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July 26, 2009
Lupica: Ratner should have just built an arena; AYR: there wouldn't have been as much profit
Atlantic Yards Report
Norman Oder starts this blog entry looking at remarks by Mike Lupica in the Daily News, and quickly moves into reviewing what was said during last Wednesday's informational meeting regarding cost/benefit analysis that was (or wasn't) done by the ESDC.
How was the ESDC’s economic impact analysis conducted?
ESDC Senior Counsel Steve Matlin’s answer was vague. Expected construction costs and tax benefits were plugged into a model, and calculations were reflected in the 2006 Modified General Project Plan (MGPP).
“We’re constantly looking at that analysis and updating that analysis,” he asserted, a statement belied by the absence of any new numbers in the 2009 MGPP. He suggested that, since the the cost of the project has increased, “I’d expect that fiscal benefits will probably increase.”
“Will the cost-benefit analysis be available on the ESDC web site?” moderator Craig Hammerman, District Manager of Community Board 6, asked later.
Matlin looked slightly quizzical, then offered a bland answer: “The summary of the cost-benefit analysis was in the 2006 [Modified] GPP and carried forward in the 2009 [Modified] GPP. To the extent those numbers are updated, we will reflect them at our next board approval, which we expect will be in September of 2009.”
In other words, the public won’t get an opportunity to comment.
...
"How can the Empire State Development Corporation properly evaluate the appropriateness of subsidies for the project without producing an independent cost-benefit analysis?" Hammerman read.
"Well, ESDC does do a cost-benefit analysis," Matlin replied. "We have folks that look at the benefits of the project and the costs of the project. That''s an ongoing analysis, and we perform that internally."
"How come it's never been released?" asked Scott Turner (for Fans for Fair Play) from the crowd.
I'd add that the cost-benefit analysis is premised on the impacts of a ten-year buildout, and that seems very unlikely.
Posted by steve at July 26, 2009 9:05 AM