December 24, 2009
While JDA bonds are state-guaranteed, its "creation" (not subsidiary) BALDC operates by different rules
Atlantic Yards Report
So, the murky, single-purpose Brooklyn Arena Local Development Corporation (BALDC) is not a subsidiary but a creation of the Job Development Authority (JDA), the Governor's counsel told state Senator Bill Perkins.
Why is it so important to keep a distance? Because the bonds issued by the JDA itself--I'm not sure about subsidiaries--are guaranteed by the state, while the $511 million in tax-exempt bonds issued by the BALDC are non-recourse, with no guarantees. (BALDC officials last month said such a bailout wasn't foreseeable, but wouldn't rule it out.)
And bonds backed by the JDA would certainly require review by the Public Authorities Control Board (PACB), which was avoided in this case.
What the JDA usually does
The JDA, which has no dedicated staff, is an alter ego of sorts of the Empire State Development Corporation (ESDC), which has shepherded and approved Atlantic Yards. I already pointed out that the ESDC's own web site indicates that its Urban Development Corporation (UDC) program authorizes Sports Stadium Assistance, while the JDA helps New York companies build and expand facilities and acquire machinery and equipment.
NoLandGrab: A "creation?" Like something that comes out of the kitchen of a three-starred Paris restaurant? The Paterson administration's embrace of "creationism" is only the latest bizarre step in the bizarre six-year history of Atlantic Yards. Perhaps they meant "cretin?"
Posted by eric at December 24, 2009 10:17 AM