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]
Each member of the board of the MTA needs to be investigated for corruption and fraud. This investigation needs to be done in the light of day by a special independent office. There cannot be a state agency ran by people who embezzle money and has been PROVEN keeps two sets of books. The semi-public/semi-private immunity all NYS authorities share have to be abolished in order for these groups adhere to the rule of law.
rob, our system SUCKS compared to other of comparable size…Tokyo being the best example. There are few comparable in size to NYC and Tohyo but nonetheless, MOST systems are btter than in NYC.
As far as expense, the Tokyo sysytem is “pay per length of trip” It starts out around $1.25 for a trip that would be comparable to matbe 30 blocke here. Of course that would never fly here because of all the left wing liberals.
The Atlantic Yards deal stunk before, now it positively reeks!! Who dares to defend it? I would like to see Ratner’s apologists figure out a way to blame THIS on DDD. There isn’t even a pretense of fooling the public at this point.
DIBS:
You are being much more direct than me. It just adds to the smell.
I have been in 555 Madison Avenue countless times. Anyone controlling Real Estate in that neck of the woods is flat out lying if they claim that you should sell for what you can right now. And maybe take pennies on the dollar for the property like he is accused of trying to force his relatives to do in what looks to be an orchestrated capital call.
Would he sell his property for 25 cents on the dollar? Hell no, he’d plow through anyone and anything that kept him from his almighty dollar. But when it comes to serving a public board…not quite the same math.
The next one i hope to have some time to noodle…
Board Member Doreen M. Frasca made some interesting comments on 30 years of structuring deals like this.
How many do you think went this way?
And, of course, with no more “affordable housing” component…which was iffy at best.
Wonder what Acorn (the minority housing alliance that was a rah-rah cheerleader of this project) would say now? Would they still have to adhere to their contractual “no-badmouthing” Ratner clause?
here is what i find funny. people do nothing but bi+ch and moan about the MTA and our subway system. yet our system is GREAT! and it’s relatively inexpensive. (can you believe *im* saying that?!). maybe we should just get rid of the whole system and let all the freaks bike to work, see how that works.
*rob*
who does Ratner think will buy these bonds? there’s still a considerable chance this thing will fall apart I think.
WOW, bkn4life, he really is some scumbag. That article also says his chairmanship of the MTA was to end last week. WTF???
MTA BOARD CHAIRMAN : Hemmerdinger
From AYR:
“I’ve been in the real estate business a whole long time and I agree with Doreen no deal is ever perfect,†Hemmerdinger said.
“You get what you can when you can. And I think, in this economy, jobs and an arena in Brooklyn is a public good.â€
From CRAINS:
http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20090601/FREE/906019946/1058
Looks like he gets what he can when he can. If he does that to family, what can Brooklyn expect?
And, since when are jobs a public good?