Ratner Compromise Still Special Treatment

After the Mayor threatened on Monday to pull $100 million of city financing for the Atlantic Yards project if the sweetheart deal that Vito Lopez inserted into the 421-a legislation was not revised, a compromise is reportedly in the works. According to The Daily News, the city will get its $100 million back by reducing the tax-free period on 1,900 market-rate condos from 25 years to 15 years. Of course, that comes at the expense of the condo owners not Ratner himself. As the Atlantic Yards Report points out, though, the compromise doesn't change the fact that Ratner is getting special treatment by not having to play by the same affordable housing rules as every other developer.
Pols Slash Tax-Break on Atlantic Yards [NY Daily News]
Ratner-City Deal Near on Housing [NY Post]
A "Compromise" on the Ratner Clause [AY Report]
Bloomberg Steps Up Pressure on 421-a Carve-Out [Brownstoner]
Photo by Tracy Collins

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the stink grows and grows

Posted by: Anonymous at July 26, 2007 10:14 AM

This should indirectly affect Ratner, since the loss of the tax break for the future condo owners will reduce their value, meaning less money up front for Ratner in the sale.

Posted by: escap at July 26, 2007 10:18 AM

its not a loss of the tax break, its a loss of the tax break for 10 years, reduced from 25 years to 15. that's still a sweet incentive for buyers upon which Ratner can increase his sale prices

Posted by: Anonymous at July 26, 2007 10:32 AM

no one buying these places will expect to be in them after ten years (on the outside). 5 years of abatement is more than enough to transfer to the next buyer without having any effect on ratner's first sale price.

boiled down: no buyer will care that they are getting a 15 year rather than 25 year abatement. no affect on ratner's prices at all.

Posted by: StonerBrown at July 26, 2007 10:40 AM

The present value of the tax break on any individual apartment from years 16-25 won't be big enough to impact the sales price, we'd guess.

Posted by: Brownstoner at July 26, 2007 10:42 AM

This justs gets worse and worse for the people of Brooklyn . Where are the "it's all about affordable housing" losers now? Your tax dollars are going directly into ratners pockets. I read he anticipates a 50% PROFIT in 5 years after this frightmare is built. That's your money, people.

Posted by: enid at July 26, 2007 12:33 PM

I am skeptical he will be able to sell all these condos at the high prices he wants. The condo market is already oversupplied and by 2010 or whenever these are built the condo market may be down quite a bit from todays inflated prices.

Posted by: Anonymous at July 26, 2007 12:36 PM

condo market down by 2010? can you identify any 10 year period in the last 100 years when NYC real estate declined? Or any 5 year period other than 1929 - 1934? there is abundant supply, which will be absorbed by an increasing population.

Posted by: Anonymous at July 26, 2007 2:49 PM

« 163 Washington Misses Zoning Cut-Off, Must Shrink Just Sold in Brooklyn »

July 26, 2007

Ratner Compromise Still Special Treatment

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