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December 21, 2009
DDDB PRESS RELEASE: Atlantic Yards Arena Bonds Appear to Be Illegal
Answers Sought From Paterson Administration
NEW YORK, NY — The $511 million triple tax-exempt bond issued by the Brooklyn Arena Local Development Corporation (BALDC) on December 15 appears to be structured and issued illegally.
State Senator Perkins (D- Harlem), Chair of the Senate Committee on Corporations, Authorities and Commissions, sent a letter to Governor Paterson on Friday explaining the legal concerns, which the Senator described as "raising the spectre of fraud," and rendering the bonds "effectively worthless."
Senator Perkins said at a Saturday community meeting confronting eminent domain abuse that he spoke to the governor's counsel, Peter Kiernan, who was taking the matter seriously. He asked that the Governor halt reportedly imminent closing on Atlantic Yards project agreements. He said that if the state did not respond, legal action would be considered.
In sum the letter explains that the BALDC has no legal authority to issue PILOT (Payments in Lieu of Taxes) backed bonds because they have no legal authority to lease tax-exempt land.
The letter can be found at: http://dddb.net/documents/letters/PerkinsPatersonBALDC.pdf [PDF]
Posted by eric at December 21, 2009 9:35 AM