Atlantic Yards: ’09’s $4 B. Question

brown 19 0 Atlantic Yards: 09s $4 B. QuestionIn this week’s print Observer, Eliot Brown lays out the financing questions surrounding Brooklyn’s mightiest development in modern times:

For now, with Forest City still planning to build at some point, the question becomes how long the developer can keep doling money out without seeing any come back in. Forest City is awaiting what is likely the last major court challenge to the use of eminent domain, with a decision expected in the first half of 2009. But even if that concludes in its favor, as many legal experts expect it will, the developer may very well have an additional wait ahead of it. At this point it is unclear—many would say unlikely—that in six months to a year, investors would be willing to provide the nearly $1 billion in bonds needed for an arena or other financing for high-rise residential developments.

In this week’s print Observer, Eliot Brown lays out the financing questions surrounding Brooklyn’s mightiest development in modern times:

For now, with Forest City still planning to build at some point, the question becomes how long the developer can keep doling money out without seeing any come back in. Forest City is awaiting what is likely the last major court challenge to the use of eminent domain, with a decision expected in the first half of 2009. But even if that concludes in its favor, as many legal experts expect it will, the developer may very well have an additional wait ahead of it. At this point it is unclear—many would say unlikely—that in six months to a year, investors would be willing to provide the nearly $1 billion in bonds needed for an arena or other financing for high-rise residential developments.

The Wall Street Journal‘s Alex Frangos and Jonathan Karp added its own two cents on the project’s viability, reporting that Atlantic Yards architect Frank Gehry had laid off a dozen staffers related to the project.

What will 2009 bring? Just askin’.