Thursday, December 24, 2009

No, Atlantic Yards is much more than a sports story; it's a development story

From a New York Times Sports Section article today headlined Gains for Atlantic Yards:
After six years, the developer Bruce C. Ratner’s planned Atlantic Yards project in Brooklyn, which includes an 18,000-seat arena for the Nets, is showing big signs of moving forward. Ratner signed 640 documents relating to the closing on the project Wednesday. At roughly the same time, the proceeds from selling $511 million in tax-exempt bonds for the arena went into an escrow account.

And the state filed a petition in court to condemn part of the 22-acre parcel, including some parcels owned by residents who oppose the project and the state’s use of eminent domain. Ratner and his partner, the Russian billionaire Mikhail D. Prokhorov, also put up about $230 million for the next stage of the project.
Now that the days of original web site bball.net are over, it should go without saying that Atlantic Yards is more a real estate development and government story than a sports story, but apparently it has to be said. (The original Times coverage yesterday appeared on the CityRoom blog.)

From the POS

Just for a sense of what's at stake, consider this excerpt from the Barclays Center Preliminary Offering Statement (POS), prepared by underwriter Goldman Sachs:
The following documents related to the Arena Project (together with certain other documents and letters of credit related to other portions of the Atlantic Yards Project as described and set forth in the Commencement Agreement, the “Vesting Title Documents”) will be released from escrow and recorded (as applicable) promptly following the date that ESDC files the order entered by the New York State Supreme Court, Kings County granting the condemnation petition, together with acquisition maps and any required bond or undertaking, with the City Register, Kings County and the satisfaction of certain other conditions pertaining to required improvements to the transit system on the Arena Block (the “Vesting Title Conditions”): (1) the Development Agreement, (2) the Arena Block Declaration, (3) the DEP Easement, (4) the Arena Premises Interim Lease Agreement (and a memorandum thereof), (5) the Lot 7 Sale and Purchase Agreement, the deed to Block 1119, Lot 7 on the Borough of Brooklyn Tax Map and other closing documents required under such agreement, (6) the Lot 47 Transfer Agreement, the deed to the Lot 47 MTA Premises and other closing documents required under such agreement, (7) the Lot 42 Transfer Agreement, (8) the Parking Easement, (9) the Transit Improvement Agreement (and a memorandum thereof), (10) the Transit Improvements Easement, and (11) the TA Naming Rights Agreement.

1 comment:

  1. Deja vu all over again! Relegating Ratlantic Yards to the NYT Sports section brings the 6 1/2 year Ratner/NYTimes decoy partnership full circle. In July/August 2003, when I first became alarmed about Ratner's envisioned "residential stadium development", commercial real estate reporter Charles Bagli's new, hybrid Commercial-Real-Sports-Estate reports could ONLY be found in the NYTimes Sports pages. -- Patti Hagan

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