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November 28, 2011

NY Court of Appeals, reversing surprise decision, OKs state economic development grants; Daily News, which saluted AY, lauds dissent by Judge Robert Smith (whose AY dissent the paper ignored)

Atlantic Yards Report

A 5-2 state Court of Appeals decision last week (Bordeleau vs. New York State) upholding state grants for economic development wasn't a surprise, even though the court had to reverse an appellate court that gave the Tea Party-affiliated plaintiffs some measure of hope.

Yes, the state Constitution bans gifts and loans to private entities, but the state has done so for years through intermediary public benefit benefit corporations like the Empire State Development Corporation (ESDC), based on the premise that they are independent. (Of course, the governor controls the ESDC, as we've seen in the Atlantic Yards saga.)

And, judges are reluctant to intervene in such longstanding, however dubious, economic development policy, even if involves the largest state economic development subsidy in history, to upstate chip maker GlobalFoundries, which--no surprise--is already seeking to modify and improve the deal it got.

An editorial surprise

What was a surprise was a scorching 11/26/11 New York Daily News editorial headlined New York Court of Appeals was wrong to toss corporate subsidy suit: Dismissal reveals double standard on taxpayer protection.

After all, while the Daily News criticized the court's endorsement of the ESDC's subsidy practices, it has never looked askance at ESDC support for Atlantic Yards. (The New York Times hasn't covered the subsidy case, either in its news pages or editorial pages.)

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NY Daily News, New York Court of Appeals was wrong to toss corporate subsidy suit: Dismissal reveals double standard on taxpayer protection

Posted by eric at November 28, 2011 12:11 PM