Thursday, September 30, 2010

An op-ed for the Observer on KPMG's fuzzy math regarding the Brooklyn housing market

I've written a lot about KPMG's curious market study for the Empire State Development Corporation.

Now I've threaded some of those observations and analyses into an op-ed for the Observer online, headlined KPMG's Fuzzy Math on Atlantic Yards, and tweaked to incorporate this week's news:
On Tuesday, Atlantic Yards developer Bruce Ratner surprised reporters with his candor, acknowledging that the timetable for the project, despite the officially announced 10-year time span, was "market-dependent."

After all, if the arena and all 16 towers take 25 years, as he acknowledged was possible, then the much-ballyhooed benefits (affordable housing, open space, tax revenues) would not arrive as promised. And the Empire State Development Corporation (ESDC), the state's economic development agency, might find itself with some egg on its face.

Damningly, the ESDC's then-CEO said in April 2009 that the project would take "decades." However, in an August 2009 report for the ESDC, consultant KPMG pronounced the 10-year timetable valid.

Given that Mr. Ratner apparently doubts the timetable himself, it's worth looking at how KPMG's numbers just don't add up.
Why is this all important?
However dubious, the report remains crucial to the final Atlantic Yards court case. State Supreme Court Justice Marcy Friedman is considering requests from several community groups to force the ESDC to do an additional review of the project's longer-term environmental impacts.
The rest is here.

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