Jets Could Get Tax-Exempt Financing For West Side Stadium

N.Y. Mayor Michael Bloomberg has not reviewed plans to offer the Jets tax-exempt financing for their $800M contribution to the proposed $1.4B West Side stadium, according to Glenn Thrush of NEWSDAY. The plan would cut the team's interest costs, but also "cost the city and state millions of dollars because investors wouldn't have to pay taxes on the bonds' interest." Bloomberg "reiterated his opposition to using public funds to build private stadiums, while defending the city and state's commitment" to pay $600M for site improvements. Bloomberg: "We'd be putting up money of that magnitude anyways for any kind of development on the West Side. No private enterprise is going to build a cover to a rail yard" (NEWSDAY, 7/7). Fiscal Policy Institute Deputy Dir & Chief Economist James Parrott: "If tax-exempt financing is used, clearly someone is grossly exaggerating that there is an $800[M] private contribution on the table." NEWSDAY's Rayman & Cockfield Jr. noted that Merrill Lynch analysts estimate tax-exempt financing would save the Jets $77.4M. UBS analysts wrote, "We believe that it may be possible to finance 100[%] of the stadium on a tax-exempt basis" (NEWSDAY, 7/6).

ADVERTISING BATTLE: In N.Y., Michael Saul reports that Donald Trump is one of "more than 250 people and organizations endorsing the [West Side] stadium in a new Jets ad campaign" debuting today in newspapers. The ads, which include the tagline "People who know New York know New York needs the Sports and Convention Center," feature endorsements from Merrill Lynch Chair & CEO Stanley O'Neal and actors Michael Douglas and William Baldwin, among others (N.Y. DAILY NEWS, 7/7). Total spending by pro- and anti-stadium groups last month crossed $3M. About $2M has been spent by Cablevision Chair Charles Dolan and CEO James Dolan fighting the stadium. The Jets have spent "at least $750,000 of their money along with a group of unions that have spent $500,000" on TV ads supporting the project (NEWSDAY, 7/6).