Develop-
don't destroy
BROOKLYN Press
Release Main Page
For Immediate
Release: December 4, 2008
Frank Gehry Lays Off Atlantic Yards Staff
Ratner Seeking More Favors from City, MTA and
Private
Lenders For Failing Atlantic Yards Plan
BROOKLYN, NY— Forest City Ratner’s Atlantic Yards development plan is contending
with pending litigation as well as the global fiscal crisis and credit crunch.
After confirming two weeks ago that all
work has stopped on the Atlantic Yards project site, and last week that
the project is indefinitely
on hold, now Ratner can add the absence of architects to design the
beleaguered megaproject to its list of woes.
Ratner’s world-renowned Atlantic Yards architect Frank Gehry has laid off
all staff working on the Atlantic Yards plan, according to a
report in today’s Wall Street Journal. Gehry laid off more
than “two dozen staffers” despite the fact the most of the proposed project
has not been designed.
Meanwhile, The New York Observer’s Eliot Brown confirms that Ratner’s
project is experiencing substantial cash flow problems and breaks
the news that Ratner is “…attempting to cobble together extra money;
trying to speed up tens of millions of dollars it is owed by public entities;
delay tens of millions in payments it owes to both the public and private
sectors; and tack on new subsidy programs for the housing piece of the project.”
“Ratner doesn’t have the architect, money or land he needs to build his
planned Atlantic Yards project. The project has been miserably managed and
is on the edge of failure. So now Ratner wants the budget-slashing
State, the budget-slashing City and the fare-raising MTA to grant him yet
more favors? Sorry, but that doesn’t fly,” said Develop Don't Destroy
Brooklyn (DDDB) spokesman Daniel Goldstein. “It really is high time
for the Paterson and Bloomberg administrations, and the MTA, to face the
facts of Ratner’s failing project and stop funding his money pit while asking
everyone else around the City and State to sacrifice during this fiscal
crisis.”
Ratner’s seemingly desperate attempt to have the City and State further
favor and cater to him includes an effort to get the cash-strapped MTA to
restructure the $100 million dollar deal for the Vanderbilt Rail Yard (8-acres
of the 22-acre project site) so Ratner doesn’t have to pay up front because,
The Observer reports, “financing is nearly impossible to find and
Forest City is hardly swimming in cash.” This attempt to delay payment is
even though the $100 million is already well below the MTA’s $214.5 million
appraisal of the rail yard.
Ratner also wants the City to speed “up the payments on the balance” of the $100 million in its direct taxpayer subsidy (which is only part of the City’s $205 million direct subsidy and does not include the City’s blank check for “extraordinary infrastructure”).
And in the private market Ratner is trying to renegotiate and extend a large
bridge loan with Gramercy Capital, which comes due in February. The
Wall Street Journal reports that the $153
million loan has accrued to $177 million owed.
Ratner does not own the land he needs to build his proposed arena and superblock
skyscrapers, and he does not have the financing to build any part of the
project. The status of the two pending lawsuits challenging the project’s
environmental review, “blight” finding, and use of eminent domain, can be
found at: www.dddb.net/php/status.php
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The community in Brooklyn has advocated for developing the rail yard in
a fiscally responsible manner, which is described in the community developed
UNITY Plan, which has been presented to Governor Paterson's economic development
officials. The UNITY
Plan is based on the principle that the MTA should divide the rail yards
into multiple, manageable parcels that can be put out for bid and bring
more revenue to the MTA. The smaller parcels reduce the risk inherent in
Ratner's massive project by spreading it amongst multiple developers. Then
the yard can actually be developed and badly needed affordable housing could
be realized.
DEVELOP DON'T DESTROY BROOKLYN leads a broad-based community
coalition
fighting for development that will unite our communities instead of dividing
and destroying them
DDDB is 501c3 non-profit corporation supported by over 4,000 individual
donors from the community.
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