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Pols Question Yankee Stadium Financing

State lawmakers and fiscal watchdog groups booed the lack of transparency in the New York Yankees’ recent request for nearly half a billion dollars in additional public funding for the construction of the new Yankee Stadium.

At a hearing on July 2, Assemblyman Richard Brodsky (D-Westchester), grilled the city on how the Yankees have spent the first billion dollars granted to them and why the Yankees want more money. He came away with few answers.

With the Yankees threatening to relocate in 2006, the city’s Economic Development Corporation (EDC) granted the Yankees $942 million in tax-exempt bonds for the $1.3 billion stadium. Elected officials did not vote on the financing.

Now the Yankees — who did not testify at the hearing — are in the process of requesting another $350 to $400 million in tax-exempt bonds, but did not say why.

“Nobody knows enough information yet on where the money would go,” Brodsky said in a phone interview. “I don’t know if I would support it or not.”

This was the first time that details of how the Yankees spent the first billion dollars were made public, and they were not pretty. According to Brodsky and other assemblymen, EDC President Seth Pinsky said the Yankees plan on creating only 15 new full-time jobs at the new stadium, down significantly from what the team initially predicted. And less than 10 percent of construction contracts have gone to Bronx companies.

The EDC could not provide details on why the Yankees requested the additional funding.

However, Yankees COO Lonn Trost told the Associated Press in February that the additional financing would pay for a six-story-high scoreboard and expanded concessions.

“I’m not convinced of the greater public benefit,” Assemblyman Ruben Diaz, Jr. (D-Bronx) said in a phone interview. “The Bronx has not gotten what it bargained for, with less than 10 percent of contracts going to Bronx companies. Job creation has fallen [below] expectations.”

Brodsky and Diaz, Jr. hope to hold future hearings on the issue. Assemblyman Brian Kavanagh (D-Manhattan) has proposed a bill that would require affordable seats in any new publicly-funded professional sports stadium in the state.

 

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