Thursday, December 18, 2008

Atlantic Yards Now Further From Ever Being Built

When it comes to Atlantic Yards, anything negative for Frank Gehry or Bruce Ratner is good news to me. Ratner has his share of economic and legal malaise lately, stalling the project that has left a large chunk of downtown Brooklyn abandoned. Well now the economy has claimed a portion of Frank Gehry's workforce.

From The Wall Street Journal:

Frank Gehry laid off more than two dozen staffers in late November after client Forest City Ratner ordered the architect to put down his pencils on the $4 billion Atlantic Yards project, according to people familiar with the matter. A Gehry Partners LLP spokeswoman declined to comment.[...]

Forest City Ratner's parent, Forest City Enterprises Inc., said last week that it has cut off its new development pipeline, except for Atlantic Yards. But the project faces challenges given the recession and the financial markets. A $153 million land loan from Gramercy Capital Corp. that has accrued to $177 million, is due at the beginning of February. Forest City is in talks with Gramercy to extend the loan.

If I were Gramercy, I'd find them in default. With all of the hurdles that Ratner faces, letting him off the hook for an extended period of time is a bad idea from an investor's standpoint. Ratner has done enough damage to our city (along with the politicians that help him), so putting Forest Ratner out of its misery wouldn't be the worst thing in the world.