Mets Stadium Subsidy News:
The
land-use plans for a new Mets Stadium were approved by the city in 2001,
despite the fact that these plans featured a completely different
stadium design.
The New York City Industrial Development Agency (IDA) has preliminarily
approved the use of tax-exempt bonds and other subsidies for the
project.
The City Council is currently in the process of deciding whether payments in-lieu-of taxes (PILOTs) collected from the Mets should be used to pay back the tax-exempt bonds issued for the stadium. PILOTs are normally a way to reimburse the city for revenue lost due to a property tax exemption. In the case of the new Mets Stadium, these PILOTs would instead be used to service the debt on the tax-exempt bonds issued for the project in order to satisfy a federal requirement that these bonds be repaid with city tax revenue.
It is unclear whether PILOTs qualify as "general revenue," especially since these funds would never be remitted to the city treasury. The city has submitted a private letter ruling request to the Internal Revenue Service, who will make a determination on the legality of the current financing scheme.
4/25/2006-- GJNY calls on Council Member David Weprin to postpone Wednesday's City Council Finance Committee vote on the stadium financing structure until it receives approval from the Internal Revenue Service. Click here to read the letter.
4/20/2006--The New York City Independent Budget Office released an analysis of the fiscal implications of the Mets Stadium project. Click here to read it.
4/10/2006--The City Council's Finance Committee held a public hearing regarding the use of PILOTs to pay back the stadium debt.
3/24/2006-- The Empire State Development Corporation (ESDC) approved the allocation of $70 million for infrastructure projects related to the new stadium. ESDC also approved a $4.7 grant to the Mets for future maintenance costs. Click here to read ESDC's General Project Plan.
3/14/2006--The board of the Industrial Development Agency (IDA) gave preliminary approval for the use of tax-exempt bonds, sales tax breaks, mortgage recording tax breaks, and a payment in-lieu-of taxes arrangement for the Mets Stadium project. Click here to view the project materials, including the cost-benefit analysis.