Monday, April 14, 2008

Ratner's gain is our loss

From the Real Deal:

Atlantic Yards developer Bruce Ratner plans to ask city and state officials for more public subsidies for the struggling mega-project. That's in addition to the $305 million in public subsidies that he's already received. Some City Council members say Ratner's latest move proves the project is a money grab.

Ratner wants more public funds for Atlantic Yards

RATNER'S NETS GAIN
PROJECTED ATLANTIC YARDS SUBSIDIES (SAVINGS TO BRUCE RATNER)
By RICH CALDER, NY Post

*1. Arena real estate tax savings through 30-year Payment in Lieu of Taxes (PILOT) agreement with state = $1,032,740,000

*2. Taxes saved on $1.406 billion federal-state-local tax-free bonds to create affordable housing = $261.25 million

3. Cash from New York City for infrastructure and/or land acquisition costs = $205 million

* 4. Taxes saved on estimated $1.032 billion fed-state-local tax-free bonds to finance $950 million arena = $191.9 million

5. Tax credits through special 421-a "carve out" state legislation = $150 million

6. Savings from purchase of Atlantic Rail Yards at price less than MTA appraisal= $114.5 million

7. Cash from New York State for infrastructure costs= $100 million

* 8. Mortgage recording tax exemption (on residential buildings) = $39.37 million

* 9. Value of city land under arena given to developer= $27.1 million

* 10 Potential tax credits for low-income housing units= $18 million

*11. Sales tax exemptions (only arena) = $17.4 million

12. Sale tax exemptions (other than arena) = Undetermined

13. Extra funds for "extraordinary infrastructure costs"= Undetermined

14. Credits for public utilities relocation= Undetermined

GRAND TOTAL=AT LEAST $2,151,890,000

*Estimations by Michael D.D. White, an urban planner and former top lawyer for New York State's finance authorities, after reviewing public documents. Other figures based New York Post examination of state records and interviews with government officials.

Note: Atlantic Yards is estimated to cost $4 billion.

3 comments:

Anonymous said...

Yet more proof that the real estate industry is strangling NYC and driving out the middle class!

If I'm going to invest/subsidize
Bruce "the rat" Ratner's project
with my tax money,
what is my percentage of the share
of the profits?

Taxpayer said...

Anonymous # 1 is absolutely correct.

Partners divide the profits proportionately.

And, since he can't convince other developers who are in the know to go in with him, he has to pay a premium for compulsory partnership.

Unless he's Fascist. Is he? We know that Bloomberg is.

Anonymous said...

Instead of the city subsidizing this guy why doesn't HE PAY for the infrastructure upgrades or additions needed to fully serve this development?!

oh never mind. I know it doesn't work that way. When the power starts going out in downtown Brooklyn maybe someone will consider this.