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March 27, 2008

Is Bruce Ratner Out of Cash?

ratner-03-2008.jpgLooks like Brooklyn isn't the only borough seeing a stalled project care of our pals at Forest City Ratner. Apparently an ambitious FCR-developed 75-story tower planned for 8 Spruce Street, near City Hall, is going nowhere fast. This wouldn't necessarily be news except for the fact that part of the Frank Gehry-designed building is supposed to include a public school, and the local community board down there is starting to get a wee bit skeptical about the school being ready for action in '09, as promised. Downtown Express reports:

When Noah Pfefferblit, C.B. 1’s district manager, asked Ratner and the S.C.A. why no work has happened on the project in six months, he got two different answers. The School Construction Authority said there was a delay in delivering a shipment of steel, but that the steel would arrive soon. After that, work will begin on an expedited schedule to get the school open by fall 2009, the authority said. Ratner gave an entirely different explanation, after canceling an appearance at the community board to discuss the project. “They said they’re having issues with their financing,” Pfefferblit told the Youth and Education Committee Tuesday. Frank Gehry, known for complicated and whimsical buildings, designed the tower that will house the school. Paul Hovitz, a committee member, provided further evidence of funding troubles, which have been rumored for months. He was recently discussing the project with another board member in public, when a man overheard him. Ratner is having problems financing the project, said the man, who added that he worked for a company doing the financing, Hovitz said.

Join the club, Manhattan.
Delay? Count the Ways {Downtown Express]
Endangered AY [Brownstoner]
Photo by threecee.




Posted by Gabby at 9:33 AM | Comments (27)
Categories: Manhattan

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Comments

This is what happens when the douches come home to roost.

Posted by: guest at March 27, 2008 10:26 AM

Everyone is out of cash, because everyone has decided they want to spend more than they earn and borrow the difference, and no one wants to save. Any savers on this board? No? Then where is the money going to come from?

A balance of supply and demand in the market for money means much higher interest rates, not lower, especially with inflation going up.

Posted by: guest at March 27, 2008 10:35 AM

I save.

Posted by: guest at March 27, 2008 10:50 AM

^^^Jesus?^^^

Posted by: guest at March 27, 2008 10:52 AM

gosh, since taxpayers foot most of the bill on most of his projects, you'd think brucie would just need to use his pocket change. Maybe they can pass the hat at Brooklyn Museum's fundraiser!

Posted by: guest at March 27, 2008 10:53 AM

I'm a saver. I think this is why Ratner is out of cash. He wasn't using his own money, he was using other people money. But I think it's over. Atlantic Yards will not be built.

Auction-Rate Crisis Hits Stadiums for NY Giants, Colts, Saints

http://www.bloomberg.com/apps/news?pid=20602007&sid=amZuAsrWiT3M&refer=rates

The auction-rate bond crisis is raising borrowing costs on more than sewers and hospitals, forcing some states to pay three times higher interest on 65,000-seat sports arenas with moving roofs and 50-foot video displays.

Investors don't want Government (Muni) Debt. This very bad because taxes will have to go up to provide basic services.


The What

Someday this war is gonna end...

Posted by: guest at March 27, 2008 10:54 AM

Gee, I can't wait for Two Trees to build that middle school in DUMBO that they promised.

Posted by: guest at March 27, 2008 11:16 AM

Watch video here to see the "What"...its about half way through the video...white dude with a "this war is not over" sign...ridiculous

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=akGvUo2phD9Y

Posted by: guest at March 27, 2008 11:20 AM

Now that the What has stopped swearing I think he's super cool.

Posted by: guest at March 27, 2008 11:35 AM

Ha ha Ratner. Hope he goes bankrupt. This is what happens when you try to get over on everyone.

Posted by: guest at March 27, 2008 11:49 AM

Don't worry, Vito Lopez will find a way to give Ratner your money.

Posted by: guest at March 27, 2008 11:56 AM

CAN YOU GUYS TRYING POSTING IN ALL CAPS OR SOMETHING? IT'S KIND OF HARD TO READ YOUR POSTS WITH ALL OF THE FADED TYPE ON THIS SITE.

Posted by: guest at March 27, 2008 11:59 AM


oh THAT'S Ratner. I saw him in a Bentley on 7th Ave. Maybe he can sell that to raise some money. At the very least he could let me borrow it. After all my taxes paid for the $%#$ing thing.

Posted by: Johnny at March 27, 2008 12:02 PM

Ratner is a rich guy, why doesn't he just pay for it...
Oh right he is the "good " kind of rich and he deserves hand outs from us, like the corporate welfare queen that he is.

Posted by: guest at March 27, 2008 12:05 PM

I actually agree with the What on this.
AY will not be built. Rattner's company could well have been saved from bankruptcy or near-bankruptcy by the very community that opposed his project. Sometimes you don't know who your friends are.
The numbers do make sense, they really never did, but especially now, and I don't think David Paterson is a big fan of Rattner either.
AY's done.
Who woulda thunk?

Posted by: guest at March 27, 2008 12:22 PM

Heh. Funny thing is, as disgusting as Ratner's astroturf PR campaign for AY was, it's about the most benevolent major development project you could ever want for downtown Brooklyn. If it falls through, watch the amateurs swoop in as soon as the financing cloud lifts. If you liked Ratnerville, you'll love Hot Karl City.

Posted by: guest at March 27, 2008 12:26 PM

Although it couldn't happen to a nicer guy, this is bad news for the neighbors. I work not far from 6 Spruce. It's a giant hole in the ground, and now it sounds like it's going to stay that way for a while. That whole area, along Nassau Street south of the Brooklyn Bridge, is depressed, with lots of retail vacancies. Despite all the residential conversions in the area, added to Pace University, Beekman Downtown Hospital, and a lot of office space, the streets are still very desolate. Having this big site sit vacant forever won't help.

Posted by: Flatbushwhacker at March 27, 2008 12:53 PM

maybe the anti-AY liti has sapped ratner's cash. time for the fed to step in and make this happen. hah hah.

Posted by: BrooklynLove at March 27, 2008 1:32 PM

The Ratner will be worthless once AY is built.

Posted by: guest at March 27, 2008 2:18 PM

12:26
Some how I doubt Karl r some equivalent will get built on the AY, for the simple reason the city or state would never pay hundreds of millions to cap the yards unless there was an A-level development/developer involved. Karl's projects are more like C-/D+.

Posted by: guest at March 27, 2008 2:19 PM

12:26
Some how I doubt a Hot Karl or some equivalent project will get built on the AY, for the simple reason being that the city or state would never pay hundreds of millions to cap the yards unless there was an A-level development/developer involved, nor could such subpar developers ever be able to cough up the money for the development rights.

The project that will get built might be great or god-awful, but it will definitely be built by a major league developer/architect/construction management team.

Posted by: guest at March 27, 2008 2:24 PM

11:20 WHERE'S THE VIDEO? THE LINK JUST GOES TO AN ARTICLE.

Posted by: Brooklynnative at March 27, 2008 2:43 PM

Most of you people know nothing about Real Estate - the fact that he is having trouble lining up financing on these projects actually means he will likely not go bankrupt.

No one can line up financing right now, so that is not a reflection of Ratner, but the risk of bankruptcy really comes into effect for those developers/operators that already have financing and either have to re-finance b/c of expiration or can't make the payments because of a lack of sales/rents. (see Maclowe)

12:22 is right on, all the delays associated with AY may just have saved Ratner from a huge loss (or Bankruptcy)

Posted by: guest at March 27, 2008 3:02 PM

Regardless of all of this, nothing will stop Ratner from losing 2 important things in the end: our tax money, and his hair.

Posted by: guest at March 27, 2008 3:29 PM

"the most benevolent major development project you could ever want for downtown Brooklyn"

Pass the Kool-aid, please.

Posted by: guest at March 27, 2008 7:43 PM

Now Hear This: Bruce Ratner Farts Burnt Money Fumes

Posted by: guest at March 27, 2008 9:20 PM

that jacket he's wearing in the photo above is stuffed with tax money. he's just holding up his hand and saying "nothing in my sleeve". it's just a little trick he likes to do for the people of Brooklyn.

Posted by: guest at March 27, 2008 9:36 PM

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