(2005-08-05) Naparstek Ratner Fix

Aaron Naparstek on the fix between the MTA and Bruce Ratner for the Brooklyn arena. The MTA selected Ratner despite the fact that his $50 million bid came in $100 million less than a rival developer's, and $165 million less than what the MTA believes the 8.4 acre property is actually worth... By the time all 53 speakers finished, it was nearly noon. The moment that was done, MTA chairman Peter Kalikow declared he needed a board member to introduce the resolution he was holding in his hand and another to second it. Done. The resolution, which he then read aloud, stated that the MTA would take the next 45 days to negotiate exclusively with Ratner in the hope of convincing the developer to increase the value of his offer, which Kalikow described as disappointing and lower than expected. With a vote of 11 to 1, the board quickly approved the resolution. The lone dissenting vote came from the board's Suffolk County member. Mitchell Pally said both bids were insufficient and rejected the idea of conducting exclusive negotiations with just one bidder, the low bidder at that. Kalikow, a real estate developer for 38 years, countered that he had never negotiated two leases for a property at once. That, he said, would be "immoral." But Kalikow isn't negotiating a lease. He is auctioning off an incredibly valuable piece of public property. You don't have to be an eBay Power Seller to know that an auction works best when you've got more than one bidder.