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
I’m a huge basketball fan, although my middle-aged back and knees won’t let me play any more. I attend about a half dozen Knicks games a year. I’d like to go more, but tickets are damn expensive.
Even aside from my feelings about corporate welfare, I’m not feeling the Brooklyn Nets. In my mind, they’re New Jersey’s team, going back to when they played in the Teaneck Armory. If it was a bad thing when the Dodgers abandoned Brooklyn, how is the Nets’ abandonment of New Jersey any less bad? But if their ticket prices are substantially cheaper than the Knicks’, I’ll probably go to the games.
Umm FYI, There are 41 home games in the regular season for a pro basketball team. maybe 8-10 more if the team happens to go deep into the playoffs. That leaves about 160 misc events. Wonder what they’ll be?
Yes, many people in Brooklyn are interested in getting a team and will go to games. I am one, and I know many others…
how can i get me some of these bonds?
There are a planned 200-225 events per year at this stadium. There are about 80 or so home games for a basketball team. So that’s over 100 live concerts and misc events…
YEAR ROUND!
Well I don’t care much for the arena or the GPP, but I’d probably take my kids to see some of the games. Shame about the project though…
Corey– I have to think Brooklyn has a better shot at supporting a team than New Jersey and probably most other NBA cities. The borough itself has 2.5 million people which is more than 85% of NBA towns, and when you throw in all of Long Island, and unaffiliated parts of Manhattan and Queens, I think there is more than enough interest– especially with how much NYC and Brooklyn especially love basketball.
I think the main question with sports team relocations is whether it is still working 10 years out.
If we had a baseball team I’d go. I never really cared about basketball.
I love how no-one calls groups like DDB on their mass misinformation campaigns.
Regardless of what you think it’s right for private groups to benefit from eminent domain, DDB consistently mischaracterized what the law and what Kelo v New Haven actually meant.
Then, they pretended that after the Supreme Court refused to hear their case almost a year ago, that it was possible to overcome the ruling Supreme Court precedent.
And recently they’ve been pretending that no-one was going to buy these bonds (or that they were junk), when anyone with any casual familiarity on bonds, and stadium bonds at that, knew that it was a done deal.
It’s impossible to take them seriously on anything… which is too bad because a forthright and honest citizens group are needed.