AY Financial Projections: We Got 'Em
Well, it looks like the ESDC has in fact coughed up the financial projections for the Atlantic Yards project. We haven’t had time to go through them too closely, but at first glance they do not paint as profitable a picture as many opponents suspect, generating a mediocre IRR of 9.6 percent. The biggest thing…
Well, it looks like the ESDC has in fact coughed up the financial projections for the Atlantic Yards project. We haven’t had time to go through them too closely, but at first glance they do not paint as profitable a picture as many opponents suspect, generating a mediocre IRR of 9.6 percent. The biggest thing that jumps out at us is that they show that FRC is planning to sell off most of the pieces of the project in 2015. Either that, or they just needed to estimate a terminal value and that seemed as good a year as any. We’re sure others far more qualified to analyze this stuff will be able to offer more insightful analysis. We’ve provided links to the three documents below. Have fun.
1) AY Cash Flows Returns
2) Combined IRR
3) Nets Arena Cash Flows
Earlier coverage and discussion:
ESDC Forced to Cough Up Financial Docs on AY [Brownstoner]
And Norman Oder’s response…
ESDC-released Documents Lack Vital Information [AY Report]
Photo by threecee
I think what galls many people most about this project is the use of eminent domain. In July 05, the Supreme court voted to expand the use of eminent domain to the right to seize property not just for roads, bridges, other infrastructure or public institutions etc but for commercial use as well. Sandra Day O’Connor was a dissenter saying that this could lead to an abuse of government power, giving more power to already powerful, rich interests over the middle-class. I really think so too. It really means that any one of our homes is fair game to be appropriated by anyone that our elected officials deem to have a better money generating scheme than our living in that house. If it is constitutional to do so, then we better damn well have political power to resist it. The reality of the matter is that the power and money is so skewed, so disproportionate that the game is stacked. Whatever anyone thinks about the architecture and the projects effect on Brooklyn and whether they will enjoy the arena, I really think the use of eminent domain in this way outrages people in a profound and visceral way. That you can be forced to sell your home against your will so that a commercial enterprise can make money — it is natural that people are howling. What Judith Egan said in her article in the NY Times on Saturday was interesting. There was no major corporate entity which opposed the project – there was no entity equal in power to the Ratner organization to provide equal pushback. It’s an amazing story really and this process was an abuse — it happened in New London a year and a half ago and it can keep happening.
Why is the mole so interested in Shahn’s tax Abatement? I’m interested now.
Shahn come clean did you secretly use “eminent domain” in order to “steal” oops I meant “seize” double oops, I meant “take” the building from the previous owner?
As for the choking of traffic – meaning car traffic – isn’t it clear to everybody that cars are not the way to go in New York? If you want to get where you are going – take public transport, the rest is just… NJ or LA
Shahn – I grant you you cant tell much from these 3 pages but your dismissal of 500M investment (your interpretation) is amusing – that is far from NYC,MTA,and NYS putting up all the $.
Again I must ask are you going to be getting 421a tax abatements at your Broken Angel project??
You can’t have it both ways guys – either 9% is small change or somebody is robbing the bank – but not both. So which is it?
I certainly think that a 9% return (all in) is nothing to sneeze at – beats stock markets for sure and is probably less volatile, especially on such a huge amount
I support using my tax dollars for this project. I hate the way the area looks now. It will be a pain while it lasts, but so was the Time Warner Center at Columbus circle. The whole mentality of “not in my backyard” is not suited for city living – especially NYC. Yes, please – everything in my backyard, that is why I live here and not in North Dakota.
What is seriously lacking is public good. A small amount of subsidized housing (for people with low incomes that is) , a few low wage jobs, balanced against the damage in terms of pollution, choking traffic, and squandering of city money. It is a choice no one would make unless the person proposing the deal was buying your support in some way. This is what happened with this project. If you want a good alternative, look at the Extell plan which has more community benefits, more subsidized housing and paid the MTA far more for the Vanderbilt Yards. So please don’t say this is for the public good.
4:56
1-Is Ratner building new public housing projects for the city or skyscrapers with some affordable units?
2- What is considered affordable in 2021?
There are undoubtedly 50 pages of backup numbers that add up to the totals on these summary pages, without which its really impossible to tell what’s going on.
“Anyone who states that there will be no affordable housing, or even that there will be one less than promised is just trying to distort the debate for their own selfish purposes. Believe me, I’d take the word of ACORN, Markowitz, DeBlasio and countless other long time advocates of affordable housing and tenants rights over Norm Oder and Goldstein et. al. any day of the week.”
What a joke you’ll be marching and singing with picket signs in 15 years. Accorn may even be phased out who knows… and the people you mention wont even be around to honor a documnet written in 2006. They’ll all be retired in thier plush homes by the time this thing is finally done in 2021.
Keep watching you’ll see more surprise.