September 22, 2007
IBO calculates more (modest) costs to the city from AY arena
Atlantic Yards Report
One more piece of the Atlantic Yards fiscal puzzle has been filled in. The use of tax exempt bonds for the Atlantic Yards arena would cost the city $5.2 million foregone tax revenue over 30 years, expressed in present value, according to a letter from the New York City Independent Budget Office (IBO), which in a 2005 report on the project had eschewed specific estimates.
Cost adds up
While IBO in 2005 said that the cost of the bonds would pose “relatively little impact on New York City or State,” the additional $5.2 million calculated would appear to put the city further in the hole regarding the arena.
IBO had calculated a modest fiscal gain for the city, $28.5 based on a city contribution of $100 million. Now that the city contribution has grown to $205 million—some portion of which may not go directly to the arena—the city likely was facing a loss, I concluded. Sweeting confirmed to the Brooklyn Paper that such a loss was possible.
Posted by amy at September 22, 2007 8:19 PM