newman, “but we’ll act as the marketing agent.”

article

NoLandGrab: Instead of acting as "marketing agent", the city would do well to fulfill its actual role: stadium owner.

Posted by steve at 4:30 AM

August 8, 2008

Vonage makes deal with Izod Center

Newark Star-Ledger
by Maura McDermott

The internet phone company Vonage Holdings will pay more than $1 million to put its name on the concourse of the Izod Center, the Nets and the sports authority announced yesterday.

The four-year deal makes the Holmdel-based firm a "legacy sponsor," with naming rights to the concourse and signs along Routes 3 and 120, according to the Nets. The team brokered the deal for the New Jersey Sports and Exposition Authority, which operates the Meadowlands Sports Complex.
...

Enticing corporations to pay for the right to name a concourse or entryway -- in addition to selling the naming rights to the whole building -- is an increasingly popular way to raise money, said Howard Bloom, publisher of the Sports Business News online newsletter.

But when it comes to the Izod Center, it can't be easy to attract lucrative sponsorship deals, he said.

"A lot of people are imagining that building as a parking lot," he said. "Because the building has such an uncertain future, they'll take whatever reasonable offer they have."

article

NoLandGrab: So the Nets brokered the deal on behalf of the New Jersey Sports and Exposition Authority, and it runs for four years, or through 2012, which is well beyond when the Nets claim they'll be all snuggled in in Brooklyn. Would you pay to have your name on the Concourse of an arena that wouldn't have any tenants during part of the term of your sponsorship? Would you pay to sponsor a Concourse period?

Posted by eric at 12:36 PM

August 7, 2008

The Nets arena: A timeline

The Brooklyn Paper

Readers of The Brooklyn Paper are well aware that Bruce Ratner has broken promises over the years. Here’s Ratner’s ever-changing timetable for the arena.

Promise made in
December, 2003	The arena will be done by 2006 and the arena would cost $435 million.
December, 2006	The arena will open in time for the opening of the 2009-10 NBA season.
January, 2008	Arena will be completed in calendar year 2010.
Now	Ratner said the arena, with its $950-million pricetag, will be done in time for the start of the 2011-12 season.

Posted by lumi at 6:30 AM

August 6, 2008

Nets in ’11?

The Brooklyn Paper
by Mike McLaughlin

Bruce Ratner has pushed back the New Jersey Nets’ move to Brooklyn again — now saying that the basketball team he owns might not play its first game in an Atlantic Yards arena until the 2011–2012 season.

If that turns out to be true, it means the Nets would relocate five years later than originally promised by the developer when Atlantic Yards was unveiled in 2003.

Ratner told investors at the annual Forest City Ratner Companies meeting in Cleveland in June that construction on the Barclays Center, at the intersection of Flatbush and Atlantic avenues, would begin in January 2009, according to the Atlantic Yards Report, an invaluable Web site.

article

Posted by eric at 12:08 PM

Bender Backbends to Backtrack on Atlantic Yards Timeline

From Develop Don't Destroy Brooklyn (dddb.net):

The Observer has Forest City Ratner veep Bruce Bender twisting himself in knots trying to tamp down the reality of what FCR president Bruce Ratner told investors at a June annual meeting, as reported today on the Atlantic Yards Report: ground on the the Barclays Boondoggle Arena won't be broken until January and then it will take 2.5 years to construct, so it won't open until mid-2011 at the earliest. (Oder also explains how 2011 is also unrealistic.)

Presumably the developer is more honest with investors than the general public, what with that SEC thing and all.

But that doesn't stop Bender from telling the NY Observer this:

"It is not a new schedule. I think Bruce was just stating that the schedule in place is in fact very aggressive. We plan to break ground this fall and are working to open in calendar year 2010. While that's the goal, if it is not met then it would end up being calendar year 2011."
...
How does Bender et al. plan on breaking ground for the arena in the fall, or January for that matter, if Forest City Ratner will not own the property it needs for the arena by those dates?

NoLandGrab: Right... if last month's slip up to investors "is not a new schedule," what's the new schedule gonna look like?

Posted by lumi at 4:15 AM

August 5, 2008

Nets Arena May Not Be Finished Until 2011, Ratner Says

The Daily Newarker

Seriously, Nets? Newark can get this done for you by next season. The arena is here and ready for you. Do New Jersey proud and stay here, do something good for a city that will welcome you here, and maintain your current fans.

Newark is a win-win for everyone except Forest City Ratner, who is just totally screwing with you guys.

article

More Coverage:

Newsday.com, Nets move to Brooklyn delayed again?

This doesn't surprise me much, as the project has been delayed several times. As recently as January, the Nets acknowledged that their original plan to move into the new Brooklyn arena for the start of the 2009-10 season was unrealistic, saying their hope was to complete the move during the calendar year 2010.

NoLandGrab: Actually, their original original plan was to move into a new Brooklyn arena in 2006, but who's counting?

The Knicks Blog, Nets To Brooklyn Hits Another Snag

The Real Deal, Atlantic Yards' Nets arena faces more delays

NBA Fan House, Brooklyn Will Have to Wait for LeBron Nets

HoopsVibe.com, Arena for Brooklyn Nets Delayed Again

Does it count as news if everyone already knew it was going to happen? Let’s assume that it does and treat this story as if it’s a surprise. The folks at the not-so-attractively-named Forest City Ratner company have come out and admitted that the schedule which would have seen the new arena for the soon-to-be Brooklyn Nets completed in "calendar year 2010" is "very aggressive".

For those of you not fluent in business-speak, that means that there’s about as much chance it’ll be ready by 2010 as there is of Bruce Ratner suiting up and playing small forward on opening night.

While [2010 is] the goal, if it is not met, then it would end up being calendar year 2011.

In related news, eleven is one larger than ten.

Posted by eric at 11:58 AM

New Net arena delayed yet again

NY Daily News
By Julian Garcia

If the Nets do manage to sign potential free agent LeBron James before the start of the 2010-11 season, it's possible their fans in New Jersey could get the first look at him, as opposed to those in Brooklyn.

The company that plans to build the team's new home in Brooklyn acknowledged Monday that the arena may not be open until the 2010-11 season is well underway.

While saying the plan remains to move the team to Brooklyn in "calendar year 2010," a representative of Forest City Ratner - Nets owner Bruce Ratner's company - admitted that schedule "is in fact very aggressive."

"While that's the goal, if it is not met, then it would end up being calendar year 2011," said Bruce Bender, the company's executive vice president.

article

NoLandGrab: "...is in fact very aggressive" — translation, "don't bet on it."

It is unlikely that "the new Nets arena in Brooklyn will likely look like" anything in this photo, given that the Daily Snooze ran a photo of the arena model from the unveiling of the project back in 2003. Bruce Ratner has already announced that the arena will no longer feature a "green roof" and the current design is radically different.

Posted by lumi at 3:47 AM

August 4, 2008

Nets Arena May Not Be Finished Until 2011, Ratner Says

The Real Estate [NY Observer]
by Eliot Brown

The news was first spotted by Norman Oder at his encyclopedic watchdog blog Atlantic Yards Report, where he put up part of a transcript from a Forest City conference in June [corrected]. In the conference, Forest City chairman Bruce Ratner said the company hoped to start construction on the arena by the end of this year, and would take two and a half years to finish.

We put the question over to Forest City this morning, and here's their response, via a statement from vice president Bruce Bender:

"It is not a new schedule. I think Bruce was just stating that the schedule in place is in fact very aggressive. We plan to break ground this fall and are working to open in calendar year 2010. While that's the goal, if it is not met then it would end up being calendar year 2011."

article

NoLandGrab: How's that? It's not a new schedule? It's just the same schedule with new dates? Right, and the arena actually opened in 2006, the date announced initially by Forest City Ratner when they first presented Atlantic Yards to the public in 2003.

As we pointed out this morning, Bruce Ratner had to hew to truthiness in talking to shareholders about the arena's opening. But since Bruce Bender was only responding to a press inquiry, he could, as is his wont, be a little more creative.

Once again, we extend our challenge to Forest City Ratner to tell it straight to anyone not carrying the big enforcement stick of the Securities and Exchange Commission.

Posted by eric at 4:47 PM

It came from the Blogosphere...

The Real Estate [NY Observer], Landowners Bring Atlantic Yards Eminent Domain Battle to State Court

If anything else, the lawsuits thus far seem to have delayed the start of the more than $4 billion planned project, which calls for a new basketball arena for the Nets, and over 6,000 apartments. Now, more than a year and a half since the Atlantic Yards project received state approval, a host of clouds circle over developer Forest City Ratner, which once anticipated building the entire first phase (which includes the arena, an office tower and at least 1,000 units of housing) by 2010. The once-lush climate for financing has turned to an arid desert, tax-free housing bonds are in short supply given soaring demand, and the financing mechanism by which the company was to get tax-free bonds for the arena is under fire by the I.R.S., threatening to drive up costs by more than $100 million.

But if the landowners had an uphill climb challenging eminent domain in federal court, the ascent in New York state court is generally regarded as a particularly daunting one, given the relatively generous treatment to the state by New York's eminent domain law.

We're waiting on a statement from Forest City, but if history is any guide, the company will point out (correctly) that the courts have tossed all the lawsuits challenging the project to date.

The Campaign for Community-Based Planning, Checking in With Atlantic Yards: A Messy Footprint, a New Timetable, and a Lawsuit in State Supreme Court

It’s been a while since we’ve looked in on the Atlantic Yards project. Luckily, Norman Oder of the Atlantic Yards Report has been keeping vigilant watch over the goings-on at the site. Here’s a quick update...

Gowanus Lounge, Atlantic Yards Eminent Domain Case Filed in State Court

Brownstoner, Nets Coming Late to Atlantic Yards and Suit Coming Soon

Two new developments in the Atlantic Yards saga. Atlantic Yards Report reveals that the Nets have three more years at the Meadowlands' Izod Center, not two, meaning the 2010 opening date Bruce Ratner has been promoting may be nothing more than a pipe dream; we might be looking at 2012 for the team's debut. Besides the team's schedule, there's the issue of construction. Ratner tells some outlets that groundbreaking won't begin until January; to others, he says November.

As construction remains stalled at the site, a lawsuit goes forward. Nine property owners and tenants filed a petition against the Empire State Development Corporation in the Appellate Division Second Department of New York State Supreme Court.

Nets Daily, Has Ratner Pushed Barclays Center Opening to 2011?

brooklyn bob says:

And btw, a JULY OF 2011 barclays center opening is a BEST CASE SCENARIO that assumes no further legal delays, no financing/loan delays and no construction delays. Yeah, right. That’ll happen.

3 more 20-win seasons in the swamp, at least. With 4 more being a very real possibility. While at the same time, newark’s brand new state-of-the-art arena awaits an nba franchise with open arms.

What a bleeping disgrace!!! Way to go ratner. Way to go stern. You two sure know how to screw things up. No wonder the nba’s popularity is going to hell in a hand basket.

Only the Blog Knows Brooklyn, Atlantic Yards Eminent Domain Case Filed on Friday

Yonkers Tribune, Nine Property Owners and Tenants File Atlantic Yards Eminent Domain Challenge in New York State Court

RotoWorld, Nets may not move until 2011

Posted by eric at 12:46 PM

Bruce Ratner makes it official: AY arena would open in mid-2011 (best-case scenario)

Atlantic Yards Report

Longtime NoLandGrab readers who have repeatedly watched the arena's opening date slip over the years have known for some time that Bruce Ratner's claims that the arena would be ready for the 2010-2011 basketball season amounted to a tall tale — now it's official.

Despite public statements to the contrary, as on the Barclays Center web site, the New Jersey Nets have three, not two, more years at the Izod Center in the Meadowlands--and that's in a best-case scenario.

The word comes directly from Forest City Ratner president (and Nets majority owner) Bruce Ratner, who indicated to shareholders in June that construction would start in January and take two-and-a-half years--a timetable far different from the developer's and team's public statements, including to season ticket-holders.

[A]t the June 19 annual meeting in Cleveland of Forest City Enterprises, parent of Forest City Ratner, Bruce Ratner revised his prediction by one year, to mid-2011, which means the arena would open for the 2011-2012 season, three seasons from now.

From the lips of Bruce:

[W]e're doing very well on the Atlantic Yards project. Our hope is that we can close our loans and close the transaction by the end of the year. And then it will be about two and a half years to build our arena, and then the Nets will move from New Jersey to Brooklyn. So, we're working hard at it, and I think we're finally close to a closing.

Norman Oder explains:

If it takes 2.5 years to build the arena, and construction starts in January 2009, the arena would open in July 2011. Still, keep in mind that the Nets have extended their lease in their current facility to 2012-13, just in case.

Also keep in mind that there's no certainty that groundbreaking for the arena would occur in January--legal cases, including the just-filed state eminent domain lawsuit, may still be pending.

Read the rest of the article for the litany of public statements made by Forest City and Nets executives, meant to convince the media and public to the contrary.

NoLandGrab: Federal regulations and laws governing statements to shareholders force corporate executives to be more candid than when they make statements to the press, only proving that Bruce C. Ratner can squeeze out something that resembles the truth when his ass is on the line.

Posted by lumi at 3:53 AM

July 31, 2008

The Yankees deal gets some more scrutiny, AY gets a mention

Atlantic Yards Report

Coverage is given to yesterday's Democracy Now! broadcast which included a segment on public subsidies for sports complexes. Congressional scrutiny into funding for the new Yankee Stadium might effect how the proposed Nets arena could be financed.

The program was hosted by Juan Gonzalez and included Congressman Dennis Kucinich, Good Jobs New York's Bettina Damani and Field of Schemes author Neil deMause.

The Atlantic Yards mention is included in this quote from Kucinich:

I can say that my subcommittee staff… is in contact with officials from both the city of New York and the New York Yankees to discuss their potential appearance in front of our Congressional subcommittee. I think that it’s very important to understand that we’re looking at a public policy matter here that relates not only to New York and not only to the Nets and the Atlantic Yard project, but it also relates to the whole country… because it’s quite possible that there are billions of dollars in tax benefits that should be going to municipalities for the purposes of repairing their infrastructure and for schools and other things and that are instead being diverted for these private sports complexes…
(Emphasis added)

Damiani points out how representatives from outside of New York City are picking up the slack to see if there will really be any benefits from subsidizing sports complexes:

The city has really washed their hands of making sure there’s any accountability on jobs and clear benefits for New Yorkers on the other side of this project, which is very unfortunate. I mean, we’re grateful for Congressman Kucinich and Assembly Member [Richard] Brodsky to get involved in this issue. Neither represent New York City, by the way. New York City elected officials—they’re filling a void, because local elected officials in New York City have refused to get involved in this project. And we need them. We need them to make sure that the promises in the press releases actually turn out to be something that we can hold them accountable for.

article

NoLandGrab: Many thanks to Rep. Kucinich for running with this issue. Also, thanks to Democracy Now! for examining public subsidies for Yankee Stadium. We're looking forward to more in-depth coverage that will include the proposed Nets arena.

Posted by steve at 6:37 AM

July 25, 2008

On further review, O'Malley got bum rap

Case can be made that Dodgers owner was pushed

Albany Times-Union
by Brian Ettkin

In a lengthy and interesting piece on Walter O'Malley on the cusp of the former Brooklyn (and L.A.) Dodgers' owner's enshrinement in baseball's Hall of Fame, reporter Brian Ettkin repeats the too-often repeated error about the precise location of the Ebbets Field successor that never came to be, with a twist.

O'Malley continued asking for help to acquire the Atlantic and Flatbush site (where Bruce Ratner would build Atlantic Yards five decades later).

Ettkin is actually right about the location for Atlantic Yards, but he's wrong about O'Malley, who actually wanted to build on the spot that's now home to Ratner's Atlantic Center mall. He's also off on his phraseology — "would build" is different than "wants to build."

The article does offer up a number of good tidbits, including:

O'Malley offered to build a 100-percent privately financed Major League Baseball stadium, the first since Yankee Stadium had been constructed in 1923, and the land once the city acquired it.

While O'Malley's willingness to privately finance the ballpark was much different than Ratner's dependence on subsidies, O'Malley's plan, like Ratner's, relied on the use of eminent domain.

Moses considered big-league sports of minimal value to a city.

In that respect, Moses and many economists would agree.

[T]he Chavez Ravine stadium deal wasn't valid until a vote of the people narrowly passed it on June 3, 1958, and even then O'Malley had to win several court appeals filed by stadium opponents.

Unlike residents of New York City, Angelenos actually got to vote on the Dodgers' stadium plan.

article

Posted by eric at 12:30 PM

MAAC Madness in Albany

Th Full-Court Press

As promised, The Press is diving into the future of the MAAC tournament. Here’s how we’ll do it: Each day, we’ll take a look at one of the sites that is likely to be in the running to host the tournament from 2012-14.
...

Since no decisions have been made and no official negotiations have taken place, none of the sites we’re going to look into are guaranteed to be hosts at any times. By the same token, just because we don’t examine a particular city doesn’t mean that city has no shot at being a host. But eight sites appear to be on the MAAC’s radar, and those are the ones The Press will delve into: Albany; Bridgeport; Buffalo; Mohegan Sun; the Atlantic Yards arena in Brooklyn; the Prudential Center and Meadowlands in Newark and East Rutherford; Atlantic City; and the Baltimore Inner Harbor.

article

NoLandGrab: Good thing the Metro Atlantic Athletic Conference didn't book its conference basketball tournament in Brooklyn for the arena's originally projected opening season of 2006-2007. We have to think that the Barclays Center is not the favorite to host the tourney, since, unlike the other contenders, it doesn't actually exist.

We'll post The Full-Court Press's report on Brooklyn's chances when it's published.

Posted by eric at 12:01 PM

July 20, 2008

Citigroup Puts Its Money Where Its Name Will Be

NY Times
RICHARD SANDOMIR

What will happen to naming rights deals as the economy suffers? The NY Times looks at Citi Field, which Citibank promises to follow through with, even if it doesn't make much sense for business. Barclays also sticks to its promises, while the Times sticks to its claims that an arena would be open in 2010:

Another bank, Barclays, followed Citigroup by a few months with its 20-year, $400 million naming-rights deal for the Nets’ arena near downtown Brooklyn.

Barclays, based in Britain, lacked Citigroup’s substantial presence in the United States and viewed the arena — whenever the Barclays Center’s long-delayed construction starts — as part of an aggressive domestic brand-building plan. But like Citigroup, it has had problems in the credit market, with $6.5 billion in write-downs on its banking scorecard. To shore up its capital position, Barclays recently sold $8.9 billion in new stock.

The bank, which sponsors the Premier League and a PGA Tour event in the FedEx Cup playoffs, is still linked with the Nets, who are seeking a 2010 arena opening if construction starts soon. On Friday, Brett Yormark, the president of Nets Sports and Entertainment, called Barclays a “stable and dynamic institution that is thriving in a very challenging marketplace.”

Brandon Ashcraft, a bank spokesman, said, “Barclays is fully committed to its relationship with the Nets.”

article

Posted by amy at 4:00 PM

July 16, 2008

I.R.S. Could Crimp Bloomberg's Big Plans

NY Observer
by Eliot Brown

The Observer's lead real estate reporter takes an in-depth look at New York City's furious efforts to preserve tax-exempt financing for its favorite son, Bruce Ratner.

As the Bloomberg administration scrambles to get its development projects in the ground amid a slowing economy and a waning political term, two major planned initiatives the city has championed face a formidable hurdle: the Internal Revenue Service.

For the financing plan for the Atlantic Yards housing and sports arena complex in Brooklyn, and for one being considered for the planned middle-income-housing mega-complex at Hunter’s Point South in Queens, the city would need a favorable ruling from the I.R.S. or face substantially higher costs for both projects. Negative rulings from the federal agency could result in tens of millions of dollars in added costs, putting up new obstacles to major developments that have already seen ambitions scaled back.

For both projects, the city wants to use tax-exempt financing, a method that lowers costs substantially—perhaps more than 15 percent—with the bulk of the savings coming out of federal tax revenues.

And, at least in the case of Atlantic Yards, the I.R.S. is rather wary, as it has called the financing method a “loophole” that it has ordered closed.

article

NoLandGrab: We haven't rooted this hard for the IRS since "The Untouchables."

Posted by eric at 11:18 AM

July 15, 2008

Actually, it's 18.6% About Basketball...

Develop Don't Destroy Brooklyn

DDDB ran Bruce Ratner's "it's 100% about basketball" claim through the bee-ess-o-meter, and arrived at a different tabulation.

Which leads one to ponder the fact that actually, according to the KPMG report on the economics of Atlantic Yards back in December, 2006, the Arena will only be used 41 times a year for the Nets, with another 179 "non-NBA activities." What might those activities be? Well, looking at this summer's fare in another 20,000 seat arena, the Verizon Center in DC, that could include: WWE presents Monday Night RAW LIVE ("featuring Batista, John Cena, CM Punk, Rey Mysterio, Triple H, Edge and More"); Pop Tarts Presents American Idols Live – 2008 Tour; Women of Faith; and George Michael's first North American tour in 17 years.

That means in actuality, the Nets Arena is approximately 18% about basketball, and 82% about....other stuff. But when you're asking for hundreds of millions of dollars in subsidies, it's probably not quite so effective to say that most of the time you'll be featuring Pop Tarts, George Michaels and really big guys in tights....

article

NoLandGrab: NLG's 10-year-old nephew would actually be okay with it being "100% about the wrestling."

Posted by eric at 9:52 AM

July 14, 2008

Newark watching the finances as arena finishes its emergency system

The Newark Star-Ledger
by Maura McDermott

Next month, the Newark Downtown Core Redevelopment Corp. will launch a national search for a firm specializing in financial performance and maintenance of arenas, said William Crawley, the agency's chief operating officer. The agency oversaw construction of the arena and now must make sure it lives up to its promises.

The goal is to make sure the Devils pay the city what they owe, maintain the arena properly and stay competitive, Crawley said.
...

Hiring an expert to analyze the arena's performance is a wise decision, said Howard Bloom, publisher of SportsBusinessNews.com.

"It's the responsible thing to do to make sure the taxpayers get as much of a return on their investment," Bloom said. "It's a matter of checks and balances."

The agency also aims to have the management firm measure how the venue stacks up against its competitors, Crawley said.
...

The trouble would come if the Nets build their planned arena in Brooklyn, adding to the competition from the Izod Center in the Meadowlands and other nearby venues, Bloom said.

New Jersey officials have sought to attract the Nets to Newark, but owner Bruce Ratner insists he will break ground on a Brooklyn arena by the end of the year.

article

NoLandGrab: Should Bruce Ratner actually succeed in building Atlantic Yards, close monitoring of the revenue due taxpayers would certainly be wise. But if history is any guide, his elected and appointed enablers in City government would likely just take his word for it.

Posted by eric at 10:50 AM

July 13, 2008

Nets face lean years, Brooklyn or no Brooklyn

NewsOK.com
by Ian O'Connor

Let us get this straight. Bruce Ratner says it's "100% about basketball" at the same time that he's scuttling Nets' salaries faster than he's knocking down buildings in Prospect Heights. All so the team can position itself to sign Jay-Z protege LeBron James in 2010 (wink-wink, we're not tampering, David Stern). In the meantime, James's Cleveland Cavaliers, a legitimate NBA contender, are nearing the point where they will have enough salary cap room to sign another legit star to help LeBron bring a championship to Cleveland — while the Nets are riding an express elevator to the NBA's cellar.

The Bergen Record's Ian O'Connor lays out the hazards of wishing upon a star in the NBA.

The Nets have been busy clearing salary cap space, office space, locker room space, a parking space, all kinds of space for James. They weren't just getting rid of Richard Jefferson when they made the trade with Milwaukee for Yi and Bobby Simmons; they were getting rid of Richard Jefferson's wage.

But way back when, before he spent a summer acquiring Allan Houston, Chris Childs and Larry Johnson for the Knicks, Ernie Grunfeld told me the most frightening scenario for an NBA executive is clearing out money under the salary cap and then finding nobody worthwhile to take it.

"That happened to Chicago, after Michael Jordan,” Rod Thorn said. "They had significant cap room and they tried to give it to Tracy McGrady, and they tried to give it to (Kevin) Garnett at different times and it didn't work.

"That's the misnomer about having cap space … . If you have a team that's just not very good, to think that you are going to get a top quality free agent is kind of pie in the sky.”
...

Sure, the Nets have Jay-Z and their pending palace, which probably won't be ready until the start of the 2011-12 season. With Ratner losing an estimated $40 million a year in the Meadowlands, and with the purchase of the team setting him back $300 million, the Nets are expected to have cost their owner nearly $600 million by the time he lands in Brooklyn.

At those prices, Ratner will want to make a splash in the new digs. And nobody splashes quite like LeBron.

But will the Nets be good enough to even make James' Fave Five?

article

NoLandGrab: You'd think Bruce Ratner would have learned his lesson about coveting things that aren't his when he started eyeing Daniel Goldstein's apartment.

Posted by eric at 1:43 PM

July 11, 2008

Nets Slather on the Reassurances

From Develop Don't Destroy Brooklyn (dddb.net):

This has become the week of the Great Reassurance, as Nets spokespeople ramp up a vigorous campaign to convince the world that the Nets are really coming to Brooklyn. Both No Land Grab and Atlantic Yards Report have excellent rundowns on the action, ranging from wooing 40 fans at the Barclays Center showroom in the The New York Times building, to a press conference in which Bruce Ratner seemed to slide the actual opening date a bit further out into the next decade.

And what about Bruce Ratner's attempt to reassure New Jersey fans that getting to the game will be a cinch?

DDDB listens in on the Nets Daily comments, where "Trenton" has bad news for Bruce Ratner:

Personally, I would not drive up to the Meadowlands, hop on a bus, then ride to the game, hop on the bus again and drive home.

link

Posted by lumi at 4:11 AM

July 10, 2008

With Yi Jianlian, the Nets Hope to Go Global

The New York Times
by Harvey Araton

Thinking expansively, going global, the Nets invited a billion Chinese to stream a news conference Wednesday on njnets.com and to communicate with the newly acquired forward, Yi Jianlian. Alas, the linking of the Far East to East Rutherford was apparently no instant triumph of digital interaction.

At least Jeff from Hackensack was poised to post a query for Bobby Simmons, another new Net who hails from the less exotic basketball hotbed of Chicago.

New ventures take time, require patience, not unlike the building of an arena in densely populated Brooklyn and the development of a 20-year-old 7-footer, who in a tailored suit looks like a devotee of the Slim-Fast Diet.
...

Bruce C. Ratner, their principal owner, said that long-range planning was part of the process after the in-season trade of Jason Kidd, but he bristled when asked if the Yi deal was more of a marketing ploy.

“It’s 100 percent about basketball,” he said.

article

NoLandGrab: Sure, Bruce, like Atlantic Yards is 100% about "Jobs, Housing & Hoops."

Posted by eric at 12:13 PM

Nets definitely coming to Brooklyn in... (um) 2010-ish, during the season, we think

Bruce Ratner's Nets organization has been doing an elaborate dance for years, trying to keep fans stoked for a move to Brooklyn, though the big day keeps getting pushed back.

NY Daily News, Yi helps Nets matter again

Yesterday, in a fit of honesty, Bruce Ratner placed the date during 2010-2011 season, perhaps close to the end, as NY Daily News reporter Julian Garcia reports on the paper's blog:

Owner Bruce Ratner revealed that the team is still scheduled to move to Brooklyn after two more full seasons in New Jersey but that the move may not occur until the middle of the 2010-2011 season, perhaps even toward the end of it. He said groundbreaking on the new Brooklyn arena is to begin in November.

NY Daily News, Nets' move to Brooklyn may not happen until 2010-2011

In Garcia's follow-up report for today's paper, Ratner's PR henchman Barry Baum tries his best to explain what his boss meant to say (perhaps for the benefit of investors?):

The Nets are still scheduled to move to Brooklyn. But as for exactly when that will happen, not even owner Bruce Ratner can say.

At the press conference to introduce new players Yi Jianlian and Bobby Simmons Wednesday, Ratner acknowledged that the move, which in recent months had been pushed back to the start of the 2010-2011 season, may not occur until that season is already underway. Ratner said that the move could occur late in the year.

Ratner's spokesperson, Barry Baum, clarified the remarks, saying that the team has acknowledged for awhile that the move may not occur until the 2010 "calendar year" as opposed to before that season.

"When (Ratner) says late in the year, he means late in 2010," Baum said.

Atlantic Yards Report, "Brooklyn is happening"? Nets brass now promise 2010-11 season
Back in mid-May, Norman Oder of Atlantic Yards Report had already predicted that 2010 probably meant December 31, 2010. In the wake of Ratner's fumble, Baum's recovery attempt, and an increasingly tight construction timeline, Norman Oder thinks that 2011 makes more sense:

Less than two months ago, Forest City Ratner promised an opening during the 2010 calendar year. So team officials continue to hedge. Given the three-year bridge reconstruction schedule, 2011 still looks to me like a reasonable best-case scenario.

Posted by lumi at 7:10 AM

Nets to Ticket Holders: “Brooklyn is Happening”

Nets Daily covers a special reception meant to remind Nets fans "'Brooklyn is happening' in spite of various reports."

Officials added that the team still “anticipates” playing in the Barclays Center during the 2010-11 season and expects to have an official ground-breaking at the site later this year.

In other news from the reception, Nets Daily reports that the team plans to build a new practice facility somewhere in Brooklyn, adopt a new logo (we suggest our logo redesign), launch a local Chinese in-language campaign, provide a shuttle bus to service the 35% of New Jersey season-ticket holders that they anticipate will follow the team to Brooklyn, and offer season tickets at comparable prices to those of the Knicks.

article

Posted by lumi at 5:50 AM

July 6, 2008

Hot dog clause in financing of new stadium gives taxpayers heartburn

NY Daily News
by Juan Gonzalez

This was an excellent preview of some of the issues covered this past Wednesday in State hearings presided over by Assemblyman Richard Brodsky. It was not included in this past week's NoLandGrab coverage, but it is now.

Questionable promises of jobs in exchange for public funding, efforts to use an IRS loophole for financing a sports facility and requests for additional public financial support are all things that the Yankees and Atlantic Yards developer Bruce Ratner have in common.

Call it the secret Hot Dog Giveaway.

The Yankees could be allowed to operate up to 25 vendor pushcarts outside the new stadium as part of a secret provision the team negotiated with the city and state for parking garages being built with public financing.

The "hot dog" clause - never made public until now - would kick in if the Yankees don't get 600 free year-round parking spaces.

That little goodie is just one ofseveral revelations buried in thousands of pages of documents and e-mails about the stadium project that city officials recently gave Assemblyman Richard Brodsky (D-Westchester).

Brodsky, who heads the assembly committee that oversees public authorities, demanded the documents after learning last month that the city's Industrial Development Agency was backing a Yankee request for $366 million in additional tax-exempt financing to complete the Bronx project.

The new request comes on top of the $942 million in taxexempt bonds the Yankees have received.

Brodsky has scheduled a public hearing today on the entire project. It islikely to be the toughest public review the $1.3 billion stadium has received.

"The more you see of authorities like the IDA, the more you realize they act like old-style Soviet commissars," Brodsky said. "No one has elected them, they're not accountable to anyone, and they operate in secrecy."

article

Posted by steve at 6:15 AM

July 2, 2008

Does the Future of Atlantic Yards Really Hinge on LeBron?

Gotham Gazette [The Wonkster], Can Lebron James Save Bruce Ratner?

A little background for the non-SLAM Magazine-reading set: The James here is Lebron, who is buddies with rap mogul and Nets minority owner Jay-Z. The Nets’ principal owner is Forest City Ratner, which wants to move them to an as-yet unbuilt, 18,000-seat, Forest City-developed, Frank Ghery-designed arena in Atlantic Yards by 2010. James, arguably the world’s most marketable athlete, becomes a free agent in 2010. He currently plays in Cleveland, which we’re told is a much less interesting and exciting place than New York.

Could James’ apparent interest in Brooklyn have any impact on Atlantic Yards?

Bleacher Report, Please No More LeBron to New York Talk

Is anybody else as sick as me with the oversaturated coverage of LeBron’s supposedly inevitable move to one of the New York teams come 2010? It’s good to dream, but can someone please tell me when this became fact?
...

Yi brings China with him, which, in turn brings a lot of money. Keep in mind New York has the biggest Chinese population in the U.S. There is plenty of money to be made overseas in China. Naming rights money, shoe deal money, endorsement deals, suite money for the new arena.

Because of Yi, Nets games will now be seen on 50 plus stations in China. Three hundred million Chinese play basketball and one billion watch NBA games. Some months the NBA brings in more revenue from China than it does in North America.

This move had to be done. The Nets were losing $40 million a year, the heaviest debt-to-assets load of any professional sports team, according to Forbes magazine.

NoLandGrab: With the Nets, real estate comes first, with marketing a close second. Putting a winning team on the floor, well....

NY Daily News, With inexperienced roster, Nets front office looks to add veterans

However, Thorn, Vandeweghe and owner Bruce Ratner have admitted they are not willing to sacrifice the future just to give the Nets a better chance in the upcoming season. Although no executives have said so, speculation is that the Jefferson trade, which brought 20-year-old 7-footer Yi Jianlian and veteran forward Bobby Simmons to New Jersey, was all about setting up a possible run at future free agent LeBron James.

NLG: No Nets' executives have said so because saying so would be tampering.

Posted by eric at 10:37 AM

June 30, 2008

So, would Brooklyn be 2010 or 2011?

Atlantic Yards Report

In articles this weekend, The NY Times "offered that not-so-credible 2010 date for the Nets' assumed Brooklyn move," while the Boston Globe had it, "probably in 2011."

Norman Oder bets on the Globe:

I think 2011 is a more likely best-case scenario. Remember, the Nets are promising only "calendar year 2010," which might just be New Year's Eve.

article

NoLandGrab: The New York Times Company owns both The Times and The Globe, so someone in Boston apparently didn't get the memo.

Posted by lumi at 4:15 AM

June 29, 2008

July 2 Showdown Over Yankees (and Nets) Tax-exempt Financing

Develop Don't Destroy Brooklyn

Presumably the discussion at the hearing below will include the $800 million (at least) in tax-exempt financing Forest City Ratner seeks for its proposed $950 million, and counting, Barclays Center Arena...

Assembly Standing Committee On Corporations, Authorities And Commissions Assembly Standing Committee On Local Governments Assembly Standing Committee On Cities Assembly Standing Committee On Ways And Means

Notice Of Public Hearing

SUBJECT: The request for increased public financing for construction of a new Yankee Stadium in New York City.

PURPOSE: This hearing will examine the recent requests by the New York Yankees for additional funding in the form of tax-exempt bonds from the New York City Industrial Development Agency (NYC IDA), a subsidiary of the New York City Economic Development Corporation (NYC EDC), for construction of a new Yankee Stadium in New York City.

NEW YORK CITY
Wednesday, July 2, 2008, 10:00 am
Assembly Hearing Room, Room 1923, 19th Floor
250 Broadway
New York, New York

ORAL TESTIMONY WILL BE BY INVITATION ONLY

The NYC IDA is the financing branch of the NYC EDC that provides assistance to businesses and companies operating in the five boroughs of New York City through tax-exempt bond financing. In 2006, the NYC IDA approved the issuance of $920 million in tax-exempt bonds to the New York Yankees for the construction of a new Yankee Stadium in the borough of the Bronx. The issuance of these bonds was made possible when the Internal Revenue Service (IRS) waived regulations which prohibit the use of public financing for sports facilities. Shortly after the waiver was granted, the IRS instituted stricter enforcement of its regulations prohibiting such use of tax-exempt bonds.

Reports in the news media have indicated that the New York Yankees are seeking an additional $350 million in tax-exempt bonds from the NYC IDA to complete construction of the stadium despite IRS regulations prohibiting such use of public financing, and efforts are underway to have a waiver granted once again so that the sports team can acquire the funding. This hearing will allow the Committees to obtain information on the status of the financing plans for the construction of the Stadium, and to investigate the requests for additional funding.

Assemblyman Richard L. Brodsky Chair. Committee on Corporations, Authorities, and Commissions

Assemblyman Sam Hoyt Chair, Committee on Local Governments

Assemblyman James F. Brennan Chair, Committee on Cities

Assemblyman Herman D. Farrell, Jr. Chair, Committee on Ways and Means

link

Posted by steve at 11:00 AM

June 24, 2008

Big-time spin: Ratner claims Supreme Court pass ushers in arena construction

Atlantic Yards Report

Norman Oder bets against the hyperbolic headline on Forest City Ratner's Dear-Norman email.

link

Posted by lumi at 4:48 AM

June 20, 2008

Atlantic Yards Opposition Seeks Further Approval

GlobeSt.com
by Natalie Dolce

The proposed $4-billion Atlantic Yards project has had many hurdles presented in a number of court challenges over the past year, and opposition to the project has continuously called for a "time out," as GlobeSt.com previously reported. On Thursday, one such opposition group, Develop Don’t Destroy Brooklyn, and its attorney Jeffrey Baker of Young, Sommer, Ward, Ritzenberg, Baker & Moore LLC, sent a letter to the Public Authorities Control Board regarding the "increase in cost" of Forest City Ratner Cos.' Atlantic Yards Barclay's arena and the development project as a whole.

The letter demands that the PACB--comprised of Gov. David Paterson, Speaker Sheldon Silver and Majority Leader Joseph Bruno--exercise its "statutory obligation to approve the financing and construction of the project." When asked about financials surrounding the project, a Forest City Ratner spokesperson tells GlobeSt.com that they have "no comment at this time," and also says that they have no comment regarding the DDDB letter.

article

NoLandGrab: Hmmm, a double no-comment from Forest City Ratner. Guess they forgot that "when it comes to sharing information with the public and governmental bodies, there’s no such thing as too much, as far as we are concerned."

And we wonder if the members of the PACB declined comment, too, or if GlobeSt. just forgot to seek it.

Posted by eric at 10:09 AM

Given 50% arena cost increase, DDDB asks PACB to reconsider AY approval

Atlantic Yards Report

Develop Don’t Destroy Brooklyn (DDDB) yesterday asked the three-member Public Authorities Control Board (PACB)—comprised of Governor David Paterson, Assembly Speaker Sheldon Silver and Senate Majority Leader Joseph Bruno—to revisit its approval of the Atlantic Yards project, given “the dramatic increase in cost of Forest City Ratner’s Atlantic Yards arena and the development project as a whole.” The effort relies on an untested area of state law.

The PACB, which in 2006 derailed the planned West Side Stadium, is not supposed to evaluate the overall merits of a project, just whether the state’s investment is a sound one. DDDB contends that the nearly 50% increase in the price tag for the arena over 15 months—$637.2 million as approved in December 2006, but $950 million in March 2008—means the PACB should take another look. (The state has pledged $100 million of the project’s cost, estimated at $4 billion at time of approval but certainly significantly higher at this point.)
...

I asked DDDB attorney Jeffrey Baker if anyone has successfully made this challenge and, if so, what was the increase in the cost of the project at issue. “As far as I know there is no case law directly on point on this issue with PACB,” he responded.
...

Baker noted that the “source of the nearly $320 Million of additional construction costs has not been identified, and it is utterly unclear how the arena PILOT can be paid towards the bond based on assessed property taxes.”

The latter is a reference to a rule that says PILOTs (payments in lieu of taxes) cannot exceed the maximum amount of foregone property taxes. In terms of Atlantic Yards, those taxes may be significantly dwarfed by the potential arena bond.

What if PILOTs curtailed?

Indeed, the PACB’s approval, as with the KPMG study that led to the ESDC’s approval, was predicated on the use of PILOTs to pay off the arena bonds. Should the Internal Revenue Service be successful in curtailing the use of such PILOTs, that would strain the financial model significantly. The cost increase adds another strain.

article

Posted by eric at 8:28 AM

June 16, 2008

Just wondering I: Nets target '10-11 opening

amNY

Columnist Neil Best gets the Yormark treatment, but doesn't realize he might have a scoop:

What with the news the Yankees are seeking more dough to finish their new palace, it was time to check in with the Nets' efforts to move to Brooklyn, within walking distance of an LIRR stop.

How's it going? "We'll be there for the '10-11 season," CEO Brett Yormark said of an effort slowed by legal challenges.

The plan is to break ground this fall, which would go a long way toward quieting skeptics and selling suites.

Yormark gave me a tour of a sweet-looking model suite in a Manhattan showroom, 500 square feet with room for a small pool table. If I had $300,000 a season to spare, I would rent one and invite readers to hang with me.

article

ANOTHER SOFT RELEASE?
It looks like slick Yormark is hedging again. Instead of vowing that the Nets will play in their new arena "in calendar year 2010," which is all but impossible, he's now betting on the "2010-2011 season," which you can bet means more like 2011.

The previous admission that the arena opening would be delayed was handled in an orchestrated "soft release." This looks like the beginning of another one.

Posted by lumi at 5:38 AM

June 13, 2008

New IRS Rule May Delay Development Of Atlantic Yards Project

NY1

Brooklyn’s Atlantic Yards developer Bruce Ratner downplayed today’s reports that a proposed Internal Revenue Service rule might stall the vast construction project.
...

"We don't see really a problem,” said Ratner. “You know if the regulations don't change, do change, whatever the regulations will do, we'll be able to finance this. We've been assured of that. We've been working on it over the last two months, and it will take another three or four months to finish the documentation, but there's not a problem.”

article/video [dialup/broadband]

NoLandGrab: "We've been assured of that?" Assured by whom?

Bruce was apparently tracked down by NY1 while taking part in Forest City Ratner's "Community Day" clean-up of Prospect Park — which is not to be confused with "Brooklyn Day."

Posted by eric at 7:58 PM

Arena site in the Times? Nah

Atlantic Yards Report

Norman Oder does some free photo editing for The Times.

Is this the Atlantic Yards arena site, as today's New York Times suggests?

Nah. Rather than stretch solely along the Metropolitan Transportation Authority's Vanderbilt Yard, as in the picture, the arena site would end at the Sixth Avenue Bridge in the upper left quadrant of the photo and stretch south below the Pacific Street boundary, at the far left of the photo.

Below is the arena site outlined, more or less, in a photo by Jonathan Barkey.

Posted by eric at 12:28 PM

May 20, 2008

Forget LeBron and rebuild Knicks pick by brick

amNY
By Shaun Powell

Powell handicaps Bruce Ratner's new Nets arena in Brooklyn in today's column about the possible future of Cleveland Cavalier forward LeBron James and the New York Knicks:

Let's all conveniently forget that LeBron is super-tight with Jay-Z, the rap maestro who has a small piece of the Nets, and if that new arena ever gets built in Brooklyn (my hunch says no), LeBron will be coming to New York, all right.

article

Posted by lumi at 4:43 AM

May 19, 2008

JAY-Z CAUGHT USING SECRET HANDSHAKE

TheBoomBox.com

This whole Atlantic Yards thing is finally starting to make sense...

On May 16th, Jay-Z came through to the Barclay's Center showroom opening in Brooklyn, New York to support his big homey Bruce Ratner. The music mogul and Ratner have been in business together ever since the rap star bought a piece of the entrepreneur's New Jersey Nets. The pair's currently working on a deal to transport the basketball team from Newark to Brooklyn's Atlantic Yards near Jay's old stomping grounds.

CORRECTION: The Barclays Center Showroom is located in Manhattan, at the NY Times building, not in Brooklyn. And the Nets would be relocating from East Rutherford, though Z and B-Rat might secretly be working on a plan to move the team to Newark.

They had some laughs and popped some bottles, but it was their oddly-gripped handshake (seen here) that sparked yet another round of Jay-related conspiracy theory.

Hova has long been rumored to be a member of the Freemasons, the fraternal organization known for their deep political ties and use of signs (gestures) and grips (handshakes). Past members allegedly include thirteen signors of the Constitution, fourteen U.S. Presidents and many of the nation's most powerful families such as the Rockefellers (ROC, mane) and Rothschilds.

link

NoLandGrab: We always thought the "conspiracy" involved secret backroom deals between powerful real estate interests and their enablers in government, not the Freemasons. But now we learn that the ranks of the Masonic Temple include, or have included, David Paterson, Chuck Schumer, Charlie Ebbets and Branch Rickey. Coincidence? Maybe. Or maybe not. The "deep political ties" certainly sound familiar.

We also see that both former Montana Senator Conrad Burns and Scottish poet Robert Burns were Freemasons. No word, however, if C. Montgomery Burns is a Mason, though this video proves his membership in the Stonecutters.

Posted by eric at 8:41 PM

Launch of Nets' suite sales met with partial shrug

Atlantic Yards Report

While the New Jersey Nets and Forest City Ratner put a lot of effort (Tiffany key chain!) into launching the sale of suites in the yet-unbuilt (heck, ground has not been broken) Barclays Center last Thursday, the media responded with what must be considered a partial shrug. The Barclays Center web site (right) touts articles from the Bergen Record, the Newark Star-Ledger, and the New York Times, but that Times article--as I failed to point out in commentary last week--appeared only online.

The media roundup includes several blog posts and coverage on WNYC radio, but the tabloids--which previewed the announcement in March--didn't cover the event. I think that's a recognition that the story, for now, didn't deserve more attention.

article

NoLandGrab: Interestingly, the dearth of fawning articles forced the folks at barclayscenter.com to post articles from the two big New Jersey dailies that were not altogether flattering.

Posted by eric at 8:36 AM

May 17, 2008

EXTRA: First "bunker suite" SOLD to Jay-Z!

Like much of the hype surrounding the Nets arena, this week's launch of luxury suite sales was impeccably choreographed and staged.

For instance, on Thursday morning, The Newark Star-Ledger reported:

Tonight, the Nets will host a party for more than 120 people, including dozens of corporate chief executives and the hip hop impresario Jay-Z, who is considering buying a suite, according to the team's spokesman, Barry Baum.

So, Jay-Z is "considering" buying a bunker suite? Ooh, wonder what he's going to decide.

On Friday, ESPN The Magazine followed up:

Jay-Z was announced to be the first owner of a "bunker suite," one of 12 "event level" spaces that actually has no direct view of the courts, but is tucked between the home and visting teams locker rooms.

Wow, who woulda guessed!

Are we really supposed to believe that sometime Thursday, just in time for Bruce Ratner's luxury suites rollout party, NJ Nets minority owner Jay-Z finally made up his mind to purchase one of those "bunker suites?"

Is Ratner selling suites or snake oil? The sales tactics are pretty much the same.

Posted by lumi at 7:12 AM

May 16, 2008

"Street to seat brand domination" absent from AY renderings

Atlantic Yards Report

The Sports Business Journal article published Monday on six founding partners for the planned Barclays Center arena said the Nets promise “street to seat brand domination.”
“We’ll have very little static signage,” [Nets CEO Brett] Yormark said. “From the street or subway to the marquee and inside the bowl, only one brand will be visible at a time. The marketers we are talking to want fewer relationships that are more dominant. [Building architect] Frank Gehry did not want to overcommercialize this building, but he wanted to provide ownership for those brands that want to get involved.”

Also, there will be a “construction activation platform” with signage, countdown clocks and other media in which partners will be identified.

However, the new renderings produced by Gehry show no commercial signage (nor "construction activitation platform"), even though signs could be 150 feet high and 75 feet wide. Also, Gehry once wanted to make sure that arena signage had a social function, used for art and community purposes, but that has fallen by the wayside. And the developer has pledged that signage would be relegated to games, a promise that deserves further scrutiny.

article

Posted by eric at 7:02 PM

A SUITE GROWS IN, UM, MANHATTAN

ESPN The Magazine
by Otto Strong

The New Jersey Nets took one step closer to Brooklyn Thursday, even if the stopover came in the form of a showroom high above midtown. Team brass rolled out a living, breathing life-size version of what the suite experience will look and feel like in a new sales center on the 38th floor of The New York Times building.

The Celtics may have this season's Big Three, but the the Big Three who served as MCs for Thursday night's event—Brooklyn Borough President Marty Markowitz and Nets owners Bruce Ratner and Jay-Z—brought the one liners with them.
...

Jay-Z was announced to be the first owner of a "bunker suite," one of 12 "event level" spaces that actually has no direct view of the courts, but is tucked between the home and visting teams locker rooms. At 500-square feet, these suites are larger than many Manhattan apartments. And at $540,000, they're just about as expensive, too. Aside from having a sophisticated décor that rivals trendier dwellings in the city, these suites include private bathrooms, multiple flat panel HD-LCD TVs and even a regulation pool table. Also included are eight courtside seats per suite, ya know, just in case you feel like checking out LeBron in person.

article

NoLandGrab: We're pretty certain that Forest City Ratner misses the irony of selling "bunker suites" in an arena that they swore was completely secure — before they re-designed it to eliminate most of the not-so-safe-looking glass façade.

Posted by eric at 2:09 PM

No More Chafing Dishes!

DDDB.net

While the Nets did their best to lay on the hype yesterday while kicking of sales of non-existent luxury suites, Develop Don't Destroy Brooklyn homed in on the most impressive of all the promised bells and whistles:

Atlantic Yards started out in December 2003 with this slogan: "Jobs, Housing and Hoops." Now?

"NO MORE CHAFING DISHES!"

From WNYC-radio's preview of tonight's Barclays Center luxury skybox party:

...Nets President Brett Yormark says the amenities [of the arena's luxury skyboxes) are [to] be a big draw.

YORMARK: Cork floors, induction burners. No more chafing dishes with fire underneath. So a little bit of technology there. Frank Gehry designed lighting fixtures...

link

More DDDB reaction to the Barclays Center luxury-suite-a-thon sales event:

Poor Attendance Modeled for Atlantic Yards

Auto-oriented Atlantic Yards

Posted by eric at 1:00 PM

By the numbers

Bergen Record

The Nets kicked off sales Thursday of a portion of their luxury suites for the proposed Barclays Center, which they hope to open in Brooklyn by the end of 2010. Some seating facts:

64 "Level A" luxury suites, priced at $190,000 to $450,000

54 "Level B" luxury suites, priced at $155,000 to $400,000

12 Court-level "bunker" suites, priced at $540,000

3,200 Premium "club" seats, price not set but probably more than $150 per game

2,000 Upper-level seats for $15

link

NoLandGrab: Interesting that the Nets also remembered to promote the promised 2,000 $15 seats. Those, of course, won't be on sale for a very long time. Most likely, though, they'll be available much, much sooner than any of the units listed below.

Posted by eric at 12:22 PM

Nets are selling the luxury side of their dream arena

Bergen Record
by John Brennan

The New Jersey Nets, who vow to move to Brooklyn in two years, kicked off a critical phase of that effort Thursday with the opening of a sales center in midtown Manhattan.

"We've been saying that Brooklyn has been real for years, and it is real, but this truly is another validation for us," Chief Executive Officer Brett Yormark said during a media tour of the sales office, which includes a 500-square-foot replica of one of the 130 luxury suites at the proposed $950 million Barclays Center.

NoLandGrab: Pinch me! Brooklyn is real!

"We've got hot prospects that we'll be talking to over the next 30 to 60 days, who have been waiting to be able to come in and walk through a suite," said Yormark, who returned to the Nets after gaining a national reputation for his sponsorship and marketing success at NASCAR. "We've got people what I call 'teed up and ready to go,' and [Thursday's events for corporate leaders] could be a closer for them."

Given the current economy, Nets owners may need every bit of Yormark's sales talents to entice major corporations to shell out an average of $300,000 a year for the suites for terms of five to 10 years. Those sales would serve as part of the collateral for the considerable construction loans the Nets will need to break ground by the end of the year.

The Nets, who expect to obtain one-third or more of the building costs from New York City and New York State subsidies, also announced "founding partner" sponsorships worth $100 million this week. Foxwoods Resort Casino, Anheuser-Busch, and Cushman and Wakefield are among those core partners.

NLG: Foxwoods and Anheuser, two more "Brooklyn" companies?

The Nets lose an estimated $40 million annually at the Izod Center, whose design does not feature modern suites or lucrative "club seats" that can fetch hundreds of dollars per ticket for each game. But Yormark reiterated the franchise's insistence that a move to the Prudential Center is not in the cards, either short-term or long-term.

"We're at the Izod Center and committed to the Izod Center, and from the Izod Center we go to the Barclays Center," Yormark said. "There are no other options for us, and we will consider no other options."

article

NLG: Alas, poor Yormark. He and his Nets and Forest City Ratner cronies doth protest too much, we thinks, when it comes to the unrelenting efforts to dispel the inconvenient Nets-to-Newark rumors.

Posted by eric at 9:31 AM

Nets Spin Launch of Suite Sales as Proof of Brooklyn Move

The multi-pronged media effort to repair the damage from Bruce Ratner's shockingly candid March 21st interview with The New York Times continued yesterday with the launch of luxury suite sales for the planned Atlantic Yards arena.

Newark Star-Ledger, Nets say showroom is proof of move

The Nets yesterday showed off a full-size replica of the luxury suites they expect to feature in their $950 million Brooklyn arena, in yet another push to demonstrate they are serious about leaving New Jersey in 2010.
...

"The Barclays Center showroom is one more validation that we're alive and well and we're going to Brooklyn," Yormark said. "The next step is opening day."

NoLandGrab: Actually, the next step is to prove that the arena, let alone any of the rest of the project, can actually be built. Some of the land needed to build the arena is still in the hands of private owners and tenants, who are fighting the use of eminent domain in court. And Ratner has yet to demonstrate that he can actually secure financing for Atlantic Yards.

The marketing push comes as New Jersey officials and Devils owner Jeff Vanderbeek are seeking to assemble a group of investors to buy the Nets and move the team to the Prudential Center in Newark instead.
...

Yormark dismissed that as a possibility, saying sharing the Prudential Center with the Devils "is of no interest to us."

Newark Star-Ledger, Nets show off luxury suites in New York

The team has already sold one-fifth of the suites, at prices up to $540,000, according to Yormark.

NoLandGrab: While Yormark has repeated frequently the claim that 20% of the suites have already been sold to "friends and family," he has yet to publicly identify any of those who allegedly ponied up.

Bergen Record, Nets show off luxury suites

Chief Executive Brett Yormark led more than a dozen media members on a tour of the site in the morning, with a luncheon and then a celebrity-studded party rounding out the day.
...

Pricing for the 3,200 premium "club seats," which would have access to high-end lounges, has not been completed, Yormark said. The price is likely to be higher than the $150 per game that the Devils charge for such seats at the Prudential Center in Newark, given the New York City location.

WNYC Radio, Execs get Peek at Nets Arena Luxury Boxes

Nets President Brett Yormark says the amenities are be a big draw.

YORMARK: Cork floors, induction burners. No more chafing dishes with fire underneath. So a little bit of technology there. Frank Gehry designed lighting fixtures.

REPORTER: The Nets are guaranteeing that the arena will open in the fall of 2010, even though their parent company does not yet own all of the property in the arena footprint. Forest City Ratner Companies says it will begin construction later this year.

Nets Daily, Nets Begin Marketing Suites with Press Tour, New York Gala

Brownstoner, Barclays Center Luxury Suites Hit the Market

Curbed, Gehry Arena Luxe Suites Go on Sale, Rendering Porn Included

Curbed appears to have gotten its mitts on the exclusive sales brochure.

Gothamist.com, Troubled Nets Arena in Brooklyn Selling Luxury Suites

Posted by eric at 7:37 AM

No Nets Arena Yet, but Suites Are on Sale

NYTimes.com
by Richard Sandomir

Construction of the Nets’ proposed arena near downtown Brooklyn is long delayed and financing has not been completed. But the effort to sell the Barclays Center’s luxury suites began Thursday with the opening of a showroom in Manhattan.

The 130 suites arranged on three levels are renting for an average of $300,000 (for 5-, 7- and 10-year rentals). But the 12 elite ones are going for $540,000; they are actually under the stands (making them luxurious party bunkers), with no views of the court, but they come with eight seats at plum locations near courtside. The first of 12 was taken Thursday night by Jay-Z, the hip-hop impresario and a Nets investor.

For those seeking a suite, it will be a relief to hear that only 5 percent is due on the first year’s lease at signing, with the rest due in three installments ending in July 2010.

article

NoLandGrab: It's no biggie for Mr. Z, as The Times might refer to him, to plunk down north of half a million bucks for a Nets' suite, what with his new $150 million deal with Live Nation. But that same $540,000 would house more than 60 families for a year in Atlantic Yards' affordable housing units — if they ever get built.

Posted by eric at 7:36 AM

May 15, 2008

DDDB PRESS RELEASE: Tonight: Ratner to Show Off Atlantic Yards Arena Luxury Suites

Back in Reality:
Atlantic Yards and Barclays Center Are On Precipice of Failure

BROOKLYN, NY— Tonight, as reported last week in Crain’s, Bruce Ratner’s New Jersey Nets will “debut a prototype of their Frank Gehry-designed, $300,000-a-year Barclays Center corporate suites at a splashy party in their New York Times Building showroom.”

Meanwhile, back in reality, Bruce Ratner’s Atlantic Yards development proposal—including the arena for which Barclays Bank has purchased naming rights for $400 million—is on the precipice of failure and currently cannot be built.

“Bruce Ratner once promised ‘affordable’ housing. Now, all he is promising are luxury arena skyboxes, and he’s in no position to build even those,” said Develop Don’t Destroy Brooklyn spokesman Daniel Goldstein. “Tonight’s luxury skybox party vividly represents the Atlantic Yards bait and switch. The proposed ‘affordable’ housing was the bait to enlist the support of many elected officials backing the project, as well as ACORN; the switch is that those in need of an affordable home are left hanging while the ridiculously expensive luxury skyboxes will be given full priority over everything else Ratner once promised.”

Developer Forest City Ratner (FCR) does not own all of the properties it needs to build its proposed arena. Some of that property is in the hands of other private owners or tenants. New York State’s intention to seize those properties by eminent domain, and hand them over to Forest City, is currently being challenged in the courts. Back on March 31, 11 property owners and tenants filed a petition to the US Supreme Court in their case alleging that New York State’s use of eminent domain violates the US Constitution. If the Court takes their case, it would be heard by the end of the year, and a decision would be rendered roughly one year from now. If the Court does not take their case, the plaintiffs intend to file their challenge to eminent domain in New York State court.

In addition to this ownership problem, Forest City Ratner’s Atlantic Yards proposal faces other substantial obstacles, including:

• FCR needs at least $1.4 billion in tax-free housing bonds, but they are not available.

• FCR does not have the bond it needs for its $950 million arena—more than double the price tag of the most expensive arena every built.

• The credit market is in crisis.

• Construction costs have increased astronomically, and continue to rise.

• New York City’s real estate boom is over, and Brooklyn has a large oversupply of condos.

• Political opinion has substantially shifted against the project. (See: May 3rd protest rally)

• A coming appeal of the community lawsuit challenging the project’s environmental review and overall approval.

• Other outstanding litigation and the possibility of new litigation beyond that.

Posted by eric at 3:40 PM

May 13, 2008

Nets partnership announcements, suites showroom are four months late

Atlantic Yards Report

Norman Oder offers his take on today's Sports Business Journal story, and highlights the latest in Netspeak.

Meanwhile, we apparently get a new term to add to the Atlantic Yards Lexicon: "construction activation platform."

The newspaper reports:
Incremental to the founding partnership fees, many of the new sponsors will support what the Nets are calling a “construction activation platform” with signage, countdown clocks and other media in which partners will be identified.

“We’ll be marketing the heck out of the building even before it is being built,” Yormark said.

Indeed, that's the subject of the article.

article

Posted by eric at 7:24 AM

Nets add 6 founding partners for Barclays

Sports Business Journal
By Terry Lefton

As part of the marketing campaign in advance of the May 15 rollout and pre-sale of "Barclays Center" luxury suites, Nets CEO Brett Yormark is announcing six new arena sponsors, who just happen to already be sponsors in New Jersey. [Eyes rolling.]

A couple of photos offer a sneak-peak of the May 15 rollout:

While the organization’s Barclays Center project is mired in legal delays and reports surfaced recently that New Jersey officials were making a run to have the team move to the Prudential Center in Newark, Nets Sports & Entertainment President and CEO Brett Yormark said last week that he expects to break ground in the fourth quarter of this year and open the building in time for the 2010-11 season.

And as evidence, Yormark said the team has signed six new founding partners that join previously announced Jones Soda, representing more than $100 million in sponsorship commitments in the new building. The founding-partner deals are all five to 10 years in length and range from $1.5 million to $5 million a year, Yormark said.

Most are existing Nets sponsors: Anheuser-Busch, Cushman & Wakefield, MGM Grand/Foxwoods, ADT, Emblem Health and Izod, which has naming rights to the Nets’ current home court at the Meadowlands. Barclays is the naming-rights sponsor for the planned $950 million arena, which is supposed to host more than 200 events a year.

Yormark said that many of the partners are architecturally integrated within the building, plazas or clubs.

article

Posted by lumi at 5:25 AM

May 12, 2008

Why luxury suite sales this week are needed to market arena bonds

Atlantic Yards Report

Forest City Ratner's ability to recruit buyers for luxury suites — which it begins marketing this Thursday — may be critical to its ability to secure funding for the arena.

A counter-protest in response to the "Time Out" rally. An Bruce Ratner op-ed in the New York Daily News. The release of new renderings of the Atlantic Yards arena, office tower, and first residential building.

Let me try to put Forest City Ratner's recent efforts in some perspective. The office tower rendering is aimed to help attract an anchor tenant and get the building started. The rendering of a residential rental tower, with half the units subsidized, is aimed to maintain public support for the project.

But, more than anything else, the developer's efforts are about getting the arena built. That means the public must be convinced it's viable and, crucially, buyers of luxury suites must be recruited. The guarantee of certain suite revenues, I believe, will back bonds for the now-$950 million arena.

article

NoLandGrab: With Madison Square Garden embarking on a top-to-bottom renovation, new stadiums for the Mets and Yankees opening next year, and a new home for the Giants and Jets underway, it'll be interesting to see what demand there might be for suites in an arena that's still in rendering stage.

Posted by eric at 9:36 AM

What would an interim arena without titanium look like?

Atlantic Yards Report

Current plans for Phase 1 construction of the proposed Atlantic Yards development leaves out the "Urban Room" that was originally designed to connect with the arena, at least until later in the construction. If only the arena and one tower are built for now, what would the arena look like? Norman Oder takes a look.

We can't be sure. But we can be sure that the new renderings, as New York Times architecture critic Nicolai Ouroussoff recently wrote in another context, produce a "distorted picture of reality."

That's why it's important for Forest City Ratner to produce more accurate renderings, including descriptions of the publicly accessible open space that (its spokesman told the Post) would occupy what the MAS portrays as vacant lots.

Oder also questions whether the new arena design would conform to the Design Guidelines in the General Project Plan.

I asked ESDC spokesman Warner Johnston if the arena, with a truncated amount of glass, would conform to the Design Guidelines. He said it did.

Because my initial email did not cite the precise dimensions of 125 feet and 7500 square feet, I asked for confirmation. I didn't get a response.

...

And it is notable that the current renderings don't tell us whether the arena would meet the current guidelines, nor when exactly in the development process the current renderings might be realized. So we could have some vacant lots instead.

link

Posted by steve at 9:24 AM

May 8, 2008

What Might You Eat at a Brooklyn Nets Game?

Grub Street [New York Magazine]

When the basketball arena opens on the Atlantic Yards site in 2010(ish), Nets fans can expect a mythic Brooklyn foodscape. "There will be counters and stands with knishes, pizza, hot dogs, egg creams, cheesecake — the goal is really to provide a distinct Brooklyn flavor," promises arena spokesman Barry Baum. Never mind that Levy Restaurants, a Chicago-based subsidiary of a British company that plies the USTA Center in Queens, is running the concessions. (Tennis fans now enjoy such traditional Flushing dishes as “Blistered Corn Soup” and “Pan-Seared Amish Chicken.”) An on-site kitchen (and separate kosher kitchen) will maintain local flavor, promises Baum.

article

NoLandGrab: Does Barry Baum mean "local flavor" like that of the "exclusive carbonated soft drink and bottled water provider" to the Barclays Center, locally Seattle-based Jones Soda Company?

Posted by eric at 5:29 PM

Closing Bell: Gehry's Arena Turns Blue

Brownstoner

The arena has been altered as well, and now it's blue! Per a press release from developer Forest City Ratner's people: "The Barclays Center, the future home of the NBA Nets franchise, has also received an updated design. Frank Gehry’s swooping blue metallic exterior surrounds the Center and is in keeping with his world-renown distinctive style."

We've posted some of those other world-renowned buildings. Notice that Brooklyn's metal is the least bend-y.

link-y

Posted by lumi at 6:36 AM

May 5, 2008

Nets hold court on luxury suites

Crain's New York Business [subscription required]

Next week, the Nets will debut a prototype of their Frank Gehry-designed, $300,000-a-year Barclays Center corporate suites at a splashy party in their New York Times Building showroom.

To entice 185 of New York’s top CEOs to attend—and buy—the organization delivered a series of gifts over the past month, including a Tiffany key chain with a key, one of which will open a door to a free suite for the team’s inaugural season. The arena is set to open in Brooklyn’s Atlantic Yards in 2010, if developer Bruce Ratner can clear all the legal hurdles in its path.

Brooklyn Borough President Marty Markowitz and rap star Jay-Z, a part-owner of the team, will be on hand for the May 15 event.

Already, 20% of the 130 luxury boxes have been sold to “friends and family,” says Nets Sports Entertainment CEO Brett Yormark.

So, why the full-court press? Mr.Yormark says corporate suites in the area will balloon to 950 from 350 as all the new stadiums come online, including ones for the Yankees, the Mets, and the Giants and Jets. “I can’t take anything for granted,” says the marketer, who will soon announce the advertisers buying rights to brand bars, corridors and other parts, of the arena.

NoLandGrab: "20% of the 130 luxury boxes have been sold to 'friends and family'?" Does that mean owners of the team and related corporate interests? The real test will be in selling suites in an arena for which ground has yet to be broken to unaffiliated companies, with new stadiums opening in the Bronx and Queens and Madison Square Garden embarking on a top-to-bottom renovation.

Posted by eric at 11:45 AM

Nets to Newark could be a blessing

MetroNY
by Neil deMause

This commentary marks the notable lack of excitement in Brooklyn over the prospect of the Nets making a home in our borough, and how there's little economic benefit to having them here. DeMause goes on to note how Brooklynites are much more interested in affordable housing, which Atlantic Yards will not deliver for a very long time, if ever. The logical conclusion is that now is a good time to rethink the entire project.

So what would the city, and the borough, really lose if the Nets never arrive? Nets fans’ spending money would go to Newark instead of New York, but then Newark would get the game-night traffic jams as well. It’s questionable how many Jerseyites would make the two-river-crossing commute to see the team that bolted their state. And if it’s only Brooklynites spending money on overpriced Thai food instead of Vince Carter jerseys, that’s no difference to the city economy.

Meanwhile, the city would regain something that’s not often talked about: The opportunity to develop a large swath of land at the edge of super-hot brownstone Brooklyn. Without an arena, you would not need superblocks, which means no need for seizing property by eminent domain — which would allow for a plan that provided housing and jobs without unduly disrupting existing neighborhoods. The Nets might be how Atlantic Yards got started, but getting them out of the way might just be how to make it work.

link

Posted by steve at 4:57 AM

May 4, 2008

Wilpon hopes Citi Field will revive Ebbets memory

Newsday
STEVEN MARCUS

There are differing accounts of what actually occurred leading up to the Dodgers' move. Some say O'Malley's first choice was to build a domed stadium in the Atlantic Yards in Brooklyn, which now is the projected site for the NBA Nets. Reports from that time said Moses wanted O'Malley to build on the present site of Shea Stadium. O'Malley, perhaps bent on leaving for Los Angeles, refused, and the chain of events unfolded.

article
NoLandGrab: Since Atlantic Yards Report did the heavy lifting myth-busting today's Daily News, we'll point out the errors in this sentence from Newsday. 1. Atlantic Yards is not a place now, and it wasn't even a glimmer in Bruce Ratner's eye yet in O'Malley's time. 2. Perhaps the writer means Vanderbilt Yards, over which part of the proposed Atlantic Yards would be built, but unfortunately that would still be incorrect, as O'Malley was eying a parcel across the street.

Posted by amy at 11:24 AM

April 27, 2008

Newark wants Ratner to ditch Brooklyn and stay in NJ

The Real Deal

Developer Bruce Ratner has been approached by several New Jersey investors and public officials on a plan to relocate the Nets to the Prudential Center in downtown Newark, according to sources familiar with the talks.

The investors would like Ratner to have the Nets partner with the New Jersey Devils and move into the Prudential Center in Newark, where the hockey team has just finished its first full season.

"They're being wooed politically as well as by the private sector," said Ken Baris, a New Jersey realtor, who is familiar with some of the investors who have approached Ratner. "There's a lot of people that kind of want to keep it quiet, but [at the same time] are looking forward to a lot more leaks."

A move to Newark would effectively end Ratner's efforts to move the Nets to a $950 million Barclays Center in downtown Brooklyn, which was to serve as the centerpiece of his controversial $4 billion Atlantic Yards complex and would be the most expensive basketball arena in the country. Nets officials denied there have been any plans to move to Newark and have insisted they are moving forward with the Brooklyn arena.

article

Posted by amy at 10:02 AM

April 21, 2008

Barclay Center Blood Sport

Ultimate fighting has its proponents in Brooklyn

Courier Life Publications
By Stephen Witt

The new Barclay's Center, the home of NBA's Brooklyn Nets* that is expected to open sometime in 2010**, may also feature Ultimate Fighting Championship bouts.***

The UFC is the trademarked league that promotes and produces mixed martial arts fights that are growing nationally.†

While currently not legal in New York, the State Senate and Assembly are moving bills to officially sanction the sport. ††

I have talked with someone [from Forest City Ratner Companies — the Nets owners and Atlantic Yards developer] unofficially, but it's our understanding that the arena won't be built for another two or three years," said Marc Ratner, UFC vice president of governmental and regulatory affairs. †††
...
FCRC spokesperson Joe DePlasco refused to comment on discussions involving the sport.

Click image to read the rest.

* Note: The team is still called the "New Jersey Nets."

** Everyone knows that there's no way the arena will be ready in 2010, despite the public protestations of developer Forest City Ratner.

*** Hence the "blood sport" headline, which Barclays Bank is probably not too thrilled about.

† Does this sentence scream "I come from a press release," or what?

†† Because the State Legislature has nothing better to do?

††† So, Marc Ratner has a good idea that the arena won't be ready by 2010, but reporter Stephen Witt doesn't?

Posted by lumi at 7:43 PM

April 16, 2008

Nets Are Moving, but Their Direction Remains Unclear

The New York Times
by Howard Beck

More wishful thinking — and lack of credulity — on the timing of a new arena in Brooklyn.

In the renamed arena next to the construction zone near the turnpike, the Nets played their final home game — a nondescript team in a nondescript parking lot, in search of a new identity and a new home.

They are no longer the Nets of Jason Kidd and are only nominally, temporarily, the team of New Jersey. They are not going to the playoffs for the first time since 2001. Like the half-built entertainment complex next to the Izod Center, the Nets are in a messy state of transition.

In two years, they hope to be playing in a sparkling new building near downtown Brooklyn. By then, they also hope to be back among the elite teams in the Eastern Conference.

article

NoLandGrab: In two years, it will be 2010, and the only sparkling new building in which the Nets might be playing will be in Newark.

Posted by eric at 12:00 PM

Councilman wants Atlantic Yards demolition halted - for now

NY Daily News
by Jotham Sederstrom

The News follows up on comments made to bloggers Monday evening by Brooklyn Beep candidate Bill de Blasio.

Point:

A Brooklyn councilman who has been supportive of the controversial Atlantic Yards project has called for a moratorium on the struggling basketball arena plan.

Councilman Bill de Blasio bashed developer Forest City Ratner for keeping government subsidies hidden and not telling residents about construction delays.

"I've been frustrated in general by the lack of communication by Forest City Ratner for years, and it seems to me it's only gotten worse, not better," said de Blasio, who is running for borough president.

Counterpoint:

Forest City Ratner Executive Vice President Bruce Bender argued in a statement that the project has been transparent but did not address the developer's refusal to publicly reveal aspects of public funding and security concerns involving the plan.

"Atlantic Yards has been reviewed and debated extensively for over five years, including two public hearings before the City Council, multiple other state public hearings and hundreds of public meetings," Bender said in the statement.

"As the Council member knows, all of Atlantic Yards, including all of the affordable housing, will be built, and any delays in the construction phase will result in delays in delivering the thousands of units of affordable housing and thousands of jobs that Atlantic Yards will create."

article

NoLandGrab: Bruce, you ignorant.... But we digress. Why is Bill de Blasio the last to know that Forest City Ratner couldn't be trusted? If politicians of his ilk had been more skeptical about Atlantic Yards from the outset, we wouldn't be in this mess now. Still, we're glad that de Blasio is speaking up.

As for Bruce Bender: "blah, blah, blah, blah, blah." Is it possible that he's been faxing out the same statement for the past three years?

Posted by eric at 10:35 AM

April 15, 2008

De Blasio blasts Ratner, Calls for Moratorium on Demolitions

Bill de Blasio is mad as hell, and he wants to know why the rug has been pulled out from under Atlantic Yards' promised affordable housing. The Gowanus Lounge and Brownstoner share the scoop from last night's blogger meet-up with the Council Member.

The Gowanus Lounge, De Blasio Calls for Moratorium on Atlantic Yards Demolition

City Council Member and Brooklyn Borough President candidate Bill de Blasio is calling for a moratorium on demolition in the Atlantic Yards footprint. Mr. de Blasio made comments deeply critical of possible changes in the huge project as part of a wideranging discussion last night that covered everything from construction safety as developers race to beat changes in the 421a tax break program to zoning issues in Gowanus and Carroll Gardens.
...

On Atlantic Yards, Mr. de Blasio said, "I am livid at the New York Times interview with Ratner" in which the developer announced that the project would be scaled back and that massive amounts of affordable housing would be seriously delayed or eliminated. "There was no discussion with the community before he went on record," Mr. de Blasio said, adding that the changes put "the entire community benefits agreement up for question."

Brownstoner, De Blasio Blasts Ratner on AY Obfuscation

The Councilman also said that he thinks the entire development should be reviewed again by the state if Forest City Ratner is now conceiving of a vastly different project, particularly one that reneges on its promised affordable housing. "I held out hope for the project because of the amount of affordable housing it would create, as well as the number of jobs it would bring," he said. "But I have been constantly disappointed in the lack of community involvement...I've never seen anything that's been mismanaged so fundamentally in terms of community involvement."

NoLandGrab: What Council Member de Blasio is overlooking is that there really hasn't been any discussion with the community ever, and that early support for the toothless and barely enforceable Community Benefits Agreement by him and other politicians has now come home to roost.

Additional coverage:

Curbed, Atlantic Yards Stall: Another Call for a Demolition Moratorium

Posted by eric at 11:58 AM

April 10, 2008

Road trip

NY Post
by Richard Wilner

Nets' CEO Brett Yormark is traveling the globe in search of sponsors.

Brett Yormark, the sports-marketing wizard who became the first NBA team executive to sell corporate sponsorships to summer BBQs and the entire off season, is at it again.

The CEO of Nets Sports & Entertainment is scheduled to take off tomorrow for London and Torino on a hunt for corporate sponsors for the team's planned Barclays Center arena.

If successful - and Yormark has 10 meetings set up - the Nets will become the first NBA team to have as corporate sponsors non-US-based companies.

"It's all about doing the unexpected," said Yormark....

article [scroll down]

NoLandGrab: "Unexpected," or desperate? Is Yormark's far-flung marketing strategy another stroke of genius, or is it being driven by a lack of interest closer to home — a la the absence of an anchor tenant for "Miss Brooklyn."

Posted by eric at 2:34 PM

April 7, 2008

DDDB PRESS RELEASE: Forest City Ratner Says They "Still Need More" Subsidy for Heavily Subsidized Atlantic Yards Proposal

NEW YORK, NY— “We still need more” subsidies for the Atlantic Yards project, Forest City Enterprises president Chuck Ratner said during an investment analysts conference call last Wednesday. Forest City Enterprises (FCE) is the publicly traded parent of Bruce Ratner’s Forest City Ratner (FCR). (Journalist Norman Oder broke the news of Ratner’s “need” for more cash subsidies on his Atlantic Yards Report today).

From the conference call transcript it is clear that the Ratner team will seek more public subsidies; it is not clear if they will seek more city and state subsidies or just city subsidies. FCR’s Atlantic Yards $4-plus billion proposal already has been granted $305 million in direct cash from New York City and State. In total, the developer’s project would be the recipient of at least $2 billion in government-backed financing and tax breaks. The city’s direct cash contribution went from $100 million to $205 almost immediately after the project received political approval in December 2006.

During the conference call, FCE president Chuck Ratner said, “Just in these past six or eight months, we got the various governmental agencies, state, city, bureau in New York to increase their commitments to Atlantic Yards by $105 million on top of the $200 they had committed. We still need more.”

(It was actually the city that increased its direct subsidy to Ratner.)

How will local elected officials respond to an impending visit by Ratner back to the public subsidy trough? It doesn’t appear that they will welcome more Atlantic Yards subsidy:

Councilman, and Brooklyn Borough Presidential candidate, Bill de Blasio warned against additional public subsidies for Ratner’s Atlantic Yards in The Brooklyn Paper. “There has already been very generous public investment,” de Blasio told The Brooklyn Paper on March 29th. “I don’t see how we can go any farther.”

“The Atlantic Yards proposal is already subsidized to the hilt. Ratner’s highly profitable development plan should not be bailed out by the taxpayer, especially with budgetary tightening including education cuts,” Develop Don’t Destroy Brooklyn spokesman Daniel Goldstein said. “If Ratner can’t build his project--with over $300 million in direct cash subsidy, over $2 billion in government-backed financing, a blank city check for ‘extraordinary infrastructure costs,’ free land from the city, a below market rail yard purchase price, and the windfall benefits of eminent domain condemnation--he should not be rewarded with yet more taxpayer funds.

link

Posted by eric at 2:30 PM

April 5, 2008

Carbon Neutral Nets Can’t Offset Fan Skepticism

greenbuildingsNYC

A New Jersey resident and long-time follower of the Nets assesses the efforts of the Nets to become the first carbon neutral team in the NBA. He is impressed by the team's effort to play the first carbon neutral game on April the 1st, but is much less impressed by their overall green strategy.

... The initiative worked for the Nets – they got a nice mention in the New York Times, which essentially wrote a Yormark press release in writing, “In a league known more for sideline celebrities and fancy cars, the Nets are standing out with their commitment to going green.” And it’s hard to knock a carbon-neutral professional sports event. But the broader point of my earlier post still stands: sustainability is about more than just branding, and the Atlantic Yards development – pigheaded, wasteful and, to reiterate, mind-bendingly grandiose – remains emblematic of a mindset more concerned with greenbacks than green building. So credit where it’s due on the carbon neutral game…but at the risk of sounding sour, let’s remember that there’s very little sustainable about throwing up 16 new buildings (LEED Silver or no) in a neighborhood that doesn’t much want them.

link

Posted by steve at 6:16 AM

March 28, 2008

Yard Work

The Brian Lehrer Show
WNYC Radio

A 17-minute segment from yesterday's Brian Lehrer Show, featuring Crain's New York editor Greg David and WNYC's Matthew Schuerman comparing and contrasting the Yards Atlantic and Hudson.

Download MP3

link

Posted by eric at 10:51 AM

Is arena facing all new review?

The Brooklyn Paper
By Gersh Kuntzman

Might the proposed Nets arena have to go back to the Public Authorities Control Board for approval because the cost of the arena has grown from $637.2 million to $950 million since is was approved just 15 months ago?

“The reason the PACB exists is to look at the entirety of the financing package for this project,” said Lawrence Schillinger, a lawyer for Develop Don’t Destroy Brooklyn.

“A 50-percent increase in the cost of the arena substantially changes the financials of the project.”

Another DDDB lawyer, Jeff Baker, agreed, saying that the PACB’s approval of the project in December, 2006 assumed a 7.6-percent profit for the developer.

If his costs have skyrocketed, that profit will be smaller — making it less likely that the project is economically viable and will not require additional government subsidies to make it work.

“As such,” Baker said, “the PACB needs to review it again.”

Both lawyers said they were willing to take the matter to court, but, for now, were more interested in making their argument in “the court of public opinion,” Schillinger said.

“People need to look at how government spends money,” he said.

“This kind of bonding scheme is exactly what the state did 30 years ago. We don’t want to repeat those mistakes.”

Link

Posted by steve at 5:30 AM

March 27, 2008

Subprime Crisis Sends Ripples Through Sports World

The Business of Sport
The NY Sun
by Evan Weiner

The financial crisis has definitely had an affect on Ratner’s Atlantic Yards project in Brooklyn. He still plans to build an arena for his New Jersey Nets franchise, but the scale of the project has been cut down because of financing —or, more specifically, the lack of widely available money for an office tower and three residential buildings on the 22-acre parcel at the corner of Flatbush and Atlantic avenues.

Ratner’s project started in 2004 and gained state approval in 2006. The arena was scheduled to open in 2009, but construction has been delayed by lawsuits. Ratner has signed an open-ended deal to keep the Nets in the Meadowlands until the Brooklyn arena is done.
...

The real effect on New York sports teams may not be evident until the opening of the NBA and NHL seasons in the fall. If the financial market loses jobs, and New York officials fully expect a significant loss of positions in that field, that could impact the Knicks’ and Rangers’ high-end seating, along with that of the Devils, Nets, and Islanders.
...

The American sports world is keeping an eye on Wall Street and the banking industry. While each league — and each individual team — might have a different immediate reaction to the subprime mortgage crisis, all teams may eventually have to face the full impact of the Bear Stearns meltdown.

article

Posted by eric at 1:46 PM

March 26, 2008

Some Pricey Suites At Barclays Center

Brooklyn Daily Eagle
By Brooklyn Eagle

The Nets will soon start selling corporate suites in the Barclays Center arena, according to the NetsDaily Web site. Although it recently announced a delay in other aspects of the Atlantic Yards plan, Forest City Ratner, the owner of the Nets, said it will start accepting deposits for corporate suites on May 15. The 130 suites will average $300,000 and top out at $540,000.

article

NoLandGrab: Luxury suites go on sale on May 15; affordable housing will be delayed until further notice.

Posted by lumi at 4:45 AM

March 24, 2008

Suite deal: despite skyrocketing costs, arena would be paid for mostly by luxury suites

Atlantic Yards Report

Norman Oder explains how the proposed Nets arena is such a good deal for Bruce Ratner. Ratner will pay no taxes, only payments in lieu of taxes, so we all get to help him.

Let's try the math. At a 5% interest rate, over 30 years, bond payments would be $61.2 million a year. (That's a somewhat arbitrary interest rate and an online calculator, so my math could be off.)

Barclays would pay $400 million, or $20 million a year, over 20 years. Add $39 million in suites and the $59 million total nearly reaches $61.2 million.

Add a couple of million dollars in other sponsorships--"14 totally integrated partners" are expected--and the arena bond is paid for, at least for the first 20 years. Remember, FCR would pay no taxes, but instead the bond payments would act as payments in lieu of taxes.

It's a suite deal. No wonder they're moving ahead.

link

Posted by steve at 8:40 AM

Luxury Suites for Sale at Proposed Nets Arena

Bruce Ratner tries to press ahead with the portion of the proposed Atlantic Yards project that potentially has the most benefits - for Bruce Ratner!

Daily News, 540G will get you a ritzy suite in new Brooklyn Nets arena

Developed Bruce Ratner has postponed the fancy apartments at his controversial Atlantic Yards project, but he's pressing ahead with something almost as expensive - luxury suites at the complex's basketball arena.

The 130 Frank Gehry designed suites will average $300,000 and top out at $540,000, officials said Sunday, despite the national financial crisis that has crimped plans for other buildings on the site.

...

"We believe in getting out early and this is according to our original schedule," said Nets CEO Brett Yorkmark, who denied the team or developer Forest City Ratner was short of cash.

He said the three levels of suites will go on sale May 15 - each outfitted with personal servants, access to an exclusive lounge, flat-panel TVs and other fancy amenities. The announcement came one day after Ratner said the Gehry-designed Miss Brooklyn building and three other residential towers at the heart of the 22-acre project could be delayed indefinitely because of the bond and credit crises.

New York Post, It's a Suite Life For Nets Nuts

Basketball fans with deep pockets can be treated like kings while watching the Nets play in their new Brooklyn arena.

Renderings by renowned architect Frank Gehry and obtained by the Post show no expense being spared for 130 spacious, luxury suites to be included in the team's 18,000-seat arena planned for Prospect Heights, which the Nets hope to be playing in by the 2010-11 season.

The cost of leasing a suite at the Gehry-designed Barclays Center will run from $200,000 to $540,000 a year – or an average of about $300,000 -- when sales kick off May 15 at the team's new Manhattan showroom.

In fact, the only thing missing are gold-plated water faucets because there's just about every amenity imaginable for a sports venue.

"The whole white glove, street-to-seat hospitality approach is something we're going to lead with to deliver an unprecedented amount of service," Nets CEO Brett Yormark told the Post.

...

Yormark said he's not concerned about the slumping economy affecting sales, adding "the suites will be in high demand" because of its amenities, spectacular views, Gehry's design, and Brooklyn's growing number of Fortune 500 companies.

But Robert Boland, a sports business professor at New York University, disagrees.

He said the accommodations and views will probably blow away the Garden's, but the planned arena can't compete with the Garden's events.

Barclays Center is expected to host a little over 200 events annually in its early years. The established Garden averages 400 – or a little over a one a day -- and has three main tenants: the Knicks, Rangers and WNBA's Liberty.

"Events almost always are more of a sell than accommodations," said Boland, adding the Nets must also deal with competition to sell luxury suites from new stadiums being built for the Mets, Yankees, Jets and Giants.

Posted by steve at 8:20 AM

March 23, 2008

Mike Lupica on Atlantic Yards "stall"

The NY Daily News veteran sports columnist cracks wise about delays at Atlantic Yards:

I guess it must be too soon for me to go down and start picking my seats at the Nets' new arena in Brooklyn, right?

link

Posted by lumi at 8:45 PM

March 22, 2008

Ratner arena costs skyrocket

The price tag of Bruce Ratner's controversial Brooklyn arena has been steadily rising since the project was first announced: starting at $435 million, tweaking upward to $555.3 million and then creeping up to $637.2 million when the project was officially approved.

This week, Ratner gave no explanation to The NY Times when he divulged that the cost of the arena has ballooned to a whopping $950 million, more than twice the original projection and a figure suspiciously just shy of the magic $1 billion threshold.

The cost of the arena has also mysteriously outpaced construction inflation in NYC, which is reported to be around 8%.

Posted by lumi at 5:16 PM

March 20, 2008

The N.B.A.'s Maestro of Marketing

New Jersey Nets C.E.O. Brett Yormark has turned a second-tier N.B.A. team into a sponsorship juggernaut. Is there anything he can't brand?

Portfolio.com
by Ohm Youngmisuk

Conde Nast Portfolio gives Bruce Ratner's golden boy, Brett Yormark, the red-carpet treatment:

For his part, Yormark, who often starts his day at 3:30 in the morning and sometimes works as many as 19 hours a day, says his secret is simply that he works harder than everyone else.

"I am probably one of the most aggressive sports executives in the country," Yormark says. "I am giving myself every day, every hour—that is just my makeup." Yormark's twin brother, Michael, is the president and chief operating officer of the N.H.L.'s Florida Panthers and is similarly intense; the two frequently try to top each other with creative ways to advertise sponsors and sell more tickets.

article

NoLandGrab: Hey, we get up at 3:30 a.m., too. We welcome the company, but seriously, is there no Ratner or Nets executive who works less than twice as hard as the rest of us? With all that effort (and self-promotion), one would expect that Atlantic Yards would have been completed by now.

Posted by eric at 11:00 PM

March 19, 2008

Brooklyn Nets Chooses Food Service Co. For Planned Barclays Arena

Brooklyn Daily Eagle

More Barclays Center menu offerings with a "distinct Brooklyn flavor," this time from a Chicago-based food-service company:

“Brooklynites are passionate about their food and that will be a crucial ingredient for a best-in-class experience at the Barclays Center,” said Brett Yormark, president and CEO of Nets Sports and Entertainment. “We chose Levy Restaurants because it has an award-winning track record as the preeminent premium dining provider at sports and entertainment venues. This is another big step forward as we continue moving closer to bringing a world class arena and the Nets to Brooklyn.”

The Barclays Center’s premium restaurants and luxury suites will feature menus with the flair of contemporary American cuisine and diverse ethnic specialties. At general concessions, guests can enjoy a range of menu offerings with a distinct Brooklyn flavor including pizza, hot dogs, knishes, egg creams, cheesecake, and much more. There will also be kosher dining options in restaurants, suites and concession stands.
...

Levy Restaurants, based in Chicago, draws upon its roots as restaurateurs to bring the restaurant dining experience to sports and arena venues across the U.S. and U.K., including the Billie Jean King USTA National Tennis Center in Flushing Meadows, N.Y., Churchill Downs in Louisville and the 02 arena in London.

article

NoLandGrab: Arena patrons might want to consider a second mortgage, if prices for the "restaurant dining experience" at the Barclays Center mirror those at the National Tennis Center.

Posted by eric at 8:15 PM

February 25, 2008

$5 B. Claim Filed Against Jay-Z, Bruce Ratner

The Real Estate Observer
By Eliot Brown

This post on The NY Observer's real estate blog begins with a correction:

Editor's Note: This story originally reported that the Clive Campbell who filed the claim was the real name of D.J. Kool Herc, a founder of hip hop. In fact, it is a different Clive Campbell. Mr. Campbell is a Brooklyn-based activist. The story has been corrected.

Brooklyn activist Clive Campbell is seeking $5 billion from rapper Jay-Z, developer Bruce Ratner and Barclays bank, filing a “claim of lien” in property records that seeks the money for slavery reparations.

Mr. Ratner, Jay-Z, and Barclay’s are all linked through the $4 billion Atlantic Yards project in Brooklyn, for which Mr. Ratner plans to build a Frank Gehry-designed basketball arena for the Nets and more than 6,000 apartments. Jay-Z, a partial owner of the Nets, has been a major supporter of the project, appearing at press conferences to tout its merits. Barclays owns the naming rights to the arena, and has been accused of having links with the slave trade—an accusation the bank denies.

Though the suit may not go very far, it makes a strong case to the public that Bruce Ratner's sale of the naming rights of his planned Brooklyn arena to Barclays bank is a serious slap in the face to the African-American community. Naturally, Ratner's spokesperson declined to comment.

article

The news of the lawsuit is all over the online hip-hop media, including versions with the erroneously reported mistaken identity.

SixShot.com, Activist Group Filing $5 Billion Lawsuit Against Jay-Z & Barclays Bank For Slavery Reparations
SOHH.com, Jay-Z Hit W/ $5 Billion Lawsuit, Activist Seeking Slavery Reparations
HipHopdx.com, Jay-Z Sued For $5 Billion For Slave Reparations?
AllHipHop.com, UPDATE: Activist Clive Campbell Sues Jay-Z & Barclays For $5 Billion
HHE, Jay Z Named In $5 Billion Reparations Lawsuit

Gothamist, Nets Stadium Has 99 Problems, But Kool Herc Ain't One

Bronx legend Clive Campbell, who as DJ Kool Herc is widely credited as one of hip-hop’s founding fathers, is not suing Jay-Z, developer Bruce Ratner and Barclays bank, as previously reported by the Observer online. The $5 billion lawsuit is being brought by a much less famous Brooklyn activist also named Clive Campbell, and the mix-up is probably a big publicity boon for his lawsuit, as it echoed far and wide across the internets before the Observer corrected it.

Posted by lumi at 7:49 PM

February 14, 2008

Jason Kidd's Trade to Mavs Hits a Snag

Associated Press, via MetroNY
By Jaime Aron

Talks to trade Jason Kidd to the Mavericks (reported as a done deal), hit a snag last night when Devean George had second thoughts about joining the NJ Nets.

Jason Kidd appeared headed to the Dallas Mavericks on Wednesday -- until Devean George's contract got in the way.

George was supposed to be among the players headed from Dallas to New Jersey, but he blocked it because of a virtual no-trade clause as part of a contract status called "early Bird rights."

After Dallas beat Portland on Wednesday night, Mavs coach Avery Johnson said there was "zero" chance the deal would get done, but added that was "as of now."

George then said there's still a chance things can be worked out. He was waiting to meet with his agent, Mark Bartelstein, to discuss their options.

article

Posted by lumi at 4:32 AM

January 31, 2008

AY vs. MSG: a larger tax break, but not for the arena

Atlantic Yards Report

AYR uses yesterday's unanimous City Council vote on a resolution asking the state to do away with Madison Square Garden's ridiculous property-tax exemption, and the amendment introduced by Council members Letitia James and David Yassky seeking to pull a similar tax break for Atlantic Yards before it starts costing the City even more money (it was tabled in committee), as a jumping off point for a comparison of the two corporate-welfare packages.

"If the Council thinks subsidizing MSG is a bad deal for the City and State, they should take another look at the tax breaks and subsidies being offered to the proposed Atlantic Yards Development: they are even worse," James and Yassky said in a statement. It didn't make it past a council committee, but it may recur in the future.

Such tax breaks and subsidies may indeed be much larger, as MSG pointed out, but they are not quite comparable. In fact, the tax exemption that now saves the Garden some $11 million a year is much larger than the exemption anticipated for the Atlantic Yards arena, mainly because much of the land would be tax exempt for decades whatever was built on the arena site, thanks to an as-of-right tax break. And if MSG builds a new arena, well, some new subsidies likely would be on the table, as Metro reported today.

article

NoLandGrab: While Oder does his best to shed light on the differences between the two, the net result is still enough to make one's eyes glaze over, which is undoubtedly just what developers and their political patrons want when the taxpayers' money is being dished out.

Posted by eric at 10:09 AM

January 28, 2008

COURT TROUBLE

RATNER ADMITS ARENA-FUNDING WOES

The New York Post
by Rich Calder

Could the global credit crisis and sub-prime mortgage woes be the straws that broke Atlantic Yards' back?

Don't fork over money to reserve seats for the Brooklyn Nets just yet.

Developer Bruce Ratner is running into trouble securing funding for his controversial $4 billion Atlantic Yards project, which would bring an NBA arena for Ratner's Nets and 16 skyscrapers with residential and commercial space to Prospect Heights, according to court documents obtained by The Post.

The papers, filed Friday by Ratner's firm in an attempt to speed up the appeal process in a lawsuit by project opponents, reveal for a first time that the biggest development in Brooklyn's history is in jeopardy because of dragging litigation and a slumping fiscal market.

"The credit markets are in turmoil at this time . . . There is a serious question as to whether, given the current state of the debt market, the underwriters will be able to proceed with the financing for the arena while the appeal is pending," one affidavit says.

article

Read the affidavit from FCRC EVP and Director of Finance Andrew Silberfein [link opens a PDF].

NoLandGrab: The worse the economy gets, and the longer the court cases drag out, the more tenuous the Atlantic Yards project becomes. And with the city and state cutting hundreds of millions from education budgets and other programs that matter to voters, at what point do politicians start looking to cut non-essentials — like huge public handouts for Bruce?

Posted by eric at 8:47 AM

January 7, 2008

THE HOT LISTS: Five-for-Five

amNY

A snarky prediction from Newsday sports columnist Mark Herrmann:

1. Nets announce they'll break ground for new arena in Brooklyn the year Thomas is fired as Knicks coach.

link

Also, amNY ran an article about Kiki Vandeweghe's trial as GM for the Nets, who are planning to "move to Brooklyn sometime in 2010." [Norman Oder of Atlantic Yards Report figures that 2011 is more likely.]

Posted by lumi at 5:03 AM

January 5, 2008

Arena To Open the First of Never

Develop Don't Destroy Brooklyn

First Forest City Ratner said their arena would open in 2006. Then they said 2009. Now they say maybe 2010. Next...never.

We don't think the arena is ever going to be built.

link

More from Gowanus Lounge: Atlantic Yards Arena: 2010? 2011? 2012? Etc.

Remember the heady days of predictions that a Nets arena would open in Brooklyn in 2006? For a long time, the official word from the teams and Forest City Ratner has been that the project--which is still tangled in legal challenges and has recently been the subject of questions about security concerns--would open in 2009. The subject came up again yesterday after the Bergen Record noted the team would be playing in Jersey for the 2009-10 season. The story also ran widely via AP. Atlantic Yards Reports Norman Oder, who has been reporting on the slipping timetables, calls the round of stories "bizarre," especially in light of previous coverage in the press and the real possibility that the schedule could easily slip past 2010 to, say, 2011.

Posted by amy at 10:31 AM

Nets inaction may jeopardize '09 move to Brooklyn

Newsday
KEN BERGER

The team allowed a Dec. 31 deadline to pass without providing the 18 months' notice required to break its lease at the Meadowlands, possibly pushing their move to a new arena in Brooklyn into the 2010 calendar year.

The team has yet to break ground on the arena, which is part of owner Bruce Ratner's $4-billion Atlantic Yards development. Team spokesman Barry Baum said about 20 buildings have been demolished since March and work has begun on temporary rail yards to replace the Long Island Rail Road's existing Vanderbilt Yard.

article

Posted by amy at 9:47 AM

January 4, 2008

Nets push back move to Brooklyn until 2010

The Newark Star-Ledger
By Dave D'Alessandro and Maura McDermott

After the Bergen Record story ran yesterday, The Star-Ledger called up a seemingly exasperated Ratner spokesperson, who explained that they already explained this delay away:

"We said three weeks ago we plan to be playing in the Barclays Center during the 2010 calendar year," Baum said, alluding to a New York Times story from Dec. 12. "That could mean the latter part of 2009-10, or the start of 2010-11."

It is not unprecedented for teams to move their operations in the middle of a season. The Miami Heat moved from a very short distance from Miami Arena to American Airlines Arena in the middle of the 2001-02 season. Though when asked whether this is desirable for the Nets to follow suit, Baum merely replied, "It's a possibility."

article

NoLandGrab: Ratner's PR team had totally failed to manage expectations earlier in 2007 — even though Atlantic Yards watchdog Norman Oder had already recognized the signs of a delay in the arena opening — and they're doing it again.

Spokesperson Barry Baum's attempt to spin the story is already leaning toward fiction — Norman Oder has already noted the signs that indicate that the arena opening would likely be delayed until at least January, 2011.

Posted by lumi at 6:23 AM

January 3, 2008

Nets push back planned move to Brooklyn

AP (via amNY) actually reported that Ratner already revealed to the press that the Brooklyn arena wouldn't be ready for the 2009 season, but that didn't stop the PR machine from spinning, or at least going around in circles:

The Nets had planned to play at its new arena in New York starting in 2009. But spokesman Barry Baum said the move to Brooklyn wouldn't happen until sometime in 2010.

The Nets could possibly begin the season at the Izod Center in East Rutherford and move to the new arena, to be called the Barclays Center, in the first half of 2010, Baum said.

In October, Nets principal owner Bruce Ratner told The Associated Press that the new arena probably would not be ready by the start of the 2009-2010 season.

article

NoLandGrab: What's really funny is that The Times also carried the AP story (see "Nets Say Brooklyn Move May Be Delayed Further") even though the paper of record ran an "exclusive" on the matter back on December 12, 2007.

If you're thinking this is brutally weird, the Ratner PR machine, which orchestrated the "soft release" in late October/early November and The Times's exclusive, must've felt like yesterday was Groundhog Day.

Posted by lumi at 11:18 PM

Nets will arrive in Brooklyn later than originally planned

NY Daily News
By Corky Siemaszko

Even though this news had been previously reported, some media outlets turned it into a bigger deal today, which brought out the Forest City spin machine:

The Nets intend to tip-off in Brooklyn in 2010.

"We plan to be in the Barclays Center during the 2010 calendar year," said Barry Baum, a spokesman for the NBA team that has played in New Jersey since 1977. "That could mean the latter part of the 2009-2010 season."

"It's a very exciting thing for Brooklyn" added Loren Riegelhaupt, a spokesman for developer Forest City Ratner.

article

NoLandGrab: So Ratner's new story is that maybe the Nets might play some of the 2009-2010 season in Brooklyn, or maybe not, but probably definitely not before 2010?

Posted by lumi at 11:08 PM

Look who just caught on!

Even though Norman Oder of Atlantic Yards Report has been pointing to clues for several months now, and Atlantic Yards developer Forest City Ratner even made an admission to the media in a "soft release" back on November 1, 2007, the big news of the day, as reported in the Bergen Record, is that the Nets arena will not be ready in time for the 2009-2010 season after all.

Go figure:
AP, via amNY, Nets push back planned move to Brooklyn
NY Daily News, Nets will arrive in Brooklyn later than originally planned
Real Estate Observer, Nets Plan 2010 Move to Brooklyn
USA Today, Arena delay
Blogslope, BROOKLYN NETS? NOT TILL 2010-2011

In addition, My9News and WNYC News Radio also carried the story today.

Posted by lumi at 9:18 PM

Nets will shoot around in N.J. for another year

Bergen Record
By John Brennan

Jerseyites are going to have to come to terms with the reality that the Nets are going to be hanging around for at least another year:

Team spokesman Barry Baum confirmed a delay in the long-touted move to the new Barclays Center in Brooklyn planned for 2009.

"We plan to be in at the Barclays Center during the 2010 calendar year," Baum said.

The Nets' lease with the New Jersey Sports and Exposition Authority requires the Nets to give the agency at least 18 months written notice before leaving the Izod Center in East Rutherford. That meant that the club had until Dec. 31 to give intent of a move to Brooklyn in the fall of 2009.

"We have not received any such notice from the Nets," sports authority President Dennis Robinson said Wednesday, while confirming the resulting commitment required of the team.
...
Construction of National Basketball Association arenas typically takes 24 months, and the Nets have yet to break ground on their site near downtown Brooklyn. If the Nets are unable to begin arena construction by this summer, they may also need to spend part or all of the 2010-11 season in New Jersey.

article

Posted by lumi at 6:44 PM

December 20, 2007

Sports of The Times: Hitting the Bottom, the Bottom Hits Back

The New York Times
by George Vecsey

In a column exploring the woeful goings-on on the Madison Square Garden hardwood, columnist George Vecsey displays a level of skepticism about the progress of Atlantic Yards rarely seen in the pages of his newspaper:

James’s occasional forays into the Garden even have a New York angle in that he is committed to his home region Cavaliers through the spring of 2011, but after that he will be a free agent.

His pal, the rapper Jay-Z, has a tiny share of the Nets, and there has been fanciful thinking that James could someday move on to Brooklyn with the Nets, based on the assumption that the Nets will actually put shovels in the ground and be open for business by then. By then, this nasty business with the Knicks will surely have played itself out.

article

Posted by lumi at 11:51 AM

December 18, 2007

Arena in 2011? New construction schedule suggests that's the soonest

Atlantic Yards Report

Mining the latest Atlantic Yards Construction Update for clues, Norman Oder figures out that the recent admission by Forest City Ratner that the arena won't be ready until the 2010-2011 NBA season still does not conform to the previously released schedule of construction, unless the developer is hell bent on closing two bridges at once or opening the arena before reopening the Sixth Avenue bridge.

The Carlton Avenue Bridge would take two years to reconstruct and, after that, the Sixth Avenue Bridge would take one year, according to the ESDC's Final Environmental Impact Statement. (This assumes that pending lawsuits don't delay things further.)

There's no way to close both bridges at the same time without creating ruinous traffic jams. Could the arena open with the Sixth Avenue bridge still under reconstruction? ESDC spokesman A.J. Carter said last month, "Forest City Ratner tells us that while the arena might be able to open without the bridge in operation, the goal is to have the bridge open in coordination with the arena's opening."

Well, the arena could open, but it would be a very ugly situation.

Norman Oder reviews the potential scenarios.

article

Posted by lumi at 4:18 AM

December 12, 2007

Wait Until 2010, Nets Say of New Brooklyn Arena

The NY Times

Lookie who just caught on — we know that we spend way too much time bashing the Times, but this isn't exactly breaking news:

The Nets, who had hoped to move into a new arena near downtown Brooklyn in time for the 2009-10 season, have acknowledged that construction will not be finished until sometime in 2010.

article

NoLandGrab stumbled over the "soft release" of this news on November 1, when the new projected date for the Nets arena was quietly reported in the Star-Ledger, the NY Post and AP (via amNY).

Norman Oder of Atlantic Yards Report has been covering the improbability of a 2009 opening going back to May, 2007 (see, here, here, here, here, here).

Now that it's yesterday's news and Forest City Ratner feels like it's safe to come clean, the Times gets an exclusive?

Posted by lumi at 6:33 AM

December 7, 2007

City can’t curb Yards security

The Brooklyn Paper
by Mike McLaughlin

Elected officials and community groups again attacked the city, state and developer Forest City Ratner for their persistent refusal to discuss how they plan to secure the proposed Atlantic Yards basketball arena when it is slated to open in 2010.

A coalition of elected officials joined the Council of Brooklyn Neighborhoods on the steps of City Hall last Thursday to demand an independent security study of Atlantic Yards. The pols brandished a recent New York Times story that finally reported what many opponents of the project have long known: that the proposed glass-walled arena is only 20 feet from the street along Flatbush and Atlantic avenues.

...

“They need to answer why they’re doing this in Newark, but not here,” said Daniel Goldstein, the spokesman for Develop Don’t Destroy Brooklyn, one of the groups that joined state Sen. Velmanette Montgomery (D–Prospect Heights), Assemblywoman Joan Millman (D–Cobble Hill), Assemblyman Jim Brennan (D–Park Slope), Councilwoman Letitia James (D–Prospect Heights), Councilman David Yassky (D–Brooklyn Heights) and Councilman Bill DeBlasio (D–Cobble Hill) last Thursday.

article

Posted by steve at 7:35 AM

Outlook Not Good for New Tri-State Arenas

AOL: FanHouse

If there's any buzz surrounding the Nets these days--that is, other than the possibility of losing Jason Kidd--it's their Jay-Z-backed move to Brooklyn. But as George Vecsey writes in The New York Times, that's "not such a slam dunk after all":

The ownership is still talking of moving into an arena at the Atlantic Yards project in Brooklyn, but shovels are not in the ground, and the planned opening at the start of the 2009-10 season has now been pushed back sometime into that season.

[...]

The Nets could always detour to the new Prudential Center in downtown Newark, with its potential for an urban renaissance of live human beings on foot seeking out restaurants and transit.

link

Posted by lumi at 5:00 AM

December 6, 2007

Atlantic Yards Security: Louis's Duck About a Fish

Develop Don't Destroy Brooklyn

DDDB responds to Errol Louis's column in today's New York Daily News.

Despite Louis's claim that security concerns about the proposed Nets arena in the Atlantic Yards development are baseless, DDDB says:

• These security issues are not new — they were raised years ago by both supporters and opponents of Atlantic Yards.

• An independent security review is warranted, especially in light of required street closings for the new Prudential Arena in Newark.

• A setback of only 20 feet is potentially quite serious, especially when one considers that the setback for the Prudential Center is 25 feet.

Are we opposed to the Atlantic Yards project? Absolutely. Are we concerned that the state did not disclose impacts from security planning along with improperly disclosing scores of other environmental impacts? Absolutely. Are concerns about security the "latest" attempt by "anti-development activists" and "screaming" political opponents to go "fishing in empty waters."? Absolutely not.

Louis's column: it quacks like a duck, and is one.

article

Posted by steve at 10:37 AM

November 29, 2007

Proprosed Arena to Sit 20 Feet From Street

Brooklyn Downtown Star
by Shane Miller

More coverage of how the proposed Nets arena seems to have some design shortcomings regarding security.

After months of dodging questions about the proximity of the proposed Barclay's Center Arena to the two major streets that will surround it, developer Forest City Ratner admitted to the New York Times last week that at its closest point the arena would only be 20 feet from both Flatbush and Atlantic avenues.

The frank admission may have come as a shock to critics of the project, but the news likely wasn't a surprise, as for years opponents have been calling for an independent security study. Many filed a joint lawsuit claiming that the Empire State Development Corporation (ESDC), the state agency charged with reviewing the project, has been derelict in its duties by failing to consider certain threats in the Environmental Impact Statement (EIS). The litigation is still pending.

Those calls became much louder in past months, however, after the Newark, New Jersey, police director announced that streets around that city's new Prudential Center Arena would have to be closed during events because of security concerns.

"You can't construct an arena and put it right against a street in a post-9/11 world," he now-famously told the Newark Star-Ledger two weeks prior to that arena's opening about one month ago. "So we're playing catch-up and taking measures to make sure it's safe."

article

Posted by steve at 6:23 AM

November 25, 2007

Bklink: Too Close to the Street?

The Gowanus Lounge

The Times ventures into Atlantic Yards land by looking at the issues of whether Brooklyn's planned area will be vulnerable to terrorist truck bombs. It discovers the arena will be 20 feet from the street in places, the same distances as Newark's new Prudential Center. In Newark, streets are now closed during events and it's considered a planning embarrassment. In Brooklyn, 20 feet is considered safe. Sort of. Because everyone is stonewalling on giving answers

article

Posted by steve at 5:32 AM

New calls for security probe of Yards - Elected officials say terrorism risks at giant Ratner project should be explored

Courier Life Publications
by Stephen Witt

This article covers the letter dated October 28 to Governor Spitzer and Mayor Bloomberg formally requesting a security study for the proposed Nets arena.

“We are asking for something quite reasonable – that the NYPD provide meaningful information to the public, as they have with the developer, regarding possible dangers and precautions being taken to ensure the safest arena/skyscraper complex possible, and the impacts of any security measures on the community and treasury,” said Brennan. “We want to know how the situation in Brooklyn differs from that which has just occurred in Newark.”

article

Posted by steve at 5:07 AM

November 24, 2007

20 Foot Ratner Arena Setback is a Security Flaw

Develop Don't Destroy Brooklyn

An article appearing in today's New York Times confirms that the setback for the planned Nets arena is a mere 20 feet from Atlantic and Flatbush Avenues. DDDB calls for Governor Spitzer and Mayor Bloomberg to come clean on the security issues affecting the Atlantic Yards development.

With this newly revealed information it's time for Governor Spitzer and Mayor Bloomberg to stop ignoring the situation, and at the very least, answer this question: the Ratner arena is 20 feet from the streets, the Newark arena is 25 feet from the streets and they are closing the streets, yet the NYPD says they don't plan on closing streets abutting Ratner's arena. How, exactly, is the situation in Brooklyn different than that in Newark?

Not to answer this question would be grossly irresponsible.

article

NoLandGrab: For 200 days, the ESDC has failed to find the ombudsman who "...will ensure that residents remain in the loop, and that community concerns receive proper attention." How many more days before the State decides to act responsibly and address the question of security, among many other issues?

Posted by steve at 8:40 AM

A Brooklyn Arena and the Street: What’s the Right Distance?

The New York Times
By Andy Newman

The New York Times revealed two days ago in its City Room blog that the planned Nets arena would be set back only 20 feet from adjacent streets. The story has now found its way into the Times's print edition.

The article highlights the evasion and finger-pointing that resulted from inquiries from bloggers regarding what the exact location of the arena might be:

The question of the arena’s planned location lingered, however: a strangely unknowable fact, given that when the arena is built — it is scheduled to open after 2009 — its precise location will be obvious to terrorist and nonterrorist alike.

Eventually, a straight answer emerges:

On Wednesday, a spokesman for Forest City, Loren Riegelhaupt, offered an updated response to a reporter’s inquiries: At its closest point to the street, the arena will be set back 20 feet from both Atlantic and Flatbush Avenues.

In Newark, the newly opened Prudential Center has a similar setback, and security concerns require street closings during that arena's events. Why isn't this an issue for an arena in Brooklyn? Forest City spokesman Loren Riegelhaupt says the police know, but the police aren't talking.

That, Mr. Riegelhaupt said, was a security question to be directed to the Police Department. The Police Department has said that it does not comment on such matters. The department’s security analysis, which found that the arena was safe and streets need not be closed on game days, would stand.

article

Posted by steve at 7:46 AM

November 22, 2007

Barclays $$ a ‘joke’: foes

The Brooklyn Paper
By Dana Rubinstein

When we saw the headline, we feared we were losing our sense of humor here at NoLand Grab, since we failed to recognize this week's announcement by Barclays and Forest City Ratner as a "joke." Then we realized that the joke is on Brooklyn, with Bruce Ratner laughing his way to Barclays Bank.

Given Barclays’ history, one opponent of the bank called the company’s $500,000-a-year contribution “a joke.”

“This is unacceptable,” said the Rev. Clinton Miller of the Brown Memorial Baptist Church in Fort Greene. “I’ll do everything in my power to hold Barclays accountable for its misdeeds to humanity.”

Councilwoman Letitia James (D–Fort Greene) was also disapproving.

“This gesture of goodwill on the part of Barclays … doesn’t go far enough,” said James. “Forest City Ratner should name this proposed arena after Jackie Robinson or some other sports hero, and should get a more reputable bank.”

Nonetheless, the non-profit’s inception was welcomed by some black leaders, including the Rev. Al Sharpton, Assemblyman Darryl Towns (D–Bushwick) and state Sen. Eric Adams (D–Crown Heights).

article

Posted by lumi at 4:52 AM

Barclays disgrace

The Brooklyn Paper

To the editor,

Regarding your article, “More Blood Money,” and your editorial, “End Barclays deal now” (Nov. 17), about Bruce Ratner’s connection to Barclays and the company’s involvement with Zimbabwe’s Robert Mugabe, with South African apartheid, the Nazi regime in France and the trans-Atlantic slave trade — a bit of investigation on the Internet shows that Barclays is also currently a large investor in corporations that are involved in racial discrimination practices, the war economy, union-busting and activities detrimental to health.

Barclays is the fourth largest institutional shareholder in the Coca-Cola Company, with more than $3 billion invested. The beverage company, only a few years ago, had to pay out a $192.5-million settlement to their African-American employees for racial discrimination practices. There are currently other lawsuits against Coke for racial discrimination. And Coca-Cola continues doing business in the Sudan, despite an embargo because of the Darfur tragedy.
...
Barclays’ name should not be allowed on any building in Brooklyn. As Assemblyman Hakeem Jeffries said in your story, “Enough is enough!”

Lewis Friedman, Park Slope

Friedman's complete letter contains a litany of investments made by Barclays Bank which would give pause to most team owners seeking an arena naming-rights sponsor.

Posted by lumi at 4:39 AM

November 21, 2007

Barclays, Forest City and the Nets Announce New Community Alliance

Rev. Al Sharpton Praises Move

Brooklyn Daily Eagle

Here's the latest CYA move for the Barclays/Ratner deal for the naming rights for a new Nets arena in Brooklyn, which has infuriated many in the local African-American community. So far as we can tell, the Eagle has just reproduced the press release:

Barclays, Forest City Ratner Companies (FCRC) and the Nets basketball team recently announced the creation of the Barclays/Nets Community Alliance, a new organization committed to the athletic and educational development of youth in Brooklyn and surrounding communities.

The alliance says it will invest one million dollars per year in local non-profits that work to improve the lives of young people in the borough through sports and other activities, including education and health care.

“We’re delighted to partner with Forest City Ratner and the Nets in this alliance to foster youth development in Brooklyn and other nearby communities,” said Gerard LaRocca, chief administrative officer, Americas, at Barclays Capital, the investment banking division of Barclays PLC.
...
“We could not be happier about this program,” Bruce Ratner, the CEO and chairman of FCRC and chairman of the Nets, said.
...
“From the start, Forest City Ratner made it clear that they would put together programs that were beneficial to the surrounding communities,” Reverend Al Sharpton said. “From the historic community benefits agreement to one of the most progressive affordable and low-income housing programs, Ratner’s team has lived up to its early commitments.”

article

NoLandGrab: Meanwhile, Barclays recently added heat to the fire, when news broke that the controversial bank is now providing loans to cronies of the corrupt Mugabe regime in Zimbabwe.

This news obviously does not concern Rev. Sharpton, who has already received financial support from Atlantic Yards developer Forest City Ratner.

Posted by lumi at 5:52 AM

November 19, 2007

Lessons not-so-new from the Newark arena: cost overruns, plan changes, and yet-unmet promises

Atlantic Yards Report

AYR takes a comprehensive look at what was promised in Newark, what's been delivered (so far), and what it means for Brooklyn.

The larger story of the Prudential Center, however, may have some sobering if unsurprising lessons for Brooklynites. The arena cost the city more than expected, so far contains fewer neighborhood-friendly features than originally promised, and has yet to be accompanied by the development it was expected to catalyze.

...

The city has money for streetscape improvements and loans to small businesses, and expects "one small development — a restaurant and six apartments" open near the arena next year.

Newark, clearly, has taken a risk, but it also has had to make significant investments to transform a moribund downtown that for decades has mostly closed by nightfall.

Did Brooklyn need one arena mega-project to catalyze a revival? Could a rezoning have spurred development over the Vanderbilt Yard? And if the arena is built, would the rest of the Atlantic Yards project be built in the announced ten years or would interim surface parking persist?

There's nothing to keep Forest City Ratner from proceeding on a timetable that fits with their needs. In other words, despite the design for four (mostly residential) towers to wrap the arena, it's possible Brooklyn might have an arena bordered by some unfinished buildings and empty lots for quite a while.

article

Posted by lumi at 10:23 AM

November 16, 2007

End Barclays deal now

The Brooklyn Paper
Editorial

Barclays, the British-based financial behemoth, has been frequently criticized for its institutional role in financing the slave trade three centuries ago, for conducting business in Nazi Germany 60 years ago, and for propping up South Africa’s Apartheid regime 30 years ago.

But Barclays’ appalling lack of civic consciousness continues to this day — and Brooklyn is being tainted by it, thanks to Atlantic Yards developer Bruce Ratner.

This week, the Sunday Times of London, a well-respected newspaper, reported that Barclays is bankrolling the corrupt and repressive regime of Zimbabwean dictator Robert Mugabe, whose self-enriching terror has devastated his country’s economy and whose twisted agricultural policies have left his people destitute and starving.

This might remain a matter of international, rather than local, outrage were it not for the large role Barclays will soon play here in Brooklyn, thanks to its $400-million deal with Ratner to have its tarnished name emblazoned atop the publicly financed basketball arena proposed for the corner of Flatbush and Atlantic avenues.

When The Brooklyn Paper first raised questions about the Barclays deal in January, Ratner’s courtiers were quick to discount our criticism of Barclays’ practices as “ancient history.” They attacked The Paper for linking Barclays to financial dealings that involved many other international banking firms.

But propping up the sinister Mugabe and his murderous henchman is not ancient history — it’s happening right now.

And Barclays is profiting from it.

And so is Bruce Ratner.

article

Posted by steve at 6:41 AM

More blood money

The Brooklyn Paper
By Dana Rubinstein

Barclays, the slavery- and Apartheid-linked financial institution that paid Bruce Ratner $400 million for the naming rights to his Atlantic Yards arena, is bankrolling African strongman Robert Mugabe, the Sunday Times of London reported last week — prompting one Brooklyn leader to say “enough is enough” with the tarnished financial powerhouse.

...

“The apparent connection between Barclays and the Mugabe regime is deeply troubling,” said Assemblyman Hakeem Jeffries (D–Fort Greene). “It provides another example of Barclays doing business either with a regime that has a questionable human rights record or in support of institutions connected to the oppression of people of color.”

article

Posted by steve at 6:36 AM

Bank, developer form $1M alliance for local youth programs

New York Daily News
by Elizabeth Hays

Barclay's Bank seems to be trying to recover from the public relations problems that sprouted from its having bought the naming rights for the planned Nets arena.

Barclay's Bank - which paid $400 million for naming rights to the planned Brooklyn Nets arena - Thursday teamed up with its developer to announce $1 million a year for local youth programs.

Dubbed the Barclays/Nets Community Alliance, the new project aims to support educational and sports organizations that work with kids in Brooklyn.

....

"This is Barclays version of reparations for financially benefitting from 200 years of slavery," James said. "Clearly, $1 million is not enough."

article

Posted by steve at 6:11 AM

Will Barclays' Bleeding Affect The Atlantic Yards Project?

Pardon Me For Asking

Pardon me for asking, but will the fact that Barclays Bank has accumulated £1.3 billion in losses in the past 3 months alone have any impact on Bruce Ratner's Atlantic Yards Project?

The giant financial institution after all is willing to buy into Ratner's deal by paying the largest amount ever forked over in a stadium deal just for the pleasure of having the Brooklyn Nets home be named "Barclays Arena."

Now, the bank's losses seem pretty remarkable to me. Note that the sum is in British Pounds, not U.S. Dollars.

Could this derail Brucie's sweetheart deal? After all, how can the bank justify forking over all this money if they are bleeding? Or have they already signed everything and can't back out?

Can anyone better informed enlighten me on the subject?

article

Posted by steve at 5:56 AM

November 14, 2007

Namesake of Barclays Center in Brooklyn Said to Be Bankrolling Mugabe's Corrupt Zimbabwe Regime

From McBrooklyn:

The Sunday Times of London reports that Barclays Bank (as in Barclays Center, the proposed home of the Brooklyn Nets) is bankrolling President Robert Mugabe's corrupt regime in Zimbabwe by providing "substantial loans to cronies given land seized from white farmers."

From the Times article:

"BARCLAYS is bankrolling President Robert Mugabe’s corrupt regime in Zimbabwe by providing substantial loans to cronies given land seized from white farmers. The British bank lent £750m to the country’s new landowning elite in the first half of this year, mostly through a government scheme to boost farm productivity. This weekend Barclays was under pressure to say whether it had lent money to five of Mugabe’s ministers — each named in European Union sanctions."

Thanks to Gowanus Lounge for passing the news along.

NoLandGrab: Now that makes TWO LAND GRABS that Barclays Bank is supporting. Could that be the new thing for which the bank wants to be remembered?

Posted by lumi at 5:36 AM

November 8, 2007

It came from the Blogosphere...

Here's what they're saying:

Cup Crazy's National Hockey League blog, Future hope for Devils and Newark pinned on Prudential Center's success

Original plans during this decade had the New Jersey Nets seeking the move to Newark when YankeeNets operated that franchise, but roadblocks in ultimately sealing any agreement to build a new arena there killed it. After squabbling among the YankeeNets ownership group investors led to the eventual sale of the Nets in August 2004, new owner Bruce Ratner announced his intentions to relocate that team to the New York City borough of Brooklyn. So far, an arena project has been put together. It has been endorsed by state and city officials as well as the Metropolitan Transportation Authority to built it in Brooklyn's Prospect Heights section of the city. Plus, the arena naming rights has already been sold. However, despite all of that, it is not completely 100% certain that the New Jersey Nets will ultimately end up moving there. There are still a few obstacles remaining such as court hearings on eminent domain issues concerning the surrounding areas of the Atlantic Yards, a mixed-use commercial and residential development area where the arena would be built. All of these obstacles have to be cleared before an official groundbreaking can take place and seal the Nets' future.

Tubious, James L. Stuckey

A short bio of the recently terminated President of the Atlantic Yards Development Group.

NolandGrab: We're fairly certain that it's James P. Stuckey — "that's a capital... "P" that stands for pool." (Hey, Stuckey always did remind us of The Music Man.)

Medium Happiness, Seriously You Shouldn’t Have Gone To Columbia
How greedy is Columbia University? Some believe, as greedy as Atlantic Yards developer Bruce Ratner:

I read about a group of students that are (or at this point might have already begun) waging a hunger strike to protest the egregious, indefensible transgressions of Columbia University over the past “decade”. It was not long ago that I myself attended a very wealthy, urban school in another city. On a certain level, I can identify with their plight. Ineffably wealthy schools like Columbia, NYU, or George Washington have a knack for overlooking the little people in pursuit of what they are really after–making more money. But, there is one thing, if anything, that you learn once you’ve walked and breathed the rarified air of these places–they cannot be stopped. Much like Atlantic Yards in Brooklyn or Foggy Bottom in Washington, DC, Columbia will develop and gobble up what it pleases.

Queens Crap, Coming soon to Atlantic Yards...
It's high-artchitecture, but is it waterproof?

Posted by lumi at 4:39 AM

November 7, 2007

Little-Known Jones Soda Gets Exclusive Rights at Brooklyn Nets Arena

FANS PREFER COKE OR PEPSI
‘Nets Name May Change, But Will Definitely Be Brooklyn’

Brooklyn Daily Eagle
By Sarah Ryley

Seattle-based Jones Soda Company officially joined U.K.-based Barclays Bank and the New Jersey Nets as the third out-of-town company expected to make a grand entry into the Brooklyn marketplace once the planned Atlantic Yards arena is built.

The Nets, owned by Atlantic Yards developer Forest City Ratner Companies, announced yesterday that Jones will be the exclusive carbonated soft drink and bottled water provider once the team moves into the Barclays Center, named after the British bank for a reported $400 million.

Most potential fans interviewed by the Eagle said they’ve never heard of Jones, and balked at being denied the right to purchase Coca-Cola or Pepsi during events.
...
“Our goal has been and always will be to try to capture the culinary experience of Brooklyn and bring it into the building,” he added, noting that ethnic foods would also be part of the mix.

article

NoLandGrab: In order to "capture the culinary experience of Brooklyn," Brett Yormark signed a deal with a Seattle-based beverage company? Are we the only ones who think that the NJ Nets wunderkind exec might be losing it?

Reaction from other watchdoggies:

Develop Don't Destroy Brooklyn, "Public Use? Local Economic Development?"

Forest City Ratner/Enterprises (FCEA) has announced an exclusive soda deal with Seattle-based Jones Soda Company (JSDA) to deliver their 28 flavors of soda to ticketholders in the Barclays Center Arena (named for the British banking giant who paid an estimated $400 million for naming rights for Bruce Ratner's arena).

Yup, and here is the sound of the great public uses and local economic development Bruce Ratner's Atlantic Yards project has to offer, from the Nets' marketing guru Brett Yormark...

Fans for Fair Play, "Keeping Up with the Joneses" An excerpt from a letter to Jones CEO Peter Van Stolk:

It would have been nice if you'd done your homework before inking this deal with Bruce Ratner to sell your soda products in his controversial, divisive new basketball arena. The arena is part of a sixteen-skyscraper development that for four years has caused pain for many neighborhoods in Brooklyn.

You would've discovered that a cool, alternative company like Jones can find better business parters than Bruce Ratner.

Posted by lumi at 5:36 AM

November 4, 2007

Kobe Bryant trying to whine his way out of L.A.

NY Daily News
Mitch Lawrence

Nets owner Bruce Ratner says he is going to go to the new Prudential Center to check it out, but don't get any ideas. Although it makes perfect sense to follow the Devils into Newark, Ratner still intends to relocate the team to his new arena in Brooklyn

link

Posted by amy at 9:25 AM

November 2, 2007

Report: Keep open Izod Center, even with arrival of new arena

amNY

The NJ Sports and Exposition Authority is contemplating keeping the doors open at the arena formerly known as "Continental," recently rechristened "Izod."

New Jersey would be better served by two arenas instead of one.

That's the conclusion of a report by a Meadowlands Sports Complex subcommittee on whether to keep the Izod Center in East Rutherford open.

Here's more evidence of the "soft release" we mentioned yesterday, by which Bruce Ratner's pr team is quietly letting folks know that they won't be coming to Brooklyn in two years, even though they've known it for a while and have insisted to the contrary:

The Izod Center is still home to the New Jersey Nets. The NBA team plans to move to a new arena in Brooklyn within three years.

article

NJ Biz is reporting that:

Sports Authority CEO George Zoffinger said he believes the Izod Center will be able to compete with the Prudential Center for concerts and family shows like the circus.

NoLandGrab: Both of these arenas would be competing with a new arena in Brooklyn, unless folks start going to the circus more often.

Nets Daily noticed the big news that was bubbling under the Izod Center opening-night hype:

...for the first time, Ratner admitted his new Brooklyn arena won’t be ready at the start of the 2009-10 season.

Posted by lumi at 6:32 AM

November 1, 2007

SOFT RELEASE: Brooklyn arena will NOT be ready for the 2009-2010 season

Is NJ Nets teamowner and Atlantic Yards developer Bruce Ratner finally coming clean about one of the project's most prevalent lies prevarications tall tales?

NJ Nets marketing genius Brett Yormark insisted back in September that the new Nets arena would be open for the 2009-2010 season.

Though Norman Oder of Atlantic Yards Report has repeatedly pointed out that this was a near impossiblity (here, here, here, here, here), not one single mainstream journalist seemed to mind that they were being lied to and, even as late as last Saturday, NY Newsday kept toeing the party line.

In what amounts to a soft release this week, staged around the NJ Nets home opener, Bruce Ratner and the Nets organization are finally coming clean by acknowledging that the Brooklyn arena WON'T be ready for the 2009-2010 season, and, if the project survives legal hurdles, an arena opening in three years is more likely.

Yesterday, Newark Star-Ledger columnist Matthew Futterman hedged the date, "the Nets are now the primary tenant and the premiere team in the [Meadowlands arena] until their planned move to Brooklyn in two or three years."

Today, NY Post columnist Jay Greenberg stated it more plainly, "the franchise is at least three seasons away from Atlantic Yards."

Associated Press sports writer Tom Canavan cites none other than team owner and developer Bruce Ratner as his source:

The New Jersey Devils of the NHL moved to Newark this season, and the Nets of the NBA plan to leave for Brooklyn for the 2009-10 season. Nets owner Bruce Ratner said Wednesday that the planned arena in Brooklyn probably would not be ready for the start of that season, however.

There was no press release and no fanfare. By slowly releasing the valve, Ratner's PR team has managed to keep this key fact under the radar of the presumably skeptical press corps, who will presumably adjust their coverage accordingly.

LINKS:
The Newark Star-Ledger, Arena makeover is looking sharp dressed in Izod
NY Post, RELOADED FOR ONE MORE SHOT
AP, via amNY, Foundation laid for arena to survive 5 more years, Corzine says

Posted by lumi at 7:51 AM

October 31, 2007

Arena makeover is looking sharp dressed in Izod

The Newark Star-Ledger
By Matthew Futterman

Bruce Ratner's Nets marketing guru, Brett Yormark, tries to convince fans that their favorite lame-duck NBA franchise loves having the Meadowlands Arena, rechristened "Izod Center," all to themselves (snarky parenthetical commentary, ours).

Sure, the Devils have moved into a gleaming, $375 million home in downtown Newark, but the Nets are making themselves as comfortable as they have ever been in what is now a home of their own at the Meadowlands.

Though the state owns the newly renamed Izod Center, the Nets are now the primary tenant and the premiere team in the building until their planned move to Brooklyn in two or three years [or maybe four years or never]. Take notice of the red-painted pillars with the 85-foot banners of Jason Kidd, Vince Carter and Richard Jefferson tonight on the way into the season opener against the Chicago Bulls.

"The Devils leaving gives us a tremendous opportunity to leverage different areas of the building in ways we never were able to do before," Nets chief executive Brett Yormark said as he stood in a hallway outside the Devils' former offices at the Izod Center Monday.
...
"You didn't used to feel good about coming in here," Yormark said. "Now I think you will."

article

Posted by lumi at 8:20 AM

October 28, 2007

After 9-game road trip, Devils open new arena

AP via USA Today
David Porter

Former Newark Mayor Sharpe James first proposed a downtown arena in 1997. The Devils had threatened to move to Nashville two years before that, then set their sights on a new arena in Hoboken, about five miles from Newark.

Subsequent plans had the New Jersey Nets playing in Newark, either alone or with the Devils, but those plans dissolved when the team was bought in 2004 by New York developer Bruce Ratner, who plans to move the team to Brooklyn within the next three years.

article
NoLandGrab: This arena story is about delays, delays, delays. 2009 for Atlantic Yards? Not even if they won the lawsuits tomorrow.

Posted by amy at 10:41 AM

October 27, 2007

Stern's Arena Updates a Mixed Bag

HOOPSWORLD
Jason Fleming

NBA Commissioner David Stern presents a mixed bag, but not about the Nets arena. That arena he is 100% positive is a go, as he offhandedly dismisses pending lawsuits:

In New York, where owner Bruce Ratner is getting a development built that will involve moving the Nets from New Jersey to Brooklyn, everything seems just about resolved in favor of getting the stadium finished.

"We got a report on Brooklyn where foundation work necessary to clear the site is in full swing and we're waiting to the end of certain lawsuits that have been decided in their favor but are subject to appeal, and as the appeal time runs out, that's likely to accelerate."

article
NoLandGrab: Of course, this article also refers to the arena as a "stadium" and says they are almost resolved in getting it "finished." Since getting the ARENA "started" is still in question, "finished" feels an awful lot like "Mission Accomplished."

Posted by amy at 9:47 AM

October 26, 2007

Zimbalist: "not clear" that Newark arena will make it

Atlantic Yards Report

With one new arena open, another approved, two others on the drawing board, and the old fuddy-duddy Meadowlands still hanging around, can the region potentially support all of these entertainment options?

Sports economic expert Andrew Zimbalist sez, probably not, but then again, he has said a lot of things, especially when hired by NJ Nets owner Bruce Ratner.

Opinions differ, according to those quoted in a 10/1/07 NJBIZ article headlined The Battle of the Arenas. One skeptic is Smith College sports economist Andrew Zimbalist, who pointed out that each facility must compete for corporate sponsorships and sales of premium seats.

The article states:

“All of those things will be difficult,” says Zimbalist. “It’s not 100 percent clear that the Meadowlands will stay in business, and it’s not clear to me that the Newark Arena will make it.”

Certainly Newark's new Prudential Center, with only one major sports team rather than two as a main tenant, and in a city carrying a rep for crime, will face challenges, especially if the Meadowlands remains as competition for concerts. If the latter arena closes, well, New Jersey needs a major venue. Still, the Pru is spiffy, near transit, and went through an apparently successful opening yesterday.

NJBIZ should've pointed out that Zimbalist is hardly a neutral observer when it comes to Newark's arena.

article

Posted by lumi at 8:45 AM

Prudential Center timeline

A timeline of events leading up to last night's opening of the Prudential Center arena in Newark includes the near-spoiler, NJ Nets team owner Bruce Ratner, who prefers to use his NBA franchise to spearhead his highly controversial Atlantic Yards project, which, as the largest single-source private development project in the history of NYC, is clearly so much more than just an arena.

Here are some highlights:

Oct. 1997: Newark Mayor Sharpe James makes a pitch to NJSEA officials to get the New Jersey Nets to move to Newark, proposing two downtown sites.
...
April 2000: The Nets and Devils agree with developer Jerome Gottesman of Edison Properties to build a downtown arena on a site a few blocks from Newark Penn Station.

June 2001: State and team officials announce that within three years, both teams will play in the new arena and Continental Airlines Arena will be torn down.
...
Jan. 2004: Brooklyn developer Bruce Ratner buys the Nets for a reported $300 million and says he plans to move the team to Brooklyn.

Feb. 2004: In a letter to Mayor Sharpe James, Devils president Lou Lamoriello says the team will relocate to Newark for the 2007-2008 season.

NoLandGrab Note: Despite the agreement between the City of Newark and the NJ Devils, Ratner's own economic analysis of a new Nets arena in Brooklyn was based on the assumption that a new Newark arena, a potential competitor for nationally touring shows and regional events, would never happen. Oh well... guess who typically pays for shortfalls in Ratner-owned projects. [Hint]

...
Oct. 2005: An official groundbreaking ceremony is held.
...
May 2006: In an interview with The Associated Press, Newark Mayor-elect Cory Booker says, "If the project will hemorrhage money for decades, we're gonna stop it." Later, he throws his support behind the arena after the Devils agree to contribute more than $500,000 annually to aid minority business development and recreation and public parks programs.

Jan. 2007: Prudential announces it will pay $105.3 million over 20 years to call the new arena the Prudential Center.
...
Oct. 25: The arena opens with a concert by rock band Bon Jovi.

link

Posted by lumi at 7:53 AM

October 21, 2007

Devils Win the Race to Be First

New York Times
RICHARD SANDOMIR

Instead, it was Vanderbeek, the former Lehman Brothers investment banker, who opened his building before the Yankees and Mets, whose new ballparks are to open in the spring of 2009; the Giants and Jets, whose joint, $1.3-billion stadium beside Giants Stadium is scheduled to open in 2010; the Nets, who haven’t broken ground near downtown Brooklyn on a Frank Gehry-designed arena that is still expected to open in 2009; and the Red Bulls’ $140-million soccer stadium in Harrison, N.J.

link

Atlantic Yards Report asks:

Can't the Times show a little more skepticism and report that, while the official schedule says 2009, much evidence contradicts such a prediction?

As I wrote on Tuesday, according to the construction schedule included in the Atlantic Yards Final Environmental Impact Statement issued by the Empire State Development Corporation, the Carlton Avenue bridge was supposed to have closed nearly a year ago for reconstruction, and construction of the arena and Miss Brooklyn (aka Building 1) was supposed to have begun in August of this year, but neither have occurred.

As noted in May, even New Jersey Nets President Rod Thorn told the Times, "But as far as saying that we've got to be good in 2009 or 2010, whenever we do go to Brooklyn, I try to look at it as if we're going to be in the same place."

Posted by amy at 10:49 AM

October 13, 2007

The "blighted" Meadowlands arena--and the Nets to Newark?

Atlantic Yards Report

Of course, Jersey is about to get its own arena in about two weeks, when the Prudential Center opens in Newark, assuming all the security concerns are resolved.

And some in Newark do embrace the Nets. (Photo taken in Downtown Newark by Jonathan Barkey)

Crain's New York Business reported in March that the Nets might move to Newark for the interim, while the arena is being constructed (or on hold) in Brooklyn. And I pointed out that the plethora of luxury suites made Newark attractive.

article

Posted by amy at 7:56 AM

October 7, 2007

You Gotta Expand

New York Times
STUART MILLER

Sure, Shea is far from fan-friendly, and a new stadium with more leg room, better sightlines, more bathrooms and concession stands will be a wonderful thing. And many of Shea’s upper-deck and outfield seats are crummy and often empty; even this year’s record-setting paid attendance of 3.85 million for the 81 home games meant nearly 10,000 unsold tickets per game (since Shea can hold more than 56,000 spectators). So it’s logical and — in an era overrun by unnecessarily grandiose projects (the Freedom Tower, Bruce Ratner’s Atlantic Yards) — even heartening that the Mets designed something more intimate and suitably scaled.

(emphasis added)

article

Posted by amy at 9:52 AM

October 5, 2007

It came from the Blogosphere...

The Knickerblogger, Seroiusly Could Dickens Have Come Up With A Better Villian Than Bruce Ratner?
Knickerblogger outlines "super-villian" Bruce Ratner's "ethics problem," but "seroiusly," can someone send this blogger a dictionary?

NoLandGrab: Lumi would lend out hers but she seriously needs it.

Die Hard Fans Anonymous, The Dirty Dozen

One sports fan lists his picks for the 12 worst franchises in pro sports, and is under the impression that Ratner's project in Brooklyn "cannot get off the ground... If only the Brooklyn deal could just get done, then these Nets would rocket up the rankings."

Yeah, if only the arena were finished, then order would be restored to the universe.

Posted by lumi at 1:15 PM

Ratner exec helps bags Meadowlands naming-rights deal: Welcome to Izod Center

Izod was selected as the new corporate sponsor for the Meadowlands Arena on the same day the NY Post reported that "the New Jersey Sports & Exposition Authority asked Brett Yormark, president and chief executive of Nets Sports and Entertainment, to help line up sponsors to rename the Continental Airlines Arena."

AP, via amNY, New Jersey arena to be named Izod Center

The New Jersey Sports and Exposition Authority has awarded clothing maker Izod, best known for its sports shirts, naming rights to the arena at the Meadowlands. The building will be called the Izod Center.
...
Two other clothing companies _ Rocawear and Southpole _ had also been bidding to have their name on the arena. Rocawear was co-founded by Def Jam Records president Shawn "Jay-Z" Carter, who also is part-owner of the Nets. Southpole is based in nearby Fort Lee.

Izod's 5-year deal is for roughly the same amount, but the Authority's chairman, Carl Goldberg, said Thursday that Izod will pay in cash only. Goldberg estimated that the total value of the contract is closer to $2 million per year when other factors are considered, such as Izod's commitment to provide marketing and advertising for arena events.

Though the Nets plan to move to a proposed new arena in Brooklyn sometime after the 2008-2009 season, team president Brett Yormark was instrumental in soliciting bids for the naming rights.

NoLandGrab: "Sometime after the 2008-2009 season?" Is that like, wa-a-ay after?

It's kinda weird that Yormark is working both sides of the deal: the Nets are trying to get out of the Meadowlands as soon as possible; meanwhile, their president just helped to facilitate a deal that will presumably provide less value for the corporate sponsor if the Nets get out of the Meadowlands as soon as possible.

Posted by lumi at 10:54 AM

September 27, 2007

Jay-Z and Rocawear Vying for Name-Rights to New Jersey Nets’ Arena

XXL News

The headline is not a joke, but it is referring to the Meadowlands.

As if being a part owner of the NBA’s New Jersey Nets wasn’t enough, Jay-Z and his Rocawear clothing line are vying to win the naming-rights to the Nets’ arena. Currently called Continental Airlines Arena, the stadium, which is located in the Meadowlands area of East Rutherford, NJ, has opened up bidding to secure a new name.

article

As an investor in Bruce Ratner's Nets, maybe Jay-Z sees the value in the naming rights for the Meadowlands arena because he understands that the team won't be moving to Brooklyn anytime soon. Any hedge fund would do well to hire Jay-Z.

Posted by lumi at 6:11 AM

September 24, 2007

Bids due Monday for Meadowlands arena naming rights

AP, via amNY
By Janet Frankston Lorin

Though lucrative naming-rights deals have been signed recently in the NY metro area, the NJ Sports and Exposition Authority is having some trouble generating interest in the Meadowlands arena since its biggest tenants are planning to leave:

George Zoffinger, CEO of the authority, said a tour of the arena by potential bidders earlier this month didn't go as well as expected.

"With the uncertainty of the building, it's a very difficult sell," he said.
...
Naming rights for new arenas in the New York metro area have proved lucrative.

Barclays Bank PLC announced in January it would spend as much as $400 million over the next 20 years to put its name on the new pro basketball arena planned as the Nets' future home i