Atlantic Yards Deal Closes

The Brooklyn Arena Development Corp. on Wednesday closed on the sale of $511 million of tax-exempt bonds to partially finance the controversial $1.06 billion Barclays Center in Brooklyn.

The bonds were sold on behalf of Forest City Ratner Cos., which plans to build the 18,000-seat professional basketball arena as part of a planned $4.9 billion development known as Atlantic Yards that would mostly consist of apartment towers.

The bonds priced last week with yields ranging from 4.21% with a 5.75% coupon in 2014 to 6.48% with a 6.375% coupon in 2043.

The bond proceeds will be put in escrow while the state works to assemble the properties needed for the site through eminent domain.

A spokesman for the underwriter, Goldman, Sachs & Co., confirmed the deal had closed.

Also on Wednesday, Sen. Bill Perkins, D-Harlem, announced he had made a formal request to New York Attorney General Andrew Cuomo for a legal opinion on whether the Empire State Development Corp., the lead agency on the project, had complied with all necessary legal and statutory requirements of the state's public authorities laws.

Last week Perkins called on Gov. David Paterson to halt the sale after raising questions about the deal's legality under state law.

In a statement Tuesday night Paterson spokeswoman Marissa Shorenstein said: "The governor's counsel has reviewed Senator Perkins' letter regarding Atlantic Yards and does not agree with Senator Perkins' analysis."

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New York
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