Public Financing & Subsidy for Atlantic Yards Over Fifty Percent

The finances and future of the Atlantic Yards development are in the news today, partly thanks to the "Ratner Carve Out" given to the project by legislators in Albany.

While there are a number of different ways one can count the public cost of the Atlantic Yards development, the total of the taxpayer-back financing and public subsidy is a fair indicator of the level of public support of the $4 billion project. The so-called Ratner Clause in the 421-a tax abatement that has generated controversy would add another $300 million, give or take, to the public's tab for the development. Develop Don't Destroy Brooklyn has been keeping a tally of the costs as it counts them, and they have calculated that the total now stands at $2.11 billion, or more than half of the project's announced cost. They write:

Since government has been unwilling to tally the full cost to the taxpayers of the Atlantic Yards project, and with the latest 421-a Ratner Clause added, we've updated our ongoing tally and best estimate.

Click here to download the pdf: Atlantic Yards: Government Backed Financing and the Cost to the Taxpayer (as of June 30, 2007).

The known government backed financing and public cost for the taxpayer that we've calculated is $2.119 billion. The unknown public cost and government backed financing could amount to more than that.

Remember, the project, according to Forest City Ratner, costs $4 billion.

Even in the large scheme of things, the 421-a subsidy is significant. Also today, the Times turns its attention to the finances for project, taking note of the fact that details are trickling out via different documents and that the project entails some significant risk, some of which would imperil the housing that is planned at the tail end of the project. (These are points that observers have been noting for a long time.) Norman Oder tackles the Time coverage too in Atlantic Yards Report, calling it "murky."