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February 16, 2012

Did Goldman, Sachs try to run the Brooklyn Arena LDC? It appeared so, but then an Investor Update call for today was canceled.

Atlantic Yards Report

Well, we knew that the Brooklyn Arena Local Development Corporation (BALDC), the entity set up to issue tax-free bonds for the arena, was little more than an alter ego of the Empire State Development Corporation (ESDC), even though it is officially a "creation" of the Job Development Authority (JDA), another ESDC alter ego.

I was recently alerted to an Investor Update Call scheduled for today, apparently to alert arena bondholders on the progress of construction. The document, issued via the Municipal Securities Rulemaking Board, stated:

The Brooklyn Arena Local Development Corporation invites you to participate in an Investor Update Call related to the above-captioned transaction.

The RSVP went to a staffer at Goldman, Sachs.

Very curious

That sounded odd, given that the BALDC is a publicly created body, with board members appointed by public officials.

How could this be delegated to Goldman? Was the ESDC (also known simply as Empire State Development) involved?

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Posted by eric at February 16, 2012 11:54 AM