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December 18, 2008

Smoking gun: emails show how Yankee Stadium valuation was "jacked up"

Atlantic Yards Report

Note is made of incriminating emails that show, despite Congressional testimony to the contrary, New York City worked for the Yankees to cook the books and show a higher value for the land under the new Yankee Stadium. This allows the Yankees access to more tax-free bonds.

Daily News columnist Juan Gonzalez continues to look into the astounding inflation (from $26.8 million to $204 million) in valuation of the land under Yankee Stadium, apparently aimed to qualify for the amount of foregone taxes needed to pay off construction bonds via PILOTs (payments in lieu of taxes).

(Yes, Atlantic Yards watchers are waiting to see if something similar happens with the land under the planned $950 million arena.)

...

If the city cooked the books, the IRS could conduct an audit--and strip the bonds of their tax-exempt status. (Is there political juice for that?)

Here is Juan Gonzalez's article from yesterday's Daily News referenced in this Atlantic Yards Report story (it helps boil the blood and keep you warm on these cold mornings): E-mails reveal how city went to bat for Yankee to inflate value of stadium land

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Posted by steve at December 18, 2008 6:00 AM