Treasury Dept. Hooks Up Ratner Big-Time
Despite claims from Develop Don’t Destroy to the contrary, yesterday’s IRS ruling on the regulation of triple-tax-exempt bonds for private developers may not mean curtains for the Barclay Center Arena, according to Atlantic Yards Report. Although the new regulation does eliminate a loophole for most projects, it also creates a transitional rule for certain projects…
Despite claims from Develop Don’t Destroy to the contrary, yesterday’s IRS ruling on the regulation of triple-tax-exempt bonds for private developers may not mean curtains for the Barclay Center Arena, according to Atlantic Yards Report. Although the new regulation does eliminate a loophole for most projects, it also creates a transitional rule for certain projects substantially in progress that appears to give the Atlantic Yards Arena (along with the new Yankees and Mets stadiums) a free pass. One potential snag for FCR: The new regs require that the bonds be issued by December 31, 2009.
New Regulations would Grandfather Atlantic Yards Arena [AYR]
IRS Gives Thumbs Up to Tax-Free Bonds [NYO]
IRS Decides Tax-Free Financing for AY Okay [Curbed]
Press Release [DDDB]
no liberal reading required. if the IRS has drafted the provision specifically to grandfather in the Nets, Yankees and Mets, you can bet there isn’t going to be much fuss about it. DDDB is delusional if it thinks there’s any doubt – IRS specifically defined “substantially in progress” as having official *preliminary* approval of before October 19, 2006, specific contemplation at that time of using this financing, and significant expenditures paid or contracted for “with respect to the project.” nothing remotely narrowly drawn that AY won’t slip right into this exception.
“Treasury Dept. Hooks Up Ratner Big-Time”
spare me. the AY reporting on this site is so biased that it’s approaching the point of hurting this site’s credibility generally.
everything is a ratner conspiracy. yada yada.
Yeah, you bet some lobbyists got that inserted. That’s why they make the big bucks!
BKT, thanks for telling us what we should think. You’ll note however that not everyone actually is against it, myself included.
As for the most recent and oddly convenient US Treasury ruling the purported guideline “substantially in progress” is hilarious by any stretch of the mind.
So i guess drawing up some plans,shoveling some dirt and then holding several press conferences qualifies Atlantic Yards?
Its going to take a very liberal interpretation of the reg to satisfy that requirement. But with right pack of lawyers, lobbyists, and political officials on board (hi bloomberg!),as history has illustrated on many occasions, $$$ and profits are seen as somehow more important than peoples lives or in this case even private property rights.
As new york citizens, we should all be against this obscene project for if nothing else, the corruptive element it embraces. I mean, “a transitional rule for certain projects” – give me a break!
I love derelict old sites in the heart of Brooklyn.
I love watching job producing projects go down the tubes as we head into a bad recession because of litigation.
If there’s one thing I’ve learned here in New York, when it comes to endorsed projects all rules fly out the windows. It’s something you can count on every time.