April 23, 2004
Ratner cutting subsidy request?
In a brief interview with the Daily News today, would-be Nets owner Bruce Ratner responds to a question about arena financing thusly:
DN: Polls show people favor the arena if it doesn't cost taxpayers. You say you can do that because the arena will generate new tax revenues. How is that possible?Ratner: We did analyses to show the tax from sales inside the arena and the income tax from players. For, example, the players don't pay income tax in New York State now. That's probably $8 million to $11 million a year, and the tax from tickets and sales in the arena is probably equal to that. We've been talking to the state and city about giving us a portion back to help with financing.DN: How much would you want back?Ratner: A substantial portion. Let's say the revenue is $16 million. We'd want 70% or 75% of it. The rest should go to the city and state. Will it happen? I don't know.
Leaving aside Ratner's math (his own economist, Andrew Zimbalist, has estimated only $5.5 million a year in player income taxes, and others have suggested that good accountants could reduce that bill even further), this would be a remarkable change of course for the developer, who as recently as two weeks ago was still talking about asking for $28 million a year in tax rebates, enabling him to finance virtually all of his planned $500 million arena. Cutting that to $12 million a year or less would make it a far better deal for the city, but would also leave Ratner with a $300 million financing hole. We should find out more about this on May 4, when the city council has scheduled a hearing on Ratner's plan - stay tuned.
