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ESDC Approves Modified Atlantic Yards Plan

NEW YORK CITY-Forest City Ratner Cos. will now pay the Metropolitan Transportation Authority $20 million up front, with the rest in deferred payments.

By Cody Lyon | Updated on June 23, 2009

NEW YORK CITY-As was expected, the Empire State Development Corp.’s board of directors approved an amended General Project Plan for Brooklyn’s proposed Atlantic Yards project at a Tuesday morning meeting at its Manhattan offices. The move comes a day after the Metropolitan Transportation Authority agreed to give developer Forest City Ratner Cos. a break on financial terms for a parcel of MTA property FCRC needs to move forward with the arena portion of the project.

The cash-challenged MTA, which got a bailout from the State Legislature in May, says in a finance department staff summary that “in recognition of the impact that the financial and real estate downturn has had upon the economics of the original FCRC proposal, MTA staff and FCRC have negotiated other changes to this transaction.”

MTA finance department documents show that FCRC will now pay $20 million up front for the arena property, and $80 million in deferred payments for air rights. The annual payments will extend through 2031. That compares to 2006, when the negotiated price had been set at $100 million.

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