An ESD spokesperson contacted the Voice after publication to say that in according with its guidelines and state law, the agency will conduct an appraisal of the Islanders arena project land before the project is presented to the ESD board of directors following the conclusion of the environmental review in 2019.
An ESD spokesperson confirmed to me two weeks ago that the appraisal “will be completed by the time the General Project Plan is approved by the ESD Board.” So, they have four hours left — hope the ESD board members can read complicated land value assessments really fast!
The appraisal is important because the Islanders owners are only paying $50 million for 43 acres of state land for the project, a figure that could be as much as a $300 million discount on the land’s actual value. Or it could not! Land appraisals are hard, which is why it’s important to hire trained professionals to conduct them, well before you have to decide on whether a sale of public land is a fair deal or a complete giveaway!
(It’s maybe worth noting that the state most recently has been saying that the $50 million is really the developers’ private contribution toward a new train station for the project, which would make the actual land sale price be $0. If “actual” has any meaning here anymore.)
I emailed my ESD contact again this morning to ask to see the appraisal, but haven’t heard back. It’s altogether possible the report will appear just in time for the hearing — but that certainly won’t give any time for anyone on the board to read the report before voting, let alone members of the public.
If so, it would be only the latest in a long line of, shall we say, not enthusiastically democratic steps taken by the state in its rush to approve the Islanders plan after a year and a half of mostly behind-closed-doors talks: The initial ESD board meeting last month was held on a Monday afternoon after public notice only went out late Friday; and the Public Authorities Control Board, which is supposed to vet actions by public authorities like ESD, went ahead and gave its approval to the plan last week, despite all the final details not being in yet. Whether the final Islanders deal turns out to be a massive public money pit or not too bad, it looks like we won’t know for sure until after the deal has been decided — the phrase “no way to run a railroad” comes to mind.
UPDATE: The ESD board meeting materials have been posted, and they include two separate appraisals — one dated December 3, 2018, the other July 3, 2019 — that estimate the public land value at between $35.9 million and $41 million. The first provides no information about its methodology at all; the second says it bases its figure on the future income that the site could produce, but says nothing about how it calculated that projected income. Lots of questions here, obviously, which will almost certainly take more than (checks clock) three hours and 10 minutes to answer.