Docs: Low Disclosure Req'd From Ratner For ED Seizure
Bruce Ratner would only be required to show his financing plan for the Atlantic Yards arena, not its office and residential towers, for the state to seize property and leases spread across the project’s 22-acre footprint. According to the recently released AY funding agreement, “Prior to, or simultaneously with, [Empire State Development Corporation] acquiring title…
Bruce Ratner would only be required to show his financing plan for the Atlantic Yards arena, not its office and residential towers, for the state to seize property and leases spread across the project’s 22-acre footprint. According to the recently released AY funding agreement, “Prior to, or simultaneously with, [Empire State Development Corporation] acquiring title to any portion of the Project Site by condemnation, Developer or its Affiliates shall (i) provide a financing plan, subject to the reasonable approval of ESDC, for the financing of the Arena, and (ii) cause the closing to occur under the acquisition contract for the LIRR Vanderbilt Yard.” Most of the property the state plans to seize is not in the arena footprint, and the promise of 2,250 units of affordable housing was a central argument in justifying the use of eminent domain. Forest City Ratner spokesman Loren Riegelhaupt pointed out that prior to the state approving Atlantic Yards, “We have provided a complete financing plan for the entire project … which outlines in detail all the components of the plan.” That plan, dated late 2006, expected the residential and commercial towers to be largely financed by affordable housing bonds and mortgages. ESDC spokesman Warner Johnston said in an email exchange, “The residential piece is the most important component and we are working with the developer to ensure that it is delivered.”
Lead Atlantic Yards opponent Daniel Goldstein was momentarily speechless last night when read the terms for seizing his condo, which is located in the center court of the planned arena. “This idea that they’re going to condemn 22 acres when the only thing they can assure is an arena, it’s an abomination… it’s crazy, it’s unethical.” Goldstein contends that “the state needs to assure that there are financing agreements for the affordable housing before they proceed with condemnation.” In a recent interview with The New York Times, Ratner indicated he intends to finish the entire project, but said his inability to find Miss Brooklyn an anchor office tenant and the tightened bond market could delay everything but the arena for years. He’s made more headway in financing the arena, now tagged at nearly $1 billion: Barclays Bank agreed to pay $400 million for its naming rights, less than two-thirds the total expected from sponsorship deals according to the 2006 financial plan. Luxury suite and loge box revenue would bring in even more, staring at $38 million a year and steadily increasing.
AY Funding Agreement: This Could Take Forever [Brownstoner]
540G will get you a ritzy suite in new Brooklyn Nets arena [Daily News]
Slow Economy Likely to Stall Atlantic Yards [New York Times]
State Never Saw Business Plan For Atlantic Yards Project [NY Sun]
Entire Atlantic Yards funding agreement (37 parts) [Empire State Development Corporation]
Photo by threecee.
Yes, Johnny, there are limits to freedom. Just ask anyone who owns a rent-stabilized building – they cannot charge the rents they want to. Also ask anyone owning a home in a landmark district – they cannot make alterations to the facades of their own property outside of strict guidelines. So much for freedom…
I have to say reading what some of you wrote makes me smile. AY will be built Ratner just recieved financing for 8 Spruce Street aka Ghery’s Beekman Tower. The Stadium will come first; followed by the commercial/residential development. The only thing the selfish ass junkies as DDDB did was delay the project a little. I guess the credit crunch isnt working out to the way these socialists imagined it would. Go to Cuba and sing about freedom. You’ll be thrown into a prison and get your ass waxed by pedro.
You don’t live in the “most free country in the world”? You can’t even fly to Cuba. I can’t believe you swallow that line.
We live in the most free country in the world and yet I can have my phone tapped without a warrant and now apparently I can have my home seized if someone wants to build a stadium for their sports team.
What’s that line about vigilance being the price we pay for freedom? Guess we fell asleep at the wheel.
1:39
Condemnation law in New York State is quite specific – market value is decided based upon the zoning at the time of the taking.
11:09
Are you trying to say that real estate development inherently results in higher prices?
11:54
The proper forum for this issue is in the State Capital building in Albany. That debate is now over.
If it comes to a point where we can no longer trust our system of government to reflect the ethics of the people, the only solution is rebellion.
Really, is this very minor issue something you believe revolutionaries will rally around? I know, reading this site and listening to that nut goldstein can make it sound like this is a popular issue – but I assure it is not.
Advocating armed insurrection is treason and is a crime. You live in the most free country in the world. Show some respect, and try to maintain a level head in these turbulent times!
1:02
For many properties, FCR did pay above market. The condemned properties will be purchased at a market value, based on the prior zoning, as decided in court.
1:05
Not really. The reasons for removing the street grid have more to do with the engineering challenges of building over the train yard than creating a tower in the park style development.
Slick,
You are wrong. One could maybe argue that Ratner overpaid relative to current zoning, but since the State is determined to allow him to build at several times what the current zoning allows, he’s actually getting a bargain. Not to mention one that benefits from the threat of eminent domain.
“Part of the reason the AY project is being pushed forward is to bring Brooklyn into the modern era and prove that high density develop works just as well here as anywhere else” –
Isn’t this kind of development – high rises with demapped streets and windswept open spaces completely discredited. It is an artifact of the ’70’s. Even at ground zero they are restoring the streets that were taken away when the project was built. What about Jane Jacob’s and her ideas? I think you are the one whose ideas are dated.
I could be wrong but didnt he pay over market rate to everyone in AY’s path?
The money he paid would buy a compound in W. Virginia for all these anti-govt nuts to plan for their revolution.