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October 23, 2008
Ratner Would Fall Short On His Bonds Under Old and New IRS Rules
Develop Don't Destroy Brooklyn
DDDB does some calculations regarding projected Payments in Lieu of Taxes (PILOTs) for the planned Atlantic Yards arena. According to IRS rules, such payments must be "commensurate" with the foregone property tax.
Ratner would be seeking to pay for the bond with about $40 million per year in PILOTs, while his property tax would be only $8 million or less.
That's not commensurate.
Posted by eric at October 23, 2008 2:10 PM