Read the full story here: Wall Street Journal

Cause of Action, a Washington, D.C. non-profit accountability group, said in a reportthat Forest City Enterprises, one of the largest publicly traded U.S. developers, spent $23 million in the last decade on campaign contributions and lobbying expenses while receiving $2.6 billion in government subsidies, comprising nearly a quarter of the firm’s revenue during that time span.

 

The group accuses the firm of using its political clout to get massive benefits as it, and its subsidiaries, built massive projects including Atlantic Yards, the site of the Barclays Center, where the Brooklyn Nets play their home games.

Comments

  1. James O'Toole says

    New Rochelle New York is trying to do a project with Forest City. The public is totally against it but our Mayor Noam Bramson is all for it. He even said at a. Recent meeting that heads don’t count. Forest city has given money to his campaign over 6 years. He (Bramson) is now running for Westchester County Exec. What will happen then? How much will Forest City give him then to get county projects ? This is all pay to build on Taxpayers money.

  2. Valerie mantos says

    http://www.linkedin.com/pub/bob-derogatis/19/6a7/62?_mSplash=1

    Along with my lawyer, todd hutton, i sued the city of mansfield ,texas regarding 65 million dollars in incentives that were squarely directed as a subsidy for forest city. Mansfield has a population of 50,000. This 65 million would have been the largest subsidy ever in the dfw area. During the lawsuit we deposed the city manager and made him read from the texas economic development handbook that those incentives required voter approval. As he read it it started to cry.

    The accumulation of the land for the mall reeked abd included a bogus land donation and the start up of a company called waterstreet development partners that was fronted by the boyfriend of the economic development corp. He bought 7 million dolars of land, that included the bogus 7 million dollar land donation,without any real means to pay the loan. Forest city was making the interest payments on the note.

    When the economy tanked and because the deal was in litigation, forest city exited the project and left waterstreet holding the bag. Since forest city was no longer paying the interest, waterstreet filed for bankruptcy.

    The whole deal really reeked.above is a link to the waterstreet principle.