The subject of how much Atlantic Yards will cost the public has always been a political football. Supporters have said the support would be modest. Opponents have argued that taxpayers would get taken to the cleaners. Today, Rich Calder takes a swipe at the topic in the Post and finds that the project is "boosted by so many sweetheart deals that the public stands to pay for more than half the cost of his controversial $4 billion plan." The public tab, per the Post, which has not been overly critical of the project, comes out to $2,139,890,000. The tab could climb because "the developer is gearing up to ask for even more corporate welfare." Nearly half the total is $1 billion in tax payments that will be diverted to pay debt service for the Nets arena, which developer Bruce Ratner will lease for $1 per year.
1) 30 years of arena PILOT tax payments = $1.03 billion.
2) Tax savings on $1.406 billion tax free bonds for housing = $261.25 million
3) NYC cash for infrastructure or land acquision = $205 million
4) Tax savings on $1.032 billion in tax-free bonds for arena = $191.9 million
5) Tax credits through 421-a "carve out" = $150 millon
6) Savings for rail yard purchase from MTA for less than appraisal = $114.5 million
7) State funds for infrsatructure = $100 million
8) Mortgage tax recording exemption = $39.37 million
9) Value of land under arena given to develope3r $27.1 million
10) Low income housing tax credits = $18 million
11) Arena sales tax exemption = $17.4 million
Grand Total = "At least" $2,157,260,000
Other possible spending, like "extraordinary infrastructure costs" is not included. Time to add another entry to the Atlantic Yards Timeline of Despair. Of course, Atlantic Yards Report deconstructs the Post analysis in detail.
· Your 'Net' Loss [NYP]
· Ratner's Nets Gains [NYP]