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.
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I LOVE the way that the pro Ratner (paid for by?) poster is accusing AY opponents as being “socialist”…while supporting a bloated state project which involves seizing private property against the wishes of homeowners who do not want to sell and turning it over to (i suppose) someone whose need is greater..
and…..Let me get this straight, a developer, at least a well connected one, can come along say “i kinda wanna build this and wink wink, I will really, really try to build affordable housing…but I don’t know if I have the money for it…can you condemn 22 acres of private property for me and force owners to turn it over?”
The State’s answer..”sure, Bruce!”
But as usual the Ratner supporters silly non arguments “hey who wouldn’t want to sell their property if they were offered 2x the value” (and if you dont’ we’ll take it from you anyway) show just how wrong they are.
Re 6:33:
Sounds like this is your version of the Declaration of Independence:
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, unless they own their home less than five years, in which case government insiders can confiscate their home and give it to their friends with dubious claims of potential public benefit.”
Polemicisit – i saw your comments about market value being determined by zoning at the time of seizure.
I guess that you mean FAR by zoning at the time. But how is price per buildable sq ft calculated?
I imagine the calc would be:
Buildable FAR X price per sq
Do they take comps into consideration? And if the properties are going to be seized and demolished are the comps just land? Do the existing structures receive any value?
Agreement to a plan that allows Ratner to destroy acres of worthwhile occupied buildings so that they can lay fallow as parking lots for a decade, or two, or three, means that government officials are not protecting the public. Not even thinking about the public- The nonsense of such a plan must make one wonder whether these government officials even know to negotiate the best way to get an arena built. (I don’t happen to think one belongs here- In this I am unusually allied with Robert Moses in my thinking on this.)
And NO, absolutely not, if you know anything about eminent domain and this kind of abuse you would know that those whose land is being condemned don’t get anywhere near market value while someone like Ratner gets an eminent domain windfall (and a lot- Billions- of no-bid subsidy)-
Now here is a question: Why should the value of any zoning increase go to Ratner (getting the land without even bidding for it) and not to the owners who expected an increase was coming? And why, if an upzoning should occur here, should all that upzoning that creates value occur on, only on, and nowhere else than on land that Ratner wants to get with no bid?
How about a little rule of law here? A little fair play?
I agree. It’s difficult to cast as a victim someone who made a killing on a home they owned less than a year. I only wish that would happen to me.
“You would all be carrying torches and pitchforks in the streets if it were your property.”
No, not if some developer offered me 2.5X what my property was worth, I wouldn’t. I love my home, but I’m not stupid enough to pass up a deal like that.
How can anyone defend this? Whether you like or dislike Daniel Goldstein and DDDB’s antics, how can anyone support the seizing of someone else’s property by a private developer for a private purpose? How is it that this does not outrage you?
You would all be carrying torches and pitchforks in the streets if it were your property.
Goldstein’s apartment has been rendered worthless. He owns an apartment in a condo building that is 99% owned by one entity. His apartment is worth only something to one entity as he lives in a vacant building. The condo association can be dissolved and really leave him in bind.