Board That Nixed Jets Stadium Could Also Sink Atlantic Yards

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The board that threw the knockout punch at the proposed Jets stadium could deliver a second blow if it rejects Bruce Ratner’s Atlantic Yards project in Downtown Brooklyn. Governor Pataki, Assembly Speaker Sheldon Silver, and Senate Majority Leader Joseph Bruno control the Public Authorities Control Board, whose 3- 0 approval of $100 million in state subsidies is required for the Brooklyn project to proceed.


The Public Authorities Control Board “could put this project at risk,” an urban-planning professor at the Pratt Institute in Brooklyn, Ron Shiffman, said.


“There are a number of parallels,” Mr. Shiffman, a former member of the city’s Planning Commission, said. “Both are large-scale projects that are developer driven rather than part of a larger land use strategy by the city,” he said.


A senior fellow at the Manhattan Institute, Steven Malanga, pointed out other parallels between the rail-yard development plans. Both the Jets project and the Atlantic Yards project are “highly subsidized developments in restricted zonings” that are exempt from the usual public-review process, he said.


The Atlantic Yards project calls for an 800,000-square-foot arena for Mr. Ratner’s National Basketball Association team, the New Jersey Nets. Its general project plan calls for 1.9 million square feet of commercial development and 5.5 million square feet of residential development. It has also created an alternative plan with 428,800 square feet of office space and 6.8 million square feet of residential. A spokesman for Forest City Ratner, Barry Baum, said the firm has not decided which version would be submitted to the Metropolitan Transportation Authority.


As it did with the proposed Jets stadium, the MTA recently decided to put the air rights over its Atlantic Yard rail yards up for bid instead of continuing to negotiate privately with Mr. Ratner and his development company, Forest City Ratner. The bids are due July 6. Despite the solicitation of bids, Forest City Ratner is not thought to have serious competition for the development rights.


“The lack of public participation by local politicians, and the MTA putting out a request for proposal that is totally geared toward one particular developer, is the same for both projects,” state Senator Velmanette Montgomery, who represents the Atlantic Yards district and opposes the development, said.


“In both cases the MTA has extraordinarily valuable property that they are giving it away without public oversight,” a professor of political science at Baruch College, Douglas Muzzio, said. “The difference is that Ratner has been much more successful in working with the community, and there is no James Dolan and Cablevision to push the issue.”


Mr. Silver, who abstained from approving the Jets stadium on the basis it would create competition for the Lower Manhattan rebuilding process, could apply similar reasoning to the Ratner development, real-estate brokers said.


“It is the same commercial market, the same tenants would move to Lower Manhattan or Brooklyn,” the president of commercial brokerage firm Greiner-Maltz, John Maltz, said of Forest City Ratner’s plan to create 2 million square feet of office space at the site, which is only one subway station away from Lower Manhattan. The commercial development is to be phased in over 10 years, from 2006 through 2016, and could come online at the same time that development in Lower Manhattan is estimated to pick up.


Still, many experts said that those fears are overblown, particularly because Mr. Ratner would probably use his alternative plan if the amount of commercial development became a sticking point.


Not everyone believes there are similarities between the rejected Jets project and the proposed Atlantic Yards development. The two projects “are parallel in form only and not in content,” the sports economist Andrew Zimbalist said.


Subsidies for the $3.5 billion Brooklyn project total $200 million in state and city financing, while the $2.2 billion Jets project called for public financing said to exceed $1 billion.


The next step in the Atlantic Yards project is for the MTA to choose a developer. After that, the plan will undergo a State Environment Quality Review before it reaches the Public Authorities Control Board. An Atlantic Yards vote in Albany could come as early as January.


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