Sections

Ratner kills Mr. Brooklyn

The Brooklyn Paper
Share on TwitterTweet
Share on Facebook
Subscribe

Don’t miss our updates:

Developer Bruce Ratner has pulled out of a deal with City Tech that could have net him hundreds of millions of dollars and allowed him to build the city’s tallest residential tower, the so-called Mr. Brooklyn, The Brooklyn Paper has learned.

“It was a mutual decision,” said a key executive at the City University of New York, which would have paid Ratner $300 million to build a new dorm and lab for City Tech and given him a prime plot at the corner of Tillary and Jay streets where he reportedly hoped to build the 100-story, Renzo Piano-designed building.

“Both sides agreed that the costs had escalated and the numbers showed that we should not go down that road,” added the executive, who did not wish to be identified.

Costs had indeed escalated. In 2005, CUNY agreed to pay Ratner $86 million to build the 11- to 14-story classroom-dormitory and also to hand over the lucrative development site where City Tech’s Klitgord Auditorium now sits.

Then in December, CUNY raised Ratner’s fee to $307 million with no explanation.

“Ratner’s ‘Mr. Brooklyn’ deal gets sweeter,” The Brooklyn Paper headline read.

Still, it’s likely that Ratner willingly got out of the deal in light of the nation’s ongoing credit crunch (see story below) and his own shaky finances, said Councilman David Yassky.

“He may be overextended right now,” said Yassky (D– Brooklyn Heights). “Look, a lot of developers are re-evaluting their numbers and feel that residential buildings don’t work right now,” he said.

Yassky called Ratner’s withdrawal “good news” for Brooklyn.

“A residential building at that corner was an awkward fit,” said Yassky. “A lot of planners see that site as ideal for a significant office building.”

Forest City Ratner did not return two messages from The Brooklyn Paper.

The CUNY official said the dorm and lab would still be built — but no longer as a public-private partnership.

“We’ll build it in partnership with the state Dormitory Authority,” the executive said.

Updated 4:35 pm, July 9, 2018
Today’s news:
Share on TwitterTweet
Share on Facebook
Subscribe

Don’t miss our updates:


Reasonable discourse

Comments closed.

First name
Last name
Your neighborhood
Email address
Daytime phone

Your letter must be signed and include all of the information requested above. (Only your name and neighborhood are published with the letter.) Letters should be as brief as possible; while they may discuss any topic of interest to our readers, priority will be given to letters that relate to stories covered by The Brooklyn Paper.

Letters will be edited at the sole discretion of the editor, may be published in whole or part in any media, and upon publication become the property of The Brooklyn Paper. The earlier in the week you send your letter, the better.

Keep it local!

Stay in touch with your community. Subscribe to our free newsletter: