Skip to main content

The New York Post discovers (and downplays) ACORN's deal with Forest City Ratner

Now that the national organization ACORN has been in the news, after a video sting operation exposed some unwise advice from low-level employees, the New York Post mentions, in passing, something far more significant: developer Forest City Ratner's bailout of the national organization, with a $500,000 grant and a $1 million loan.

The article, headlined Group can $core on Atl. Yards, begins with a bit of a non sequitur:
Despite a string of scandals that led Congress to cut off its federal funding, ACORN stands to make millions off its support for Brooklyn's controversial Atlantic Yards project, The Post has learned.

The left-wing organization--longtime boosters of the $4.9 billion NBA arena and residential- and office-tower project--says it expects to market and help decide who gets to live in the 2,250 affordable housing units.

This, after Atlantic Yards developer Bruce Ratner helped bail ACORN out of financial trouble last September with a $1 million loan and a $500,000 grant.


The scandal has nothing to do with ACORN's housing management role, and ACORN's role in helping decide who gets to live in the affordable housing units involves running a lottery. (Yes, there are ways lottery marketers can ensure that certain groups are informed about applying, though it's likely Atlantic Yards housing would get much publicity.)

And it's not news that ACORN would earn fees for marketing the units. As John Atlas reported in the November/December 2005 issue of Shelterforce Online:
The plan, developed by ACORN’s housing expert, Ismene Speliotis, sets rents at 30 percent of the household’s income. Speliotis even insisted that ACORN be given the responsibility of marketing the units. (Another point of contention for critics.) “Nobody is going to care as much as ACORN that the appropriate people are marketed to, reached and housed,” says Speliotis.

Could ACORN earn $5 million to $10 million a year from marketing and leasing the units, as whistleblower Anita MonCrief suggests to the Post? I think a better source on that would be an organization involved in affordable housing in New York. (I'll check.)

The bailout

The $1.5 million bailout is much bigger news, because it shows Forest City Ratner stepping in after major foundations, which had previously supported ACORN, stopped contributing after an embezzlement scandal.

That was first made public by whistleblower MonCrief last year, and confirmed by an ACORN spokesman for this blog last December 2. On April 10, I even wrote an open letter to New York Times Public Editor Clark Hoyt explaining why the bailout was worth a story.

Now, it is, though the Post gave it just a paragraph (updated) in print, as noted above, though there's more online:
As Ratner was quietly funneling $1.5 million in grants and loans to ACORN last year, his firm was reeling from the economic downtown and laying staff off and bringing in “value engineers” to shave Atlantic Yards' costs.

Critics and some project supporters began questioning whether Ratner could deliver the affordable housing and jobs he promised. But ACORN -- which was embroiled in an embezzlement scandal and owed millions of dollars in back taxes -- remained silent and accepted Ratner’s gift.

The lack of credit

Of course the Post doesn't credit this blog, because Post policy is not to credit blogs, as one ripoff reporter told blogger Heather Letzkus.

When that news went viral, a Post spokeswoman, refusing further comment, insisted to the Nieman Journalism Lab that the newspaper regularly credits blogs. Nope.

Comments

Popular posts from this blog

Forest City acknowledges unspecified delays in Pacific Park, cites $300 million "impairment" in project value; what about affordable housing pledge?

Updated Monday Nov. 7 am: Note follow-up coverage of stock price drop and investor conference call and pending questions.

Pacific Park Brooklyn is seriously delayed, Forest City Realty Trust said yesterday in a news release, which further acknowledged that the project has caused a $300 million impairment, or write-down of the asset, as the expected revenues no longer exceed the carrying cost.

The Cleveland-based developer, parent of Brooklyn-based Forest City Ratner, which is a 30% investor in Pacific Park along with 70% partner/overseer Greenland USA, blamed the "significant impairment" on an oversupply of market-rate apartments, the uncertain fate of the 421-a tax break, and a continued increase in construction costs.

While the delay essentially confirms the obvious, given that two major buildings have not launched despite plans to do so, it raises significant questions about the future of the project, including:
if market-rate construction is delayed, will the affordable h…

Revising official figures, new report reveals Nets averaged just 11,622 home fans last season, Islanders drew 11,200 (and have option to leave in 2018)

The Brooklyn Nets drew an average of only 11,622 fans per home game in their most recent (and lousy) season, more than 23% below the announced official attendance figure, and little more than 65% of the Barclays Center's capacity.

The New York Islanders also drew some 19.4% below announced attendance, or 11,200 fans per home game.

The surprising numbers were disclosed in a consultant's report attached to the Preliminary Official Statement for the refinancing of some $462 million in tax-exempt bonds for the Barclays Center (plus another $20 million in taxable bonds). The refinancing should lower costs to Mikhail Prokhorov, owner of the arena operating company, by and average of $3.4 million a year through 2044 in paying off arena construction.

According to official figures, the Brooklyn Nets attendance averaged 17,187 in the debut season, 2012-13, 17,251 in 2013-14, 17,037 in 2014-15, and 15,125 in the most recent season, 2015-16. For hoops, the arena holds 17,732.

But official…

Is Barclays Center dumping the Islanders, or are they renegotiating? Evidence varies (bond doc, cash receipts); NHL attendance biggest variable

The Internet has been abuzz since Bloomberg's Scott Soshnick reported 1/30/17, using an overly conclusory headline, that Brooklyn’s Barclays Center Is Dumping the Islanders.

That would end an unusual arrangement in which the arena agrees to pay the team a fixed sum (minus certain expenses), in exchange for keeping tickets, suite, and sponsorship revenue.

The arena would earn more without the hockey team, according to Bloomberg, which cited “a financial projection shared with potential investors showed the Islanders won’t contribute any revenue after the 2018-19 season--a clear signal that the team won’t play there, the people said."

That "signal," however, is hardly definitive, as are the media leaks about a prospective new arena in Queens, as shown in the screenshot below from Newsday. Both sides are surely pushing for advantage, if not bluffing.

Consider: the arena and the Islanders can't even formally begin their opt-out talks until after this season. The disc…

Skanska says it "expected to assemble a properly designed modular building, not engage in an iterative R&D experiment"

On 12/10/16, I noted that FastCo.Design's Prefab's Moment of Reckoning article dialed back the gush on the 461 Dean modular tower compared to the publication's previous coverage.

Still, I noted that the article relied on developer Forest City Ratner and architect SHoP to put the best possible spin on what was clearly a failure. From the article: At the project's outset, it took the factory (managed by Skanska at the time) two to three weeks to build a module. By the end, under FCRC's management, the builders cut that down to six days. "The project took a little longer than expected and cost a little bit more than expected because we started the project with the wrong contractor," [Forest City's Adam] Greene says.Skanska jabs back
Well, Forest City's estranged partner Skanska later weighed in--not sure whether they weren't asked or just missed a deadline--and their article was updated 12/13/16. Here's Skanska's statement, which shows th…

Not just logistics: bypassing Brooklyn for DNC 2016 also saved on optics (role of Russian oligarch, Shanghai government)

Surely the logistical challenges of holding a national presidential nominating convention in Brooklyn were the main (and stated) reasons for the Democratic National Committee's choice of Philadelphia.

And, as I wrote in NY Slant, the huge security cordon in Philadelphia would have been impossible in Brooklyn.

But consider also the optics. As I wrote in my 1/21/15 op-ed in the Times arguing that the choice of Brooklyn was a bad idea:
The arena also raises ethically sticky questions for the Democrats. While the Barclays Center is owned primarily by Forest City Ratner, 45 percent of it is owned by the Russian billionaire Mikhail D. Prokhorov (who also owns 80 percent of the Brooklyn Nets). Mr. Prokhorov has a necessarily cordial relationship with Russia’s president, Vladimir V. Putin — though he has been critical of Mr. Putin in the past, last year, at the Russian president’s request, he tried to transfer ownership of the Nets to one of his Moscow-based companies. An oligarch-owned a…

Former ESDC CEO Lago returns to NYC to head City Planning Commission

Carl Weisbrod, Mayor Bill de Blasio's City Planning Commission Chairman and Director of the Department of City Planning, is resigning,

And he's being replaced by Marisa Lago, currently a federal official, but who Atlantic Yards-ologists remember as the short-term Empire State Development Corporation CEO who, in an impolitic but candid 2009 statement, acknowledged that the project would take "decades."

Still, Lago not long after that played the good soldier at a May 2009 Senate oversight hearing, justifying changes in the project but claiming the public benefits remained the same.

By returning to City Planning, Lago will join former ESDC General Counsel Anita Laremont, who after retiring from the state (and taking a pension) got the job with the city.

Back at planning

Lago, a lawyer, in 1983 began work as an aide to City Planning Chairman Herb Sturz, and later served as the General Counsel to the president of the NYC Economic Development Corporation, Weisbrod himself.