Friday, June 19, 2009

Keep your eye on the ball: FCR began renegotiating this deal well before the economic downturn

As we approach key meetings next week, expect the Metropolitan Transportation Authority, (MTA), the Empire State Development Corporation (ESDC) and and Forest City Ratner (FCR) to say the deal for the Vanderbilt Yard and the Modified General Project Plan for Atlantic Yards as a whole must be renegotiated because of the economic downturn.

But the economy crashed last September.

The State Funding Agreement and City Funding Agreement, which provided no schedule for Phase 2 (which would contain all the open space and a large majority of the affordable housing) and allowed FCR to build a much smaller project without penalty, were signed in September 2007.

And it was April 2008 when Chuck Ratner, CEO of parent Forest City Enterprises, said "we still need more" subsidies.

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