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
DIBS, these bonds are tax-exempt in NYS and NYC. Texas doesn’t have an income tax so these bonds were cheaper than that Texas comp, tax-adjusted.
@FGC.
Can’t speak for the whole borough, but me and my best friend will be first in line for season tickets.
As I’ve said before on this board, my position on AY has always been “pro, with some reservations,” but once the thing is a done deal, (and let’s be honest – it is), I plan to dump my lifelong Knicks fandom (and my season tickets).
Go Nets!
Not a single group has wanted to stop development of the rail yards air space. All sides agreed (even DDDB) that the area needed to be improved, but since 1995 the Pataki administration, and it’s later partner the ESDC, swatted away everyone’s proposals, including LIU’s dormitory plan. When others were willing to spend their own money to cap and build over the yards it begs the question of why this proposal; the most burdensome on local infrastructure, the most beneficial to a private corporation & and individual, the least return (actually negative!) on the public’s investment, and far and away the most expensive for state and local government; would be chosen over far better plans and honest developers. The lack of transparency has been appalling. Few people even realize that ALL of the land Bruce Ratner/FCR already owns in the project’s footprint will be bought from him at a huge profit under Eminent Domain, and leased back to him for $1 a year (that part WAS made public). New York City and the State are on the hook for almost $4 billion, with next to nothing guaranteed in return. Even if Ratner wants to sell the Nets the day after he breaks ground he is free to do so. As taxpayers we should all be outraged and disgusted.
Brokedeveloper- a group called Brooklyn Speaks tried to work with the developer to improve the plan. We got most of the politicians including even Marty Markowitz- who agreed that input could improve the plan- to meet with us an a regular basis. We got absolutely no cooperation form either the developer or ESDC. All we got was lip service. While at least ESDC listen politely and said they would make changes, not ONE thing changed. We wanted the affordable housing which there is a demand for done first. We wanted a governance process that included reps from the community(not that we would have final say only input). We got squat nothing no changes not even a listening to when we had real concerns. Only thank you very much and go piss up a rope.
I was in the 300 level behind the basket for the playoff game when John Starks dunked on Jordan and Horace Grant. That was almost 18 years ago. As flawed as Starks and Anthony Mason were, they were such fun to watch.
I agree that the Knicks are overpriced and have a distinct corporate feel at least in the good seats, in addition to not being a good team these days, but there’s stil something special about basketball at the Garden. I don’t think that moving from the wrong side of the Hudson River to the wrong side of the East River is going to make the Nets any more prominent.
Why would the Nets charge anything less than the going rate for their tickets, especially since they have a huge bond debt to pay off.
And Ice Capades? No thanks.
I love the Cyclones and I go as much as I can.
…If the Nets charge Cyclone prices I might take in a few games. Anything over $20 a seat, within 20 rows of the floor, and I’m not into it.
I’d rather see the $120+ million of city and state funds going in to the NYC schools, seeing as how we’re looking at a mid-year budget cut…
FSRQ — I remember the Charles Smith game. Maddening. But what bothered me was why Ewing wasn’t pounding the boards at that moment with Smith. He was out at the foul line. Yes, Smith should have grabbed the ball, taken it down, head fake and he’s got two foul shots even if he doesn’t slam it back down. But Patrick shares the blame in my book on that play, and I’m not a knee-jerk Patrick hater. I liked his years with the Knicks. Meanwhile, I thought the Ewing-Johnson-Houston team was cruising nicely toward a shot until the whole Charlie Ward-P.J. Brown fracas. That team could have won it, too.
I have to think that the Nets won’t be charging Knicks type prices… but NBA games are nonetheless expensive.
It’s $70 bucks a seat just to sit in the lower bowl in the Warriors arena, which is in the worst part of Oakland, Calif. imaginable.