Is Atlantic Yards Funding in Jeopardy?
Representatives for Forest City Ratner have filed court papers claiming that ongoing litigation and turmoil in the financial markets may jeopardize Atlantic Yards funding, according to an article in today’s Post. The documents were filed on Friday regarding the appeal Develop Don’t Destroy is seeking for the lawsuit challenging the project’s environmental impact review. An…
Representatives for Forest City Ratner have filed court papers claiming that ongoing litigation and turmoil in the financial markets may jeopardize Atlantic Yards funding, according to an article in today’s Post. The documents were filed on Friday regarding the appeal Develop Don’t Destroy is seeking for the lawsuit challenging the project’s environmental impact review. An affidavit (see copy on jump) submitted by Andrew Silberfein, Forest City Ratner’s executive vice president and director of finance, sheds some light on the complicated web of financing for the more than $4 billion project, which involves having Goldman Sachs serve as the lead underwriter for bonds that will finance the Nets arena’s construction. Silberfein’s affidavit goes on to say:
As the Court surely is aware, the credit markets are in turmoil at this time. Many lenders and bond insurers are facing financial difficulties, and are becoming much more cautious. It is not clear what the financial climate will be in several months, when the arena bond financing is made available to the public…there is a serious question as to whether, given the current state of the debt market, the underwriters will be able to proceed with the financing for the arena while the appeal is pending before this Court.
In response, an attorney for Develop Don’t Destroy said would-be financial backers know “how much of a risk” AY is.
Court Trouble [NY Post]
Anti-AY Lawsuits: And Then There Was One [Brownstoner]
Rendering from AtlanticYards.com.
Yes, remember at some point this bubble in Brooklyn is going to burst. And it looks like there will be a lot of developers with worthless sites or buildings left – at least for a few years.
Of course I meant “their money” up there, not “there money” — sorry, this stuff just gets me too worked up!
“What is the community benefit of stalling a project until the community is left with the site as it currently is?”
The benefits are: Lack of air pollution. Lack of traffic backed up at all hours in the surrounding neighborhoods. Sewers that work. Enough seats in school rooms for children. Not having a possible terrorist magnet in our neighborhood.
Because these are all the things that EDSC didn’t consider important enough to think about when the plan was approved.
“On the contrary, stalling to the project until a recession was probably the plan all along.”
Oh, yes, for sure — DDDB controls the economy.
However, as economic realities start to sink in, people are looking a little more closely, thank goodness, at where there money is going.
The more info that comes out about this project, the more it reeks of corruption, patronage, and back room dealings, and the more people realize the massiveness of the screwing FCR et al are trying to give them.
D-E-A-D D-E-A-L
Since the affidavit mentions PILOTs, I assume they are looking to finance this stadium using the same tax-exempt structure the Mets and Yankees used for their new stadiums. Those bond issues were insured by 3 different bond insurance companies, all of which are now having problems with subprime mortgages. The PILOT structures are very complicated and will be difficult (but not impossible) to sell directly to the public without bond insurance. These suits have to be cleared up before any bonds can be issued. That’s all this is saying.
Were any of you around in the late 1980s early 1990s? Go to the New York Times archives for information on the Arverne project at the time.
11:26 – it doesn’t matter what you wish, if it’s not your property he’s having the state condemn on his behalf.
Though most people have thought of bridge tolls as a substitute to Mayor Bloomberg’s plan to impose an $8 fee to enter Manhattan, the chairman of a commission considering the idea said bridge tolls could be complementary to it.
11:16am – eminent domain abuse? I wish someone gave me twice what my place was worth, real abuse. This project is good for Brooklyn and good for the economy. It will create jobs. (you cannot deny this aspect).