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
Haven’t been much of a basketball fan since my youth in Boston (80’s) but I am totally on board with supporting my local (walking distance) team when they finally build the damn stadium. I agree with the earlier commenter who said that if they Nets approach this with a less-corp suit style (MSG & Knicks) and keep prices reasonable then the locals will embrace the team. Also, wouldn’t mind a few good concerts and/or events coming to the neighborhood as well.
BD- that is total BS. Once Ratner decided he wanted to build AY, it was a steamroller of consent from the powers that be. Even thought someone offered more money for the yeards and had a better project they gave it away to Ratner. Remember that as bus and subway routes disappear because the MTA is in a financial hole. Ratner, by creating true blight made the neighborhood worse off- not DDDB.
FGC –
I havent been a major pro BB fan since Charlie Smith blew the last chance the Knicks had, and havent been to a game in over a decade; but I expect that I will buy some sort of season ticket package the minute the Nets actually move here. I cant tell you how excited I will be to take the train home from work walk upstairs to my seats and then WALKING home.
I am also sure I will be going to some of the other events with the kids….Icecapades anyone?
DDDB could have worked within the admittedly screwed up system to try to make the project better for the neighborhood (than the original proposal), but they only wanted to Kill! Kill! Kill! Their delay tactics almost achieved their objective, but in the end, will probably make the neighborhood worse off than it would have been. Instead of a Gehry designed projected with a bunch of buildings (that they could have worked to scale down), we will get an ugly brown turd with a bunch of buildings and parking lots. Nice job DDDB!!
FtGreeneCory- thank you for explaining that. I always thought Norman Oder was part of DDDB and when I do talk about the research and documentation I am thinking AY Report. I don’t read DDDB’s website. OMG! I think we just agreed on something! 🙂
havellc:
if you compare the effective spin per dollar spent on spin, DDDB does it cheap. The Rat-ner has spent untold heaps of cash foisting this one on the public. Almost enough to make me a sixers fan. Now if we could just party on the chinatown bus.
That being said, I’ll take my DDDB spin thru the AYR lens thank you.
Bxgrl, while not a “group” per se, I think Norman Oder’s Atlantic Yards Report does a much better job covering the issues surrounding Atlantic Yards than DDDB (and their affiliated website, DDDB.net). Everything DDDB.net publishes comes across as “spin” (Perfect example was yesterday’s press release on the bond sale, which basically says “Ok, well Ratner sold the bonds, but so what?”). Even though I am pro-AY, I have the utmost respect for the Atlantic Yards Report, because it is professional, comprehensive, objective and includes very thoughtful anaylysis of all the key issues. I can’t say the same for DDDB.net….
FGC,
I’ll bite and respond as a basketball fan and leave the merits/demerits of the project aside. (really, this is not an endorsement of the project, just honest hoops talk.) I love hoops and used to go see the Knicks a lot. Now, I really don’t want to take the time or spend the money. It’s an expensive show for the suits and I’m just not interested. Nets could succeed if they are more approachable than the Knicks. Brooklyn is big on hoops but in a pretty earthy way. Lower ticket prices, more opportunities to buy single game tix, a meaningful connection with the community, etc. But if it is just as corporate a deal as the Knicks and most franchises have become, then why feel alienated from two home teams instead of one? I’ll just wait for Spring and the Cyclones and look for pick ups games for my hoops fix, like we all do now in Brooklyn.
Brooklyn has more important things to worry about than a sports team and better ways to spend the money. As for how much money Ratner has in- I wonder also.
DDDB has been the only group to thoroughly research and publish information about AY. They’ve been ahead of it at every turn and pretty much what they uncover has come to be recognized later on.