Forest City Enterprises - Investors - News Release

9/3/11 3:52 PM

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NEW YORK STATE AND NEW YORK CITY RECOMMEND FIRST LIBERTY BOND PROJECT FOR FOREST CITY DEVELOPMENT
NEW YORK--(BUSINESS WIRE)--Sept. 13, 2002-Will Create 396,000 Square Feet of Office Space and Bring 1,400 Jobs to Downtown Brooklyn Charles A. Gargano, Chairman of Empire State Development (ESD), and Andrew M. Alper, President of the NYC Economic Development Corp. (EDC), announced that the State of New York and New York City jointly selected the first commercial Liberty Bond Project that was recommended to the New York Industrial Development Agency (IDA) Board of Directors for approval at its September 10, 2002 meeting. The IDA board will be asked to approve $113.9 million in Liberty Bonds on behalf of Forest City Ratner's FC Hanson Office Associates for the development of a ten-story, 396,000-square-foot office tower to be built above the Atlantic Terminal transit hub in Downtown Brooklyn. The Bank of New York agreed to be the anchor tenant and will occupy 80% of the office tower. The Bank of New York plans to relocate 1,400 employees to Brooklyn that might otherwise have relocated out of New York City. ESD Chairman Charles A. Gargano said, "Liberty Bonds are yet another example of how the Federal, State and City governments are working with the private sector to revitalize and rebuild New York. I am pleased that The Bank of New York has reaffirmed its commitment to New York, and look forward to continuing our work with them in rebuilding our State and City." The Atlantic Terminal office tower will rise above a five-story, 375,000-square-foot, retail complex already under construction on a 3.6-acre site bounded by Flatbush Avenue, Atlantic Avenue, Fort Greene Place and Hanson Place in Downtown Brooklyn. Forest City Ratner expects to begin construction on the office portion of the project later this year with occupancy expected by mid2004. "This first Liberty Bond project will go a long way towards securing Lower Manhattan's position as the financial capital of the world while contributing a great deal to the future of Downtown Brooklyn as an important Central Business District," the EDC's Alper said. "It also allows The Bank of New York, one of the country's oldest and most important financial institutions, to satisfy regulatory requirements to decentralize its operations while remaining in New York City." Prior to September 11th, The Bank of New York occupied roughly 2.5 million square feet of office space at several locations in Lower Manhattan. Two of the locations, 101 Barclay and 100 Church, were severely damaged by the attacks. Employees at those locations were temporarily relocated to 23 Wall Street. In August, the IDA Board approved The Bank of New York for up to $2 million in sales tax exemptions for tenant improvements and purchase of equipment and machinery. The company will also receive a $37.5 million grant through the WTC Job Creation and Retention Program in return for keeping 7,700 jobs in New York City -- 6,160 in Lower Manhattan, 1,400 in Downtown Brooklyn and 140 elsewhere in New York City for at least 12 years. "Forest City Ratner Companies is honored that the State and City of New York have placed their confidence in the future of the Atlantic Terminal Office Building by recommending it for the Liberty Bond program," said Bruce C. Ratner, president and chief executive officer of Forest City Ratner Companies. "The selection of Atlantic Terminal helps us provide a new home in New York City for The Bank of New York, an institution that has played a critical role in the history of New York and the nation. The endorsement of this project by the Liberty Bond selection committee is another welcome sign that Downtown Brooklyn remains a preeminent business district in New York City." Downtown Brooklyn offers affordable rents and convenient access to public transportation. Over the past two decades, more than seven million square feet of corporate office space has been built. "We are extremely pleased that with the assistance of the State and City we're able to remain downtown and retain our employees within the city," said Thomas A. Renyi, chairman and chief executive of The Bank of New York. "Bank of New York has been an integral part of Lower Manhattan's financial community since 1784 and we are committed to helping with its revitalization. We are also pleased that we will now be a part of the flourishing central business district in Downtown Brooklyn as well." About the Liberty Bond Program The New York Liberty Bond Program provides low cost, tax-exempt bond financing for major projects to revitalize Lower Manhattan and New York City, generally using $8 billion in bond
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Forest City Enterprises - Investors - News Release

9/3/11 3:52 PM

projects to revitalize Lower Manhattan and New York City, generally using $8 billion in bond issuance authority provided by Congress and the President. Of the $8 billion, up to $800 million may be used for retail projects and up to $1.6 billion for residential rental projects in Lower Manhattan, and up to $2 billion for commercial projects in New York City outside Lower Manhattan. The Program will help ensure the City's long-term economic health and establish downtown as a vibrant, mixed-use, 24/7 community. The Program will also help support development throughout New York City, including the creation of modern office space for decentralizing businesses in emerging central business districts. The IDA and the New York Liberty Development Corporation (NYLDC) issue bonds for commercial projects. The New York State Housing Finance Agency (HFA) and the New York City Housing Development Corporation (HDC) are the issuers for residential projects. The State and City have worked closely together to create a unified program. Before approval by the IDA or LDC, a selection committee composed of representatives of Governor Pataki and Mayor Bloomberg, ESD, EDC, IDA, and NYLDC must review each commercial project. The Lower Manhattan Development Corporation is also represented at selection committee meetings. Forest City Ratner Companies is an affiliate of Forest City Enterprises, Inc. (NYSE: FCEA and FCEB), a $4.7 billion NYSE-listed real estate company headquartered in Cleveland, Ohio. The Company is principally engaged in the ownership, development, acquisition and management of commercial and residential real estate throughout the United States. The Company's portfolio includes interests in retail centers, apartment communities, office buildings and hotels. The Company's targeted markets include Boston, Denver, New York, California and Washington, D. C. --30--djl/cl* CONTACT: State of New York Empire State Development Michael Marr, 212/803-3740 or City of New York Economic Development Corp. Michael Sherman/Janel Patterson, 212/312-3523

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