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Ratner buys out Skanska at Navy Yard factory

Breakup news: Forest City Ratner buys out Swedish partner on B2

The Brooklyn Paper
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It’s official: Forest City Ratner and its Swedish contractor are divorced.

The developer has bought out Skanska at the Navy Yard factory where the two companies had made pieces for the modular B2 tower, the first residential building of the mega-development formerly known as Atlantic Yards. Work on the 32-story building at Flatbush Avenue and Dean Street halted at 10 stories when Skanska furloughed the factory’s 157 workers and sued Forest City, claiming problems with its Lego-like design are responsible for $50 million in cost overruns, which Forest City blames on Skanska.

In court documents, executives at the Swedish construction giant allege that the completed tower might leak. Forest City denied the claims and filed a counter-suit, saying Skanska isn’t living up to its contract.

The two had created a joint company to oversee work at the Navy Yard facility. The buyout price was not disclosed.

A Forest City spokesman said the company will try to rehire out-of-work factory staffers and reboot production soon.

The deal does not appear to involve the majority owner of the rest of the planned mega-development at Flatbush and Atlantic avenues, the Chinese-government-owned Greenland.

Greenland bought a 70-percent stake in all of the proposed 16-building complex except for B2 and the Barclays Center.

The court battle over the cost overruns is ongoing, but since Skanska terminated its construction contract the lawsuit should not hold up work at B2.

Greenland and Forest City have asked people to start referring to the project as “Pacific Park.”

Reach reporter Matthew Perlman at (718) 260–8310. E-mail him at mperlman@cnglocal.com. Follow him on Twitter @matthewjperlman.
Updated 10:17 pm, July 9, 2018
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Reasonable discourse

Randy from Downtown Brooklyn says:
This project is just plain sunk. Only one firm (Skanska) went after this in the first place because the RFP was lousy and asked for amazing financial risk on the part of the contractor. Ratner's "technology" is impractical and they only got as far as they did because Skanska made it work until they were unwilling to continue to lose money to their cheap and sleazy partner (Forest City). Now the only party to the deal who actually knew what they were doing is out the door, and Forest City is going to suddenly start doing the right thing on their own?

When has Forest City EVER done the right thing on their own?

They lost their financial partner, they've lost their construction partner, and you can bet they're going to go crying to the state and the city to bail them out for their own mismanagement. They shouldn't be trusted to continue this experimental building where they are endangering the neighborhood as well as anybody foolish enough to move in as guinea pigs!
Nov. 19, 2014, 1 pm
Charles from Bklyn says:
This corrupt deal just gets worse and worse. Accept, of course, for the great entertainment at the BC, as expensive fun is more important than community jobs or housing. Good show Brooklyn! The lack of support for the original opposition to this project was a mistake. Being tools of the rich, politcally connected and powerful is no way to live.
Nov. 19, 2014, 1:29 pm
Tal Barzilai from Pleasantville, NY says:
No matter what is done, this project will never be finished. It's so unfortunate that so many waited only until after the damage was done and much of the neighborhood was demolished to finally start caring. All I can say about this is, "Don't look at me, I was against it before it even started." There was a chance to save the neighborhood from this but so many were into believing that they would get something out of it just be letting it happen all because having a professional sports team playing there was more important than what was being lost not to mention the false promises of jobs and affordable housing. Now, if anyone wants to say that the neighborhood is blighted, you can thank Ratner and everyone who supported him for that.
Nov. 19, 2014, 4:46 pm
jay from nyc says:
an important item left out of this report is that Skansa has been bought out, AND have acquired the factory that makes the modules from Skansa, which Skansa had shut down.
There is still the lawsuit over cost over runs between Skansa and FCR, but that is now a side issue, and at some point the project will continue, so no, its not sunk. BP does not mention the acquisition of the factory and that matters. Bottom line, its gonna get done, eventually. They now claim it will be done in 2025 and three more buildings are slated to start next year, and they are already preparing the site for construction on those buildings so that the construction can begin.
Another important thing left out by this article is that for the rest of the project, I.E. every other building, Greenland wants it built conventionally and so this modular thing is only an issue for one of the buildings.
Nov. 19, 2014, 6:18 pm
Mom from Clinton Hill says:
And they said they had a plan for this land...
Nov. 19, 2014, 9:34 pm
Tal Barzilai from Pleasantville, NY says:
I suggest reading the Atlantic Yards Report to know what's really going on.
Nov. 19, 2014, 9:38 pm
Joe Roebling from Marine Park says:
How about Bruce tear down the horrific, low rise Atlantic Terminal Mall and...

Yeah, I think Skanska's track record is just a LITTLE better than Ratner's. (Being sarcastic: while I'm sure they're not altruists, Skanska's proven themselves as builders time and again... Granted, Ratner has also-- proven himself lousy, corrupt and corrupting, just how Rudy, Bloomturd and DeBlahzio like it, alas.)
Nov. 19, 2014, 10:32 pm

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