Public Cost of ‘Atlantic Yards’ Continues to Balloon

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City Doubles Direct Taxpayer
Subsidy for Ratner Plan

From $100 Million to $205 Million

 

NEW YORK ,NY — January 29, 2007 — Ratner gets richer as the
public’s burden for ‘Atlantic Yards’ increases yet again
New York City’s taxpayers have now been forced
to double their direct
cash subsidy for Bruce Ratner’s “Atlantic Yards.”

The subsidy has climbed from $100 million to $205 million as revealed in the new City budget. The ballooning number
comes after the project received its only political approval the by the
State’s Public Authorities Control Board in December, amounting to a bait and
switch at taxpayer expense.

The new $205 million taxpayer subsidy is only
part of the City’s subsidy package to Ratner, a package which includes tax
abatements and credits, housing subsidies, undervalued City-owned land, and a
blank check called “extraordinary infrastructure costs.” The total subsidy and
public investment from the City and State comes much closer to $2 billion).

“We’ve
always known that Bruce Ratner’s ‘Atlantic Yards’ would cost the public much
more than we’re being told. This doubling of the City’s taxpayer cash subsidy
to $205 million for Ratner’s
project is just the first blast of helium into a very large balloon of public
money,” said Develop Don’t Destroy Brooklyn spokesperson Daniel Goldstein.
“There will be many more installments made to Ratner under a blank public check
euphemistically called ‘extraordinary infrastructure costs.’ Who will put a
stop to this?”

When the
City, Forest City Ratner and the State signed an “Atlantic Yards” Memorandum of
Understanding (MOU) in February 2005, there was a blank check agreed to called
“extraordinary infrastructure costs.”  It appears that that blank check
has started growing.

“The
Mayor has told us over and over that
New York City taxpayers would be forking
over  $100 million to Ratner, but before seeing if the project can
even survive serious federal and state lawsuits, let alone begin construction,
the Mayor has increased the Ratner handout to $205 million,” Goldstein concluded.

eHeziPublic Cost of ‘Atlantic Yards’ Continues to Balloon

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