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Recession Stalls Atlantic Yards — Brooklynian

Recession Stalls Atlantic Yards

smokin joe
smokin joe
edited November -1 in Prospect Heights
NYT, March 21, 2008

Slow Economy Likely to Stall Atlantic Yards

By CHARLES V. BAGLI

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Mod note: Pasting in entire articles is not-so-cool, copyright-wise.

Comments

  • pitu
    pitu
    there's also a shorter blog item about it...in case three paragraphs is all you can handle...
    :D
    http://cityroom.blogs.nytimes.com/2008/03/21/what-would-a-delay-at-atlantic-yards-mean/
    Morning Buzz wrote: The slowing economy, weighed down by a widening credit crisis, is likely to delay the signature office tower and three residential buildings at the heart of the $4 billion Atlantic Yards project in Brooklyn, Charles V. Bagli reports in a front-page article. Bruce C. Ratner, the developer, suggested that some construction could be put off for years. His comments are his first public indication that the darkening economy has slowed the ambitious project, spanning 22 acres at the intersection of Flatbush and Atlantic Avenues.

    Mr. Ratner did say he was confident about starting construction on a $950 million basketball arena for the Nets by the end of the year.
  • moufaisbad
    moufaisbad
    and...
    gothamist
    http://tinyurl.com/3aosc2
  • daver
    daver
    moufaisbad wrote: and...
    gothamist
    http://tinyurl.com/3aosc2
    For the tinyurl deficient (like me.)
    http://gothamist.com/2008/03/21/atlantic_yards_9.php

    Synopsis of short article:

    blahblahblah...1st phase pushed back several years, no anchor tenant, affordable housing scaled back...blahblahblah...$435M price tag already swollen to $950M, city and state already dispersed $55M for preconstruction on a promised $300M...blahblahblah...David Paterson against eminent domain which is required for project and may end up being a significant issue.

    The end.
  • sir_eccles
    sir_eccles
    I'm not sure what would be worse. A completed Atlantic yards or a half done stalled project with empty lots and unfinished construction?
  • carnivore
    carnivore
    sir_eccles wrote: I'm not sure what would be worse. A completed Atlantic yards or a half done stalled project with empty lots and unfinished construction?
    Don't forget Ratner absconding with millions in state money intended for the project.
  • daver
    daver
    Carnivore wrote: [quote=sir_eccles]I'm not sure what would be worse. A completed Atlantic yards or a half done stalled project with empty lots and unfinished construction?
    Don't forget Ratner absconding with millions in state money intended for the project.
    Dude, that is just gravy. It goes without saying either way.

    :mrgreen:
  • jml
    jml
    Half finished project will mean giant parking lots filled with commuters trying to avoid the congestion pricing. Think tons and tons of cars in the neighborhood.
  • moufaisbad
    moufaisbad
    Carnivore wrote: [quote=sir_eccles]I'm not sure what would be worse. A completed Atlantic yards or a half done stalled project with empty lots and unfinished construction?
    Don't forget Ratner absconding with millions in state money intended for the project.

    Thats exactly what I've been thinking.
    :cry:
  • prospectus
    prospectus
    But what does this mean for Freddy's? I don't think Freddie's is in part of the site set for the arena. Instead, they want to build a residential tower on top of my favorite bar. So if they build just the arena with the towers on hold, would they still knock down Freddy's just for spite?

    Of course, if Paterson still hates eminent domain, then the whole deal could blow away.
  • dr f
    dr f
    I can't help myself, I need to pat myself on the back a little bit for predicting a scenario like this back in a thread I started on August 19th titled "Does Atlantic Yards Survive...."

    the recent troubles in the financial markets. In it I wrote....

    [i]....Combine this with the increasing difficulties that even good credit borrowers are having getting jumbo mortgages, the increased scrutiny that every bank is going to give every deal before financing it, and, even if they do approve a project, the increased cost of borrowing for corporations as interest rates shot up the last few weeks.

    Bottom line for NYC...I think...is that a huge amount of the money that has been supporting the NY real estate market, and all the building and condo development that has been going on...is about to dry up. By spring you's start to see the market soften up and prices start to come down as developers won't be able to sell all of these high end condo they are building all over Manhattan. Planned projects will eventually be put on hold as a glut of apartments go unsold.

    That of course has reprecussions for Brooklyn and AY's in particular. Those are some mighty expensive apartments that BR wants to build over there, and if there not selling in Manhattan they sure won't be viable in Brooklyn. This is a very expensive project to build and if they don't think they can sell the apartments for the price they need they won't build it. Simple as that.

    My prediction is for one of two scenarios to play out. The first is is that FCR will continue to indicate the project is on track, and it probably will be until the spring. Then they will announce a delay for some reason or other, then another and another all the while assuring everyone the project will be built. Five years later it's still a hole in the ground.

    The second is that they begin construction but never get past the arena and the first building as it becomes clear that they will have difficulty selling the units.

    I know FCR is strong financially...they have a $600 million revelover with a group of 11 banks, so eveyone right now is happy to do business with them. All I'm saying is that the landscape has changed...alot...in the last three weeks and NYC is going to feel the impact. I think that AY has a strong potential to be one of the casualties.....

    I know it's really obnoxious...but I can't help myself. I' not right that often so I have to enjoy it when I can.
  • karl the druid
    karl the druid

    Subject: one ring

    one-ring
  • jeffrey
    jeffrey
    ^ wins.

    And is perfectly compatible with Karl's proposed new GAP traffic calming ( / DON'T LASE ME BRO!) plan.
  • chris
    chris
    I'm with sir_eccles, if this means the neighborhod is stuck in limbo, that can only be worse than the already bad 10-15 year construction scenario. But what really confuses me is this: I thought the buildings around the arena were needed to make that part of the whole project profitable. I can't see how he'll make money with just a basketball stadium -- especially one that now costs twice the price. And I think Freddie's still dies - my understanding was that it is situated where an escalator is planned as an entrance into the arena... so much for my cheap, tasty, and local, gin and tonics.
  • trainsmoke deleon
    trainsmoke deleon
    The recession may have stalled this project, but it has not managed to stall the excessively loud tree pulverizing outside my window.
    Hey who needs trees when you have safety cones?

    <param></param><param></param>
  • jeffrey
    jeffrey
    I sense another song in there somewhere, Trainsmoke...

    Could re-use the "outside my window..." part from the bike one, would be a funny sort of continuity.

    (pleez?) :D

    Also, viewing access of video above appears to be limited as follows:
    YouTube error msg wrote: This is a private video. If you have been sent this video, please make sure you accept the sender's friend request.
    Can haz access?
  • trainsmoke deleon
    trainsmoke deleon
    oh it's in there, you just can't hear it because of all the noise.

    it could start "i used to have a sidewalk...outside my window"
  • jeffrey
    jeffrey
    Can't view video yet, see edit above ( ^^ ) :) .
  • trainsmoke deleon
    trainsmoke deleon
    Also, viewing access of video above appears to be limited as follows:
    thanks, fixed
  • jeffrey
    jeffrey
    AAAAAAHAHAHAHAHAHAHAHAHAH.....

    Oh man.

    You weren't kidding.
  • trainsmoke deleon
    trainsmoke deleon
    One of the workers told me that they cut the trees down because they were sick. I can't imagine that the only trees in the neighborhood that were struck with an illness were the 4 or 5 trees that were in the exact staging area for the construction. Has this happened on anyone else's block or am I to believe that it's just a strange coincidence that the trees that were ill happened to share space of a certain proposed arena?
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