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Ratner to Get 5% "Development Fee" on Barclays Center

Forest City Ratner will get an annual 5% "development fee" to manage construction of Barclays Center, according to the offering statement for arena bonds. With arena costs nearly $1 billion, that could amount to $50 million. The statement adds that $7 million a year is guaranteed. Since Ratner and other investors will also own 55% of the arena, he will be in essence paying himself. Such fees are not uncommon.