Q. So what is the status of the Atlantic Yards project over all?
A. I spent a lot of time working on Atlantic Yards, and as you know we talked about starting the first building this year and we are committed to doing that. We are designing and running with two designs: a conventional design and a modular design. As we just announced, we will start construction of the first residential building, which will be 50 percent affordable, on Dec. 18.
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…