Assemblyman Brodsky to Testify at Today's NYCIDA Public Hearing on Additional $430 Million in Public Financing for Yankee Stadium

New York, NY -- Assemblyman Richard Brodsky (D-Westchester) will testify at this morning's New York City Industrial Development Agency public hearing prior to tomorrow's 9:00 a.m. NYCIDA Board vote on an additional $430 million in public financing for the new Yankee Stadium. Today's public hearing begins at 10 a.m. and is being held at the NYCIDA offices in New York City at 110 William Street, 4th Floor.

In 2006 the New York Yankees were given about $1.5 billion in tax benefits and public funds for the building of a new Yankee Stadium. Over $500 million was direct cash and tax relief. The additional $950 million came in the form of low-interest bonds whose principal and interest were repaid with tax dollars, as the City freely admitted in sworn filings with the IRS: "The City has determined to use its property taxes (in this case PILOTs) to finance the construction and operation…of the Stadium." 

The Yankees are now seeking, with the support of the Bloomberg Administration, an additional $430.9 million. The largest single use of the money seems to be for a new television, video-audio system at the Stadium. Other notable uses include monies to replace concrete ramps with granite ones, to cover legal and financial fees, and to pay for a museum and conference center, Yankee administrative offices, concessions, and suite upgrades.

It should be noted that $123 million of the actual cash proceeds of the bonds will be paid directly to the Yankees as repayment for money they have already "advanced" to the project, apparently always anticipating the additional taxpayer monies would eventually be received.

Comments

[HC]

If The Yankees built the stadium next to the Jets and Giants in The Meadowlands how much more money would NYC have in their budget? They would likely have less- they'd still have to pay for demolition of the old stadium and would no longer be receiving rent payments or tax money from The Yankees profits, the players, and all of the businesses around Yankee Stadium and throughout NY who benefit from the teams existence.

The "land value" is a completely random number used to qualify for the PILOT program. Yes, with The Yankees in the stadium the value of the land (and surrounding land) is very high compared to what it would be otherwise. But suppose The Yanks are playing in NJ- what value does that tract of land have in the poorest Congressional district in NYC? Recall, the Yankees actually play in a real urban area around real urban people- not in a suburban parking lot in Queens. There are more benefits to the community as well as a higher cost of construction.

If you're The Mayor who has to make a deal with the team you're thinking: I know the land is extremely valuable with the team there and I need to keep the team there or else the land is worthless; there is also this Federal program for infrastructure and community investment that allows organizations to raise money at a lower rate because interest payments that are tax free. We'll say that the taxes on the land would be high (since if they get the bonds it means the team will be there) and we'll sell the land to the yankees at the market rate assuming The Yankees are not there (because, until the project is complete, that is the real value to anyone but The Yankees).

This is total nonsense other than the fact that govt agencies should not decide who gets what kind of financing. Since we have such an intrusive govt in the country and especially this state- that is the only way to do business- for all businesses including the sneaky, spineless little Mets.

BID BID BID Legal to steal!!!

brodsky should investigate n-valley , ridge hill corp and all the other i.d.a.'s which bankrupted our city

Too little Too Late. They got away with it.

5:37  That is a fact!!! Please send in the FEDs!!!

http://yonkersauxiliarypolice.homestead.com/home.html