Forest City Ratner Sues City to Lower Fees

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Forest City Ranter last week sued New York City to ask for a reduction in the assessed value of one of its as-yet-unbuilt Atlantic Yards sites. Forest City is seeking to reduce the amount it would pay in tax, DNAinfo reported.

The developer already has received at least $761 million in subsidies from the government, according to the publication. The site in question, on the southern side of the project, is Block 1129 — currently a parking lot. The Finance Department valued it at $11,200,000. FCR says it’s worth about $1,600,000. Technically, FCR doesn’t pay property tax, but rather something called “payments in lieu of taxes,” or PILOTs, because it leases the land from the city.

If all this sounds familiar, that’s because last year the company filed another lawsuit charging the city had overvalued Barclays Center. Three days after DNAinfo reported the lawsuit, FCR dropped it, saying it was filed in error.

Above, the railway over which some of the Atlantic Yards project will be built.

Atlantic Yards Builder Sues City in Attempt to Cut “Tax” Payments [DNAinfo]

4 Comment

  • NeoGrec

    One of the most conspicuous aspects of the Atlantic Yards project is the number of times FCR has renegotiated terms, changed plans, not delivered on promises or otherwise moved the goal posts. In their world, there’s no deal they can’t undo. And never mind the cost to taxpayers or the broken trust of those of us living nearby!

  • Arkady

    He was given more than an inch to begin w/ & has taken several miles & now wants even more?!?!?

  • Amazing nerve and hutzpah, huh? I think they should get the reassessment they seek; then have their taxes RAISED!
    FCR is clever, and determined. Same MO, over and over.
    Their loans, refinancing, and bond issues get issued according to the highest valuation(s), then for tax purposes a sharp reevaluation downward achieves the lowest tax assessment rate. This is after they have off loaded their debt and retained their gains, of course.
    Now they are seeking to further protect those gains by increasing profit margins, and reducing their reoccurring expenses.
    Jobs that were promised became fewer jobs actualized, higher paying union and trades jobs morphed into fewer building trade and skilled jobs because of the use and installation of modular pre-fab units, etc etc.
    Puh.leez.
    BUT– each and every time they renegotiate our elected officials AGREE to their altered requests. The electeds don’t get invited to the table; but they should DEMAND the right to represent OUR interests.. Enough!
    Tish James (and someothers) really advocated against FCR when it mattered more– endorsing a Unity plan. It was never approved; but at least it was an answer.
    Leaving the AY site fallow and rat infested also isn’t the right answer for Brooklyn– no turning back from this site being developed. The only good bit of news here, is that AY Project will be built now– by FCR’s Chinese partners.
    When FCR changed their terms and schedules the FIRST time and did not honor their agreements, they were THEN in breach of contract. FCR should have been stopped then and there. And, where is that affordable housing?
    Brooklyn deserves better than this project has delivered.

  • Sorry for the above rant… I hit “post” accidentally before having a chance to edit it well.