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December 13, 2009
Public authorities reform bill signed; why is Assemblyman Brodsky not mentioning the BALDC?
Atlantic Yards Report
Assemblyman Richard Brodsky has sponsored legislation to rein in New York's Public Authorities. Although he has been critical of public financing of the new Yankees and Mets stadiums, he has held back in his criticism of the proposed Atlantic Yards project and its associated Nets arena.
From a New York Times article headlined Paterson Signs Bill to Rein in State’s Free-Spending Public Authorities:
Mr. Brodsky, who spent months battling New York City officials over the legality of public financing for the new Yankee Stadium, said that if the law had been in effect, it would have forced far more transparency on city officials as they negotiated the Yankees deal.
“Three billion dollars in taxpayer-backed debt was issued by 12 anonymous people who were essentially doing the bidding of the mayor,” Mr. Brodsky said, referring to the board of the New York City Industrial Development Agency, which issued the bonds on behalf of the Yankees, the wealthiest team in baseball.
Well, it might have forced more transparency, but it's a questionable whether it's taxpayer-backed debt. Formally, it's not; the bonds for Yankee Stadium are non-recourse bonds, backed only by the revenue or property behind it.
What about the BALDC?
So too are the $500 million in tax-exempt bonds issued--and being sold right now--by the Brooklyn Arena Local Development Corporation (BALDC).
Except BALDC officials wouldn't rule out a state bailout, only saying that it was speculation. Nicole Gelinas of the Manhattan Institute has written:
Ahead of any bond sale, Gov. Paterson and Mayor Bloomberg should make it crystal-clear, publicly and to potential investors, that no New York State or City entity will step in to make up for any shortfall in Atlantic Yards’s revenues, even if it means a bond default.
Brodsky, however, has remained far more quiet about Atlantic Yards.
Posted by steve at December 13, 2009 6:05 AM