Construction for Nets gets OK
Thursday, December 11, 2008
BY JOHN BRENNAN

Construction on the Brooklyn Atlantic Yards project — which is to include the Nets’ $950 million Barclays Center — will go forward even though the economy is sputtering, a Forest City Enterprises executive insisted during a third-quarter earnings call Wednesday.

"We remain committed to the project in spite of the hurdles we still need to overcome," said Forest City chief executive Charles Ratner, cousin of Nets principal owner Bruce Ratner. The company owns about 25 percent of the Nets’ franchise and also is a partner in the condominium and rental components of the plan.

Charles Ratner said the developers can afford to delay construction of the project in 2009 if the economy continues to struggle.

"We continue to work with public parties, city and state, who are fully committed," said Ratner. "We can successfully [delay] until we are prepared to start, but I don’t know if I could answer specifically how long we could delay."

If the Nets are to achieve their revised goal of a 2011 move to Brooklyn, arena construction likely would have to start by sometime next spring — assuming a court battle over environmental review of the site has concluded.

Forest City announced Monday it was suspending its quarterly dividend, and Ratner said the company is putting "virtually all new development on hold until economic conditions improve."

"I’ve been in our business for 42 years, and I must confess I’ve never experienced anything like this," Ratner said. "Conditions will get worse before they get better. It’s all about survival."

E-mail: brennan@northjersey.com

Construction on the Brooklyn Atlantic Yards project — which is to include the Nets’ $950 million Barclays Center — will go forward even though the economy is sputtering, a Forest City Enterprises executive insisted during a third-quarter earnings call Wednesday.

"We remain committed to the project in spite of the hurdles we still need to overcome," said Forest City chief executive Charles Ratner, cousin of Nets principal owner Bruce Ratner. The company owns about 25 percent of the Nets’ franchise and also is a partner in the condominium and rental components of the plan.

Charles Ratner said the developers can afford to delay construction of the project in 2009 if the economy continues to struggle.

"We continue to work with public parties, city and state, who are fully committed," said Ratner. "We can successfully [delay] until we are prepared to start, but I don’t know if I could answer specifically how long we could delay."

If the Nets are to achieve their revised goal of a 2011 move to Brooklyn, arena construction likely would have to start by sometime next spring — assuming a court battle over environmental review of the site has concluded.

Forest City announced Monday it was suspending its quarterly dividend, and Ratner said the company is putting "virtually all new development on hold until economic conditions improve."

"I’ve been in our business for 42 years, and I must confess I’ve never experienced anything like this," Ratner said. "Conditions will get worse before they get better. It’s all about survival."