Release Main Page
Release: July 25, 2005
Extell Bids $150
Million vs. Ratner's $50 Million for the MTA's Rail Yards in Brooklyn
DDDB Demands That MTA Deliberate for More Than Two Days
And Postpone Vote Until Next Meeting in September
NEW YORK, NY -- The Metropolitan Transportation
Authority released the two bids on Atlantic yards late Friday afternoon.
Extell Development Company has bid $150 million in cash for the MTA's Vanderbilt
Yards (aka Atlantic Yards), while Forest City Ratner Companies (FCRC) has
bid $50 million for the same 8.4-acre property. Extell has bid $56 per square
foot, while Ratner has bid $15 per square foot. The MTA, also on Friday,
appraised the Vanderbilt Yards at $214.5 million.
"The community prefers the Extell proposal by a large margin as it fulfills
the key principles we have been fighting for over the past two years. And
now Extell has outbid Ratner by a very large margin," said Develop Don't
Destroy Brooklyn (DDDB) spokesperson, Daniel Goldstein. Goldstein added,
"The MTA should take time to deliberate and evaluate the two bids, especially
in light of the fact that both of the bids fall below the MTA’s appraised
value of $214.5 million. They should not rush to vote this Wednesday, bur
rather postpone their vote until their next meeting in September. If they
vote on Wednesday, Board members will only have two days to evaluate these
two bids and that is an insufficient and ludicrous amount of time. With
the Hudson Yards bids the Board deliberated for ten days, and that was insufficient.
Whatever the Board decides to do, it must be fair, transparent and judicious.
The public will not accept secret, sweetheart deals."
FCRC has tried to muddy the waters regarding their purchase price for the
rail yards by tacking on construction costs, sales tax revenue, and operating
costs to their $50 million cash offer. Extell has simply stated that they
will pay the MTA $150 million in cash at closing, while choosing to absorb
the costs for the "add-ons" that FCRC has marketed as part of their purchase
Goldstein continued, "As we've expected for a long time now, Mr. Ratner
thought he could get away with a sweetheart price for the rail yards, so
he low-balled his bid and then tacked on construction costs as part of his
purchase price. Mr. Ratner's 'add-ons' add nothing to his purchase price,
as both developers are offering to fulfill those commitments."
Besides the $100 million difference between the two purchase prices, the
proposed projects are vastly different. Extell proposes 11 buildings over
the 8.4-acre Vanderbilt rail yards, ranging in height from 4 stories to
28 stories. They will not use eminent domain and they intend to go through
the City's community and political development oversight process known as
ULURP (Uniform Land Use Review Procedures). Extell also plans to build a
school, as well as over 4 acres of public open space.
Ratner proposes to build over the Vanderbilt rail yards as well as an additional
13 acres currently consisting of private homes, businesses, and city streets.
The private property would be taken through a State invocation of eminent
domain. The Ratner proposal would overwhelm the community with 20 skyscrapers
ranging from 40 stories to 60 stories, as well as a 20,000-seat sports arena.
Ratner's proposal would completely bypass City oversight, with a State takeover
of the project.
Both developers offer 30% affordable housing. FCRC, as stated at a City
Council hearing, plans to build a total of 7,300 units, with 2,250 designated
as affordable. That is a 30% plan, not the much touted but false 50% plan.
Here is how the bids stack up.
THE BIDS STACK UP:
For every dollar that Ratner has offered the struggling
MTA, Extell has offered three.
Purchases Prices for Vanderbilt Yards (aka Atlantic Yards)
|FCRC claims the
following line items as part of their purchase price,
when in fact, they are costs that any developer would
have to bear to build on the site. Extell budgets
these items as part of their construction costs.
to MTA for Net Operating Increases over 50 years (PV)
of New Vanderbilt Yard
Remediation & Clean-up
of Mass Transit Improvements
Revenues to the MTA from Sales Tax are purely speculative
and is not part of the "purchase" of the yards.
Revenues to MTA from Atlantic Yards Sales Taxes (PV)
Total Purchase Price Offered:
have offered to cover platform costs, (likely with subsidies,
as explained below).
For infrastructure costs Extell anticipates direct subsidies
of $150 million, while FCRC anticipates direct subsidies
of $200 million. However, in addition to the $200
million, FCRC also expects
an unspecified amount contributed by the City and State
towards their "extraordinary infrastructure
costs", as described in 8ii) of the MoU
between the ESDC, City and FCRC. The total "extraordinary
infrastructure costs" are shown to be $163,000,000
on page 2.3 of the FCRC bid. These costs include the platform
amongst other items.
For more information on FCRC's direct and indirect subsidies,
which total at least $1.6 billion, see
DONíT DESTROY BROOKLYN
leads a broad-based community coalition
fighting for development that will unite our communities instead of dividing
and destroying them.
We oppose Forest City Ratner's "Atlantic Yards" proposal in Prospect Heights,
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