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
But Ill try:
See item 7iv -> Ratner will SELL his land for $1 to ESDC and then lease it back for $1 -i.e. its a WASH – Ratner still paid the $ for the actual aquisition
From the ESDC document Memorandum of Understanding, dated February 18, 2005,among New York State Urban Development Corporation d/b/a Empire State Development Corporation (“ESDC”),New York City Economic Development Corporation, the
City of New York and Forest City Ratner Companies,
“Brooklyn Arena/Mixed Use Development Project”
:
7. Site Acquisition
(i) ESDC, subject to the availability of funding provided by the Public
Parties and FCRC as set forth herein, shall carry out such
proceedings, make such findings and take such actions under the
Eminent Domain Procedures Law as are necessary to acquire by
eminent domain portions of the Private Properties and (subject to
the consent of the City) the City Streets necessary to facilitate the
Project.
(¡i) FCRC will provide cash or a letter of credit to the Public Parties to
fund any eminent domain acquisition costs. The panies will
consider the use of the City’s portion of the Capital Contribution
for land acquisition;
(in) The City will convey the City Properties and the City Streets
underlying the Arena (but not including the commercial office
building sites adjacent to the arena) to ESDC for SI .00 and the
remaining portions of the City Properties and City Streets to ESDC
for fair market value (paid for by FCRC) based on an independent
appraisal that determines value based on the contemplated
Development Plan and the development rights associated with such
property, taking into account the amount of the any capital
contribution or other financial contribution by the Public Parties 10
the Project (exclusive of the contributions for the Arena Site as
specified in Section 10 below) and any extraordinary cost to FCRC
of relocating public utilities and installing new public utility
infrastructure: and
(iv) FCRC will convey or cause to be conveyed to ESDC Un-
controlled Properties for SI .00 and will lease back or repurchase
the Properties for S1.00
How can you prove a negative?
Yes Ratner took down some buildings and those “lots” were included in the area that was cited as blight – so what; the area clearly, under any definition ever used for “blight” in ED cases would have qualified without question….
fsrg- Show me that he’s wrong and you’re right. Because I do know Ratner in fact manufactured his own blight.
So why did you studiously avoid addressing the fact that Ratner will sell his land to the state and release it for $1.00, fsrg?
because that isnt actually true
Antidope, do you think that John Wall and Devin Harris can play in the same backcourt…Who’s the 1 and Who’s the 2? (…let’s start the debate now!)
So why did you studiously avoid addressing the fact that Ratner will sell his land to the state and release it for $1.00, fsrg? That doesn’t make you angry? I’m no nimby either but i would rather have the railyards as they are than see all that money go to a bullshit project and a scammer like Ratner. Just to have a basketball team? That would be eminently laughable if it weren’t so pathetic.
I resent being called NIMBY. Even I wanted something built there, but not something where the taxpayers assume all of the risks with almost no benefits. This is a deal that every group and agency for clean and open government has decried. And I can hardly be considered “misinformed” on this issue ( I’ve learned that if I even post my home address in a comment, someone will tell me I’m wrong).
It doesn’t matter what FCR paid for the properties they acquired; they included them in the footprint of the lots they wanted seized. They will receive “just compensation”, and have the land leased back to them.
And FCR demolished a number of buildings after purchasing them, and then cited the vacant lots created as evidence of blight.
the 10-72 nyets future starting lineup
john wall
devin harris
brook lopez
and any 2 of the following:
dwayne wade
chris bosh
lbj
yes they will have their arena
yes they will pull in a pair of free agents
yes they will draw local fans
brkenny – clearly you are a NIMBY shill or so misinformed that it is frightening – FCR has not aquired a SINGLE parcel under ED – and the lots he did acquire he paid far above the the then market price – and it is completly transparant – you can go on the ACRIS website and see what he paid.
As for Ratner creating “blight” – the area has not changed in the last 50 years – Ratners ownership of some parcels for the last 3-4 did nothing more than leave the status quo