tag:blogger.com,1999:blog-20743459.post1748169494039705982..comments2024-03-28T05:19:17.215-04:00Comments on Atlantic Yards/Pacific Park Report: Treasury official: Intangible benefits, political constraints fuel stadium dealsNorman Oderhttp://www.blogger.com/profile/07618087999719667586noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-20743459.post-48528765227437209332008-06-19T23:47:00.000-04:002008-06-19T23:47:00.000-04:00So sports team owners are in the small club lobbyi...So sports team owners are in the small club lobbying to justify the use of special loophole tax-exempt bonds?- “R-TIFC-PILOT”(pronounced “Artifice-PILOT”- or “Return Total Intercepted For Costs-PILOT”) bonds.<BR/><BR/>Yes the team owners are in this club,- that makes sense. But “municipal backers” want to join this small club and join the lobbying game too? Really! Anyone working for or representing a municipality, state or local government is looking to shoot themselves in the foot if they lobby for this loophole: they only seek to strengthen their adversary’s negotiating edge.<BR/><BR/>In the case of sports venue financings only “the private businesses receive the benefits of the subsidy” because they wield a monopoly (via the sports franchise system) and that is why, as in the Kucinich example that “City A” and “City B” are forced to compete each other so that in the end the tax exempt financing goes to the sports team franchise owner either way, no matter what. It is why all the actual subsidy benefit is pocketed exclusively by the sports team owner. The public pays for this unproductive transfer of wealth to rich franchise owners. The federal government pays for it in the form of unpaid income taxes. States and municipalities pay for it in the form of unpaid income taxes and also because this particular form of subsidy actually encourages the non-payment of real estate taxes as well.<BR/><BR/>We are told “City A” and “City B” still compete with each other (notwithstanding expert advices that there is no economic benefit) not based “on dollars and cents” reasons. (-Pregnant pause-)<BR/><BR/>Norman editorializes “that's why developers like Forest City Ratner spend big money on lobbyists”- It is also why they make political contributions- Then there is a more jaundiced observation: After lobbying for their negotiating adversaries, the sports team owners, public officials who have denied the public interest can take jobs directly working for those the private businesses.<BR/> <BR/>Michael D. D. White<BR/>Noticing New YorkMDDWhttps://www.blogger.com/profile/16693635186364315879noreply@blogger.com