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July 30, 2008
Questions Raised Over Financing Deals of New Yankees Stadium
WNYC News Radio
By Matthew Schuerman
Details about the Congressional inquiry into the Yankee Stadium financing might seem a little off-topic, but keep in mind that the Yankees have requested additional bond financing and that Bruce Ratner hopes to take advantage of the same in order to finance the Nets arena.
The story about the Yankees deal took an interesting turn yesterday when WNYC reported the following scoop (full transcript):
The new Yankee Stadium is receiving more than $600 million in city, state and federal subsidies. Almost half of that money came in the form of tax exempt bonds issued by the city's Industrial Development Agency, or IDA. Under the bonding agreement, the IDA would have permanent access to a luxury suite at the new stadium. Westchester Assemblyman Richard Brodsky says the agreement is another reason to question what public interest the new ballpark is serving to deserve such a high level of taxpayer support.
Though a spokesman for the Mayor has said the City hasn't decided whether or not to accept this gift, our guess would be NOT, now that WNYC has blown their cover.
Develop Don't Destroy Brooklyn explores the possibility of thank-you gifts from Bruce Ratner (link):
If Bruce Ratner ever builds his Barclays Boondoggle Arena (fat chance) one can presume that he'll make a gift of free luxury skyboxes to numerous officials, either because:
1. He owes a lot of people in government for his boondoggle land grab, and/or 2. He can't seem to find buyers for his luxury suites, so why not give them away.
Good Jobs First's blog Clawback is reporting that Bettina Damiani, journalist Neil deMause, columnist Juan Gonzalez and Rep. Kucinich are scheduled to appear this morning to discuss the controversy on Democracy Now (9 a.m. on BCAT channel 34/67.).
Additional Coverage:
AP via amNY
NY assemblyman queries Yankees on stadium subsidy
State Assemblyman Richard Brodsky wants the New York Yankees to explain why the proposed value for land under Yankee Stadium appears inflated in an Internal Revenue Service tax estimate.
He also wants to know if the city agencies considering the team's request for public funds will get a luxury suite in the new stadium.
The Westchester Democrat raised the questions in a letter to Yankees' President Randy Levine released Monday. Brodsky has questioned the Yankees' request to subsidize the new stadium using $336 million in public funds issued by the city's Industrial Development Agency.
...
"This goes to the heart of whether it is a public project or a private project," Brodsky said in an interview. He said his review of documents concerning the project differ from public comments about the deal that would use public support to help the Yankees build their new stadium in the Bronx.
Newsday via amNY
Panel to probe land appraisals for Yankee Stadium
A congressional subcommittee hearing centered on the use of public financing to build sports complexes like the new Yankee Stadium was postponed, allowing the panel to probe deeper into why the value of land under the Bronx stadium appeared inflated on tax reports, an official said Tuesday.
The Domestic Policy Subcommittee of the House Oversight and Government Reform Committee -- chaired by Rep. Dennis Kucinich (D-Ohio) -- had scheduled the hearing Wednesday. It's now planned for sometime in September.
On Friday, Kucinich sent letters to Yankee officials, the Internal Revenue Service and various city agencies inquiring about the accuracy of land appraisals reported to the IRS. In the letter, he requested documentation detailing land value estimates and how they were calculated. He wanted the documents no later than Aug. 6.
But Assemb. Richard Brodsky (D-Westchester) had already obtained some of the information Kucinich had sought and on Monday released land value estimates he said bared discrepancies.
...
Kucinich, a longtime skeptic of public subsidies for sports complexes, and Brodsky, a critic of public authorities, have questioned the Yankees' request for an additional $336 million in tax-free bonds to help complete the new $1.3-billion stadium. The Mets are also seeking about $52 million more in tax-exempt-bond financing for its new stadium. Brodsky, who earlier this month held a hearing in Manhattan on tax-free-bond financing, said he was invited to testify in the September hearing.
Posted by lumi at July 30, 2008 4:38 AM