But the news is this quote from Mayor Mike Bloomberg: "We desperately need to have development and that's a very big part of the development in Brooklyn. I don't know that we have to put government money in, but we certainly will do everything we can to work with [developer Forest City] Ratner to get those buildings going."
How can city help?
So, if the direct subsidies the developer seeks aren't on the table, what might "everything we can" mean? For one thing, the city, along with the state, is trying to make sure that FCR gets a ruling from the Internal Revenue Service that would allow tax-exempt bonds for the arena to be paid off by fixed PILOTs (payments in lieu of taxes). That could be worth $165 million to the developer.
For another, it might mean the city will try to ensure that Atlantic Yards goes to the head of the line to receive scarce tax-exempt bonds for housing.
Either way, it's hardly clear that this will produce the tax dollars the city needs--another justification for the project, NY1 reported.