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January 16, 2012

Some "Truth Vigilantism" toward a 2005 New York Times account of AY arena costs

Atlantic Yards Report

Norman Oder, the Charles Bronson of truth vigilantes, injects a little sodium pentathol into a 2005 New York Times story.

I didn't start writing about Atlantic Yards until late 2005, so I'll apply some retrospective "Truth Vigilante" treatment to Stadium Games: Give and Take And Speculation; What the Teams Want And What the City Gets, a 1/16/05 New York Times articles about the proposals then in play:

Nonetheless, the mayor and Gov. George E. Pataki are on the verge of approving three new sports sites -- a football stadium for the Jets, a baseball stadium for the Yankees and a basketball arena for the Nets -- that will require a combined public investment of at least $1.1 billion.

It is not easy to assess precisely what the taxpayers will get out of their investment, which is equivalent in cost to a major Manhattan skyscraper or 25 schools with 600 seats each. In part, that is because the economic benefits are based on studies commissioned by the teams themselves, and promoted by the government sponsors of the projects.

What about AY?

So, what did it say about Atlantic Yards?

The Nets arena in Brooklyn will require a public investment of about $200 million and the condemnation of several blocks of housing and stores. New York will get a basketball team back from New Jersey and an arena with a public garden on top that is intended to serve as an anchor for a residential and commercial development. The arena could also be used for high school or college games.

Well, the public direct investment is nearly 50% higher now, while there are numerous other subsidies and opportunity costs, leading the New York City Independent Budget Office, in 2009, to pronounce the arena a net loss for the city.

The public garden? Long gone.

Arena as anchor for residential and commercial development? Not so much. Maybe leverage for subsidies.

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Posted by eric at January 16, 2012 12:31 PM