The Times reports:
Forest City’s loan of $177 million from Gramercy Capital Corporation for the 22-acre property was due this month, which caused much speculation in political and real estate circles about the fate of the project.
According to executives familiar with the negotiations, Forest City will sign an agreement soon as today in which the company will make a $15 million payment immediately, as well as additional large payments in the future, in return for a two-year extension.
While I initially didn't make a prediction, it's not that surprising to me that Gramercy, which loaned Forest City Ratner money to buy property within the AY footprint, negotiated an extension; the prospect of owning certain buildings on the site could not have been attractive.
And Gramercy did get some cash. Its stock is barely $1, down from a 52-week high of $22.90.
"Some" opposition to stimulus
Perhaps more important news appeared lower down in the article:
In recent weeks, Mr. Ratner has sought to slash the arena’s cost and to get more subsidies from the city, the state and even New York’s portion of the recently approved federal stimulus package, beyond the $300 million in cash and tens of millions in tax breaks already committed to the project. Former Senator Alfonse M. D’Amato’s firm, Park Strategies, has been lobbying on behalf of Forest City to get federal money for infrastructure projects. But some state officials say that Atlantic Yards is unlikely to get that money, since other needs are more pressing.
That's an interesting locution. It wasn't "some state officials say they don't think Atlantic Yards should get that money;" rather, it was "say that Atlantic Yards is unlikely..."
That suggests that those quoted aren't local elected officials spouting off but rather insiders with some say.