Commercial Developers
December 4, 2008 - Atlantic Yards, Brooklyn NY
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| Work has abruptly halted at a key location of the controversial Atlantic Yards project, raising the possibility of additional delays on the $4.2 billion plan. |  |
Full Story - Below Updated 12/23/2008 |
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Atlantic Yards project location sees work halted abruptlyWork has abruptly halted at a key location of the controversial Atlantic Yards project, raising the possibility of additional delays on the $4.2 billion plan. A spokesman for developer Forest City Ratner said Wednesday construction at the Vanderbilt Rail Yards - where an NBA basketball arena and 16 towers are planned - would not resume until a lawsuit against the developer is settled. "As we said this fall we anticipate additional delays because of a pending court case," said spokesman Joe DePlasco, referring to an Appellate Division lawsuit challenging the use of eminent domain to acquire private land at the site. "Over the last two years, we've prepared the site for the next steps. We've gone about as far as we can go at this point with preliminary work, including sewer, track, infrastructure and utility work, along with demolition," DePlasco added. The developer's decision to suspend work last week marks a reversal of an earlier commitment to continue construction despite a barrage of lawsuits that has slowed work on the project. Forest City Ratner's long-deferred $100 million purchase of the MTA-owned rail yards, meanwhile, has also been delayed by the suit, said DePlasco and MTA officials. "Closing on the sale of the Vanderbilt Yards has been delayed as the parties work through a number of issues, including outstanding litigation," said MTA spokesman Jeremy Soffin. Every delay is potentially damaging to the megaproject in a global credit crunch where cash is getting more scarce. Though the developer claimed preliminary work was completed, an update from the Empire State Development Corp., said additional work - such as plans to remove debris, assemble train trestles and other construction - was slated for last week. Those plans never materialized as workers were told two weeks ago to finish up what work they could before a deadline last week, said an employee who was laid off, speaking on the condition of anonymity. A spokesman for McKissack, the Pennsylvania-based construction company hired to oversee work at the rail yards, did not return calls for comment. "They're stopping the work because they're having financial problems," said Daniel Goldstein, a member of the anti-Yards group Develop Don't Destroy Brooklyn. "The litigation is a problem for them, but as far as the work on the rail yards? They're delaying their own project because of their financial problems," said Goldstein. Original Story - NY Daily News Update 12/23/2008 Developer of Atlantic Yards project delays condo planThe crumbling economy has forced the developer of the controversial Atlantic Yards project to indefinitely delay as many as 900 condominiums and the project's glitzy centerpiece. With the condo market tanking, Forest City Ratner officials told city and state officials at a private meeting on Monday it would shift focus away from pricey condominiums in favor of rental apartments during the first phase of construction. "Going rental is consistent with what other developers are doing elsewhere," said Councilman David Yassky (D-Brooklyn Heights), who attended the meeting. "That's just what the market is dictating." The new plan calls for creating approximately 900 rental units in three towers formerly planned for condominium and commercial space, said several officials who attended the meeting at the Empire State Development Corp. office in lower Manhattan. A combination of affordable and luxury rental apartments would be offered under the new plan, the officials were told. It was unclear what will happen to the $4.2 billion project's original call for a total of 1,950 condominiums. A Forest City Ratner spokesman declined to comment on the shift to rental apartments or details of the meeting. But at least one official saw the delay as an opportunity. "The project is caught up in a perfect financial storm and therefore an opportunity has been created to emphasize the affordable housing component of the project," said Assemblyman Hakeem Jeffries (D-Fort Greene), who told Forest City Ratner executives to build the low income housing before going forward with a proposed NBA basketball arena. Jeffries said Forest City Ratner officials didn't respond to his request. The delays are yet another indication that the plan to build the arena and 16 towers appears to be struggling under the increasing weight of a plunging economy. Architect Frank Gehry axed nearly every employee working on designs for the unfinished 22-acre project last month because Ratner refused to pay for design revisions, sources said. Those layoffs were revealed less than a week after top brass insisted the $4.2 billion project would survive the ailing economy - but conceded there will likely be further delays and they didn't have a construction time line. The tumble has left some elected officials balking at the developer's continued use of public subsidies. "I don't believe the project approved by the state is going to be going forward anytime soon," said Yassky. "Forest City Ratner should return the taxpayer dollars, and start talking about what actually can be built." Original Story - NY Daily News
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