IBO Reports Net Loss from Atlantic Yards Arena
On the heels of the public release of the new designs for the Barclay Center, the centerpiece of the Atlantic Yards project and future home of the New Jersey Nets, the Independent Budget Office (IBO) released a report yesterday that the Atlantic Yards development would result in a net loss for the city of about…
On the heels of the public release of the new designs for the Barclay Center, the centerpiece of the Atlantic Yards project and future home of the New Jersey Nets, the Independent Budget Office (IBO) released a report yesterday that the Atlantic Yards development would result in a net loss for the city of about $40 million over 30 years—costing the city’s budget $169 million but reaping only $139 million. The state, however, would be in the black for $25 million over the same period, and the transportation authority would gain $6 million in new tax revenues, according to the report. Mayor Bloomberg, the city’s Economic Development Corporation, and developer Forest City Ratner have all lambasted the report for inaccuracies. One objection is that it accounts for subsidies to the arena alone, ignoring the rest of the Atlantic Yards development, which the IBO justified by saying that subsidies to the mixed-use towers are as-of-right and available to any developer. In addition to the debate over the financial sense of the project, the timetable for completion of various stages has been called into question, as with a recent report commissioned by the Council of Brooklyn Neighborhoods that estimates the project could not be finished by 2019 and would take at least 20 years. The Atlantic Yards Report points out that even the former CEO of the Empire State Development Corporation Marisa Lago has said that it would take decades.
Report Finds Net Loss to City of Atlantic Yards Arena [NY Times]
City Gives More Than Gets at Atlantic Yards [Crain’s]
Reports Cast Doubts on Timetable, Benefits [AYR]
New Barclay’s Center Design Revealed [Brownstoner]
The net gains are rounding errors even if they ever do come to fruition, which I doubt.
Maybe Bloomberg and Ratner can remove and replace some people from the IBO and get a more favorable report drawn up. Then they can pretend this one never happened. Then when these real numbers roll in they can blame it on, um, I don’t know … the taxpayers?
From the top looks like one of those portable cd players with a carry handle from the 90’s. But interesting from the street. Still- Gehry’s made much more of a statement and I am no fan of SHop’s building exteriors.
6 million dollars over 30 years for the MTA, 25 for the state over the same? That’s a pittance compared to what they’re getting. It’s criminal and DDDB had nothing to do with the fact that this was a rotten investment and use of taxpayer money. In fact, good on them for recognizing and coming out against it.
This mess was all spelled out and clear as day a long time ago–if you knew how to read.
I like the new bunker design. Or is it a barnacle??? It kind of says it all.
or if the city had asked for a better return than 20 million (maybe) over twenty years. Yes- I so love to see my tax dollars at work.
Corporate welfare at its worst.
Given the MTA’s ability to piss away staggering amounts of money and have nothing to show for it (see the Fulton Transit Center in lower Manhattan), I think it’s optomistic to think they’d get a single subway car for that $6 million.
However, the fact that taxpayer-subsidized arenas are a money loser for the public is hardly news. This is corporate welfare plain and simple, always has been.
Yes, just think if the MTA had accepted a higher bid for the development rights! There could have been trains and trains and trains!
If only DDDB didn’t delay this until everybody had no cash… If the project had been started on time, there would have been hard cash spent already – and the numbers could have been a bit different.
Again, go DDDB! As in, go away!!!
By the time we see that 6 mil from the arena one subway car will cost 6 mill. Yes- what a great benefit to the city. NOT.