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-- -- teams be allowed to funded new venues with tax exempt bonds the New York ranking is.
Have raised nearly one billion dollars using tax exempt -- municipal financing to answer that question.
At Penske is here president of the New York City economic development corporation.
He recently testified before congress regarding this controversial.
Financing options that its good to be here -- -- -- to be here.
That -- -- to that question why shed a sports team be allowed to issue tax exempt bonds to raise money per stadium.
When the federal taxpayers are helping basically subsidize.
Well let's be clear about something -- Tax exempt bonds backed by governmental revenues which is what we have here are something that has existed.
Since the income tax was enacted in 1913.
And since that time the federal government has said that municipalities can choose what to use those tax revenues for.
It parks sewers or in this case economic development and that's really how we view this project not so much as a baseball stadium.
But really as an economic development project.
This represents eight billion dollar private sector investment in the poorest can get congressional district in the united states of thousands of unionized jobs.
It's taking tens of millions of dollars.
Maintenance obligations -- of the hands of the cities and we think that that is a good deal for the people of this it.
I know the the argument it's a good.
Great for the city and I live here but I think about my parents they live in rural Virginia and that they are in Athens the -- You do get a tax exemption from federal taxes as well if you buy these bonds.
Then it would then why -- would the federal tax -- why should they be involved.
And that's what the thing that I think is important to understand is that these kinds of bonds have been used for stadium across the country.
Recent years you've had this used in Cincinnati for the Bengals in the reds he padded in Cleveland for the Indians in San Diego for the Padres.
What better place to use this federally created tool that was created for this very purpose for economic development -- in the the single poorest congressional -- I'm not -- I'm not picking on New York City but these are sports teams that are kind of by very wealthy individuals that doesn't it it -- -- them the ability.
To finance these stadiums through tax exempt -- again I think that what people get caught on is the fact that this involves baseball we don't view it as a based on best and we don't view it as a stadium investment.
We viewed as an economic development not just baseball the nets are going to be raising money that I -- this state is looking to issues tax exempt bonds and is similar rules.
For the new -- stadium in Brooklyn but again the important thing to remember there.
Is that that is the centerpiece of a major economic development project that's been involved over 2000 units of affordable housing.
Acres of open space a new rail maintenance facility for the metropolitan transit authority.
This is good for the people of new York -- why -- New York find it just by itself that.
Again this is a tool that the federal government has created for this purpose if congress wants to change the rules going forward.
They're obviously entitled to do so but I think that what you would find is that investment in infrastructure across the country.
Would drop substantially and the one thing that we've seen from both of the presidential candidates.
From leaders in congress is that what this country needs to do to get ourselves out of economic difficulty that we're now in.
-- to invest in infrastructure and that's what you have with these -- but in terms of.
Municipal financing and bond offerings it's a very very difficult environment right now to do that.
Do you see any headwinds -- troubles -- say that that that's facility in Brooklyn anything that they use the Yankees might need to do for the new Yankee Stadium.
-- clearly the environment is a challenging one it's a difficult one in all the credit markets municipal markets included.
What we've seen recently over the past -- week -- two is that the municipal bond markets have begun to to loosen up.
And we remain optimistic.
That both the next project and the Yankees in the meth project will go forward as planned.
One of the reasons that you were in front of congress is -- that the valuation on the land that was used for that yankees bond offering from 26 point eight million to 204 million.
Was and you know there -- email evidence presented at the hearing that raised questions about that what that on the up and out.
Absolutely we have nothing to hide -- this is one of the most.
Open and transparent processes in the history of economic development this project was subject to nearly when he public hearings before it was approved.
Was approved at the Borough president of the Bronx.
At the city planning commission in New York City City Council the mayor the state legislature the governor and the IRS.
We have been happy to cooperate with the state legislature were happy to cooperate with.
Congress -- enormous respect for congressman Kucinich.
And assemblyman Brodsky has been leading the charge investigating this and we continue to cooperate with.
Congressman Kucinich -- -- has fire except what -- one last thing do you think that the IRS does crack down on the ability.
Of sports teams to use tax exempt financing do you worry.
I think that that is a decision that congress is gonna have to make the IRS has been very clear.
That this is a tool that can be used for this purpose and -- We believe should be used this purchased after your great sport no pun intended it was great to -- -- that Penske of the New York City economic development corporation is the president there take care yourself.
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