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September 11, 2009
IBO: Arena is Robin Hood in Reverse
New York City faces a whopping budget gap, the MTA is nearly broke, unemployment lines are growing, and, oh yeah, Bruce Ratner's "economic engine" is going to be a money-loser for taxpayers. Think that'll cause Mayor Bloomberg to pull his support? Think again.
NY Observer, After Negative Report, Bloomberg Cheers Louder for Atlantic Yards
Confronted Thursday with an Independent Budget Office report that alleges the centerpiece Nets arena is a net-money loser for the city—which is incentivizing the project with $169 million in discretionary subsidy—Mr. Bloomberg loudly hailed the project, implicitly comparing the private development to the city's finest public assets.
“I don’t know what the IBO studies would have shown back when they tried to establish the value of Central Park or Prospect Park or anything else,” he told reporters. “These are the kinds of projects you have to do because without that we don’t have a future, and we’re going to get this one done.”
NoLandGrab: If you're still trying to decide whether or not Mayor Bloomberg is an out-of-touch billionaire or not, this ought to clear it up. Does he maybe not know that Madison Square Garden and Madison Square Park are two different things?
Crain's NY Business, City gives more than gets at Atlantic Yards, study says
The [IBO] report concluded that new revenue generated from the Barclays Center Arena would fail to compensate the city for its capital contribution to the project and lost property taxes. It said the project would cost the city $39.5 million over 30 years.
Meanwhile, the various tax benefits and capital contributions received from the city and state mean that Forest City's savings would equal roughly 80% of the expected cost of the $900 million arena, which is slated to open in late 2011. The analysis also said that the state would net $25 million from the project.
“This deal gives an extraordinary advantage to the developer, and I think it is outrageous,” said New York State Assemblyman James Brennan, one of several elected officials who called for the study.
...In a statement, Forest City said the analysis was wrong. The developer noted that the report seemed to intentionally lowball the city’s sales and tax revenues while applying all city and state subsidies to the arena alone, ignoring the rest of the project.
NoLandGrab: Oh, well if Forest City says it's wrong, then that's good enough for us. 'Cause they're known for their straight-shooting. We suppose the IBO report still won't be enough to cause Crain's to editorialize against the project.
NY Daily News, Report: City may lose 40M in Atlantic Yards plan-Total subsidies $726M
It's a reversal from a 2005 report by the budget office that found the city would make $25 million more in tax revenues than it would spend on the arena. That's because the city's contribution to the arena has gone up, said office Deputy Director George Sweeting.
"The arena conceivably would make money for the city if you weren't doing the subsidies, although, then it might be hard for [Ratner] to finance it," he said.
The report found that the city will take an additional $180 million hit in "opportunity costs" - mostly property taxes it could collect if the arena weren't exempt.
This just in: Pot calls Kettle black.
Ratner spokesman Joe DePlasco noted the budget office did the report at the request of several elected officials who oppose the project. "An analysis conducted for opponents without speaking to the responsible parties is anything but independent," he said.
Gothamist, Nets Arena Will Be $40 Million Net Loss to Taxpayers
Just when you thought developer Bruce Ratner was about to turn the corner in the P.R. war over his proposed $800 million arena for the Nets in Brooklyn, along comes the city’s Independent Budget Office with a big bucket of ice water.
WNYC Radio, Report: Atlantic Yards Arena Will Cost City More Than It Receives in Taxes
But when the IBO, a nonpartisan agency, calculates what it calls opportunity costs, the picture is universally grim. The state, city and the MTA will lose out on a potential $220 million more, largely because they are giving away land for free, selling it for less than they could get otherwise, or foregoing property taxes on the arena property.
amNY, Report: Atlantic Yards arena a money sucker
The Atlantic Yards arena isn't looking like such a slam-dunk for the city.
metro, Taxpayers’ net loss on arena
The troubled Nets arena planned for Brooklyn was supposed to raise city revenue, but instead it’s going to be a net loss for taxpayers, according to a report released by the city’s Independent Budget Office on Thursday.
NY Post, Atlantic Yards a Net loss for city
The long-stalled Atlantic Yards project, sold as a surefire way to fill the city's coffers, is looking more like a money pit, according to a new study.
...The analysis also criticizes the cash-strapped Metropolitan Transportation Authority for selling Ratner the site at below-market value.
Brownstoner, IBO Reports Net Loss from Atlantic Yards Arena
Bloomberg Watch, Reading List: Bloomberg Pays for a Day in a Middle Class Home, Ignores IBO Report for Atlantic Yards
Posted by eric at September 11, 2009 12:00 PM