July 1, 2008
Author deMause on tax-exempt bonds, PILOTs, & TIFs
Atlantic Yards Report
Sometimes Norman Oder isn't the brightest guy in the room, as revealed in his interview with journalist and sports-business reporter Neil deMause.
Regarding "the arcane world of tax-exempt bonds:"
Q. I’m flabbergasted that I and a lot of other people looking at Atlantic Yards didn’t really know this.
A. No one understands this. When it started coming up for the Jets project, they were going to use this end run, PILOT [payments in lieu of taxes] payments; instead of calling it rent, they would say, “OK, it’s PILOTs,” even though they claimed it wouldn’t actually be subject to property taxes, because it’s on public land. They said this isn’t rent, it’s tax money, even though it’s a special tax just for them. The Jets thing never happened, the Yankees and Mets used the same structure, got away with it and now the Nets are trying to use the same thing.
Click here to read what is probably the best explanation of the history of payment-in-lieu-of-taxes (or: How I learned to Stop Worrying and Love Building New Venues for Wealthy Team Owners).
Posted by lumi at July 1, 2008 5:48 AM