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June 23, 2009

MTA Finance Committee Approves New Ratner Deal

As was widely expected, the MTA's finance committee yesterday approved a revised agreement with Bruce Ratner that would allow the developer to defer $80 million of the $100 million he initially agreed to pay the Authority for railyards; the full MTA board votes tomorrow. According to The Times, the payments would be only $2 million a year between 2012 and 2015 and then $11 million a year for 15 years; the Brooklyn Paper reports that the interest rate comes out to 6.5 percent. In a what may end up being the quote of the year, MTA finance chief Gary Dellaverson said of the deal, "It's not quite as good as we had hoped." Priceless.
Ratner to Get Huge Break from MTA [Brooklyn Paper]
Developer Seeks to Defer Payments on AY Site [NYT/Cityroom]
New Brooklyn Arena Deal Unveiled [AP]
Big Week for Atlantic Yards Sweetheart Deal-Making [Brownstoner]
Photo by Tracy Collins

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Why isn't the Finance Committee fired along with the board????

Posted by: daveinbedstuy at June 23, 2009 9:04 AM

so develop don't destroy is also managing to fuck the mta by stalling this in court. i hope you asshats are proud of your hard work.

Posted by: randolph at June 23, 2009 9:08 AM

"develop don't destroy is also managing to fuck the mta by stalling this in court."

This is classic. It's the project opponents' fault that the project sponsor is a corporate welfare queen who is now welching on his promises?

Posted by: Sparafucile at June 23, 2009 9:29 AM

It is partly DDD's fault.

Posted by: daveinbedstuy at June 23, 2009 9:35 AM

"It's not quite as good as we hoped." #$#@%ing priceless. We get robbed blind and it's not quite as good as we hoped. Thank god elections are coming up.

Posted by: Johnny at June 23, 2009 9:36 AM

"It's not quite as good as we had hoped" [but we're worried we'll perhaps get nothing at all if we don't accept what's on the table.]

Posted by: g man at June 23, 2009 9:38 AM

I"t is partly DDD's fault"

Bullshit. There'd been endless other excuses for non-compliance, more public money, fewer "affordable" units, and delays if DDDB weren't around. The whole project was overblown and iffy from the start, which is a charitable way of saying it was close to fraudulently marketed and sold.

For MTA to compound their idiocy by allowing Ratner off the hook is unconscionable.

Posted by: cmu at June 23, 2009 9:43 AM

Extell was willing to pay 50MM more than Ratner, correct, and no arena in their plan, which is a plus in my book. Should have gone with them - but hey, the deal with Ratner was decided before the RFP went out to others...

Posted by: 1842 at June 23, 2009 9:49 AM

And WE get a fare increase because the MTA is in the pocket of the billionaire politicians and developers.

Posted by: rukiddingme at June 23, 2009 9:58 AM

The whole problem with DDD is that they continued to sue on the basis of eminent domain-- which was only ever meant as a delay tactic because there was no way they could win.

All you yahoos who whine about eminent domain abuse please read Kelo v. City of New London, a Supreme Court case settled in 2005-- the case which essentially determined that Ratner would win (and he did) every single court challenge. While I don't agree with that case, or eminent domain for private business, its the ruling precedent and once the Supreme Court refused to hear the AY case in June of 2008 it meant there was no legitimate way DDD could stop AY.

Especially from June 2008 on, their strategy was playing a game of chicken with the financing environment. At that point they had no more legit way to stop AY and so they should have given up. Because they didn't is why we're saddled with a worse deal now than we would have gotten then.

It would be like your spouse went to Vegas, got into a high stakes poker hand, had 30k on the table and then the last card dropped and it went from a situation where they might have won to where there was zero chance to win. If, at that point, they raised the pot 20k more (knowing they couldn't win) you can certainly be pissed off about that last 20k-- even if the first 30k was a rational, well planned bet.

After June 2008, DDD bet on an empty bluff and so everything that changed from the city's bargaining position in June 08 to now is entirely their fault.

Posted by: havelc at June 23, 2009 10:35 AM

Describing this as a new 'deal' is a little inaccurate. There's no reason to think he'll actually ever pay the amount he's now proposing, given how much he's already changed the scope and timing of the project from what was originally sold to the public.

Posted by: Sparafucile at June 23, 2009 10:45 AM

havelc- amen to that!!!

Posted by: randolph at June 23, 2009 10:57 AM

havelc, I hear you. Here's another perspective: DDDB believes that the review process was beyond flawed and the project is detrimental to Brooklyn. It therefore believes that the entire project should be stopped at all costs. If that is where someone is coming from, they cannot worry about collateral damage. And, if that is where someone is coming from, they also have to believe that any and all negative consequences are the responsibility of FCR--it created this mess, and the opposition it prompted.

Posted by: g man at June 23, 2009 11:10 AM

Another day, another lets blame it all on DDDB. Not on the politicians and agencies and the MTA who set aside cnsideration for the bottom line to give Ratner the deal. Blaming DDDB for the situation is pure and total BS.

And don't think for one minute DDDB is a little clique of 5 people- it's not. They have plenty of community support- especially from those of us who would be most affected. Now the MTA in a complete meltdown of imbecility gives him yet another sweetheart deal? All the while complaining over how little money they have? On top of threatening fare hikes? Etc., etc.

Gee- where are all the people who always claim the bottom line is the only one to consider? Because they aren't in the MTA. that's for sure.

and Havelc- if DDDB had no "legitimate" way to stop AY, they certainly seem to have a reasonable facsimile of it. Or do you think lawsuits are not legitimate?

All us yahoos- and there were millions across the country who protested the Kelo decision- understand something about the Supreme Court that you don't- those decisions are always open to reinterpretation and being overturned. There's a long long list of them-. Thank goodness they haven't yet shut down us yahoo's right to free speech or our right to "whine" as you put it when we protest. Before we lay down and let Ratner run roughshod over us, let's also recall that many states passed stricter eminent domain laws in protest of Kelo. (Sadly NYS was not one of those intelligent states- but hey- look at Albany. Are we surprised?)

You think DDDB made an empty bluff? I think DDDB accomplished what they hoped to- bring attention to the many ways we get f*cked by our duly elected representatives and their friends. So much for power to the people, hey?

Posted by: bxgrl at June 23, 2009 11:11 AM

gman- I think that's exactly the case - DDDB was going up against an RE juggernaut. I don't know that they ever had a choice as to whether or not they could think about all the consequences and Ratner gave no indication he was willing to listen to the community or any concerns. But even though they have delayed AY, I see no evidence really that Ratner understands the why of it, nor do our politicians and agencies.

Posted by: bxgrl at June 23, 2009 12:12 PM

No Carlton Bridge...
At the edge, I'd have flung dough...
Into the chasm...

Gift-wrapped real estate...
But the little people pay...
Ratner keeps the change...

Posted by: BrooklynGreene at June 23, 2009 12:40 PM

Daniel Goldstein is full of sh*t! DDDB Premise: (Starchitect) Frank Gehry's design for Atlantic Yards (which had been praised by leading architecture critics as "stunning" and "cutting edge") is "out of scale" with surrounding development. DDDB Response: Delay the project for 5 years with a series of frivolous, meritless lawsuits. Result of DDDB Response: Development stalled and (as one would expect to occur eventually) market conditions sour and Frank Gehry designs are no longer viable in erroding economic climate. Ratner Response to DDDB Response: "Value Engineer" the project to make it economically viable. Result of Ratner Response to DDDB Response: (Starchitect) Frank Gehry is fired and replaced by Ellerbe Becket, who design a "cookie cutter" "airplane hanger" replacement to Gehry's vision. DDDB Response to to Ratner Reponse to DDDB Response: "This is a classic bait-and-switch...Ratner had reneged on his promise to brinkg world class architecture and affordable housing to Brooklyn". ARE YOU FU*KING KIDDING ME!! The ONLY reason why Gehry was canned and the development (with its accompanying cutting edge architecture and affordable housing) was tabled was because Daniel Goldstein has spent the past five years being a demagogue and filing frivolous lawsuits (in retrospect, the fact that they have lost EVERY case, in EVERY forum (State and Federal) should speak to the merits of the claims raised). Since when did Daniel Goldstein care about "world class architecture" and "affordable housing"? If he did care, he would not have spent the last five years filing frivolous lawsuits, holding press conferences and doing magazine interviews (and I'm sure lining up his reality show and movie and book deals).

Posted by: FtGreeneCorey at June 23, 2009 1:28 PM

No way Ratner pays anything close to $100M. Not in 10 years, not ever.
He is the master of bait and switch. As soon as he puts a shovel in the ground and gets his bonds OK'd, he'll start whining for a better deal.
The spineless idiots at the MTA and the shills on this blog and elsewhere will agree because "we have to build something."
What a joke.
Remember, the reason the MTA turned away Extell's $150M up front was because the arena was supposed to be such a gem and a moneymaker.
That has now been debunked -- but the MTA still wants to give away public property for pennies on the dollar.

Posted by: ontheparkway at June 23, 2009 1:32 PM

"It is partly DDD's fault."

BS. Ratner had 4 years to close his deal with MTA. He didn't. Why? Who knows. And now he comes to the MTA crying poverty and the MTA obliges.

blame whistleblowee not the whistleblower.

Posted by: brokeland at June 23, 2009 1:38 PM

DDDB's contention was not that the arena was out of scale, but the entire project was monstrously out of scale, out of whack and completely too much for the area and infrastructure to handle. While the arena was cutting edge, the rest of Gehry's design was awful (and I happen to like much of gehry's work). So this was not about the arena- it was about the size of the project and the use of eminent domain. The affordable housing component was a joke- as you would know if you really read up on this stuff, BGcorey. Ratner never had the funding to build something of this size and scale. Why do you think he went after public funding? I suggest you read some of the reports and get some facts before you post about whyu Gehry was fired. And for the record too- there is a lot of evidence most of the ruels and oversight regulations were bypassed for ratner. If you think judges can't be bought or persuaded by big money, you live in Mr. Roger's Neighborhood, not Brooklyn. The cases were not decided on merit, they were decided on patronage, greed and big bucks.

Posted by: bxgrl at June 23, 2009 1:53 PM

was at the meeting (ESDC) today.

charade is the only term that comes to mind. to all those loud ant-dddb folks, get a clue. there has not been one single analysis of what ratner stands to make for what he is "giving" brooklyn.

what else should the ESDC do but see/evaluate if ratner can do it cheaper or more effectively than the public sector and if so, then approve it. if not, send him back to cleveland. when i see some real numbers i'll make a decision. till then stall, bleed, chop, eradicate the parties that are keeping this project from meaningfull public review.

and as long as more tidbits come out about private agreements between the connected developer(ratner) and the mta/city/state/what i dont see the stream of lawsuits ending. nor should they. litigate on dan, litigate on.

i took the name of most of the people testifying. the pro-ratner people were nearly all compensated by ratner or those who will make money on more traffic(hotels/unions).

a partial list

-ACORN(CBA)
-BUILD(CBA)
-REBUILD(CCBA)
-BAM(Board Member/Donations)
-POLYTECH("co-developer metrotech")
-SIDS HARDWARE(sweetheart deal at Metrotech when he was displaced)
-NU HOTEL
-NEW YORK MARRIOTT AT BROOKLYN BRIDGE(Note that they are proud of brooklyn, but dont carry that as lead name of the hotel because no one would find it if it were called the Brooklyn Marriott)
-ABOUT 15 UNION WONKS - turned my stomach
-DAUGHTRY

note that marty markowitz had two other engagements and send a flack to yap about jobs and housing.

bam sent a flack

liu sent a flack

i find myself conflicted. a stadium would be great for brooklyn. but not under these conditions.

and dont get me started on the union thugsters. the same vest wearing bumpcap sporting morons who were at the state hearings last month. just how much money does ratner stand to make that he can afford to bailout acorn and send droves of morons to these meetings and put the bam/liu/polytech in his back pocket.

this will all end when the information is laid bare and public officials are on the hook for the tales they have been telling. till then, enjoy the show.

Posted by: bkn4life at June 23, 2009 2:03 PM

So BXGRL, you honestly believe that every judge in both Federal Case (district, court of appeals, and UNITED STATES SUPREME COURT) and the State Case (district court, appellate division and court of appeals) are corrupt? Every single one?!?

Posted by: FtGreeneCorey at June 23, 2009 2:10 PM

ftgreenecorey:

the unanimous decision with the opinion that seemed like a dissent was all you need to see. wasnt that also the one where a judge begged off beacause they had "received a mailing" and couldnt be objective because of the pretty pictures and all?

this stinks to high heaven. even the press is starting to notice the stench. no, the judges are not all on the take. but if you think that all the judges on the nys supreme court/nyc civil court are even competent, well, there is a bridge out there somewhere to buy. sit in on a case that involves a nuanced concept. or one where someone tries to show that although there is a general rule to follow for a certain situation, that there are some clearly defined exceptions. they just dont get or dont want to get uncommon situations. it makes their brains hurt to actually think. and it shows in their decisions.

there are only a couple of options for these decisions...

lazy
incompetent
corrupt
stupid

i mostly vote for lazy. cant get that law degree by being stupid.
and a little bit corrupt. in that patronage kind of way. i used to live in chicago. brooklyn is closing in fast on the back-room deal factor.

Posted by: bkn4life at June 23, 2009 2:41 PM

BKLYN4LIFE, what about the Federal case? They (DDDB) lost on all three levels...or two levels (district and court of appeals), with the Supremes denying certiorari (which I interpreted as their view that the matter at hand was settled in Kelo)

Posted by: FtGreeneCorey at June 23, 2009 2:58 PM

ftgreenecorey:

the devil is in the details.

so many things that should have been public from the start are now and will continue to come to light. as they do things become available that were not available when the suit was filed. if its good stuff, they can file something new/again either because the original claim was not ripe (all the actions that the suit is based on had not yet happened) or that substantive information was withheld from the public/complainants and as such that decision will not be held as a res judicata bar.

in short, it aint over till dddb quits or until all the information is made public.

as for the federal decision.... they dont want any part of it. it is up to daniel, and those like him, to force the judiciary in this state to do its job. or the elected official. or the unelected officials. you should thank him for exposing the cancers he has exposed.

at this point i have yet to see that any issue has been decided on the merits. or if they purport to be on the merits, withheld information will not allow ratner to escape scrutiny.

rail against the guys taking a philosphical stance all you want. they are the only ones not asleep at the wheel.

Posted by: bkn4life at June 23, 2009 3:26 PM

Thanks for the update, bkn4life!

I thinks the most telling aspect is that there was no real reviews- public or otherwise. And that's been pretty much established, bgcorey. And no I don't think every judge is corrupt or on the take but do I think they -in cases like this- allow themselves to be ifluenced? You bet I do. there's a long, not proud history of back room deals, as bkn4life says.

And the sweetheart deal ratner was given pretty much says it all. he paid less than Extell offered, he now only has to pay a pittance, he never promised more than 25 mil return over 20 years. Excuse me but how much more proof do you need? For the kind of public money we're expected to put out, that's garbage. Affordable housing? I should subsidize people making 125,000 a year? Very interesting redefinition of who needs subsidized housing.

It's theft. There is no return to Brooklyn or the city. It's all in ratner's pocket- if you think the Nets are worth it, go see them in Jersey. Spare us the pocket change and the grief.

Posted by: bxgrl at June 23, 2009 4:03 PM

I think that if these judges (Supreme Court included) disregarded the Constitution and legitimized the use of emminent domain for a PRIVATE DEVELOPER the desisions were corrupt. Every single one of them. Whether they know it or not, the constitution guarantees us the right to private property. Emminent Domain is meant only to be used for ESSENTIAL public infrastucture projects (something NY is in dire need of)

Posted by: Joe from Brooklyn at June 23, 2009 5:40 PM

Corruption is rife
Our blood dispersed in the wind
Blaming the victim

Posted by: BrooklynGreene at June 23, 2009 6:23 PM

Funny how if one insists that AY opponents have accomplished nothing, they are sure to point to the delays as evidence of their hard work. Yet if you blame the delays on them, they are quick to cite the failing economy are the reason.

Dung Deal...hiccup...

Posted by: Big Jugs at June 23, 2009 8:48 PM

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June 23, 2009

MTA Finance Committee Approves New Ratner Deal

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