Critics Deem Atlantic Yards Documents Insufficient
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A state agency has failed to appease its critics by releasing financial details of the Atlantic Yards project.
The Empire State Development Corporation yesterday released three pages of documents from the project developer concerning financial aspects of the project, a move that was dubbed highly inadequate by lawmakers and community groups.
“We will deal with our attorneys, and not silly superfluous dribs and drabs that come through fax machines after press inquiries,” Assemblyman James Brennan, who filed a lawsuit Monday seeking the full disclosure of development company Forest City Ratner’s financial plan, said.
Mr. Brennan vowed to push ahead with a lawsuit to force the disclosure, and said that given the large level of subsidy involved, he believes the ESDC should have a complete business plan in its possession to allow the public to properly evaluate the Brooklyn development.
The three pages that were released with no explanation appear to offer details on the amount the developer stands to gain on the $4.2 billion project, though there does not seem to be enough information to make an accurate estimate of Forest City Ratner’s return.
For instance, the documents list a total projected return on the giant mixed-use project of $461.8 million, or 8.4%, by 2015, though many sources of revenue appear to be incomplete. There is no listing of revenue or expenses for a planned hotel, and the source of investment capital for the project components is unclear.
A partner specializing in Brooklyn at the real estate firm Massey Knakal, Timothy King, examined the documents, and said few conclusions could be drawn from them.
Should the 8% rate of return for Forest City Ratner be accurate, Mr. King said it seemed a little low for a project of such scale and risk.
The documents also appear to show that the New Jersey Nets, which would relocate to an arena in the Atlantic Yards complex, are losing almost $40 million a year.
City Council Member Letitia James, who has long been an outspoken opponent of the project, also called for the release of more financial documents.
“The public deserves to know how much Ratner stands to gain from this deal, and we still do not know,” Ms. James said in a written statement.
A spokeswoman for the ESDC, Jessica Copen, said she could not comment on Mr. Brennan’s lawsuit, though she said since the new administration has arrived it has been providing the assemblyman information about the project. “We’ve really tried to be cooperative,” she said.
Mr. Brennan filed his lawsuit after the ESDC denied a freedom of information request for the documents.
Forest City Ratner did not offer specific comment on the numbers in the documents.