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September 8, 2005
Net loss or Net gain?
Field of Schemes
by Neil DeMause
DeMause gives his take on recent news that the MTA is set to accept the new lowball bid from Ratner and the Independent Budget Office's report. He identifies two "potential gaps" in the IBO report, the subsidy figures and the fantasy that Nets fans from Jersey will schlep to Brooklyn.
Finally, while the IBO deducts the $224 million in direct cash subsidies (plus sales- and property-tax deductions) that the arena would get from the city and state, the actual public subsidy would be significantly greater - more like $451 million according to my estimates, though that could go down a bit once Ratner's increased bid is taken into account. Needless to say, tacking on an extra $227 million in costs would turn a $107 million windfall into a whole mess of red ink - so don't enter that "slam dunk" in your scorecard just yet
Posted by lumi at September 8, 2005 6:23 PM