MTA Ignores Fiduciary Duty, Approves Revised Yards Plan
If you read the Atlantic Yards Report’s account of yesterday’s MTA hearing that resulted in a 10-2 vote approving the sale of the Atlantic Yards to Forest City Ratner at a drastically reduced price (in both present and expected value terms), it’s hard not to come to the conclusion that either (a) the people that…
If you read the Atlantic Yards Report’s account of yesterday’s MTA hearing that resulted in a 10-2 vote approving the sale of the Atlantic Yards to Forest City Ratner at a drastically reduced price (in both present and expected value terms), it’s hard not to come to the conclusion that either (a) the people that sit on the MTA Board ain’t too bright or (b) the fix was most certainly in. Or (c) both. The heart of the MTA’s fallacious position was encapsulated by board member Jeff Kay’s defense of the new pricing structure: The market is what the market is, declared board member Jeff Kay.” Um, except that the board rejected a higher price from Extell back in 2005 and has refused to either get a current independent appraisal or solicit new offers to find out what the market price really is. (In fact, at yesterday’s hearing Daniel Goldstein made an offer on behalf of DDDB of $120 million for the property over 12 years—the details of the offer are posted here.) The board ignored Assemblyman Jim Brennan who tried to remind the MTA that it is legally bound not to squander its assets; he also pointed out that the Public Authorities Accountability Act requires an independent appraisal. Council Member Letitia James pointed out the irony that taxpayers bailed out the MTA and now the MTA is bailing out a private developer, adding How can you sell off a valuable public asset without considering market value? Goldstein also said that it’s likely his group will sue the MTA for its actions. Anyway, there’s no point in rehashing the entire play-by-play here. Go read the Atlantic Yards Report’s detailed account and watch the video above.
MTA Approves Deal 10-2 Despite Warnings [AY Report]
Atlantic Yards Project Enters a Crucial Period [NY Times]
Bailout! State Cuts New Deal to Save Stalled Yards [NY Post]
MTA Signs Off on Sweet Atlantic Yards Deal [NY Daily News]
MTA Approves New Deal for Atlantic Yards [WNYC]
THERE IS NO MARKET VALUE OF THE SITE NOW. NO ONE CAN FINANCE DEVELOPMENT THERE BUT FCRC. THEY WOULD RECEIVE NO PLAUSIBLE BIDS READY TO CLOSE FROM ANYONE. LARGE SCALE DEVELOPMENT MARKET IN BK IS DEAD DYING DEATH DEAD DYING
We would only need a small fraction of Brooklynites. It’s the 4th biggest city in the country! How do you think the gov’t bankrolls public works, by selling bonds to the public. Each person could sign a contract for a reasonable amount of interest/dividends associated with an equivelent in paper.
“Brooklynites ban together”
joe? ha ha ha ha ha- because we’re Brooklynites! I think your typo was probably closer to the reality than band together is. 🙂
Why don’t Brooklynites ban together to make an offer for the yards?
The MTA is an authority. Semi-public/semi-private. When you have a state as corrupt as New York, these fascistic (Mussolini referred to Fascism as Estato Corporativo (The Corporate State or combining of Gov and Corp.) authorities have the equivelent of diplomatic immunity when it comes to legal/financial consquences. Despicable.
ITM:
i would be on the same page as you if they paid Fair Market Vaue the first time around. they are getting 22 acres. thats 1,000,000 square feet(give or take). At 100,000,000 they were paying $10 per square foot.
If you want to take that tack that the $100,000,000 is just for the yards, that 8 acres or 350,000 square feet.
that works out to $30/square foot.
if they put out an RFP that said, build us a contemporary railyard and keep 350,000 square feet to develop as you see fit i bet goldstein et al could come up with $30/square foot. i might even buy in.
and if the 100,000,000 is just for the railyards, how much is he paying for pacific and dean street? i havent seen that anywhere.
what this is is a blatant siphoning off of public assets to connected private companies/individuals/interests. the only reason they havent really started is this pesky thing called the internet. 20 years ago how much outcry would this have gotten. its a perfect storm approaching i tell ya.
It’s a state agency, Rob. Board members are appointed by the Governor.
rob- the MTA is not privately owned. Wherever did you get that idea? I think you owe ontheparkway an apology for that one. NYS owns it.
ontheparkway- so ya think we scared them off yesterday? 🙂
cuz the MTA is privately owned you dolt
*rob*