[IMGCAP(2)]The letter demands that the PACB--comprised of Gov.David Paterson, Speaker Sheldon Silver and Majority Leader JosephBruno--exercise its "statutory obligation to approve the financingand construction of the project." When asked about financialssurrounding the project, a Forest City Ratner spokesperson tellsGlobeSt.com that they have "no comment at this time," and also saysthat they have no comment regarding the DDDB letter. DDDB legaldirector Candace Carponter says that "we fully expect the PACB andGov. Paterson to agree that the change in Atlantic Yards financingneeds a new approval decision, based on the need for sound andprudent fiscal policy."
In the letter, DDDB says that as part of its approval process,"the PACB is directed to determine that there are commitments offunds sufficient to finance the acquisition and construction of theproject." The letter says that on Dec. 20, 2006, the PACB adoptedResolution No. 06-UD-953 approving the Atlantic Yards Projectsubmitted by the Empire State Development Corp. "The projectidentified as the subject of the resolution included the Barclay'sArena with identified financing of $637.2 million. In consideringthe request from ESDC, the PACB relied in large part upon a Dec.2006 report from KPMG LLG Economic and Valuation Services, whichevaluated the financial viability of the arena. Based upon theexpectation that construction of the arena would cost approximately$637 million, KPMG found that the projected return on investmentwould support the development and maintenance cost."
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