Junk Yard Bonds Get Trashed

Develop Don’t Destroy Brooklyn put on some good theater when it organized the ritualistic throwing of mock Atlantic Yards Arena Bonds into the back of a garbage truck outside S&P’s headquarters in downtown Manhattan yesterday, but the action was aimed at raising awareness about some serious issues. From the Atlantic Yards Report…”Probably the most important one concerns the ESDC’s creation of the Brooklyn Arena Local Development Corporation (BALDC), which, however legal, skirts the review of the Public Authorities Control Board (PACB) and Comptroller, because only subsidiaries which have the same members or directors as the ESDC or Job Development Authority are included.” AYR also notes the low turnout of both politicians (Tish James was the only one to show up) and the anemic coverage of the issue in the press. Another troubling issue surrounding the bonds, according to AYR: “While the $500 million in tax-exempt bonds authorized by the Brooklyn Arena Local Development Corporation (BALDC) are supposed to be non-recourse, with no risk to the state, state officials have refused to rule out the possibility that the state would bail out the bondholders should revenues not meet expectations.” The post concludes with a long list of questions for both the ratings agencies and the ESDC, but we won’t be holding our breath for the answers.
“Junkyard Bonds” Tossed in Garbage Truck [AY Report]
Photo by Tracy Collins