May 06, 2004
When is a TIF not a TIF?
More fallout from Tuesday's New York City Council hearing on the Brooklyn Nets plan: Andrew Alper, president of the city's Economic Development Corporation, says that while the intent is to have the public contribution of "we don't know how much" taxpayer money be repaid through increased sales and income tax revenues, that doesn't mean it will be a tax-increment financing (TIF) plan. Setting up a TIF district has "never been discussed," Alper told the council.
Apparently, then, the city and state just plan to informally estimate the new tax revenue that would come from the arena, then sell bonds - again, no one's saying how much, though reports have ranged from $250 million to $435 million - backed by the general fund in that amount. The pro for arena backers: They wouldn't have to go to the state legislature to get a TIF district approved. The con: They would instead have to go to the city council to get city money allocated, as well as to the state legislature for any state allocation. With a financing plan like this, "we don't know" is looking more and more like an honest answer.
