AY Financial Projections: We Got 'Em

David writes:

“Metrotech is filled with quality private Cos such as Bear Sterns, Morgan Stanley, Chase, SIAC and others.”

And what exactly does this have to do with whether or not Downtown Brooklyn was enhanced by the decision to build Metrotech on demapped streets? Are you saying these companies would not be renting in Metrotech if the development had enhanced rather than diminished street life?

This is your constant strawman, David. You cannot grasp that those of us who oppose AY do not oppose development. We want good development. You seem completely oblivious to the difference.

If this project had been developed with appropriate community involvement, and in the context of comprehensive urban planning as to transit, traffic, schools, parks, etc., it could have gone forward with strong community support.

As I stated on another thread, I would be quite open to a sports arena if there were an absolute commitment to use every possible incentive and disincentive to make sure people didn’t arrive via cars, and generally to reduce traffic at that choke point. That would mean: no on-site parking, zoning to bar the development of parking garages in the vicinity, residential parking permits for the immediate neighborhoods, congestion pricing for cars in Manhattan’s business districts, and the elimination of free or low-cost parking for municipal employees.

It’s no good to say that stuff like this will be taken care of sometime in the future. That’s a lot like invading Iraq and acting like the post-invasion phase will somehow take care of itself.

Even though its smoke and mirrors, a little forensic accounting fills in some of the missing pieces.

According to the doc’s, Ratner will develop ~ 2 million sq ft of Condos. In the footnotes, it says that the net equity reflects $1,041 million of condominium construction loans @ 70% LTV. This works out to $743.5/sq ft for construction.

$1,041/.7 => $1,487. $1,487 million contruction costs/2 million ft sq =>> $743.5/sq ft.

That seems like a high figure for construction costs. How much are the planing on selling these? @ $750/sq ft cost and a 20% profit margin, thats $900/sq ft.

On a separate note, the city stands to reap a financial windfall. 2 million sq ft of property priced at $900/sq ft is approx $1.8 billion of taxable property via property sales tax, transfer fees, recording fees, etc.

Ratner promised that MetroTech would employ the residents of the Fort Greene houses, which until recently had an unemployment rate of 70%. There are some decent companies at MetroTech, but it has not been the source of Brooklyn’s renaissance. Walking around Brooklyn, it seems obvious to me that the real entrepreneurial heroes are the residents of Brooklyn who made the economy boom room by room, store by store. It is the same people who have created this boom who know that the newest Ratner proposal is not in keeping with what has made Brooklyn successful.

In my opinion, it’s a stretch to say the MetroTech is successful, but it’s impossible to say that it lived up to its promises.

. . . . .

When you buy anything, you want to know what you’re paying for, and what you’re getting. These financial projections show that after three years, we still don’t know what the costs are, and what the final project will look like.

Some people may not like Ratner’s opponents, but that doesn’t mean that Ratner’s supporters are any more credible. How can the disinterested New Yorker support this project when the details are so sketchy?

Shahn nice ‘bait and switch’ reply – whatever the value of the documents provided – we both know that the 500M investment shown would have to represent real cash (not loans or subsidies) otherwise the return would be infinitely higher than the 9% shown and no false attribution to Bloomberg is going to it ischange that.

As for Broken Angel, as far as I’m concerned you should take advantage of any tax benefits your entitled, but your argument that the properties will be paying far more in taxes after construction then now is somewhat hypocritical of you considering the same argument could be made in favor of virtually all 421-a developments as well as AY.
Finally considering that you say the site of your future condos was a 9 family building the fact that YOU dont have to displace anyone to build is also sort of meaningless because one way or another, because obviously someone previously cleared out the building.