April 9, 2009
Tax Foundation on Yankee Stadium: "the House the IRS Built"
Atlantic Yards Report
Have a quick look at how PILOTs (Payment in Lieu of Taxes) were fudged to benefit the Yankees' new ballpark (at a loss to taxpayers), because Bruce Ratner is poised to do the same thing in order to take advantage of low-cost financing for a new basketball arena.
The Tax Foundation's new report, From the House That Ruth Built to the House the IRS Built: New York City and New York Yankees Abuse PILOTs to Finance New Stadium, draws on reports from Assemblyman Richard Brodsky and hearings held by Rep. Dennis Kucinich.
The same criticisms could be launched at the Atlantic Yards arena, should it be built, given that the same regulations that allowed the financing scheme for Yankee Stadium were grandfathered in for AY.
Based on calculations from Brodsky, the $942 million in initial bonds would save the team between $231 million and $471 million--though the federal government bears the brunt of the cost. "Without this generous subsidy, it is unlikely that such an expensive stadium could have been built," the report states.
Click here for the rest of the article, in which Norman Oder breaks out the parts of the report that explain how and why this scheme was carried out.
Posted by lumi at April 9, 2009 5:22 AM