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October 26, 2009
Number of projected Brooklyn arena events declines to 200, but the state couldn't have adjusted revenue estimates
Atlantic Yards Report
A 9/16/09 Barclays Center press release about suite sales slipped in some new information:
In addition to NETS Basketball, most suite buyers will receive access to other Barclays Center events, anticipated to include world-class concerts, college sports, the circus, ice shows, and much more. Overall, the arena will host over 200 events annually.
That number represents a small but steady decline in Forest City Ratner's official projections and an implicit acknowledgment of a competing arena in Newark.
It also suggests that the economic projections by both Forest City Ratner consultant Andrew Zimbalist and the Empire State Development Corporation (ESDC) were overstated, since they based sales tax assumptions on about 225 events.
And, even though the projection of 200 events obviously can't be confirmed, that number backs up the more conservative estimates made by the New York City Independent Budget Office (IBO).
What happens to the projected benefits if the number of events for a Brooklyn arena declines? Back in 2006, the Empire State Development Corporation acknowledged:
If there were fewer events and lower attendance at the arena, fiscal benefits associated with the arena (sales tax on tickets, parking, and concessions) would be lower than those reported in the [Environmental Impact Statement].
NoLandGrab: This change would presumably increase the projected losses to the city, as calculated by the NYC Independent Budget Office.
Posted by lumi at October 26, 2009 6:54 AM