Report: City "manipulated," "evaded" law for $1B tax cuts for new Yankee Stadium
Updated Tuesday, September 16th 2008, 12:34 PM
Bonifacio/News The city bent state law to give the new Yankee Stadium close to $1B in tax cuts.
The city "manipulated and evaded state law" to ladle as much as $1 billion in tax benefits for the New York Yankees, who repaid the favor by increasing ticket prices at their new stadium, a prominent lawmaker charged Tuesday.
Assemblyman Richard Brodsky, D-Westchester, released a 31-page report detailing how the city inflated property values and promised non-existent new jobs to win approval for up to $1 billion in public subsidies.
And, Brodsky noted, city officials never made an effort to reign in the team's escalating ticket prices.
"The price of tickets to the new Yankee Stadium is a matter of legitimate public concern, given the enormous public subsidies involved," Brodsky wrote.
"Since the Stadium deal was announced the Yankees have announced massive ticket price increases. It is unlikely that average middle class New Yorkers, whose tax payments subsidize the new Stadium, can afford regular access to most seats."
Tickets that sold for $100 to $150 per game now go for $850 to $2500 per game, while other ticket prices have risen five to 10 times, Brodsky said.
he Yankees have won approval for $942 million in tax-exempt bonds that will save them up to $471 million in lower borrowing costs over 30 years, Brodsky said.
They've requested another $350 million in tax-exempt bonds, which will give them another $66 million in savings.
On top of that, the city and state have promised $350 million in direct subsidies for infrastructure improvements at the new stadium.
To get this, Brodsky alleged, the city agency arranging the deal, the Industrial Development Agency, "manipulated and evaded State law requirements" that the new stadium have some public benefit.
Topping the list of his complaints was the fact that the Yankees - in their application for the funds - admit the new stadium will provide only 15 new permanent jobs.
"That is neither fair nor reasonable," Brodsky wrote.
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