July 2, 2009
Ratner promises Atlantic Yards arena redesign
The Forest City Ratner chief said the Atlantic Yards basketball arena renderings leaked to the media last month were premature and do not reflect his intentions for the project.
Crain's NY Business
by Erik Engquist
Promises, promises.
So, Bruce, you'd have us believe that you spent a bunch of money to produce several renderings to submit to the Department of City Planning (whose commissioner, Amanda Burden, leaked them to the press) that do not reflect your "intentions for the project?" Uh, wha?
Bruce Ratner, chief executive of Forest City Ratner, has told senior members of the Bloomberg administration that the Atlantic Yards basketball arena renderings leaked to the media last month were premature and do not reflect his intentions for the project, city sources say. While Mr. Ratner is said to have reaffirmed his commitment to a "world-class" design, he faces the challenge of improving it without substantially raising the cost.
Frank Gehry had designed a $1 billion arena that impressed architecture critics but proved unaffordable when the economy tanked and credit markets froze. Missouri-based architectural firm Ellerbe Becket was brought in and proposed a $772 million arena that resembled an airplane hangar. To say that the design did not meet the expectations of Amanda Burden, chairwoman of the City Planning Commission, would be a vast understatement.
"One of the key goals of the Atlantic Yards project was to transform an area with development that incorporates world-class architecture, a dynamic streetscape, and significant public amenities," she said in a statement issued by her spokeswoman. "Bruce Ratner has given the city a commitment that he will design the Atlantic Yards in a way that respects both the letter and the spirit of what was envisaged in 2006, when the project received its original approval."
NoLandGrab: Bruce Ratner has twisted the truth about Atlantic Yards so often that it has now become habitual. And Amanda Burden really needs to come out in public and say what she supposedly says in private: that Atlantic Yards was a bad idea that has only gotten worse.
Posted by eric at July 2, 2009 3:34 PM | Permalink
Ultimate Standings 2009
ESPN The Magazine
by Morty Ain
Congratulations, Bruce Ratner! You're the second worst owner in professional sports! (and the worst owner is bankrupt and is trying to sell his team to a guy who plans to move it out of the country!)
But don't worry, even with all that, you stand alone in last place when it comes to "Community Commitment."
Welcome to ESPN The Magazine's seventh annual Ultimate Standings, in which we measure how much MLB, NBA, NFL and NHL franchises give back to the fans in exchange for all the time, money and emotion the fans invest in them.
...Developer Bruce Ratner is starting to resemble that college friend who just wasn't ready to move on after graduation. Hey, Jersey, we're hitting snafus with that planned move to Brooklyn, so, ummm, ya mind if I crash here a while longer? "I'd like to say we have the most hated owner in sports, but of course that's not possible," says Mike from Joenetsfan.com, "because a) Al Davis is still around, and b) Nets fans can't work up enough contempt to get stoic, let alone angry."
See the complete, sortable rankings
More coverage...
Nets Daily, Ratner Ranked Second Worst Owner in Sports
Only the bankrupt owners of the NHL’s Phoenix Coyotes are ranked lower than Bruce Ratner in ESPN’s listings of all 122 professional sports teams. The Nets also sit 111th–third from the bottom in the NBA–overall. The “stadium experience” at the IZOD comes in 119th.
Posted by eric at July 2, 2009 10:32 AM | Permalink
Atlantic Yards, 2010: the push for a second round of stimulus funds (I speculate)
Atlantic Yards Report
Watchdog reporter Norman Oder is getting the sneaking suspicion that Atlantic Yards developer Bruce Ratner is still after federal stimulus dollars:
Despite the statement by ESDC CEO Marisa Lago at a May 29 state Senate hearing that no federal stimulus funds had been sought for Atlantic Yards, the developer is still actively lobbying in Washington.
In 2006 and 2007, Forest City Ratner paid $200,000 a year to former Senator Alfonse D'Amato's firm, Park Strategies, to fight against restrictions on the use of eminent domain, as the Observer reported.
In 2008, FCR paid D'Amato only $80,000. This year, FCR is on pace to pay D'Amato double that sum, $160,000, at least based on the first quarterly filing.
And, as the Observer reported, the target is stimulus funds. If a new round of federal funds becomes available next year--and the Obama administration is keeping an open mind--Forest City Ratner might be arguing that the public should help with the infrastructure it promised.
Posted by lumi at July 2, 2009 6:59 AM | Permalink
Dean & Carlton
This photo taken at Dean St. and Carlton Ave. was uploaded yesterday by photographer Tracy Collins to the Atlantic Yards Photo Pool on flickr.
According to Tracy:
If Atlantic Yards were built as planned, this shot would include 3 skyscrapers.
Posted by lumi at July 2, 2009 6:53 AM | Permalink
The Times low-balls the total subsidies and tax breaks for Atlantic Yards
Atlantic Yards Report
The NY Times head real estate reporter Charles V. Bagli totally lowballed the amount of public subsidies for Bruce Ratner's subsidy-sucking Atlantic Yards megaproject. In his article yesterday he had it at $300M. Imagine his surprise when he finds out that the direct cash subsidy is already at $305M, and that's ignoring an ever-growing list of tax breaks, affordable-housing subsidies, brownfield clean-up funds, and the naming rights contract for the "publicly owned arena."
The real figure is one of the great mysteries of Atlantic Yards and is predicted to be headed towards the billions.
Norman Oder thinks that Bagli and the Times can do better:
I know the $300 million was not the focus of the article. Still, such a sloppy estimate reinforces my argument that the Times should consistently disclose its parent company's business relationship with Forest City Ratner.
Such disclosure should--though I can't say it does--prompt reporters and editors to be more exacting in their coverage.
Posted by lumi at July 2, 2009 6:47 AM | Permalink
Behind the state Senate turmoil: the real estate industry (with an AY angle)
Atlantic Yards Report
In an article headlined Senate Coup Plotters' Hidden Agenda: Tabloids call it a circus, but the lobbyists' goal is to squelch reforms, the Village Voice's Tom Robbins connects the state Senate's dysfunctions not to no-good legislators but to the real estate industry's desire to stymie long-awaited reforms in the city's rent regulations.
Also jeopardized are efforts at campaign finance reform and gun control. And, yes, a further look at Atlantic Yards.
In a nutshell, under Democratic control, local State Senators have held one public hearing on Atlantic Yards. If the Republicans have their way, there's little hope that State legislators would lift a finger to find out more about Bruce Ratner's highly subsidized megaproject.
Posted by lumi at July 2, 2009 6:41 AM | Permalink
Ratner and Brooklyn: Eminent domain and tax-exempt status
Field of Schemes
New Jersey Nets owner Bruce Ratner's quest to build a vanilla, big-box style arena in Brooklyn just got a bit more complicated, with New York's top court allowing a challenge of his desired use of eminent domain for this project to move forward.
...
The clock is ticking on Ratner, as he needs to get all his financial ducks in a row and get a ceremonial shovel in the ground by December 31 to be eligible for tax-exempt status.With estimated arena costs at $772 million and capital tough to come by as the economy lurches along, not achieving tax-exempt status could torpedo the project. To hold opponents at bay, perhaps he could threaten local opponents with a decision to bring back the quirky architecture of Frank Gehry if they refuse to back down.
Sports Business Daily, http://www.sportsbusinessdaily.com/index.cfm?fuseaction=sbd.preview&articleID=131436 (subscription only)
Posted by lumi at July 2, 2009 6:35 AM | Permalink
July 1, 2009
State’s highest court sees some ‘appeal’ in Yards eminent domain case
The Brooklyn Paper
by Mike McLaughlin
In a twist that could be disastrous for Bruce Ratner, New York’s highest court surprised many and agreed to hear an appeal that the state has illegally used its power of eminent domain to spearhead the embattled $4.9-billion Atlantic Yards project.
Previous eminent domain cases have gone well for Ratner, but even if he wins another court battle — this time in the Court of Appeals — he could still lose hundreds of millions of dollars in possible construction and financing delays stemming from another round of litigation.
To qualify for tax-exempt financing that could save him millions, Ratner must begin construction by Dec. 31 on the Barclays Center, now a $772-million basketball arena no longer designed by Frank Gehry. Also on the line is the British bank’s agreement to pay $400 million to have its name on the Nets’ now-generic future home court, another deal that turns into a pumpkin at the end of this year.
Posted by eric at July 1, 2009 10:01 AM | Permalink
Right of way: ESDC letter warns AY footprint tenants/owners that relocation consultant will be knocking on the door
Atlantic Yards Report
Just as the New York State Court of Appeals announced that it would hear the Atlantic Yards eminent domain case, the Empire State Development Corporation was getting ready to unleash its friendly "relocation consultants" on residents of the project footprint.
Tenants and property owners in the Atlantic Yards footprint have received letters from the law firm Berger & Webb, which represents the Empire State Development Corporation (ESDC) in its pursuit of eminent domain, telling them it'll be time to move soon.
One complication: the letter offers only services of a real estate agent and a modest $5000 stipend for residential services, not mentioning the offer by Forest City Ratner--which was part of the General Project Plan (GPP) and Modified General Project Plan--to those in residence for at least one year to "return and to rent a comparable unit within the Project Site at a comparable rate to what they are currently paying."
The absence of an offer to relocate tenants into the project--as state law recommends but does not ensure--prompted a protest by George Locker, who represents eight rent-stabilized residential tenants in the project footprint and has filed a number of lawsuits on their behalf.
...But Empire State Development Corporation spokesman Warner Johnston said, "The letter is just intended to alert occupants that representatives of The Cornerstone Group, our relocation consultant, will be in the neighborhood and contacting them soon, and it includes the basic parameters of the relocation assistance that ESDC is providing (essentially verbatim from the General Project Plan), such as referrals to alternative housing, provision of moving services, etc. The General Project Plan also references some additional assistance that FCRC has been and will continue to provide for residential tenants, such as relocating residents back on the Project Site as soon as feasible (if that's what residents desire) and providing interim rent subsidies. The referrals to alternative housing to be provided by Cornerstone (mentioned in the letters of introduction) will include coordination with FCRC as necessary with respect to this assistance."
NoLandGrab: Cornerstone is a member of the International Right of Way Association, which is fitting, since Bruce Ratner appears to believe he has a right to push property owners and tenants out of his way.
Posted by eric at July 1, 2009 9:37 AM | Permalink
Is Ratner’s goose cooked?
Not another f*cking blog
 |
Miraculously, New York State’s highest court, the Court of Appeals, has accepted an appeal of the Atlantic Yards eminent domain case! This case had been dismissed by a lower court in May of this year. The earliest the appeal would be heard by the court is mid October, and their decision would follow 6 or 8 weeks later, sometime around Thanksgiving. What this means for the developer, Forest City Ratner (FCR), is their goose (aka Atlantic Yards) is that much closer to the oven, and just in time for the holidays!
...So, after the Empire State Development Corporation (ESDC) and the Metropolitan Transportation Authority (MTA) brazenly forked over more of our money to FCR just last week to keep the zombie proposal stumbling forward, the Court of Appeals may end up being the stake through the heart that kills this zombie once and for all.
NoLandGrab: Stake through the heart? That's no way to kill a zombie. Only way to kill a zombie is to destroy the brain.
Posted by eric at July 1, 2009 9:14 AM | Permalink
Six Charged with Vending Violations in Sting (Also: Screw Your Bidding System)
Fork in the Road, [Village Voice blog]
by Sarah DiGregorio
Bruce Ratner merits a dishonorable mention in this piece on street-food vendors.
New York's street vending has been pushed into its current state of chaos and disrepair by unchecked bureaucracy--vendors are regulated by as many as seven city agencies--and unreasonably low permit limits, which were set in 1979 by then Commissioner of Consumer Affairs Bruce Ratner, always a friend to the common man.
Posted by eric at July 1, 2009 9:09 AM | Permalink
Atlantic Yards project faces roadblock from New York State Court of Appeals
NY Daily News
by Erin Durkin
More on this week's Atlantic Yards legal news.
The New York State Court of Appeals agreed to hear an appeal by nine plaintiffs who sued to prevent the government from taking their homes and businesses under eminent domain to make way for developer Bruce Ratner's long-delayed Nets arena and 16 residential and commercial towers.
When a lower court ruled in his favor, Ratner told the Daily News it was the "last hurdle" to the project and vowed to break ground in September. The latest court action will likely push that date back.
"You can't start building until you own the land and demolish the buildings," said Daniel Goldstein, whose Pacific St. home sits in the middle of the site of the planned arena. "It's just not possible for that to happen in '09 with this ruling."
Additional coverage...
New York Law Journal, Newsbriefs: Judges to Hear Challenge To Atlantic Yards Project
Yonkers Tribune, Atlantic Yards Eminent Domain Case Going to New York's High Court
Metro NY, Atlantic Yards' new hurdle
Posted by eric at July 1, 2009 8:40 AM | Permalink
June 30, 2009
State’s Top Court Will Hear Appeal Against Atlantic Yards
The New York Times
by Charles V. Bagli
New York’s highest court has agreed to hear a case challenging the state’s use of eminent domain on behalf of the Atlantic Yards project in Brooklyn.
The decision by the top court, the Court of Appeals, to hear arguments in October came as something of a surprise to the project’s developer, Bruce C. Ratner, who had expected a clear path after a lower court rejected the case in a unanimous decision in May.
And not a pleasant surprise, for sure. We wish we could've been there when Bruce got the news.
The Court of Appeals’ involvement, announced on Monday, is the latest hurdle to Mr. Ratner’s plans to build a $772 million basketball arena, the centerpiece of the project. The developer and his bankers intend to sell about $650 million in bonds for the arena in late September.
That $650 million figure is up some 10% from estimates just last week. One wonders, why the increase?
Mr. Ratner must finance the project and begin construction by Dec. 31 to qualify for tax-exempt status, which would save him millions of dollars in borrowing costs. Most analysts say it is unlikely that conventional bonds would sell in the current market.
“I certainly don’t envy anyone who has to raise capital in the current environment,” said Robert White of Real Capital Analytics, a research firm.
Posted by eric at June 30, 2009 11:35 PM | Permalink
It came from the Blogosphere...
Joshing Politics, M.T.A. And Ratner's Deal Breaks The Law
The M.T.A. has no problem raising the fare for straphangers in their attempt to make ends meet. Yet when it comes to the rich and powerful, they have no problem making deals with people like Bruce Ratner in his attempt to build part of his Atlantic Yards site. The only problem though with saving Ratner some money is that the M.T.A. violated the law in doing so.
Brennan said the likelihood that the arena project was a boondoggle was substantial, since the New York City Independent Budget Office (IBO) has already testified at a hearing of the State Senate Corporations Committee on May 29^th that a preliminary updated review of the costs and benefits of the arena showed that city and state outlays for the project would exceed positive tax revenues from the project even over a 30-year period.
I would say there is more than a substantial likelihood that this is a boondoggle, because it is definitely a boondoggle. Assemblyman Brennan knows that and so does everyone else in Brooklyn, including the principals who are orchestrating this deal. Forest City Ratner may think their legal troubles are over, but they've got another thing coming.
Gideon's Trumpet, Too Many Sports Arenas
From time to time, we have blogged about the problems of municipal waste of taxpayers’ money which cities have been squandering in their efforts to attract and support sports arenas. It appears that now the predictable is happening. Charles V. Bagli, As Arenas Sprout, a Scramble to Keep Them Filled, N.Y. Times, June 29, 2009, reports that there are just plumb too many arenas, even for a big market like New York...
...And in Brooklyn, Forest City Ratner is rushing the start of construction of yet another sports facility, an arena for the Nets, which, if successful, will add another sports arena to the glut.
...Moreover, this problem is not confined to New York. Bagli reports that similar difficulties are unfolding in New Jersey, Arizona, Minnesota, and Ohio. And given that the current recession is not disappearing, it looks like these folks are in for — shall we say? — interesting days. And so are the taxpayers who, lest you forget, are subsidizing this whole shebang with your tax dollars.
inversecondemnation.com, Tuesday Round-Up
The New York Court of Appeals (that state's highest court) will be hearing arguments in the Atlantic Yards cases.
structureHUB, Hotlanta: tons of towers, most of them ugly and with little prospect for a makeover
As desperate as Atlanta is for some architectural eye-candy, it is simple unnecessary to go to the most extravagant lengths to build some. Then again, my point is made harder to make in light of the ridiculous situation of the Atlantic Yards development in Brooklyn. There, Forest City Ratner also assumed that architectural beauty is an all-or-nothing game. No Frank Gehry? Okay, lets put up a beastly warehouse “arena” that will suck away the potential for neighborhood redevelopment faster than you can say Metrodome.
Posted by eric at June 30, 2009 10:59 PM | Permalink
HEADLINES: Not-so-frivolous eminent domain lawsuit (late) edition
Brooklyn Daily Eagle, Atlantic Yards Likely Delayed Until Winter
The Eagle's Ryan Thompson has an excellent wrap-up of today's legal news, and its implications.
The state’s highest court will consider the constitutionality of Atlantic Yards, and regardless of what it decides, the multibillion dollar project will likely be delayed until winter.
Arguments are scheduled for October, and a decision from the court is expected to be issued in November or December, meaning that resolution of the eminent domain issues and transferring of title likely won’t happen until the winter, if not next year.
Developer Bruce Ratner, facing financial deadlines, had vowed to break ground on the Barclays Center basketball arena in the fall. That now appears impossible, according to the court’s scheduling of the case.
...“We are gratified that the state’s high court will hear this important case about whether our state’s constitution protects the homes of its citizens from the wrecking ball of greed wielded by influential developers and the public officials who do their bidding,” [plaintiffs' attorney Matthew] Brinckerhoff said. “This case provides an opportunity for the New York Court of Appeals to continue its proud tradition of interpreting this state’s constitution in a manner that affords more protection to individual rights and liberties. We look forward to the argument in October."
NY Post, STATE'S HIGHEST COURT TO HEAR ATLANTIC YARDS CASE
In a stunning move, the state's highest court has agreed to hear a legal challenge over the use of eminent domain to seize private land for Brooklyn's controversial Atlantic Yards project.
..."It is a great day for New Yorkers concerned about abuses of power," Develop Don't Destroy Brooklyn spokesman Daniel Goldstein said. "We will vigorously continue to defend our rights. But New York State and Mr. Ratner have a choice: they could avoid our legal challenge by finally taking eminent domain off the table."
Crain's NY Business, Atlantic Yards faces fresh obstacle
Just when it seemed that Forest City Ratner Cos. was overcoming all the obstacles blocking its controversial plan to develop Atlantic Yards, another potentially serious hurdle has emerged.
What Crain's means is "just one day after we wrote a silly whopper of an editorial supporting Atlantic Yards, another potentially serious hurdle has emerged."
WNYC Radio, Court of Appeals to Hear Atlantic Yards Case
By agreeing to hear the case, plaintiffs say, the court has already decided there's a constitutional issue worth settling. They also contend that the appeal will put Ratner dangerously close to a December 31st IRS deadline for issuing tax-exempt bonds. If it takes longer than that to sort out legal questions, Ratner would have to resort to conventional bonds, which would cost hundreds of millions of dollars more in interest payments. Last year, the court of appeals did decide all of its October cases by December 2nd. If that schedule holds this year, and Ratner wins the appeal, a late December groundbreaking for the basketball arena is still possible.
WNYC's Brian Lehrer Show, Gridlock at Ground Zero
"[Bruce Ratner's] got a very small window of opportunity here, which just got even a little bit smaller today."
[Atlantic Yards segment from 17:10 to 19:10]
NLG: The New York Times's Charles Bagli and WNYC's Andrea Bernstein confuse the dates of the Court hearing and the ESDC public hearings, but the upshot is still not great for Bruce Ratner.
Posted by eric at June 30, 2009 6:24 PM | Permalink
Clueless cheap owners?
NY Metro
 |
Sound like anyone we know? You betcha!
Posted by eric at June 30, 2009 1:54 PM | Permalink
HEADLINES: Not-so-frivolous eminent domain lawsuit edition
NY Observer, New Uncertainty for Atlantic Yards as Court of Appeals Takes Eminent Domain Suit
New York’s highest court has agreed to hear an eminent domain case over the Atlantic Yards project proposed for Brooklyn, a move that infuses new uncertainty into the planned $4.9 billion development that entails a new Nets basketball arena and 6,400 apartments.
The decision by the Court of Appeals was not expected by the project’s developer—Bruce Ratner and his Forest City Ratner—at least based on its public statements and actions. After a year and a half of stagnation, the development seemed to gain new momentum in recent weeks after an appellate court ruled against opponents. Mr. Ratner had been pushing for new public approvals and renegotiated deals with the stated intent of breaking ground on the arena this fall.
Mr. Ratner already confronts a tight schedule in securing $530 million in tax-free financing for the arena. Based on a Dec. 31 I.R.S. deadline for the financing, the cost of the arena would jump by tens of millions of dollars without a tax exemption, and the task of securing financing would grow substantially harder (the broader real estate financing market is more inclement than the tax-free bond market). Thus the viability of the project seems to depend in large part on how fast the court can turn around a ruling.
NoLandGrab: The ESDC and MTA giveth, and the Court of Appeals taketh away.
Reason Hit & Run, New York Court of Appeals to Hear Atlantic Yards Case
The New York Court of Appeals (the state's highest court) agreed today to hear arguments in the case of Goldstein v. New York State Urban Development Corporation, which deals with the controversial use of eminent domain on behalf of developer and New Jersey Nets owner Bruce Ratner. As I discussed in an article last week, Ratner is the real estate powerbroker behind the Atlantic Yards redevelopment project in Brooklyn, a massive boondoggle centered on a new basketball arena for the Bruce Ratner-owned Nets.
Things are certainly heating up now. Last Monday, the Metropolitan Transit Authority (MTA), which controls a crucial 8-acre rail yard at the center of the Atlantic Yards footprint, offered Ratner a massively discounted new offer, whereby he would pay just $20 million up front for the land, then pay another $80 million over the next 22 years. Three years ago, however, the MTA wanted the full $100 million up front (and that's for 8-acres that have been appraised at over $200 million). Bear in mind that the MTA just raised subway and bus fares, yet somehow still has the cash to bail out Ratner and his lousy corporate welfare arena. So much for acting responsibly during an economic recession! As for Ratner, he still needs to raise over $500 million and break ground before the end of the year in order to qualify for tax-exempt status. So it's wonderful news that he'll be tied up in court trying to explain away eminent domain abuse while the clock keeps ticking away.
NY Daily News, Court challenge could delay Ratner plan to break ground at Atlantic Yards in fall
The developer has vowed to break ground this fall, but the latest court action could throw a wrench in those plans.
When a lower court threw out the eminent domain case in May, Ratner told the News: "This is really the last hurdle that we have and now we can do what our company does best and build an arena and houses."
NLG: Actually, Forest City did what it does best last week — secure more handouts of public money courtesy of the MTA and ESDC.
The Local {Fort Greene/Clinton Hill, Court of Appeals to Decide AY Suit
The suit was filed by nine property owners and tenants, including DDDB spokesman Daniel Goldstein, whose corner of Prospect Heights was deemed “blighted” and whose homes and businesses in the proposed Atlantic Yards footprint have been slated for government seizure.
The Architect's Newspaper Blog, See Bruce in Court!
We recently wrote above how opponent’s best hope of stopping Bruce Ratner’s Atlantic Yards Project was not the departure of Frank Gehry but lawsuits. There was a good possibility the “sweetheart” deals the state had crafted to make Ratner’s project easier to move forward could have triggered further litigation, but it seems it may not even come to that, as the Court of Appeals, the state’s highest court, has decided to hear Develop Don’t Destroy Brooklyn’s challenge to the state’s use of eminent domain.
Nets Daily, Court of Appeals Will Hear Critics’ Lawsuit
New York’s highest court will hear a critics’ appeal against the Empire State Development Corp., further tightening the schedule for Barclays Center and possibly jeopardizing it. The court asked for briefs by July 31, with a hearing in mid-October. The ESDC, Ratner’s partner in the arena project, had asked the court for a hearing in September so Ratner could meet a Dec. 31 deadline for tax emempt bonds.
Curbed, Atlantic Yards Tripped Up Again
In a somewhat surprising decision, the state's highest court has decided to hear the appeal filed by Atlantic Yards opponents in the eminent domain case against New York State.
NY Politics, Atlantic Yards Eminent Domain Case To Be Heard By Court of Appeals
Willets Point United Against Eminent Domain Abuse, Appeals Court agrees to hear Atlantic Yards case
Queens Crap, Appeals Court will hear Atlantic Yards case
CastleWatch Daily, New York High Court to Consider Atlantic Yards Suit
Brownstoner, Court of Appeals Will Hear AY Eminent Domain Case
Posted by eric at June 30, 2009 12:40 PM | Permalink
State's highest court accepts eminent domain appeal; oral arguments in October, thus complicating AY end game
Atlantic Yards Report
The Atlantic Yards end game just got a whole lot more complicated.
Despite claims May 15 by Forest City Ratner CEO Bruce Ratner that the unanimous dismissal of the state eminent domain case in May "is really the last hurdle," the state's highest court, the Court of Appeals, has accepted (PDF) an appeal in the case and won't hear oral arguments until the middle of October.
While eminent domain law still tilts significantly to the advantage of the condemnor, in this case the Empire State Development Corporation (ESDC), the court's willingness to hear it indicates that it believes the originating court, the Appellate Division, did not address some aspect of the legal argument.
Also, as Develop Don't Destroy Brooklyn (DDDB) noted, last year half of all civil appeals were affirmed, and the other half were either reversed (about 40%) or modified (about 10%).
The case is brought by nine residential and commercial tenants and property owners in the AY footprint, and is organized and significantly funded by DDDB.
Delays in groundbreaking, arena bonds
At the very least, the appeal delays Forest City Ratner's announced plans to begin construction by October and severely narrows--but does not close--the window of opportunity to have crucial tax-exempt bonds issued by the end of the year.
Click through for a rundown of the constitutional issues in question.
NoLandGrab: The New York State Court of Appeals has just blasted a very large hole in any and all claims that legal challenges to the use of eminent domain for the Atlantic Yards project have been "frivolous."
Attorney George Locker, who represents a group of Atlantic Yards footprint rental tenants who are fighting condemnation, added this comment to Norman Oder's post:
The appeal halts all moves by ESDC to proceed with relocation and the EDPL Article 4 vesting proceeding. The project has just ground to a halt. There certainly will be no groundbreaking in 2009, and probably no groundbreaking ever. Or maybe the basketball coach sees it differently.
Posted by eric at June 30, 2009 10:15 AM | Permalink
DDDB PRESS RELEASE: Atlantic Yards Eminent Domain Case To Be Heard By New York’s High Court
Property Owners and Tenants Will Argue Their Case Against the Empire State Development Corporation In October
BROOKLYN, NY— The New York State Court of Appeals, the highest court in the state, has announced that it will hear the Atlantic Yards eminent domain case—Goldstein et al. v. N.Y. State Urban Development Corporation—in October. The owners of homes and properties targeted for seizure have argued that the use of eminent domain for the Atlantic Yards proposal violates New York State Constitution.
The appellants’ briefs are due on July 31 and the case will be argued in front of the High Court in October on a date to be scheduled. (The Court convenes for six days in mid-October.)
"We are gratified that the State’s High Court will hear this important case about whether our State’s Constitution protects the homes of its citizens from the wrecking ball of greed wielded by influential developers and the public officials who do their bidding," said Matthew Brinckerhoff, the lawyer representing the appellants. "This case provides an opportunity for the New York Court of Appeals to continue its proud tradition of interpreting this State’s Constitution in a manner that affords more protection to individual rights and liberties. We look forward to the argument in October."
The properties in question are required for developer Forest City Ratner to construct its proposed Barclays Center Arena and 16 skyscrapers.
Nine property owners and tenants, whose homes and businesses in the proposed Atlantic Yards footprint have been slated for government seizure for the megaproject proposed by developer Forest City Ratner, filed the original case. Develop Don’t Destroy Brooklyn (DDDB) organized the case, which is funded by thousands of donations from individual community members across Brooklyn and New York City.
The original case was filed in August 2008 in the Appellate Division, as required by New York State eminent domain law. The Appellate Division ruled on May 15th
Bruce Ratner told the Daily News, after that court ruling, "We're very, very happy. This is really the last hurdle that we have and now we can do what our company does best and build an arena and houses." The developer claimed he would break ground and issue the bond for his arena this fall. He has an end-of-year IRS deadline to float the bond for the arena.
"It is great news that New York's High Court will review the Atlantic Yards project’s use of eminent domain. It is a certain sign that the Court understands the seriousness of the issues my constituents have been dealing with for the past six years," said City Council Member Letitia James who represents the 35th District where the project is proposed and has been a stalwart opponent of its abuse of eminent domain.
"My co-plaintiffs and I are very excited that the Court will hear our case. It is a great day for New Yorkers concerned about abuses of power," said lead appellant and DDDB spokesman Daniel Goldstein. "We will vigorously continue to defend our rights. But New York State and Mr. Ratner have a choice: they could avoid our legal challenge by finally taking eminent domain off the table, and working to implement affordable housing over the rail yards based on the community’s development plan offered to the MTA last week—the UNITY Plan."
The appellants have asked the Court to decide:
Whether the public use requirement of the NY Constitution imposes a more stringent standard for takings than does the Fifth Amendment—a question expressly preserved by the Court of Appeals in Aspen Creek Estates, Ltd. v. Brookhaven (2009), and never before considered by any court in New York;
Whether the public use requirement of the NY Constitution "is satisfied when a condemning authority determines that he public benefit to be gained by forcibly appropriating citizens' homes and businesses is 'not incidental or pretextual in comparison with benefits to particular, favored private entities,"' without ever examining the nature and magnitude of the private benefit and thus failing to create any record that would allow a reviewing court to make such a determination—a question never before considered by any court in this State (and ignored by the Appellate Division in this action)";
Whether, according to Article XVIII, Section 6 of the Constitution, subsidized "blight clearance" projects must be restricted to "persons of low income."
According to the 2008 annual report for the Court of Appeals about half of all civil appeals last year were affirmed, and the other half were either reversed (about 40%) or modified (about 10%).
All past case files and the Court’s letter can be downloaded at: http://www.dddb.net/eminentdomain
Posted by steve at June 30, 2009 9:33 AM | Permalink
Read the fine print: Investment analysts in bed with Forest City look positively on post-dealmaking Forest City
Atlantic Yards Report
A New York Observer piece yesterday, headlined Analysts: New Atlantic Yards Deal A 'Significant Positive' for Forest City Ratner, brought highly unsurprising news.
From the report by investment firm Keefe, Bruyette & Woods (KBW):
While many of the details have not been completely outlined publicly, we believe staging a takedown of the land and paying for the air rights portion starting in 2012 is a significant positive for Forest City. While the stretched-out takedown and payments will require a higher total outlay (implied 6.5% annual interest rate) over the 19-year period starting in 2012, this reduces current cash outlays in 2009 and near term. In addition, this means that Forest City's takedown of the additional parcels (or air rights) will be more closely matched with vertical development of stages of the project."
...Who does KBW work for?
Consider analyst McGrath's concern for the public interest, when she chortled with approval when learning that FCR's Beekman Tower would, in the words of Forest City Enterprises executive Bob O'Brien, take advantage of "the beauty of the Liberty Bonds, tax-exempt rates and all market-rate units."
The report also states:
KBW either expects to receive or intends to seek compensation for investment banking services from Forest City Enterprises Inc. during the next three months. During the past 12 months, KBW acted as a manager or co-manager in an offering of equity securities of Forest City Enterprises Inc.That's not an unusual entanglement for an investment firm, but it also gives reason to think KBW isn't inclined to be tough on Forest City.
Posted by eric at June 30, 2009 9:33 AM | Permalink
The Partnership for New York City's evolving (and misleading) support for Atlantic Yards
Atlantic Yards Report
One project booster is finding it harder to say nice things about Atlantic Yards:
The Partnership for New York City (PFNYC), which exemplifies the business community, is sure straining in its support for Atlantic Yards, dropping previous enthusiasm about Frank Gehry and affordable housing to focus on the goal of building an arena, while misleadingly suggesting that the project as it stands would generate many permanent jobs.
The PFNYC is essentially the city's Chamber of Commerce, a nonprofit membership organization with some 200 CEOs (“Partners”) from New York City’s "top corporate, investment and entrepreneurial firms."
Given that Forest City Ratner, Nets Sports & Entertainment, and Barclays Capital are among the partners, it's hardly surprising that the PFNYC supports Atlantic Yards, but testimony from PFNYC President Kathryn Wylde opening the June 22 Metropolitan Transportation Authority (MTA) Finance Committee meeting was notably thin, clocking in at half the allotted two minutes.
Posted by lumi at June 30, 2009 5:58 AM | Permalink
Ratner's bailout and the Barclays Bank subway station
The Examiner
By Bernie Mooney
While subway riders have to dig into their pocket for an extra quarter, the MTA handed Atlantic Yards developer Bruce Ratner a multi-million dollar bailout.
For the last few years the MTA has cried poor mouth and insisted that a fare hike was needed to help their budget deficit. Yet, last Wednesday they voted to redo the Atlantic Yards deal by allowing Ratner to cough up only $20 million of the $100 million lump sum that was agreed to in 2006 for development rights to the site. The balance owed will be paid over the next 22 years.
They also relieved him of his $200 million obligation to make infrastructure improvements to the Vanderbilt rail yards in Prospect Heights.
Posted by lumi at June 30, 2009 5:53 AM | Permalink
yard work
This shot of recent work at the Vanderbilt Railyard was uploaded yesterday to the flickr Atlantic Yards Photo Pool, by photographer Tracy Collins.
Posted by lumi at June 30, 2009 5:50 AM | Permalink
Nets one step closer to Brooklyn
The Examiner
By Josh Lobdell
Talk about being "conclusory," here's a story that practically has Bruce Ratner measuring for the drapes:
The New Jersey Nets are now one step closer to a move to Brooklyn. In a move that has had more than its fair share of legal and financial problems the Nets owner Bruce Ratner cut a deal that will eventually lead to the construction of a new NBA arena on the site that was once proposed for a domed stadium for the Brooklyn Dodgers.
NoLandGrab: Some myth-busting is required here — just because Mayor Bloomberg tells people that the arena is planned for "the site that was once proposed for a domed stadium for the Brooklyn Dodgers," doesn't make it so. That site has already been developed... by Bruce Ratner for the iconic Atlantic Center mall.
Posted by lumi at June 30, 2009 5:35 AM | Permalink
Gehry Trims Staff As Projects Hit Snags
Architectural Record
Frank Gehry has trimmed his staff to "112 employees, down from 250 a year and a half ago," primarily because he is no longer working on Bruce Ratner's Atlantic Yards megaproject and "construction of the $3 billion Grand Avenue complex in downtown L.A. has been delayed until 2012."
But his other Ratner project, the Beekman Tower, is still on, and it is now being reported that the "building will rise 76 stories as originally designed."
Posted by lumi at June 30, 2009 5:25 AM | Permalink
Why Atlantic Yards matters
Mr. Ratner must act quickly, or it will be too late
Crain's NY Business, Editorial
Crain's justifies Bruce Ratner's Atlantic Yards project by ignoring ever-growing public subsidies and dwindling public benefits.
It all began with a phone call from Brooklyn Borough President Marty Markowitz to Forest City's Bruce Ratner. “You have to buy the New Jersey Nets and move them to Brooklyn,'' said Mr. Markowitz.
...
At the time, Mr. Ratner admits, he was clueless about professional basketball, both on the court and as a business.
...
Mr. Ratner was intrigued by the borough president's plea because it fit with his belief that the Atlantic Yards area, consisting mostly of a rail yard, was the perfect place to continue Brooklyn's revival.
NoLandGrab: The lie that the Atlantic Yards footprint consists "mostly of a rail yard" appeared in this weekend's NY Daily News editorial too. The railyard comprises approximately eight acres of the 22-acre project.
Also, "Atlantic Yards" is Bruce Ratner's own brand name for the project; there was no such thing as "the Atlantic Yards area" back when Ratner was pondering the project.
It is worth noting that while Forest City may wind up with a bonanza, up to now it has been a black hole.
NoLandGrab: Development company Forest City proposed a project that was tenuous at best, and now taxpayers are expected to turn a "black hole" into a "bonanza" for Bruce?
And here's Crain's flimsy justification for the project:
New York can continue to support Atlantic Yards, realize what is economically possible now and bet that the entire project can be built in the future. Or it can abandon Mr. Ratner and the project, in which case it is certain that Atlantic Yards will remain an open sore for decades to come.
NoLandGrab: Should New York support Ratner, who has consistently lied to the public and press, steadfastly refused to reveal the actual amount of subsidy required for the project, and has been disingenuous about the project timeline, on the hope that he'll eventually build the entire project?
Posted by lumi at June 30, 2009 4:41 AM | Permalink
June 29, 2009
Analysts: New Atlantic Yards Deal A 'Significant Positive’ for Forest City Ratner
NY Observer
by Eliot Brown
Well, duh!
We know Eliot Brown, who's covered this story for a few years now, isn't surprised, either. In fact, we can't imagine anyone would be surprised by this. It would only be news if the Atlantic Yards deal turned out to be even a wee bit positive for city, state and federal taxpayers.
After a renegotiation of the terms of the $4.9 billion Atlantic Yards project, financial analysts have warmed to the project.
A look at a recent rating of Forest City Enterprises by investment firm Keefe, Bruyette & Woods shows that the development company, which is the parent of Atlantic Yards developer Forest City Ratner, seems to be making at least a little bit of a comeback. After months of tanking stock prices—the stock fell from $69 a share in early 2007 to a low of $3.26 before stabilizing around $6.50—there now is some reason for optimism with regard to Atlantic Yards.
The analysis by KBW comes after the developer renegotiated its deal with the M.T.A. last week. Now Forest City Ratner is giving the agency $20 million instead of $100 million in an upfront payment, pushing the other $80 million years down the road.
This pleased the analysts, who gave Forest City a rating of "outperform," which is better than "neutral" though less strong than "buy."
The headline really should have said "analyst," since we're only talking one firm, though two "analysts" authored the report.
The analysts, Sheila McGrath and Bill Carrier, also found it ironic that opponents of the project were in an uproar after Frank Gehry was dropped from the project, because, they write, a more functional, cheaper, and far less dazzling arena is better than more delay:
"The irony at this juncture is that the opposition is citing the delays in the project and a change of architect that should be considered as a negative to vote against Forest City and the project. If this project had not been tied up in litigation for years by the opposition, the MTA would have closed on the land for an upfront payment of $100 million several years ago, and affordable housing would already have been under construction. The litigation has increased the cost of the project and dragged timing of closing into one of the deepest recessions in decades and certainly a most difficult financing environment."
Well, duh, again. Opponents were in an uproar because Gehry's design was central to the project's selling and approval — a classic bait and switch. And analyze this: the legal strategy — if the court cases couldn't be won outright — aimed to tie up the project until it could collapse under its own weight.
Posted by eric at June 29, 2009 6:21 PM | Permalink
Public hearing set for July 29 & 30; arena due 2012, 25 years to get Phase 2 started
Atlantic Yards Report
An Empire State Development Corporation (ESDC) legal notice (below; click to enlarge), which takes some three-quarters of a page in today's New York Post announces a public hearing on the Atlantic Yards Modified General Project Plan to be held from 2-5 pm and 6-8 pm on July 29 and July 30.
The location: the Klitgord Auditorium of New York City Technical College, where the epic 8/23/06 hearing on Draft Environmental Impact Statement and General Project Plan was held.
Speakers will be limited to three minutes. (Let's see if that's strictly enforced.) Comments will be accepted for 30 days after the close of the hearing. That suggests that the ESDC board will vote to approve the plan in early September.
The schedule is related to developer Forest City Ratner's need to secure tax-exempt bond financing for the arena by the end of the year. The financing would last approximately 33 years.
Time limits: 6 years, 12 years, 25 years
The hearing notice, for the first time, imposes a 25-year deadline on the project as a whole, though I read that as 25 years to get construction started, not completed. So AY indeed would take "decades," as ESDC CEO Marisa Lago has predicted.
It states that the developer "shall use commercially reasonable efforts to construct the Arena by 2012." (I've written previously that Forest City Ratner's announced 2011 opening date is dubious.) However, as stated in the State Funding Agreement, the developer has six years without penalty to complete the arena after vacant possession of the arena block.
The State Funding Agreement says the developer has 12 years without penalty to complete the buildings on the arena block after vacant possession. The legal notice states that the interim leases for the arena block will expire no later than the 12th anniversary of vacant possession. I read that as saying that construction must have begun, but not necessarily completed.
Posted by eric at June 29, 2009 4:31 PM | Permalink
In "Why Atlantic Yards matters" editorial, Crain's ignores inconvenient facts
Atlantic Yards Report
Norman Oder offers a running correction of this week's Crain's NY Business blinders-on, error-filled editorial extolling Atlantic Yards, which is only available to subscribers, or else we'd have done the job ourselves.
We'll post the offending item if we can get our hands on it.
In an editorial headlined Why Atlantic Yards matters: Mr. Ratner must act quickly, or it will be too late, Crain's New York Business goes to bat for Forest City Ratner.
I've bolded sections for emphasis.
The editorial states:
Amid an outcry that the state and the MTA have given Forest City Ratner a sweetheart deal to keep alive its Atlantic Yards project, it's time to recall how this scheme originated and why it has such steadfast backing from responsible city and state officials. For those who are optimistic about the city's prospects, Atlantic Yards is crucial for realizing New York's potential.
...The editorial closes:
New York can continue to support Atlantic Yards, realize what is economically possible now and bet that the entire project can be built in the future. Or it can abandon Mr. Ratner and the project, in which case it is certain that Atlantic Yards will remain an open sore for decades to come.Why does Crain's, tribune of the business community, not endorse free market practices--an appraisal, an effort to seek new bidders--but rather embrace a "market of one"? Why does Crain's not even endorse the RPA's desire to harness the upside?
And why does Crain's call a working railyard "an open sore," and treat the railyard as a substitute for the site itself, which just happens to be bounded by a new historic district?
Posted by eric at June 29, 2009 4:09 PM | Permalink
MTA’s Change of Ratner Deal would Violate State Law without Independent Appraisal
Hot Indie News
[Assemblymember Jim] Brennan said the failure to include an independent appraisal prior to voting on the proposal violated the Public Authorities Accountability Act of 2005, which specifically requires that a public authority like the MTA conduct an independent appraisal prior to disposing of its property to assure fair market value to be paid for assets of public authorities.
Brennan said the purpose of the statute was to prevent public authorities from squandering assets in giveaways to the private sector.
Brennan said it was likely the MTA was squandering its assets to the detriment of the mass transit system, since in 2005 another bidder on the arena site and rail yards, the Extell Corporation, had already offered the MTA more money than what became the agreement between Forest City Ratner and the MTA at that time.
Brennan said the likelihood that the arena project was a boondoggle was substantial, since the New York City Independent Budget Office (IBO) has already testified at a hearing of the State Senate Corporations Committee on May 29^th that a preliminary updated review of the costs and benefits of the arena showed that city and state outlays for the project would exceed positive tax revenues from the project even over a 30-year period.
The NYC Independent Budget Office has agreed to undertake a further review of the Atlantic Yards Arena and possibly other aspects of the project, following a request last week from Brennan and five other elected officials representing the site and surrounding areas.
Brennan indicated that an independent appraisal of the site was essential prior to the MTA signing off on a deal. Brennan chairs the Assembly Cities Committee and is a senior member of the Assembly Standing Committee on Corporations, Authorities and Commissions.
Posted by eric at June 29, 2009 3:51 PM | Permalink
Brooklyn Broadside: Keeping Pace with Albany, Adultery and Atlantic Yards
Brooklyn Daily Eagle
by Dennis Holt
If someone can get used coffee cups or fingernail clippings or hair samples from Dennis Holt and the Park Slope Courier's Stephen Witt, we'd like to conduct a CSI-style DNA test to establish paternity. 'Cause you certainly can't chalk up all the similarities to cluelessness.
But closer to home, we have the continuing saga of the fate of the Atlantic Yards project. The day that the MTA was to agree to a revised scope and financials for the rail yards part, Develop Don’t Destroy came along with a straight face and offers $120 million to replace Forest City Ratner.
The first question people asked was where did this “pass-the-hat-crowd” get the money? It turns out, the group doesn’t have the money: the sum would come from developers given the right to replace Forest City.
Actually, the first question people asked was "where is Ratner going to get the money?" DDDB, unlike the would-be Atlantic Yards developer, relies 100% on private donations. Ratner, on the other hand, counts on hundreds of millions, if not billions, in taxpayer-funded subsidies.
The plan these developers would have to follow doesn’t include an arena, and what really happened this week was nothing more than a replay of what happened just before the decision to accept the Forest City plan was made.
It’s like watching a bad movie that keeps being edited with new players all saying the same thing.
Couldn't have said it better ourselves, except Holt is talking about us and we're talking about Forest City. More hat-passing by Ratner? Check. More supportive "testimony" by entities that benefit financially if Atlantic Yards gets built? Check. More pre-cooked public giveaways given cover by phony public "hearings?" Check.
Knowing the track record of Develop Don’t Destroy, expect some monkey wrenches to be tossed around.
We know you are but what are we?
NoLandGrab: Far be it for Holt to treat any Forest City, ESDC or MTA action or statement with even a trace of incredulity.
Posted by eric at June 29, 2009 3:30 PM | Permalink
It came from the Blogosphere...
Joshing Politics, Markowitz...And Atlantic Yards Gets A Challenge
Borough President can be seen as a largely ceremonial job with no real duties but in Brooklyn this year, voters are going to be presented with a real choice for the office. Marty Markowitz is an affable guy, gets plenty of laughs and is generally well liked. Yet his hearty support for Bruce Ratner and the Atlantic Yards development is loathed by Brooklynites that wish to preserve their home and not let an obnoxious developer dictate what is blighted and what is not.
...The Daily News recently started a "throw the bums out" campaign in response to the State Senate debacle. However, that "party" can be extended to local government and unfortunately, Markowitz is just another bum, despite the persona. I wish Myrick the best of luck in his race and hope that when Brooklyn goes to the polls, that they punish Markowitz for his collusion and install Myrick to give the borough a real chance for change.
Noticing New York, Is New York Coming or Growing? The Bloomberg Administration Is of Little Mind
If New York City's population will grow to nine million people by 2030, as the Bloomberg administration claims, why then, Michael D.D. White wonders, is the Mayor shrinking our infrastructure, such as with Bruce Ratner's undersized replacement railyard and the disappearing Coney Island amusement zone?
Just what does the Bloomberg administration have on its little mind? Does it think that New York will grow and will it then plan for growth accordingly? Or is the Bloomberg administration planning for a shrinking New York? We think we can perceive some unfortunate consistency in the Bloomberg administration’s inconsistent answers.
Brownstoner, Historic District and AY: Like Pieces of a Puzzle
This map that Tracy Collins put together for the Atlantic Yards Report last week caught our eye but we didn't have room to fit it in at the end of the week. It very nicely summarizes how the newly-designated Prospect Heights Historic District overlays with the footprint of Forest City Ratner's proposed Atlantic Yards project. Cozy!
NoLandGrab: "Cozy" yes, but "overlays" no. The historic district is carved out by the footprint of the Ratner project.
Nets Daily, Final ESDC Hearing on Barclays Center Skedded for July 29-30
New York’s Empire State Development Corp. has scheduled hearings July 29-30 on Bruce Ratner’s revised plans for the Barclays Center and Atlantic Yards project. It’s anticipated that the ESDC will move soon after to approve the project. Ratner needs the approval–and a favorable ruling from the Court of Appeals–before he can market a half billion dollars in arena bonds.
Third String Safety, Jay-Z Can Save the Nets
Bruce Ratner is having difficulty supporting his franchise in flux. Reports have surfaced stating that Ratner is looking for other investors to help him manage the cost of the New Jersey Nets. A couple of outsiders have been rumored as possibilities, but someone who is already on the inside could be the best man for the job.
Shawn Carter, better known as Jay-Z, is part owner of the Nets and may hold the key to their future, both on and off the court. His particular celebrity status has the innate ability to change the face of the Nets.
NoLandGrab: Unless Mr. Z can hit a three in the final two minutes of NBA games, its unlikely he'll be the savior.
Nets Daily, Thorn: “We’re in Position to Sign Two Maxed Out Players in 2010″
In a 45-minute conference call, Rod Thorn told season ticket holders he expects the Nets to be “$27 to $30 million under the cap” in 2010, permitting them “if we so choose, to sign two maxed-out players”. Thorn didn’t rule moves this summer. He denied Bruce Ratner forced him to trade Vince Carter, adding it’s a “terrible spot to be in when you have a star in the later stages of his career and not a good team.”
Posted by eric at June 29, 2009 2:32 PM | Permalink
RIVAL RIPS MARTY OVER YARDS WORK
NY Post
by Rich Calder
An East New York activist is trying to parlay the contempt many Brooklynites have for the embattled Atlantic Yards project into unseating Marty Markowitz as borough president.
Eugene Myrick, 37, recently became the first candidate to announce he's challenging the powerful two-time incumbent on the Democratic line in this September's primary. The underdog has yet to raise a cent but is already seeing a groundswell of support.
And it's mostly over Myrick opposing Bruce Ratner's $4.9 billion project to bring an NBA arena and 16 residential and office towers to Prospect Heights while Markowitz is widely considered its biggest booster.
...The challenger -- who runs a bridal website with his wife, ex-Kiss-FM deejay Kesha Monk - told the Post he's upset with "sweetheart" cost-saving deals cut last week by the state and MTA to bail out Atlantic Yards and ripped Markowitz for openly supporting it.
He also pointed out a Post investigation last October that found Ratner since 2003 funneled more than $680,000 to nonprofits set up by Markowitz to run pet projects and said the beep "is obviously indebted to the developer."
NoLandGrab: With Republican Beep candidate Marc D'Ottavio criticizing Markowitz for not supporting Atlantic Yards enough, it's clear that Eugene Myrick has the anti-boondoggle vote all to himself.
Posted by eric at June 29, 2009 1:46 PM | Permalink
Yards supporters outnumber foes
Park Slope Courier
by Stephen Witt
Project booster Stephen Witt reports, in laughable fashion, from some parallel universe on last weeks MTA and ESDC hearings. We'll be taking up a collection to buy Mr. Witt a book on statistics, probability and sampling. And Norman Oder does some remediation work below.
The Empire State Development Corporation and MTA public meetings last week regarding the Atlantic Yards project highlighted once again how Brooklynites in support of the project far outnumbers opponents.
At the ESDC hearing before the vote to approve a modified General Project Plan, 40 members of the public gave comment with 31 speaking in favor of the project.
This group represented all ethnic and socioeconomic backgrounds, while opponents were mainly white and⁄or property owners.
Ergo, the Atlantic Yards project is mostly loved, except by a handful of white people facing the prospect of having their homes seized. Mr. Witt forgot to add "gentrifying," "rich" and "interlopers," too, which would further help make his case.
Others spoke how even President Barack Obama realizes that economic stimulus is needed.
Why, the President practically endorsed the project himself. Did we mention the Prez enjoys a game of hoops now and then?
This outpouring of support did not stop opponent organization Develop Don’t Destroy Brooklyn and its spokesperson Daniel Goldstein from offering up a threats of new litigation.
Witt forgets to mention that the "outpouring of support" also came from paid and/or interested parties, like construction unions and Brooklyn United for Innovative Local Development, which is funded, mostly or fully, by Forest City.
Goldstein also offered a counter proposal of $120 million for the parcel during the public speaking session of the MTA hearing.
Under this “Unity Plan,” the eight−acre MTA Vanderbilt Yards section of the site would be divided and developed as individual parcels and not include an arena.
This "Unity Plan" is actually called the Unity Plan, no quotation marks necessary.
Atlantic Yards Report, And how did the Courier-Life's Witt twist last week's news? With a head count
A little dose of truth serum from Atlantic Yards Report.
However, a companion article, headlined Yards supporters outnumber foes, showed Witt's uncanny ability to twist the news....
...Witt somehow treats the decision of 31 people, most associated with organizations that profit from (or stand to profit from) the alliance with Bruce Ratner/Atlantic Yards arena, to testify at one board meeting--not a public hearing--during work hours as a definitive indication of community sentiment.
He neglects the fact that the issue before the MTA board was not the project itself, but whether it should renegotiate the sale of the Vanderbilt Yard into what even his own newspaper calls a "sweetheart deal."
In other words, their testimony about the virtues of the project was irrelevant. Sure, development brings jobs, but the MTA is a transportation agency.
Also, no elected officials (other than a rep for) Borough President Marty Markowitz spoke in favor of the MTA bailout, while four spoke against it. Also calling for caution were the Straphangers Campaign, the Regional Plan Association, and the Permanent Citizens Advisory Committee to the MTA--all organizations that represent far more people than the individuals/groups Witt cites.
Posted by eric at June 29, 2009 1:23 PM | Permalink
MTA Atlantic Yards bailout: post fare-hike edition
Noticing New York, Naming a Problem: The MTA Gives Ratner the Right to Name Brooklyn Subway Stations "Barclays"
Michael D.D. White raises a whole host of issues with the MTA's sale of station-naming rights to Barclays and Forest City, including whether the sum the MTA will receive is remotely adequate, the breakneck speed with which the deal was struck, and how the MTA board members raised nary a question.
How did the MTA negotiate handing Ratner the right to put the Barclay name on New York’s Brooklyn transit hub subway stations? WNYC reports that the MTA’s Gary Dellaverson, the MTA’’s Chief Financial Officer, explained: “We kinda felt our way into it.” That may be an understatement: Even as the MTA’s board meeting to approve the deal was underway, an MTA staffer was in the hallway outside the meeting on his cell phone trying to find out exactly what the deal was and what the board in the room next door should be told about it. When the board bothered to ask, it was clarified that the right to have the Barclays name on the subway station did not extend to the right to have the Barclay name on the interconnecting Long Island Railroad Station/Terminal. (Could it then still be named something else?) There were obviously a lot of other questions the board should also have been asking.
Advertising Age, Cash-Strapped Cities Turn to Marketers for Help
What's next? Will iconic American locales such as Route 66 or treasured public institutions such as the Smithsonian be up for grabs?
Actually, yes.
The MTA deal has gotten other New York agencies thinking. Selling naming rights is "not something that we've aggressively pursued in the past," said a spokesman for the New York Office of Parks, Recreation and Historic Preservation. "But given the economic realities, it's something we're taking a closer look at."
NY Daily News, Voice of the People for June 29, 2009 [Scroll down]
Time on his side
Staten Island: Where do the city and MTA get off giving Bruce Ratner a break ("Yards upfront price chop," June 25). The MTA says it has no cash so there has to be a higher fare, but Ratner doesn't have to pay up for 21 years. Let the fare hike take place in 21 years.
Michael Scafiddi
Atlantic Yards Report, MIA again: The Times editorial page on the MTA's bailout of Ratner (except for the naming rights deal)
And it was not surprising, alas, that the New York Times editorial page was again missing in action regarding the deal as a whole, though today it offered a critical but essentially tangential editorial opposing the deal to add the name "Barclays Center" to the Atlantic Avenue/Pacific Street station.
...Of course, the Times is unlikely to write anything that would fundamentally threaten the interests of Forest City Ratner, business partner of the parent New York Times Company in the Times Tower. After all, as editorial writer Carolyn Curiel has said, "Our goal is to reflect the spirit of the Times and the opinion of the publisher, Arthur Sulzberger, Jr."
The same thing occurred last week.
In doing so, the Times went against the interests of not merely the Atlantic Yards opposition but the Straphangers Campaign, which represents a broad cross-section of New Yorkers and warned of a "rush to judgment," and even the AY-supporting Regional Plan Association, which, while not denouncing a dubious process, at least made the reasonable point that the deal should be retooled to give the MTA a greater share of future revenues.
Contrast in the past
And the Times's silence was glaring, when contrasted with a somewhat parallel situation in 1994, when the newspaper repeatedly editorialized against renegotiating a deal with a developer:
After so many years of delay, there is no need to rush into a sweetheart deal. The property will still be there in a few years. A rebounding economy will likely increase its value. It is wiser to walk away than stumble into a giveaway.
Develop Don't Destroy Brooklyn, Times Misses Forest for Trees
Uhm, no, it is not a "goodly sum," it is a badly sum. And this is a non-issue, especially in relation to the MTA's bailout of Ratner.
Park Slope Courier, Bruce Ratner seals sweetheart deal with MTA
Project booster Stephen Witt reports, more or less straightforwardly, on last week's developments.
Next stop, Atlantic Avenue Barclay’s Center − home of yoooour Brooklyn Nets!
Both the Empire State Development Corporation and the Metropolitan Transportation Authority last week did their part in furthering along the 22−acre Atlantic Yards project, which includes bringing the borough its first major professional team since the Dodgers left Brooklyn.
2nd Ave. Sagas, Times kinda sorta supports naming rights deal
Posted by eric at June 29, 2009 10:28 AM | Permalink
As Arenas Sprout, a Scramble to Keep Them Filled
The NY Times
By Charles V. Bagli
...those who study sporting facilities say empty seats may become even more commonplace here, as New York faces a glut of sports arenas.
...
At least two of the existing arenas already lose money, and experts say further casualties are almost guaranteed.
The article takes account of the existing and planned arenas — Bruce Ratner's Barclays Center, Newark's Prudential Center, the Izod Center in the Meadowlands, the Nassau Coliseum, and Madison Square Garden — and explains how each, especially Ratner's arena, is hoping to cannibalize the others.
Atlantic Yards Report, The Times's "arena glut" story suggests Barclays Center is on the way, marginalizes IBO's analysis as the work of "critics'
An article in today's New York Times, headlined As Arenas Sprout, a Scramble to Keep Them Filled, makes some valuable points, including the money-losing (Newark) Prudential Center's need to attract the Nets and/or have the Izod Center close down, but deserves several footnotes, since it in some places frames the Barclays Center too generously.
...
The Times skates over an important issue:The competition in the New York area is not just for fans and performers, but also for public subsidies, corporate sponsors and well-heeled tenants for luxury suites.
More importantly, the Times neglects to question whether, given the glut of arenas, federal tax-payers, via tax-exempt bonds, should subsidize a new arena to tune of $100 million-plus.
Also of great importance is that this article undermines the report, authored by Andrew Zimbalist and commissioned and released by Bruce Ratner, that predicted that a new Nets arena would be a net gain for the public, provided that it would "host 224 events during the year (assuming the eventual closing of CAA, no new arena in Newark, no NHL and no minor league hockey events at the Atlantic Yards arena.)"
Crain's NY Business, Top Row
The Yanks are filling a smaller share of home-game seats, vs. 90.7% in "08, though their new home holds fewer fans.
Trailing the pack of local pro teams, Bruce Ratner's NJ Nets reportedly only filled 75.8% of their seats during the 2008-09 season.
Posted by lumi at June 29, 2009 5:55 AM | Permalink
Video: MTA official say FCR's arena plans were "principal driver" of "cramped" timing for board to vote on revised deal
Atlantic Yards Report
It's all on tape. According to CFO Gary Dellaverson, MTA staff had to work over the weekend to hammer out the bailout of Atlantic Yards, so developer Bruce Ratner can issue the bond to finance the arena by the end of this year to take advantage of a federal tax loophole that has since been closed.
"I think that, in terms of why must it be now in the summer versus in the fall, I think that really relates to Forest City's desire to market their bonds as a tax-exempt issuance [by a December 31 deadline]. If the structure... is not such that allows for the marketability of the bonds, then the financial aspect of the transaction, as it relates to arena construction expenses that Forest City Ratner would incur, become less viable and perhaps not viable. That's not something that I'm prepared to say from my own knowledge... but I would be remiss if I suggested anything other--that's the principal driver of the timing."
NoLandGrab: In short, the MTA had to work weekends to get this deal done so that Atlantic Yards developer Bruce Ratner can issue the bond to finance the arena by the end of this year to take advantage of a federal tax loophole that has since been closed.
Posted by lumi at June 29, 2009 5:38 AM | Permalink
Atlantic Yards YES! Transit Riders NO!!
The MTA claimed the fare hike that went into effect on Sunday was necessary to plug the gaping hole in the transit authority's budget. Just last week the MTA negotiated a huge discount to Atlantic Yards developer Forest City Ratner.
Thank you cards can be sent to Governor Paterson, Mayor Bloomberg and their representatives on the MTA board.
NY Daily News, Subway riders feel MTA is taking them for ride as fare hiked to $2.25
"You shouldn't raise the fare if you're not going to increase service," said Emmanuel Louis, a 28-year-old hotel clerk from Brooklyn. "It's just not fair."
NoLandGrab: The MTA just approved developer Bruce Ratner's plan, which will shrink the capacity of the Vanderbilt railyard. That's a decrease in system infrastructure to go along with an increase in fares.
NY Newsday, NYC transit fare increase goes into effect
A fare hike that takes the price of a subway ride from $2 to $2.25 has gone into effect.
...
The MTA was poised to raise fares by twice as much before the state Legislature approved a bailout.
NoLandGrab: And then the MTA, in turn, bailed out Bruce Ratner's Atlantic Yards project.
WCBSTV.com, Straphangers Not Happy With MTA Fare Hikes
Although not as steep as the draconinan hikes threatened earlier this year, a fare hike is a fare hike and straphangers were not happy about shelling out more for less.
Fares for subways and buses and shot up ten percent.
NY1, Straphangers Brace For MTA Fare Hike
Posted by lumi at June 29, 2009 5:16 AM | Permalink
Forest City in the News
The Cleveland Leader, How Hypocritical Can Sam Miller Get Before We Laugh Him Out of Town
Forest City Enterprises co-chairman and Treasurer Sam Miller says he’s willing to donate to the Cleveland libraries if budget cuts are made by the State of Ohio. Sam says that he will donate to keep libraries in poor areas open if the cuts are made.
Cleveland's watchdog journalist Roldo Bartimole explains how, Forest City Enterprises depends on reductions in property and sales tax to keep the company's projects fiscally viable. As these reductions starve local municipalities of the tax revenue used to provide basic services, the budget gap is made up by suckers who pay their full share of taxes, with Forest City occasionally tossing around some bread crumbs.
Associated Press, via CBS2.com, Las Vegas Mayor Losing Support For City Hall Plans
Another Forest City Enterprises politically backed boondoggle may be fizzling out. This time the local unions are against the project:
Las Vegas Mayor Oscar Goodman's visions of a revitalized downtown may be in trouble as he loses support for a new city hall.
A re-imagined downtown with two new casinos, busy office towers and a mass transit line can't happen without a new hall, Goodman says.
...
Goodman is hoping to finance the project using bonds that are based on the city making annual lease payments on the new building. City officials estimated the cost of the city hall at $150 million last year.
...
The plan Goodman backs would give developer Forest City Enterprises a parcel to build a hotel-casino in part for building the new city hall. The current city hall and an adjacent 12 acres owned by the city would then be put up for development.
Posted by lumi at June 29, 2009 4:58 AM | Permalink
June 28, 2009
Where Geography Matters
The New York Times, Editorial
The Times opines against — sort of — the selling of subway-station naming-rights to Barclays.
After five years of trying, the Metropolitan Transportation Authority has sold the naming rights to a subway station. As of 2012 the M.T.A. will add the name Barclays to the Brooklyn station currently known as Atlantic Avenue-Pacific Street.
Yes, Barclays as in the British bank. Or more to the point, as in the British bank that bought the naming rights to the sports arena being built as part of the Atlantic Yards project. The buyer in this case is Forest City Ratner, the developer for Atlantic Yards. It will pay $200,000 a year for 20 years.
We know that is a goodly sum and times are very tough for the M.T.A. But there’s reason to be skeptical about all of this, which probably explains why it took so long to sell even this one.
...The names of subway stations are beautifully utilitarian just as they are, shifting only as rapidly as the streets above them shift. The names of their sponsors are likely to shift with the economic climate, and somehow adding a name like Barclays to what is, after all, a public transit station — in Brooklyn — feels even more dissonant.
NoLandGrab: The Times remains silent, however, on the MTA's sell-out of straphangers for Forest CIty's benefit. And whoops — they must've forgotten that the very same company is their business partner.
Posted by eric at June 28, 2009 11:17 PM | Permalink
Another Word on Franchise Ownership – Beware the Real Estate Mogul
SPORTS BIZ BY SENNO
The first point specifically targets owners who try to use sports teams as pawns in a real estate project. Bruce Ratner is playing out this same game with the New Jersey Nets. He bought the team with the sole purpose of creating a mammoth development in Brooklyn with an arena, apartment buildings, and retail. The focus has been on his project, not the team for the past 5 years, as he has battled court cases, had his staff strike landmark sponsorship deals, hired and then fired a well-known architect, and for better or worse stirred controversy. Meanwhile, the team was forced to cut expenses and trade its best players, and is losing over $40 million a year. Admittedly, they probably needed to make the trades and start over from a player development perspective, but the franchise is in a holding pattern. Everything centers around “when the Nets move to Brooklyn” – the free agents will come, fans will come, profits will come.
The deal may never happen. Ratner reportedly wants to sell, another indication it will never happen. If that’s the case, they are stuck in the Meadowlands losing boat loads of money and have basically lost the last 5 years when they could have addressed the situation because Ratner was trying to leverage the team for a project to benefit his business.
Owners with real estate motives destroy franchises, then leave the problem to the next person. The franchise suffers, the league suffers, the fans suffer, and the players probably suffer. Given their control over the situation, leagues should recognize this type of deal and either prevent it or put stipulations in that prevent an owner from leveraging a franchise for real estate, ruining the team in the process, then walking out on it. The leagues should blame themselves – and do something about it.
NoLandGrab: He means you, David Stern.
Posted by eric at June 28, 2009 11:10 PM | Permalink
Daily News Sunday Sampler
On NBA draft night, rich (Magic, Cavs) get richer . . . and so do Knicks!
OK, OK, but what about the Nets?
Anybody know why Ratner still owns this team? Once Ratner decided he had to cut back on players' salaries, due to yet another season of heavy financial losses, he returned the Nets to the land of losers. They could be have-nots for a while.
Fans didn't exactly flock to the Meadowlands this past season to see Carter. Now they're going to break the doors down to see Courtney Lee, Rafer Alston and Tony Battie? Doubtful.
With the Carter deal, the Nets have opened more cap space for a run at free agents in 2010. But it remains to be seen if a single marquee player will commit to playing in New Jersey or Brooklyn or any place else Ratner has in mind.
Nets trade Vince Carter much to coach Lawrence Frank's chagrin
NOT FOR SALE? Four different groups are making offers to buy the Nets, including one headed by current minority owner Vincent Viola, according to si.com. But while not ruling out the possibility of a sale, Nets CEO Brett Yormark said interest in buying the team has increased only because of the team's impending move to Brooklyn and not because majority owner Bruce Ratner is looking to unload it.
"The current ownership group remains committed to the Nets and to Brooklyn and the Barclays Center," Yormark said.
Posted by eric at June 28, 2009 10:54 PM | Permalink
Atlantic Yards Report Sunday Sampler
When the MTA's Hemmerdinger called the AY arena a "public good," he was fantasizing
A humdinger from Hemmerdinger.
"And I think, in this economy, jobs and an arena in Brooklyn is a public good.”--Metropolitan Transportation Authority Chairman Dale Hemmerdinger, June 24
...I suspect Hemmerdinger meant that an arena in Brooklyn was a "good thing for the public," rather than a public good.
NoLandGrab: We suspect that by "public," Hemmerdinger, who has made his fortune in real estate, meant "Ratner."
The Bloomberg and Ratner dodge on indirect subsidies for Atlantic Yards
For months, Mike Bloomberg had been saying the gravy train for Atlantic Yards had run off the rails. And then what happened? His boys on the MTA board voted another sweetheart deal for Bruce Ratner. What gives?
Flashback, 2004
Shortly after the project was announced, in January 2004, Bloomberg, asked about government support for the project, claimed:
Fundamentally, the answer to your question is: this will be done with private money, and any city monies of any meaningful size will be debt issues financed by the extra tax revenues that come from this. So, we’re not going to have to divert money from education, or police or fire or any other part of the city to do this. No. It is private money in that sense.Along with "police" and "fire," he might have mentioned "mass transit."
NLG: Best-case scenario? Bloomberg's stupid. Worst-case? He's a liar. Even worst-er? He pulled the plug on term limits.
Posted by eric at June 28, 2009 9:14 PM | Permalink
How did Barclays sign that naming-rights deal?
The Brooklyn Paper
By Cristian Fleming
|
Posted by steve at June 28, 2009 8:12 AM | Permalink
