Investors Eat Up Atlantic Yards Arena Bonds
Despite long-time public opposition and more recent financial challenges, Forest City Ratner had no problem raising $511 million, roughly half of what he needs, to finance the development of the arena at Atlantic Yards yesterday; the bond sale narrowly beat the end-of-year deadline for tax-free financing for the project. There was a strong appetite for…
Despite long-time public opposition and more recent financial challenges, Forest City Ratner had no problem raising $511 million, roughly half of what he needs, to finance the development of the arena at Atlantic Yards yesterday; the bond sale narrowly beat the end-of-year deadline for tax-free financing for the project. There was a strong appetite for the bonds, said Jay Abrams, a bond analyst at FMS Bonds. The market was comfortable with the ratings the deal received and the security that was pledged. Not every felt quite as sanguine, however. These bonds went on the market without any oversight from any state officials, said Daniel Goldstein, spokesman for Develop Don’t Destroy Brooklyn, the main Atlantic Yards opposition group. The state will be on the hook if the project defaults. The Brooklyn Paper had a good summary of how the rest of the financing breaks down:
– $511 million from yesterday’s tax-free bond sale
– $100 million in taxable bonds yet to be sold
– $293.4 million in equity from Mikhail Prokhorov pending NBA approval
– $156.4 million from the city
– $104.3 million from the state
$500 Million in Bonds Sold in 2 Hours for Nets’ Arena [NY Times]
Ratner Sells $511 Million in Tax-Free Bonds [NY Daily News]
Ratner’s tax-free bonds are snapped up fast [Brooklyn Paper]
Investors Grab Up Brooklyn Arena Bonds [NY1]
Junk Yard Bonds Get Trashed [Brownstoner]
Photo by Willets Point United
goldstein is such a selfish poser. and now he is a colossal loser in the most public of all ways. i halfway expect this herb to stage a sit in at his underwater hovel when it comes time to knock down his POS building. hopefully the cops will need to taser and mace him.
fsrq —you really should do some research. Federal law requires that the Pilots may not exceed that which would have been paid for real estate taxes. the Principal and interest on these bonds is paid back by using these payments in lieu of taxes to support payment of these bonds in full. There is no other Real estate taxes due or payable on this property. The payment of principal and interest on the bonds = what he would have had to pay in taxes. so your tax money- the money he should have used to pay the city goes to pay these bonds in full(the tax exempt ones). he had to limit the amount of these bonds to 511 million because that’s all the amount would be supported by the PILOTs for this property. The payment of principal and interest = exactly the bonds and PILOTS…. it doesn’t cost him one additional cent. We pay for it in full by foregoing the taxes so he can pay the bonds.
By the way, DDDB lost another one today:
http://dddb.net/MTAsuit/MontgomeryMTARuling.pdf
Though I’m not a basketball fan, I will go to a few games each year once the arena is built. I’d also go to concerts or March Madness games.
It’s very entertaining to see the AY opponents out of options. From the start, they have lost every battle, this one being the latest. Aside from intervention from Paterson, which surely ain’t gonna happen, construction should be underway in a few months.
“The Bonds will be paid back by using PILOTS-payment in lieu of taxes. That means he uses money that would have been paid in real estate taxes to pay his own bonds off…so he uses tax money for the bonds both principal and interest…”
No it doesnt mean that – it means he doesnt have to pay taxes (for the life of the bonds) – the payments for principal and interest still greatly exceed the property tax savings.
The City and State gave ratner 100 million dollars in actual cash for the land acquisition-so if he over paid you just paid him back. The MTA yards were sold to Ratner for less than another bid and then he says he can’t pay it so they renegotiated the deal. The Bonds will be paid back by using PILOTS-payment in lieu of taxes. That means he uses money that would have been paid in real estate taxes to pay his own bonds off…so he uses tax money for the bonds both principal and interest…can I do that please?
Its not the state rules he avoids- its the city’s.
That line-up would be pretty sweet indeed! And if we fail to get top pick in the lottery and lose out on Wall — as the Celtics did a few years ago with Oden/Durant — perhaps it’ll only spur the ownership to be more aggressive with free agents/trades, as it compelled the Celtics to get Allen & Garnett. Either way, it’s looking good!
unfortunately the parade route will be empty condos left to rot and crappy fcr urban design … honestly i would’ve preferred the original gehry design (duh), but i think the new arena is perfectly contextual with the other pos ratner bldgs along flatbush.
Antidope and Be Rude, here’s the starting line up I see by the time the Nets get to Brooklyn:
Devin Harris John Wall
LeBron James Brook Lopez Chris Bosh
Get ready for the victory parade up Flatbush from Tillary to Grand Army Plaza!