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Thursday, March 08, 2007

Never a dull moment in N.Y.

Crain's editors Scott Suttell and Jeff Stacklin surf the web to find out what people are saying about Cleveland and its business community — and offer their read on the news.

Blog entry: March 08, 2007, 2:59 pm Author: JEFF STACKLIN

Looks like Forest City Ratner Cos., the Cleveland-based developer’s New York-based sister company, may have hit another snag in its plans for the Atlantic Yards project in Brooklyn: It’s doesn’t control all 22 acres the project is slated for.
According to this article posted today on The New York Times’ web site, “a judge in Brooklyn terminated Forest City Ratner’s long-term lease on two properties covering nearly an acre of land within the site, after finding that a tenant had sold the lease to Forest City without the owner’s permission.”
Ownership of the property has reverted back to its owner, Henry Weinstein, who, according to the article, is one of more than a dozen property owners challenging the state’s use of eminent domain to convey properties to the developer.The article continues that Mr. Weinstein said that Forest City must have known that it did not have the right to take over the leases without his blessing.

“If you’re buying a lease from somebody and you have thousand-dollar-an-hour, 800-pound gorilla lawyers retained to protect your interest,” he said, “I tend to think that they read the lease and realized that they knew that what they were doing was illegal.”

Forest City Ratner plans to build a new arena for the New Jersey Nets, as well as apartments, condos and offices in the mixed-use development. Everything is interesting in New York.


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