“Over a 30-year period, the arena would cost the city nearly $40 million more in spending under current budget plans than it will generate in tax revenues”

Damon W. Root | September 11, 2009

New York City's Independent Budget Office released a sobering report this week that throws more cold water on real estate developer and New Jersey Nets owner Bruce Ratner's plans to use eminent domain and assorted government subsidies to build a new Nets basketball stadium in Brooklyn:

Over a 30-year period, the arena would cost the city nearly $40 million more in spending under current budget plans than it will generate in tax revenues (present value, 2009 dollars). The costs total nearly $170 million from financing city expenditures on the arena and the loss of existing tax revenues at the site.

There's also this fun fact:

For the developer, Forest City Ratner Companies, the mix of special government benefits result in total savings of $726 million.

Whole thing here (pdf). Reason on the Brooklyn boondoggle here.

Comments

|9.11.09 @ 1:29PM|#

How come you guys at Reason never go after the rich people who benefit from government largesse?

@|9.11.09 @ 1:47PM|#

the mix of special government benefits result in total savings of $726 million

I went grocery shopping today and my "Advertised Special Savings" totalled $4.25 (the pork chops were on sale). As far as I know, not a single taxpayer was reamed.

zoltan|9.11.09 @ 2:14PM|#

But...but...it will bring in lots of revenue for the city and more than make up for the spending.

|9.11.09 @ 2:21PM|#

As far as I know, not a single taxpayer was reamed.

Yeah, well I bet those pork chops got to the store on a taxpayer roads.

/dickhead HnR liberal commenter off/

jtuf|9.11.09 @ 2:22PM|#

Hmm, I'll forward this the 912 group for Greater NYC and see if they want to gather for a protest.

ChrisO|9.11.09 @ 2:49PM|#

Spending $170 million and getting the Nets in return. Who wouldn't want such a deal?

|9.11.09 @ 4:10PM|#

Hey, c'mon now. They're just spreadin' the wealth around.