Group Cries Foul Over Yankee Stadium Proposal

NEW YORK CITY-Less than a month after the Empire State Development Corp. board approved general project plans for a new Yankee Stadium in the Bronx, Good Jobs New York contends the numbers don’t add up.In a report issued Tuesday, the group said that direct and indirect subsidies could exceed $480 million. The New York Yankees would cover the $800-million cost of the building the new stadium, and the city and state would contribute approximately $210 million for replacing parks, parking garages and infrastructure improvements, the report said. However, it noted taxpayers could end up paying much more because the Yankees would not be required to pay rent, property taxes, mortgage taxes or sales tax on construction materials. In addition, the city and state would issue tax-exempt bonds to finance the stadium’s construction, generating tax-free income for the bond buyers, Good Jobs New York reported.For example, the report noted that it would cost $101.3 million for replacing parks lost to the new stadium, $103 million in forgone rent and $44 million in forgone tax revenue. Tax-exempt bonds would cost $55 million and forgone sales tax revenue on construction materials would cost between $25 million and $30 million, it added.”Based on the Good Jobs New York’s costs estimates and an economic impact analysis commissioned by the city’s Economic Development Corp., it is clear that the public cost of the project will exceed the stadium’s contribution to the city and the state’s economies over a 30-year period. In short, this project does not meet the standards of a rational economic development interest,” the report said.In addition, Good Jobs New York questioned how the jobs created by the new stadium would affect the surrounding neighborhood. The jobs have been described as permanent but would in essence be seasonal and low wage, the report said.”We have determined the economic benefits to the state far outweigh the investment the state is providing for the infrastructure for this project. We estimate the fiscal benefit to the state will be approximately $118.5 million on a present value basis over the next 40 years. we expect the project to create approximately 7,000 construction jobs and approximately 5,300 jobs in the New York City region,” says a spokesperson for the Empire State Development Corp.

The group, along with community leaders, also raised concerns about the lack of community input on the project. Good Jobs New York director Bettina Damiani pointed out that the plan is still in the proposal phase and has yet to receive all the approvals needed to make it a done deal. Damiani and Dan Steinberg, Good Jobs New York research analyst, authored the report. “Up until now this has been a closed deal process. There has not been any input from the community,” Damiani said. “They are moving this process along very quickly. They need to slow down and bring the community to the table.”The plans call for the New York Yankees to build on what is currently parkland north of the existing stadium, with the state legislature approving the seizure of two parks: Macomb’s Dam Park and portions of John Mulally Park–a move that spurred criticism from community leaders. “This impacts our community greatly. Parks were taken away at the state level without any hearings,” said Greg Bell, co-chair of Bronx Voices for Equal Inclusion. “The are so many concerns the community has that have not been addressed. We are not trying to stop the project. We are trying to help shape the project so it’s a win-win situation for everyone.”The Yankee Stadium plan involves creating an open-air, five-level stadium with approximately 53,000 seats, standing room for 1,000 and 60 suites. It will have approximately 1.3 million sf of space, including food and beverage service facilities, retail space, Yankee corporate business space, and other amenities. The design is expected to be reminiscent of the 1923 Yankee Stadium and the current stadium. Four new garages would be constructed which would provide around 4,735 new parking spaces. Damiani explained that Good Jobs New York is not against development, but is in favor of responsible development. “We’re not anti-development. Developments create jobs.”