Tuesday, February 15, 2011

Flashback, 2005: “We don’t know when this [Vanderbilt Yard] sale will close," warned one dissenter on MTA board

The Brooklyn Paper, in a 9/17/05 article headlined RATNER GETS SITE: With MTA’s blessing, Bruce leaves $10 million deposit on rail yards, reported on the Metropolitan Transportation Authority's acceptance of Forest City Ratner's $100 million cash bid--double the original, though less than the $150 million cash offered by rival bidder Extell--for the Vanderbilt Yard:
The vote followed hours of public testimony at the Sept. 14 hearing in Manhattan, both for and against Ratner’s plan. The only MTA board member to question the deal at the hearing was Mitchell Pally, a Suffolk county appointee.

Pally said he was baffled that the board didn’t insist on getting more money, or arrange a deal whereby Ratner had to pay the full price up front.

...Pally also questioned why the MTA was making its own transaction contingent upon the actions of other state authorities.

“Why is the MTA making closing contingent on these other bodies?” asked Pally. “We don’t know when this sale will close. It could be two years, it could be five years, it could be 10 years,” he said, pointing out that the MTA faces incredible demands in their current capital budget.
Indeed, four years later, Forest City Ratner renegotiated the deal and put down only $20 million for the segment of land needed for the arena block.

No comments:

Post a Comment