How Forest City Ratner deceived the MTA and the public by not acknowledging the need for affordable housing bonds
The figure was revealed to the Public Authorities Control Board (PACB), however, and later revealed, after the project was approved, in litigation over the AY environmental review. (Click on graphic at right to enlarge.)
Before the MTA, lies of omission
A look back at Forest City Ratner's 2005 bid to the MTA (see p. 45 of this PDF) shows that the developer was deceptive too.
Take, for instance, the assertion that construction loans would be used for each individual building but tax-exempt financing would be used for the arena.
Nor did the banks that wished to become part of the transaction address the issue either. As shown at right, four banks "expressed confidence" that the cash flows from each building could support the construction loans and credit enhancements needed.
- $200 million in direct public subsidies;
- $555.3 million in arena financing;
- $819.7 million in equity from FCR, its investors, and cash flow from the project;
- and nearly $2 billion in construction loans.