Forest City Enterprises: one Atlantic Yards tower "hopefully" will start by end of year; exec in Brooklyn had promoted multiple groundbreakings
"Again, they [Greenland] and us are anxious to get this going," LaRue said. "And that affordable housing component, which we remain focused on and committed to, is part of that acceleration. So we’re on track to get hopefully by the end of the year one of those starts that I mentioned, there’ll be another building at the project."
Analyzing the "impairment"
Asked for details, LaRue offered a "broad picture," suggesting that, upon opening, "we had a significant number of hosts" to help people find their way around the arena, but aren't needed now.
"Yes, replied O'Brien. Greenland is "coming to the table with approximately that amount of dollars," which will be used to help fund the permanent railyard and deck. (It's surely not enough.)
Forest City also will get a 5% development fee for the entire project, so, if the rest of Atlantic Yards costs $3.8 billion--a ballpark figure that likely will rise--and Greenland puts up $2.66 billion, Forest City would earn $133 million.
That's relatively close to the impairment, though, given that the fee would be delivered over time, a good deal less than the present value. Then again, the joint venture seems poised to save another $100 million or so from EB-5 investor funds.