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June 29, 2008

July 2 Showdown Over Yankees (and Nets) Tax-exempt Financing

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Develop Don't Destroy Brooklyn

Presumably the discussion at the hearing below will include the $800 million (at least) in tax-exempt financing Forest City Ratner seeks for its proposed $950 million, and counting, Barclays Center Arena...

Assembly Standing Committee On Corporations, Authorities And Commissions Assembly Standing Committee On Local Governments Assembly Standing Committee On Cities Assembly Standing Committee On Ways And Means

Notice Of Public Hearing

SUBJECT: The request for increased public financing for construction of a new Yankee Stadium in New York City.

PURPOSE: This hearing will examine the recent requests by the New York Yankees for additional funding in the form of tax-exempt bonds from the New York City Industrial Development Agency (NYC IDA), a subsidiary of the New York City Economic Development Corporation (NYC EDC), for construction of a new Yankee Stadium in New York City.

NEW YORK CITY
Wednesday, July 2, 2008, 10:00 am
Assembly Hearing Room, Room 1923, 19th Floor
250 Broadway
New York, New York

ORAL TESTIMONY WILL BE BY INVITATION ONLY

The NYC IDA is the financing branch of the NYC EDC that provides assistance to businesses and companies operating in the five boroughs of New York City through tax-exempt bond financing. In 2006, the NYC IDA approved the issuance of $920 million in tax-exempt bonds to the New York Yankees for the construction of a new Yankee Stadium in the borough of the Bronx. The issuance of these bonds was made possible when the Internal Revenue Service (IRS) waived regulations which prohibit the use of public financing for sports facilities. Shortly after the waiver was granted, the IRS instituted stricter enforcement of its regulations prohibiting such use of tax-exempt bonds.

Reports in the news media have indicated that the New York Yankees are seeking an additional $350 million in tax-exempt bonds from the NYC IDA to complete construction of the stadium despite IRS regulations prohibiting such use of public financing, and efforts are underway to have a waiver granted once again so that the sports team can acquire the funding. This hearing will allow the Committees to obtain information on the status of the financing plans for the construction of the Stadium, and to investigate the requests for additional funding.

Assemblyman Richard L. Brodsky Chair. Committee on Corporations, Authorities, and Commissions

Assemblyman Sam Hoyt Chair, Committee on Local Governments

Assemblyman James F. Brennan Chair, Committee on Cities

Assemblyman Herman D. Farrell, Jr. Chair, Committee on Ways and Means

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Posted by steve at June 29, 2008 11:00 AM