Streetsblog New York City

Yes, the Yankees' season is over. But on the bright side, this morning the city handed the team a nice consolation prize: $225 million in tax exempt bonds for parking deck construction at the new Yankee Stadium.

Under the agreement, the city will give up some $2.5 million in taxes, with an estimated $5 million forfeited by the state. And the asthma-plagued South Bronx will get almost 4,000 new parking spaces, in garages the city aims to draw traffic to year-round.

Today's approval of the Yanks' parking subsidy by the board of the NYC Industrial Development Agency can only be described as a fait accompli. Despite last month's surprising postponement, caused in part by the IDA's failure to provide requested information to Bronx Borough President Adolfo Carrion (himself a parking subsidy supporter) -- not to mention the revelation of one sad, shocking detail after another in the local media -- the unanimous vote came with relatively little discussion, one item on an agenda of about a dozen. The entire meeting took less than an hour.

Still, there were a few noteworthy aspects surrounding the decision:

• it was announced that an economic feasibility study is now underway (as opposed to, well, conducting same before the package was approved);
• the IDA signed off on the project though a finalized ground lease apparently does not yet exist;
• the deal includes possibly as many as 600 free parking spaces for the Yankees (Streetsblog has a call in to the IDA to confirm the number);
  
• Carrion's representative on the IDA board, Rafael Salaberrios, was not present for the vote, but walked in shortly after it occurred.

Bettina Damiani, Project Director of Good Jobs New York, an NGO that has tracked the stadium project closely, says the IDA's promise of 12 full-time and 70 part-time parking garage jobs, with an average wage of $11 an hour, hardly justifies the impact on surrounding South Bronx neighborhoods.

"There would be a stronger economic benefit if they threw cash off the elevated subway," Damiani says.

Fittingly, Damiani is headed to Washington, DC, tomorrow to testify at a Congressional hearing on how professional sports stadiums shift funds away from public infrastructure.

The Yankee Stadium subsidy package is the gift that keeps on giving. If you're the Yankees.

Following up on his tour of the smelly swath of plastic turf the Yankees installed in the South Bronx after turning actual park land into a stadium construction site, Neil deMause reports in the Village Voice that a clause in the Yanks' lease agreement with the city -- initiated by Mayor Rudy Giuliani and extended by Mayor Bloomberg -- allows reimbursements for stadium "planning" expenses. As of 2005, deductions include apparent write-offs for food, alcohol, and thousands of dollars in schwag, like caps and souvenir crystal baseballs.

Seems the Yankees haven't been spending enough on stadium "planning" to take full advantage of the rent break, so to justify additional deductions, the club began handing over loads of receipts to the Parks Department.

[W]hereas the earlier receipts were limited to stadium-related expenses -- although questionable ones, like the $700-an-hour lobbyist bills and restaurant tabs for engineering consultants -- by late 2005, the files had begun to look like those of an organization hastily trying to spend down its account by billing the public for everything but the kitchen sink.

Here's a sample itemized list, courtesy Good Jobs New York:

• $31,364 in food and bar tabs at Yankee Stadium for two nights of the 2005 post season
• $1,978 for a dozen crystal baseballs
  
• $8,600 in "rivalry" wool caps for home games against Boston and Toronto
• $1037 for 550 logo baseballs for an annual sales meeting
• $2,037 in gifts for corporate clients like Sony, Ford and Continental Airlines
• $25,000 for office space near Newark Airport
• $10,145 for press room rental
• $1,948 for party for Verizon
• $78 to ship batting helmets from Yankee Stadium to Tropicana Field

Images of actual receipts are here, here and here.

GJNY has issued a media release calling for an audit by City Comptroller (and potential mayoral candidate) William Thompson -- something the city has not done since 2004, when it examined the Yankees' stadium planning costs from 2001 and 2002.

"Considering the impact the new Yankee Stadium has had on the taxpayers and the neighborhood," reads the GJNY statement, "Good Jobs New York calls on Comptroller William Thompson to bring up to date all audits of the team to ensure no improper expenditures were in fact borne by the taxpayers."

Here are snapshots of the scoreboard at Yankee Stadium last Sunday. (The Yanks beat Toronto, 7-5.) Despite the perceived parking hardship, average attendance at the stadium has been 52,739 this season, an all-time record.

Naturally, this casts further doubt on the need for all those (all together now) publicly funded parking spaces -- a project that has already caused actual hardship for South Bronx residents who, to add injury to injury, saw neighborhood park land poached and replaced (temporarily, at least) by a stinky plastic heat island.

Assuming the garages are built as planned, and prove as unprofitable as expected, will the scoreboard still "strongly suggest using public transportation"?

We wrote a couple weeks back that one of the problems with the new Yankee Stadium parking subsidy deal is that the Bronx Borough Board has yet to vote on it -- perhaps because board members, along with the borough president himself, are still waiting for information on the project from the Industrial Development Agency.

The Bronx Borough Board was expected to take up the stadium parking issue today, but Streetsblog has received word that it was not on the agenda after all. Though this will presumably affect the scheduling of an IDA vote to issue the $225 million in tax exempt bonds sought to finance construction of three stadium parking garages, an article in today's Sun -- referring to the complex as  "the most expensive baseball park ever built" -- quotes a Yankees rep who says the project is proceeding as planned.

The Yankees have refused to provide interviews with those involved in the construction of the new stadium. A spokeswoman for the Yankees, Alice McGillion, said, "We are on schedule with construction, on budget, and fully expect to be operational and ready for opening day 2009."

If you thought it was bad enough that the city seized public park land in the asthma-choked South Bronx, turned that public land over to the New York Yankees to use for parking, and is currently on course to have taxpayers subsidize said parking to the tune of $8,000 per space, well, you'd be wrong. It gets worse.

The triple tax exempt bond plan for the new Yankee Stadium was hatched when no developers stepped up to bid on stadium parking deck construction, and their inherent unprofitability has now led the city's Industrial Development Agency to seek year round operation of the garages.

Via onNYTurf, the Observer does the math:

If all the new parking slots (9,179 total) are filled every game day (81 times a year), the operator will bring in $18.59 million annually from Yankees-related revenue. But the $225 million in bonds, if paid back over 30 years at 6.5 percent, would require $17.04 million a year in payments.

That leaves just $1.55 million a year for salaries, maintenance, utilities and other operational costs—not to mention rent that the operator, the Bronx Parking Development Corporation, is supposed to pay the city.

“With recent and ongoing South Bronx developments, such as the development of the Bronx Terminal Market and the new Metro North Station, we expect there to be strong demand for parking on non-game days, which certainly help the financial viability of the project,” a spokeswoman e-mailed The Observer.

So, with the stadium deal, the city hopes to get into the business of inducing parking demand -- in an area it says will benefit from congestion pricing.

Photo: The Foo Fighter/Flickr

Last week, the board of the New York City Industrial Agency postponed a vote on whether to subsidize the construction of parking facilities at the new Yankee Stadium through the issuance of $225 million in triple tax exempt bonds. Streetsblog has no word yet on when the vote will occur, so in the meantime here is a list of the people who will be making the decision, with as much background as we could gather on the lesser-known members.

If anyone knows more about any of these folks, or if you spot any outdated info, please share.

The IDA board:

• Robert C. Leiber, Chairman. President of the New York City Economic Development Corporation. Former real estate executive. Mayoral appointee.
  
• Derek Park, Vice Chairman. Senior Executive Vice-President, Cohane Rafferty Securities. Mayoral appointee.
  
• Amanda Burden, ex officio. City Planning Director, City Planning Commission Chair.
  
• Michael Cardozo, ex officio. New York City's Corporation Counsel.
• Albert V. De Leon. General Counsel, Skandinaviska Enskilda Banken.
• Dan Doctoroff, ex officio. Deputy Mayor for Economic Development and Rebuilding.
• Joseph I. Douek. Chairman and CEO, Willoughby's Konica Imaging Center, friend of Brooklyn Borough President Marty Markowitz, and subject of this 2006 critique on Room EIght.
• Kevin Doyle. Executive Vice President, Local 32BJ, "the largest property services union in the country." Doyle was profiled by the Observer when he joined the IDA board. Appointed by Manhattan Borough President Scott Stringer.
• Bernard Haber. Member of Queens Community Board 11. Queens Borough President appointee.
  
• Rafael Salaberrios. President, Bronx Overall Economic Development Corporation. Chairman, Bronx Tourism Council. Bronx Borough President appointee.
  
• Robert D. Santos. Vice President for Campus Planning and Facilities Management, City College of New York. Former executive with construction firm Lehrer McGovern Bovis, Inc. Former Assistant Commissioner, NYC Department of Housing Preservation and Development. Former Deputy Commissioner for Operations, NYC Department of Parks and Recreation. Mayoral appointee.
  
• William C. Thompson, ex officio. New York City Comptroller.

Alternates:

• Barry Dinerstein. Deputy Director for Housing, Economic Development and Infrastructure Planning, NYC Planning Department.
• John Graham. City Comptroller appointee.
• Angela Sun. Doctoroff appointee.
• Leonard Wasserman. Chief, Economic Development Division, New York City Law Department (Corporation Counsel). 

In an unusual move, the board of the New York City Industrial Development Agency (IDA) this morning postponed a vote on whether to issue tax-free bonds for parking facilities at the new Yankee Stadium.

At a hearing last week, residents of the South Bronx, along with public advocates, protested the $225 million triple tax exempt bond issue, which would be used to finance the construction of three stadium parking garages. Speakers testified that making so many parking spots available would encourage stadium-goers to drive to the asthma plagued area, rather than take public transit -- and at taxpayer expense, as the bonds are estimated to cost New Yorkers some $8,000 per space in lost revenue.

Also at last week's hearing, a representative of Bronx Borough President Adolfo Carrion, Jr., Deputy Director for Planning & Development Paula Luria Caplan, told the IDA that Carrion's office had been denied "vital information" concerning the project, and said the IDA should not act before "statutorily required approval" by the Bronx Borough Board. (Streetsblog contacted Carrion's office for an update, but had not received a reply as of this writing.)

Today's session, closed to public comment, featured no discussion of the parking bonds. Instead, it was announced that several IDA board members had concerns and questions, and that the matter would be decided later at a special-called meeting, for which no date was given.

"I hope that the board realizes that you can't dress this up pretty," says Bettina Damiani of Good Jobs New York, an NGO that opposes the Yankees parking subsidy and has followed it closely (witness GJNY's 28-page chronicle, "Insider Baseball"). "You can put lipstick on it all you want. It's still a parking garage. The IDA has a tough job ahead of them."

The people of the South Bronx will organize against the subsidized construction of parking garages for the new Yankee Stadium, one resident said yesterday.

At a sparsely attended public hearing in Lower Manhattan, Margaret Collins of Save Our Parks told the New York City Industrial Development Agency (IDA) that a "barely contained rage" is simmering over the traffic the new stadium is expected to bring to the area. Surveys show that lack of recreational space and pollution are the top concerns in South Bronx neighborhoods, Collins said -- problems that were exacerbated when the Yankees seized public park land for its stadium complex, and which could yet worsen once its proposed 9,000 parking spaces are put to use.

Though the new facility will have 5,000 fewer seats, and will be served by a new Metro-North station, current plans call for it to have 2,500 more parking spots than the existing stadium. Three new parking garages (of four originally planned) will be financed through $225 million in triple tax exempt bonds, if the IDA approves such action, at a public cost of some $8,000 per space. A vote could come as early as next Tuesday, September 11. The IDA board votes in closed session.

Noting the low turnout for the hearing, Collins -- herself testifying with sleeping infant in tow -- pointed out that most affected residents can not make it downtown for a meeting in the middle of a workday. She warned that lack of public attendance should not be confused with lack of public engagement. 

"The community is not sleeping on this question," Collins said.

Speaking after an unusual plea for access was presented to the IDA on behalf of Bronx Borough President Adolfo Carrion, Jr., Collins bristled that politicians had signed on to the stadium project without knowing what they were agreeing to. Carrion, a vocal stadium proponent, has been denied what his office termed "vital information" regarding its financing, even though he, like all borough presidents, has an appointee who serves on the IDA board.

The IDA is the financing arm of the New York City Economic Development Corporation. The IDA board is made up of 15 members and alternates, including City Planning Director Amanda Burden and Deputy Mayor Dan Doctoroff.

While she was outnumbered by IDA board members and staff, Collins was not alone in testifying against the project. Joyce Hogi, who has lived in the vicinity of Yankee Stadium for 30 years, objected to the "snarling traffic" that "consumes" the area, and said the new garages would amount to "induced demand" for otherwise unneeded parking, "providing an incentive to drive into an already overburdened neighborhood." Of the new Metro-North station, Hogi asked, "We spend millions on public transportation and now we plan to spend millions to encourage them not to take it?"

Hogi suggested public moneys would be better spent on upgrades to the Melrose Metro-North and 161st Street subway stations, which would benefit surrounding neighborhoods year-round.

Bettina Damiani, director of Good Jobs New York, said that the parking subsidy, if approved, would bring the public commitment to the new stadium to a total of approximately $795 million.

Photo: Michael Dietsch/Flickr

This morning a representative of Bronx Borough President Adolfo Carrion, Jr., read a statement of protest ahead of an expected Tuesday vote on the city's deal with the Yankees to subsidize the construction of three parking garages.

Testifying before the NYC Industrial Development Agency (IDA), which is poised to issue over $200 million in triple tax exempt bonds to the "Bronx Parking Development Company" for parking deck construction, Deputy Director for Planning & Development Paula Luria Caplan said Carrion has not received "vital information" regarding project financing.

Here is the testimony submitted by Caplan on behalf of Carrion, in its entirety:

The new Yankee Stadium project represents a remarkable achievement for the Borough of the Bronx and the City of New York. As this board is aware, the Borough President has been involved in this redevelopment project from its inception and has always insisted that both the community and its representatives are thoroughly engaged in this process.

The Borough President is deeply concerned that after repeated requests we still have not received vital information regarding the details of the Bronx Parking Development Company financing. Specifically, the Borough President's office has requested the following:

A copy of the draft lease agreement;
A copy of the feasibility study;
An explanation of the increase in the deal size from $190 million to $218 million;
and details regarding the elimination of Lot D from the parking facility after 2010.

Finally, the Borough President is concerned as to whether this project can move forward on September 11th without the statutorily required approval of the Bronx Borough Board. In order to make an informed decision at the September 11th IDA Meeting, the Borough President must receive this information immediately.

Bettina Damiani of Good Jobs New York, who also offered testimony, said that it is unheard of for a borough president to resort to making such a statement at an IDA hearing, considering that each borough president has an appointee on the IDA board.

Complete coverage still to come.

As Streetsblog reported back in April, the city is set to subsidize thousands of parking spaces for the new Yankee Stadium by issuing hundreds of millions in tax-exempt bonds for parking deck construction.

The Post reported this week that one of the four planned parking structures has been scuttled, but the rest remain on the table, in spite of a new Metro-North station that should mitigate stadium parking demand. Tomorrow the NYC Industrial Development Agency (IDA) will hold a hearing on the bond issue, which by some calculations would cost city and state taxpayers over $8,000 per parking space.

Here's a summary from Good Jobs New York, which has been keeping a watchful eye on the deal:

The New York Yankees are currently building a new stadium one block north of its existing location at East 161 Street and River Avenue in the Bronx. The project would also include the construction of three nearby parking garages containing almost 4,000 spaces. The proposed stadium and parking facilities are being developed on over 20 acres of frequently used public parkland, and city, state, and federal subsidies for the project exceed $700 million in direct spending and tax breaks.

 

The New York City Industrial Development Agency (IDA) is proposing to offer additional subsidies for the construction of the three new garages and the renovation of existing garages and surface lots in the area. The IDA is proposing to offer the garage developers $219 million in triple tax-exempt bonds (up from an earlier amount of $190 million) to finance the development of the parking facilities. The city estimates this will mean over $2 million in forgone city income taxes (not to mention millions more on the state and federal level). In addition, the city will no longer collect a percentage of the revenues earned at the garages.

Perhaps, instead of a parking subsidy, the city sees the tax break as an investment in what some hope will be a Bronx development boom. Centering on the stadium, some $500 million in retail development is planned for the area. Retailers have also pledged to reserve 1,200 game day parking spots for Yankee fans.

 
Meanwhile, the ball club has stalled on a promise to repay nearby residents for seizing public park land for its new field and parking complex, in the form of an $800,000 annual endowment to area non-profits. Metro reports that the organization that is supposed to distribute the funds has not yet registered with the state, and its first annual report, due in April, never materialized.

"The parks were taken in eight days without one public hearing," complained [Geoffrey] Croft, president of NYC Park Advocates. "The Yankees wasted no time in seizing the public's land, but they're in no hurry when it's time to pay up."

Croft charged the promised payoff was actually a "pittance," considering the neighborhood, which is plagued by asthma, lost "70 percent of their trees."

More coverage of the parking deal can be found here.

Tomorrow's IDA hearing, which is open to the public, will be at 10:00 a.m. at 110 William Street, 4th Floor.

 
Photo: hotdogger13/Flickr