Forest City Reaches Agreement on Tax-Increment Financing, Announces 32 Tenants for The Village at Gulfstream Park

CLEVELAND, March 2 /PRNewswire-FirstCall/ — Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that it has reached agreement with the City of Hallandale Beach, Fla., for up to $900,000 per year for 15 years of tax-increment financing (TIF) for The Village at Gulfstream Park, a 490,000 square foot, high-end retail and entertainment destination currently under construction in the City. The Company also announced 32 top-tier tenants for the center, which is expected to open in the first quarter of 2010.

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Commenting on the TIF agreement, Charles A. Ratner, Forest City president and chief executive officer said, “This is a milestone in our relationship with the City of Hallandale Beach and represents the creation of a true public-private partnership to make the Village at Gulfstream Park a reality. Given continuing challenges in the credit markets, creative solutions such as this are needed to ensure the strength and viability of new development. We deeply appreciate the commitment this represents on the part of the City. Today’s tenant announcements are the first of many steps in returning that commitment.”

Proceeds from the TIF will be used to assist in retiring debt incurred by the project for infrastructure improvements.

Among the tenants announced are restaurants III Forks, Ola Cuba by Chef Douglas Rodriguez and Texas de Brazil; home stores Crate and Barrel, Pottery Barn and West Elm; designer clothing retailers Fender Rock & Roll Religion, Martier and Vogue Couture, and two nightclubs – Santanera and Greenhouse Nightclub.

“We are proud to welcome all of these wonderful tenants to The Village at Gulfstream Park,” Ratner said. “We believe The Village at Gulfstream Park will stand out as a unique leisure, fashion and entertainment destination for South Florida. Today’s announcement also reflects our continuing commitment as a Company to projects under construction, even in the face of a challenging national economy.”

Additional tenants announced include: American Pie Brick Oven Pizza, Atelier, Brio Tuscan Grille, Cadillac Ranch, Cantina Laredo, Haagen-Dazs, Lamborghini Cafe, Next Authentic, Pacific Paradise, PrimeBar, Rock Star, Romeo and Juliet Couture, Scala, Scene, The Container Store, The Cheese Course, The Playwright Irish Pub, Vahalla Menswear, Venetian Salon, Williams-Sonoma and Z Gallerie.

The Village at Gulfstream Park is located on Florida’s Atlantic coast, between Miami and Ft. Lauderdale, on U.S. Route 1, less than two miles east of Interstate 95. It is anchored by Florida’s premier thoroughbred racing track, and is being developed by subsidiaries or affiliates of Forest City and Magna Entertainment Corp. In addition to more than 410,000 square feet of retail space, the center also includes approximately 80,000 square feet of upper-level office suites. For more information, visit www.thevillageatgulfstreampark.com.

About Forest City

Forest City Enterprises, Inc. is a $10.9-billion, NYSE-listed national real estate company. The company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit www.forestcity.net.

Safe Harbor Language

Statements made in this news release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The Company’s actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, general real estate development and investment risks including lack of satisfactory financing, construction and lease-up delays and cost overruns, the impact of current market volatility on our development pipeline, liquidity and ability to finance projects, dependence on rental income from real property, reliance on major tenants, the effect of economic and market conditions on a nationwide basis as well as in our primary markets, vacancies in our properties, downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, department store consolidations, international activities, the impact of terrorist acts, risks associated with an investment in and operation of a professional sports team, conflicts of interests, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility, the level and volatility of interest rates, the continued availability of tax-exempt government financing, effects of uninsured or underinsured losses, environmental liabilities, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, changes in market conditions, litigation risks, and other risk factors as disclosed from time to time in the Company’s SEC filings, including but not limited to, the Company’s annual and quarterly reports.

SOURCE Forest City Enterprises, Inc.