Despite the "basic-ness" of the scaled-down arena, Lago stressed the overall long-term project's footprint remains the same as it did when first proposed. As a spokesperson for ESDC told GlobeSt.com, last month, "clearly the design of the arena will impact costs and have an impact on financing requirements." So far, there's been no confirmation on when construction will begin, despite the fact that as recently as April, an ESDC spokeswoman was telling GlobeSt.com that FCRC hoped to see Barclays Center Coliseum open by 2011.

At Friday's hearing, MTA interim executive director Helena Williams said FCRC had "proposed a smaller upfront cash payment for the land," where the Vanderbilt Yards now sit. She said that FCRC was negotiating a smaller amount, plus "additional payments over time." In 2004, the 8.5-acre railyard was appraised at $214 million. FCRC's bid of $100 million was $50 million less than a similar bid by competing developer Extell Corp.

After pointing out that the Long Island Rail Road started operations in Brooklyn back in 1836, the interim MTA head told the hearing that FCRC sought to reduce the $100 million it had promised for the MTA land's air rights. When Perkins said he'd heard a rumor that the $100 million had actually shrunk down to $50 million, Williams pointed to ongoing "intense negations" between the agency and Ratner, joking with Perkins that "between what you heard and what was in the paper, I like your number better."

Williams said MTA anticipates a "restructuring" of the deal in June if the outcome of negotiations between the MTA and Ratner are approved by the MTA board at its meeting on June 24. She promised to let the panel know what happens.

Williams also confirmed that the MTA would allow Ratner to scale back $445 million in improvements at the LIRR's new Vanderbilt Yards. "The new yard will have seven tracks plus an eight-car drill track," she said. The original plan had called for nine tracks.

When George Sweeting, deputy director of the city's Independent Budget Office spoke before the panel, he cited a 2005 report that said the arena would generate "a modest positive fiscal impact for the city of about $25 million net present value over 30 years." In prepared testimony, he noted a few changes that include an increase from $100 million to $205 million in the city's capital contribution, although some of that will go to infrastructure.

He said those changes "alone therefore eclipse the $25 million in net positive benefit to the city that we previously estimated for the arena." Addressing the use of tax-exempt bonds for financing, Sweeting said that at "the price and the current interest rate environment, IBO estimates that the public-sector cost in foregone tax revenue from the bondholders would be $200 million," with $193 million of that borne by federal taxpayers. The city cost, he said, would be about $1.5 million. "FCRC's savings would amount to $191 million," Sweeting testified.