Prokhorov? Thy Name Is Eminent Domain?, originally uploaded by threecee.
Another possible addition to this wall of shame is the Russian Mikhail Prokhorov, a billionaire who apparently wants to participate in our capitalist system by investing in Atlantic Yards. Damned if I know if he’s gaming Ratner, or if Ratner’s gaming him, but I bet we little guys are the ones who’ll lose.
UPDATE: This appears to be more likely as Forest City Ratner has issued a press release about the deal (pdf). Here’s a quick break-down, via the Atlantic Yards Report:
Forget all the rumors that Russian billionaire Mikhail Prokhorov would invest $700 million in the Atlantic Yards arena.
Rather, he’s putting up $200 million, crucial funding that will help bridge the gap between the cost of the approximately $800 million arena and tax-exempt bonds, and will gain–subject to some still-unclear details– a controlling part of the team and nearly half of the arena, plus an opportunity to gain 20% the development as a whole.
Though the official announcement claims that the “partnership will ensure the successful completion of a world-class entertainment venue in Brooklyn, the relocation of the NBA Nets basketball team and the economic and housing benefits of the Atlantic Yards Project,” none are a lock.
It makes the completion of the arena and the team’s relocation more likely, but there remain legal challenges.
Even more uncertain are the fulfillment of the economic and housing benefits.
Regardless of who owns the arena and the Nets, the essential question for me remains:
Do we really want to be using eminent domain to enable the construction of a sports arena for a (foreign) billionaire?
Is that the kind of investment New Yorkers want to be encouraging? If all one needs to do is convince a few guys in a room in Albany that your speculative real estate deal could/would generate more revenue/jobs/housing/whatever as a “public benefit“ than whatever/whomever is currently producing with their particular piece of private property, then you’d better have deeper pockets and better connections than those eyeing your turf.
[...] on October 14th. Forest City Ratner is doing its best to raise funds (such as partnering with a Russian oligarch) and get a shovel in the ground to before year-end to qualify for tax breaks due to expire on [...]