You Pay and the Nets Will Play
Forest City Ratner is poised to get $2,157,260,000 in tax subsidies for Atlantic Yards, according to an article in this morning’s Post, but even that may not be enough dough from public coffers. In a conference call last week the firm’s president told investors that the mega-development will “still need more” subsidies. Michael D.D. White,…
Forest City Ratner is poised to get $2,157,260,000 in tax subsidies for Atlantic Yards, according to an article in this morning’s Post, but even that may not be enough dough from public coffers. In a conference call last week the firm’s president told investors that the mega-development will “still need more” subsidies. Michael D.D. White, a real estate attorney who has criticized how Atlantic Yards is being financed, came up with a subsidy tally for the newspaper (reprinted on the jump). “The setup is basically like paying taxes on your home and then having the government use that money to help you pay off your mortgage,” says White, who estimates that FCR will save $1 billion in tax payments that will go directly toward paying for the $950 million Nets arena. FCR spokesman Loren Riegelhaupt takes issue with White’s tally, saying no subsidies are set in stone aside from $305 million from the state and city for infrastructure and land-acquisition costs. Riegelhaupt also says that the entire project is supposed to bring in $1 billion in net tax revenues over its first 30 years.
Your ‘Net’ Loss [NY Post]
Ratner Feasts on Public Subsidies [Brownstoner]
Photo of Nets billboard on Atlantic by threecee.
12, 12:10, 12:13. i used the word “and” not “because”.
(sorry for my previous double post…)
Okay, let’s assume for a second that BrooklynLove is correct, and that all criticism of the project should be questioned skeptically. Doesn’t the same level of questioning also apply to the ESDC & Ratner? Their financial numbers have never been fully released. What is going to be the cost per unit of the project? Is this the most cost effective way to create affordable housing? We don’t know since there has never been an analysis by the state.
Also, we’re talking about the Post’s numbers. They are not an anti-AY advocacy group.
BrooklynLove’s statement that the analysis is incomplete because it “assumes that any development on this scale in this area could happen without a similar arrangement.” So are you saying that the point of the project is in order to build something big?
I thought the necessity of scale was to create benefits (profits for the developer and tax et ceter for the state). If these same benefits can be achieved with a smaller project, then wouldn’t that make the project more likely to be built? Why not have a project with the benefits that will actually be realized, instead of a project that has the same benefits and less of a chance of being built>
BrooklynLove’s statement that the analysis is incomplete because it “assumes that any development on this scale in this area could happen without a similar arrangement.” So are you saying that the point of the project is in order to build something big?
I thought the necessity of scale was to create benefits (profits for the developer and tax et ceter for the state). If these same benefits can be achieved with a smaller project, then wouldn’t that make the project more likely to be built? Why not have a project with the benefits that will actually be realized, instead of a project that has the same benefits and less of a chance of being built>
comparing the extell bid doesn’t work b/c it assumes all other aspects of the deal and development had extell gone forward would have been comparable to the current fcr deal.
your analysis re taxes is incomplete and assumes that any development on this scale in this area could happen without a similar arrangement.
this is the fundametal issue with all anti AY arguments. they’re couched as anti ED or anti financial incentives for ratner, but really what they’re about is anti development.
ok, then don’t use the appraisal. use the $150 million Extell bid.
the city was collecting a few million from the properties prior to Ratner coming along. once he gets an 11+ FAR from a complete zoning override by NY state and an arena, NO taxes will be paid. the taxes he should be paying will go to pay his mortgage.
something wrong with that analysis?
an appraisal from the seller is like a promise from OJ
bklove
the rail yards were appraised by the MTA appraisers at 214 million
Ratner bid 50 and eventually agreed to pay 100
hence the 114 million dollar difference. What is your dispute with that analysis?
bklove
the rail yards were appraised by the MTA appraisers at 214 million
Ratner bid 50 and eventually agreed to pay 100
hence the 114 million dollar difference. What is your dispute with that analysis?