Wednesday, September 07, 2005
IBO says Ratner underestimates costs at Atlantic Yards by at least $208.6 million
The IBO report, Atlantic Yards: A Net Fiscal Benefit for the City?, estimates that the cost of delivering new education, sanitation, and police services over 30 years would be $530 million in present value terms, or $208.6 million more than Zimbalist does. The IBO notes that its higher predictions are based on an estimated 6,000 housing units, not the 5,850 number Zimbalist uses. However, Forest City Ratner might build 7,300 units under its "Alternative" plan. That suggests even higher costs. [Update: Indeed, this number was chosen.]
The IBO, surprisingly, leans toward Zimbalist in one area, saying that the additional costs for providing fire protection "would be relatively low," though the agency didn't use the term "negligible." However, the IBO disagrees with Zimbalist on costs for police service, saying, rather definitively, that "costs to the city for policing the new Nets arena could be significant." Well, yes.