A sports economist hired by Northlands thinks private developers should pay for overruns, and he's offering this advice to council:With Atlantic Yards, his report, commissioned by Forest City Ratner, was used to help justify $100 million in direct city subsidies--and then, after the project was approved, those subsidies were doubled (and later shaved back somewhat to an official, if contestable, $179 million).
"Once it's approved at the Spartan level, they start to say, 'oh we'd like to have this next to the locker room' and we'd like these bells and whistles. You've got to be deliberate, you've got to be cautious and you've got to be strong in bargaining in a deal that's good for the City of Edmonton," said Dr. Andrew Zimbalist.
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…