Real Estate & Property Law

The Russians are coming, the Russians are coming

By Alan Ackerman

New York Post

The Atlantic Yards opposition group Develop Don't Destroy Brooklyn said this appears to be yet "one more deception from the untrustworthy developer," who for years, and as recently as earlier this month, said the team was not for sale.

'The only reason Ratner would make this deal is because he is in dire financial trouble. If Ratner has to go overseas to get major funding for the arena, how on earth is he going to finance the rest of the project,' said Develop Don't' Destroy Brooklyn spokesman Daniel Goldstein.

'Eminent domain abuse and massive taxpayer subsidies to enrich a Russian oligarch and modernize the Russian basketball system—is that what Bloomberg, Paterson, Schumer and Markowitz are all about? They've got to be kidding. And now that Prokohorov has a big foot in the door, who will really be running the beleaguered Atlantic Yards project show?'

But Mayor Bloomberg hailed the deal.

'It goes to show you how much confidence there is in how New York City is being positioned to come through the downturn stronger than ever, and in the future of Brooklyn," he said.

"Most of us remember when Brooklyn garnering this kind of international investment would have been hard to imagine. Today, it's not so surprising, and it will help ensure the project – enormously important for Brooklyn and the City – moves forward."

Prokhorov, who currently owns a share in the Russian basketball team CSKA, was ranked as the country's richest man in the Russian edition of Forbes, with an estimated fortune of $9.5 billion. He has weathered the global economic crisis better than many of his wealthy compatriots by cashing out of some lucrative assets before the downturn battered commodity markets last year.

So a super duper wealthy guy shows up?  Did he get all these 95 Big Ones not learning how to collaborate with Big Brother?  You think the guy is a little mashuganah (for those outside New York this means 'crazy')?  I do not think so.  He is going to get all the help he needs to get the project completed.  Moreover, he moves some of this wealth to American Dollars….still a reasonably conservative investment.  So do not be shocked that the Russians are coming.

Kelo allows this project unless the New York Court of Appeals rejects it.  If the NY Court of Appeals rejects the private\pubic acquisition process, do not be surprised if it applies the change in a prospective fashion.

Full post as published by National Eminent Domain Blog on September 25, 2009 (boomark / email).