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.
Ring … Ring … hello? Uh, yeah, is this Mike Bloomberg? Yes, this is he, may I ask who’s calling? Oh Mike, this is Bruce Ratner. Oh, hi Bruce, how may I help you? Weeeell, some of my funding for the ARENA is falling through, you know, that arena that’s going to turn Brooklyn into the greatest city in the world *cough*, um, so I was wondering if you could just slide me a little more cash from the coffers to help me out. Oh, oh yeah, Pataki called me about this yesterday, I don’t think the taxpayers will miss a couple more of their dollars, we’ll just write a few more parking tickets and we’ll give a little less to mass transsit, the MTA can just push up their fares again. oh, Mike, thanks so much, you’re a great help. No, thank you Bruce … click.
Does this mean that all those properties that were going to be worthless once… now may not be?
The corporate welfare and abuse of eminent domain to benefit a private property owner are the aspects of the project I’m most opposed to.
10:38
Sorry, I do admit I didn’t read it.
All they have to do is have the state issue tax exempt bonds. Most stadiums are funded with such instruments.
If anything, demand for tax exempt bonds will only increase if there is a recession. Also, I wouldn’t say GS is getting cold feet based on that brief. They love municipal bonds.
Yes, i agree, this is just a bit of drama by Ratner to shake the opposition. Come on, it’s New York City, we don’t pay all those parking tickets and taxes for nothing! If the funding for this looks shakey then Bloomberg can just shuttle more of our tax money over into Ratner’s hands. God know’s he’s getting most of it already anyway. In fact maybe he can just give Ratner everyone’s homeowner tax rebat instead of paying them out.
THE NETS AREN’T MOVING!!! RATNER IS GOING TO GIVE UP HOPES OF MOVING AND SELL THE TEAM.
DON’T FEEL TOO BAD FOR HIM THOUGH. HE’LL STILL GET MISS BROOKLYN AND ALL OF HER WRETCHED DWARVES.
I agree with 9:38.
Legal documents are typically dramatic. I’m sure that Ratner et al are painting the worst-case scenario in hopes of accelerating the appeals process.
Good point, 10:38.
The arena is actually the part to which I’m most opposed, so this isn’t any big tragedy, far as I’m concerned.
Polemicist, according to the brief, FCRC is concerned with financing the arena portion of the plan not the residential(they’ve already secured financing for that). Why would an insurance company want to fund the construction of an arena?
The fact that the lead underwriter, Goldman Sachs aka The Kings of Wall Street is getting cold feet about the arena is telling.