Atlantic Yards Report

tag:blogger.com,1999:blog-207434592009-12-04T08:45:27.518-05:00Atlantic Yards ReportThis watchdog blog offers analysis, commentary, and reportage about Forest City Ratner's planned $4.9 billion Atlantic Yards project, the largest ever in Brooklyn, to build a basketball arena plus at least 16 high-rise buildings. It follows up on my 9/1/05 report on New York Times coverage of the project and the TimesRatnerReport blog (links below).Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.comBlogger2992125tag:blogger.com,1999:blog-20743459.post-69771495263317293872009-12-04T07:28:00.004-05:002009-12-04T08:24:46.055-05:00Can decision in Columbia eminent domain case reopen AY case? DDDB is trying, but there are both similarities and contrasts (and also precedent)

Based on the surprising 3-2 Appellate Division decision yesterday blocking the the Empire State Development Corporation's use of eminent domain for the Columbia University expansion, Develop Don't Destroy Brooklyn, organizer and funder of the Atlantic Yards eminent domain case, hopes that it can succeed in the rare step of reopening the latter.It's not easy. First, the Court of Appeals has to

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-10725202298777326302009-12-04T06:37:00.003-05:002009-12-04T06:47:44.413-05:00Brooklynites says Nets in Brooklyn must win; guess who are the two most positive

The New York Daily News today, in an article headlined Brooklyn basketball fans warn New Jersey Nets owner Bruce Ratner not to bring losing team to borough, queries a not-so-random selection of basketball fans, several of whom say they don't want a losing Nets team coming to Brooklyn.But a team rep is positive, as are a couple of fans: Other would-be Brooklyn Nets fans were disappointed by the

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-70823406954614648302009-12-04T02:55:00.004-05:002009-12-04T02:55:00.435-05:00Market analysis (commissioned by Ratner) suggests arena would have no trouble attracting events, might even host hockey

A Plano, TX-based consultant, Convention, Sports, and Leisure International (CSL International) has concluded that there's a healthy market for the planned Brooklyn Arena, given the large local population, the base of potential sponsors and advertisers, and the enthusiasm of promoters.Notably, it even suggests that the arena, though downsized to the point it couldn't accommodate professional

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-83753787543852972962009-12-04T02:51:00.001-05:002009-12-04T02:51:00.269-05:00Is the city kicking in an extra $31 million for property acquisition? It may look like that, but no confirmation is available

Has New York City contributed an additional $31 million subsidy for Atlantic Yards land? While I haven't been able to get an answer from city or state officials, language in bond documents is ambiguous but suggests that conclusion.According to the Barclays Center Preliminary Official Statement (p. 563) prepared by Goldman Sachs:City Capital Contribution – The City will make a capital contribution

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-64069998141135694582009-12-04T02:34:00.001-05:002009-12-04T02:34:00.361-05:00Just to be clear: Ellerbe Becket is the arena architect; SHoP is merely the façade architect

In September, Forest City Ratner announced "that the award-winning architectural firms Ellerbe Becket and SHoP Architects will collaborate on the design of the Barclays Center."New York Times architecture critic Nicolai Ourossoff wrote that "Ratner quickly hired Shop Architects, a young New York firm, to spiff up the arena." (SHoP exterior at right.)A lot of people have casually referred to the

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-80625321867085003692009-12-04T02:09:00.001-05:002009-12-04T06:48:04.108-05:00If the arena is built as a green building, it'll cost every visitor a buck

From a October 2008 Atlantic Yards brochure from Forest City Ratner:Every building in Atlantic Yards will achieve LEED certification, with a goal of Silver.From the Empire State Development Corporation's June 2009 Modified General Project Plan: the Project aims, through this comprehensive and cohesive plan, to provide for the following public uses and purposes... sustainability and green design

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-38597312641446021872009-12-04T02:07:00.004-05:002009-12-04T02:07:00.049-05:00Why the arena would cost about $900 million--and why the Carlton Avenue Bridge job hasn't been paid for yet

In the Empire State Development Corporation's 2009 Modified General Project Plan, the Atlantic Yards arena was to cost $772 million, but there was also $717 million for project infrastructure as a whole.Now, according to the Barclays Center Arena Preliminary Official Statement (prepared by Goldman Sachs) states, the arena would cost $904.3 million, including $807.1 million for site preparation

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-27819885658722718132009-12-04T01:50:00.002-05:002009-12-04T01:50:00.195-05:00The plans for arena transactions and PILOTs; see if they make sense to you

Wondering how the Atlantic Yards arena deal would work? The Barclays Center Arena Preliminary Official Statement (prepared by Goldman Sachs) offers some charts on the deal structure and the payments in lieu of taxes (PILOTs).Click on graphics to enlarge.The deal structureThe collection and application of PILOTs

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-89730753570015429372009-12-04T01:48:00.001-05:002009-12-04T01:48:00.599-05:00The temporary Vanderbilt Yard is already in operation

The temporary Vanderbilt Yard is already in operation.From the Barclays Center Arena Preliminary Official Statement (prepared by Goldman Sachs):As of the date of this Official Statement, LIRR has moved operations into the completed Temporary Yard, has de-energized the existing tracks within the Arena premises, and has signed an agreement with RailCo which allows for the cutting and removal of

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-21091162666776689752009-12-03T15:20:00.004-05:002009-12-03T15:26:18.944-05:00Nah, the Nets won't play in Brooklyn in the 2011-12 season

I wrote earlier today that the arena might open in April 2012, giving the Nets just a few games in Brooklyn.Nah.A market study attached to the Barclays Center Arena Preliminary Official Statement (prepared by Goldman Sachs) states, "It is assumed that the arena will open in May of 2012. As such, the year ending June 30, 2012 only reflects two months of operations."And there is no sum under the

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-87474184933573392042009-12-03T14:14:00.004-05:002009-12-03T15:27:00.628-05:00At entrance to the arena, "Urban Room" becomes "urban plaza" becomes (interim) "Urban Experience"

Once there was supposed to be a soaring Urban Room serving as entrance to the Atlantic Yards arena. With the absence of Building 1, in which the Urban Room was to be incorporated, Forest City Ratner representatives started talking about an "urban plaza."No more. Now it's an "Urban Experience," not to be confused--presumably--with an actual urban experience. It's another one for the Atlantic Yards

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-72499041273419935252009-12-03T13:22:00.011-05:002009-12-04T07:25:26.018-05:00Appellate Division overturns ESDC's use of eminent domain for Columbia expansion; how different is it from AY?

From the majority opinion in the Appellate Division's 3-2 overturning of the Empire State Development Corporation's (ESDC) planned use of eminent domain for the Columbia University expansion: It is recognized that Kelo, as described below, did not concern an area characterized as "blighted." However, the blight designation in the instant case is mere sophistry. It was utilized by ESDC years after

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-5630391740806450422009-12-03T12:15:00.007-05:002009-12-03T15:27:24.951-05:00After two renegotiations, Barclays naming rights agreement is $10 million a year (not $20 million, never formally confirmed)

Maybe it was never $20 million. Or maybe it was, but that changed after renegotiation. I suggested Tuesday that the Barclays Capital naming rights agreement for the Atlantic Yards arena--unspecified in ratings agency reports--may well have been renegotiated after the project was delayed and marquee architect Frank Gehry left the project.Well, the Barclays Center Project Preliminary Official

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-29440482748931157322009-12-03T07:38:00.000-05:002009-12-03T07:39:27.834-05:00When it comes to tax-exempt bonds (for BALDC and WTC), the ESDC shows inconsistent transparency

The New York Liberty Development Corporation, another special-purpose subsidiary (more or less) of the Empire State Development Corporation (ESDC), is having a meeting today at 9 am (webcast) regarding $2.6 billion in tax-free bonds for the use of World Trade Center (WTC) developer Larry Silverstein.Except the bonds were already approved yesterday. Reuters reports:Following its "common practice,"

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com1tag:blogger.com,1999:blog-20743459.post-12361790232508925732009-12-03T06:43:00.003-05:002009-12-03T06:50:27.781-05:00At the Izod Center, an "End Ratner’s Reign of Error!” sign is squelched

From columnist Steve Politi of the Newark Star-Ledger, reporting on the game in which the Nets set a record for season-starting futility:The sign was a simple protest, scrawled on a white poster board in black Magic Marker. It did not contain any naughty words. It was, as these things go at sporting events, rather tame.“End Ratner’s Reign of Error!” the sign read, and 14-year-old Evan Juliano

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-65922652470277338152009-12-03T02:45:00.006-05:002009-12-03T02:45:00.317-05:00Could Prokhorov become majority owner of the arena, too? If he buys the subordinated bonds and they fail, so it seems

Could Russian billionaire Mikhail Prokhorov control not just the majority of the Nets (of which he would buy 80%) but also the Atlantic Yards arena (of which he's slated to own a 45% stake)?Maybe, but two not-at-all assured things have to happen: 1) he buys the riskier subordinated bonds and 2) there's not enough revenue from the project to make the bond payments.(Remember, there would be $500

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com1tag:blogger.com,1999:blog-20743459.post-33730244406796970852009-12-03T02:31:00.007-05:002009-12-03T02:31:00.035-05:00The mysteries of the $131 million in New York City equity and the number of arena events

As I wrote yesterday, the bond ratings agency Moody's counts $131 million from New York City as an substantial equity component, but that doesn't make sense.If Moody's is counting city funding for land and infrastructure--and considering the "project" the arena plus infrastructure--it should also count at least some portion of the state's $100 million for infrastructure.That $131 million figure,

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-31786050209597331482009-12-03T02:30:00.001-05:002009-12-03T02:30:00.150-05:00If all goes well, the Nets might play in Brooklyn for the last games in 2012

A tidbit in the Standard & Poor's report rating tax-exempt bonds for the planned Brooklyn arena: "construction is expected to be completed by April 1, 2012."If the Nets aim to play ball, as Bruce Ratner asserts, "in the 2011-2012 NBA Season," that would mean--extrapolating from the current schedule--that the team would play its last three home games in Brooklyn.Don't count on it. (The Times

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-55437918365039139362009-12-03T02:28:00.001-05:002009-12-03T02:28:00.117-05:00Revised public authority reform legislation passes Senate, should be signed by Paterson

With passage of a revised bill in the Senate, the long legislative effort to reform public authorities has finally come to fruition, with modest changes from the earlier bill that passed the Legislature but was stalled by complaints, notably from Mayor Mike Bloomberg. This bill is expected to be signed by Governor David Paterson.The legislation still binds authority board members to their

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-21710152028858688932009-12-03T02:21:00.003-05:002009-12-03T02:21:00.182-05:00On WBAI radio this afternoon: an Atlantic Yards/eminent domain discussion

This afternoon, on WBAI radio's Behind the News, host Doug Henwood (also editor of the Left Business Observer), will discuss Atlantic Yards and eminent domain with two guests.They are City Council member Letitia James and Dana Berliner, an attorney with the libertarian Institute for Justice, who worked on the Kelo case in New London and many other high-profile cases.The segment will be from 5:10-

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-14964974673077748452009-12-02T21:51:00.002-05:002009-12-02T22:34:32.171-05:00Nets (Never Ending Terrible Season) lose to Mavericks, set record for futility

Blown out tonight, 117-101, by the hot-shooting Dallas Mavericks, the Nets are now 0-18 to start the season, setting a National Basketball Association record for futility (at the start of a season) and validating the sign in the audience reading Never Ending Terrible Season.The arena, reports the Times, was "perhaps half full." The official attendance was 11,689, about 58% of capacity.It is no

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-75757183883973973032009-12-02T17:53:00.000-05:002009-12-02T17:53:00.885-05:00AY facts and fiction, from Noticing New York

Noticing New York blogger Michael D.D. White, in a post headlined Unfair Substitution of Fiction for Fact in the Atlantic Yards Dialogue, writes: A prevailing hallmark of the promotion for Forest City Ratner’s proposed Atlantic Yards Brooklyn real estate mega-monopoly is the extremely unfair way that fiction has been routinely substituted for and intermingled with what are theoretically the

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-48171081553687330192009-12-02T09:46:00.006-05:002009-12-02T11:19:26.755-05:00Ratings agency Moody's, asked why it assumes 225 events a year at the AY arena, won't discuss it

Given that a Moody's analyst told the Bond Buyer that its just-above-junk rating for $500 million in Barclays Center PILOT bonds depended in part on 225 events a year, I thought it was worth following up.Noting that the arena sponsors most recently predicted 200 events a year (an 11% difference), I asked if Moody's was confident of the stated total of 225 events and, if there were 200 events, how

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-69945971610471247782009-12-02T08:38:00.006-05:002009-12-03T06:50:53.719-05:00Ex-Net Jason Kidd 'fesses up: AY is "about a real estate play" (not "doing the right thing")

Nets point guard Jason Kidd, at an 8/23/06 press conference event before the Empire State Development Corporation's public hearing on the Atlantic Yards Draft Environmental Impact Statement: "Getting to know Brooklyn and getting to know the community has proven to me that [Nets principal owner] Bruce [Ratner] is doing the right thing." Kidd, now with the Dallas Mavericks, had a different message

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0tag:blogger.com,1999:blog-20743459.post-48409433835054179202009-12-02T08:05:00.003-05:002009-12-02T08:09:24.389-05:00On blight, the Court of Appeals vs. New York magazine's "Approval Matrix"

From New York magazine's weekly Approval Matrix, locating last week's Court of Appeals decision on eminent domain at the extreme intersection of "Highbrow" and "Despicable."

Norman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.com0