If the EB-5 "lender" didn't put up any money, what incentive does it have? Is New York State ignoring its leverage with penalties? Legislators should drill down.
The state needs to enforce the agreement as is and not allow for any changes. If the developer is unable to deliver than the contract should be abrogated and a new plan developed by the AYCDC in concert with relevant city and state housing and community development entities. They shoud undertake a robust community participation process to develop an innovative social housing plan to meet the housing needs of each income quartile of NYC residents. That plan should then be presented to the relevant community boards, the Brooklyn Borough President and upon approval an RFP should be issued for 3-5 development teams to undertake design, deveopment and construction of the housing. The state should (1) issue a bond to cover all infrastructure costs including but not limited to the platform and (2) write down the cost of housing for those income quartiles in need of subsidization. The cost of the bonds should be backed by rescinding a small portion of the daily rebate of the NYS stock transfer tax and use those funds as a guarantee of repayment
One question I raised is what company or companies would be liable: Greenland USA? The "lender"--i.e., the entities that control the delinquent loan and thus have control of the collateral? Both? In what percentage?
As to the transfer tax, I know that's been a holy grail for a while.
Don't you think there's $ to be clawed back from the arena operator/Nets owner, as well?
Yes. Clawing back what ever one can from the Arena’s use of public space, to $ from the penalty for not meeting the obligation for affordable units that were to come on line this year or some other source that your investigations may reveal.
The state needs to enforce the agreement as is and not allow for any changes. If the developer is unable to deliver than the contract should be abrogated and a new plan developed by the AYCDC in concert with relevant city and state housing and community development entities. They shoud undertake a robust community participation process to develop an innovative social housing plan to meet the housing needs of each income quartile of NYC residents. That plan should then be presented to the relevant community boards, the Brooklyn Borough President and upon approval an RFP should be issued for 3-5 development teams to undertake design, deveopment and construction of the housing. The state should (1) issue a bond to cover all infrastructure costs including but not limited to the platform and (2) write down the cost of housing for those income quartiles in need of subsidization. The cost of the bonds should be backed by rescinding a small portion of the daily rebate of the NYS stock transfer tax and use those funds as a guarantee of repayment
Ron, thanks.
One question I raised is what company or companies would be liable: Greenland USA? The "lender"--i.e., the entities that control the delinquent loan and thus have control of the collateral? Both? In what percentage?
As to the transfer tax, I know that's been a holy grail for a while.
Don't you think there's $ to be clawed back from the arena operator/Nets owner, as well?
Yes. Clawing back what ever one can from the Arena’s use of public space, to $ from the penalty for not meeting the obligation for affordable units that were to come on line this year or some other source that your investigations may reveal.