Atlantic Yards Report
by Daniel Goldstein
Jul 14, 2009 | 1187 views | 0 0 comments | 28 28 recommendations | email to a friend | print
Forest City Ratner, the developer who proposed the Atlantic Yards project in Brooklyn, is the New York-based subsidiary of the largest publicly traded real estate development corporation in the United States. The parent company, Forest City Enterprises, is based in Cleveland.

In the summer of 2009, the company was priced at about $70 per share. Just one year ago, Forest City Enterprises stock was trading at about $32 per.

Forest City - bleeding money, short on liquidity and facing a tumultuous economy and real estate market - transformed itself from a development firm to a management firm. But the Cleveland leadership has taken a bet-the-company approach with the Atlantic Yards project: Atlantic Yards is the only planned vertical development in the company's entire portfolio that it is attempting to stick with.

And the market isn't liking it so much.

This week, on July 13, the company closed at $5.20 per share. That's down 21 percent from May, when Forest City, desperate for cash, issued 45.5 million new shares at $6.60 per share. And the family members of the closely held company reportedly purchased about $20 million worth of stock.

In sum, the company and its shareholders have taken a bath and the steady decline of the stock price shows no sign of abating. Meanwhile, Forest City Ratner continues to hold on to a Nets basketball team it overpaid for and $40 million in loses last year.

The bet isn't looking so good.

In other AY News

The state agency with a track record of giving very little information will join the developer who shares even less information to let you, the public, know what is going on with their Atlantic Yards debacle.

Brooklyn Community Board 6 has publicized the event this way:

Please join Brooklyn Community Boards 2, 6 & 8 at an Informational Meeting to hear an updated presentation on proposed modifications to the Atlantic Yards Development General Project Plan. At this meeting proposed modifications to the plan will be presented by representatives for the New York State Empire Development Corporation and Forest City Ratner Companies. Following the presentation there will be an opportunity for questions (to be submitted in writing) and answers.

Meeting will be held 6:00-9:00pm on July 22, 2009

at Long Island University's Zeckendorf Health Sciences Center, Room 107

(Enter Dekalb Avenue, off Flatbush Avenue).

The meeting notice is at: www.brooklyncb6.org/calendar/#22

Don't you think it is long past time for ESDC and Ratner to discuss Atlantic Yards with the community on equal footing?

Don't you think it is long past time for ESDC and Ratner to answer direct verbal questions and comments, rather than through a moderator, and to be pressed with follow-up questions when left unanswered?

Don't you think it is long past time for the community to be in charge of the community's future, rather than ESDC and Ratner?

I do.

Come on out and verbally ask your questions and make your comments to the ESDC and Ratner.

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