Atlantic Yards Opposition Seeks Further Approval

BROOKLYN, NY-The proposed $4-billion Atlantic Yards project has had many hurdles presented in a number of court challenges over the past year, and opposition to the project has continuously called for a “time out,” as GlobeSt.com previously reported. On Thursday, one such opposition group, Develop Don’t Destroy Brooklyn, and its attorney Jeffrey Baker of Young, Sommer, Ward, Ritzenberg, Baker & Moore LLC, sent a letter to the Public Authorities Control Board regarding the “increase in cost” of Forest City Ratner Cos.’ Atlantic Yards Barclay’s arena and the development project as a whole.

Atlantic Yards

The letter demands that the PACB–comprised of Gov. David Paterson, Speaker Sheldon Silver and Majority Leader Joseph Bruno–exercise its “statutory obligation to approve the financing and construction of the project.” When asked about financials surrounding the project, a Forest City Ratner spokesperson tells GlobeSt.com that they have “no comment at this time,” and also says that they have no comment regarding the DDDB letter. DDDB legal director Candace Carponter says that “we fully expect the PACB and Gov. Paterson to agree that the change in Atlantic Yards financing needs a new approval decision, based on the need for sound and prudent fiscal policy.”

In the letter, DDDB says that as part of its approval process, “the PACB is directed to determine that there are commitments of funds sufficient to finance the acquisition and construction of the project.” The letter says that on Dec. 20, 2006, the PACB adopted Resolution No. 06-UD-953 approving the Atlantic Yards Project submitted by the Empire State Development Corp. “The project identified as the subject of the resolution included the Barclay’s Arena with identified financing of $637.2 million. In considering the request from ESDC, the PACB relied in large part upon a Dec. 2006 report from KPMG LLG Economic and Valuation Services, which evaluated the financial viability of the arena. Based upon the expectation that construction of the arena would cost approximately $637 million, KPMG found that the projected return on investment would support the development and maintenance cost.”

The letter went on to say that since that time the estimated cost of the arena, as well as other elements of the Atlantic Yards proposal, has increased, “either as a result of increased construction costs or initial underestimation. As of March of this year the estimated cost of the arena itself, according to Forest City Ratner, has increased to $950 million. This represents a 50% increase over the original estimate,” the letter said, although when provided these figures, FCRC did not return confirmation.