On Yankee Stadium: Replacement Parkland now 67% over initial projected cost … and about those tax-free bonds

The Yankee Stadium “replacement” Parkland costs, originally projected at $ 116.1 million, have now risen 67% to close to $195 million, according to a report released yesterday by the Independent Budget Office as reported in Crain’s New York Business.

The only reason we know this is due to the fact that the Independent Budget Office is “a city agency that operates independent of the mayor.” I didn’t know any existed — agencies operating outside of the mayor’s reign — so this is mildly reassuring!

The article attributes “design revisions, project additions, unanticipated cleanup of hazardous materials and construction inflation” as the reason for the skyrocketing costs given by the NYC Parks Department.

Community members dispute this claim:

“Joyce Hogi, a member of Community Board 4’s parks committee and a longtime area resident, said community members told the city it was underestimating the amount of environmental remediation that needed to be done, but that its warnings went nowhere. “We knew the costs of the parks were going to escalate,” she said. “During our protests, we said ‘there are tanks under the soil, there’s remediation that needs to be done.’”

And, “while the Yankees are financing the stadium — with the help of city and state subsidies — the parks are being paid for by the city.”

So, the city gave the Yankees 1 and 1/2 parks(all of Macomb Dams Park and part of John Mullaly Park), 22 acres of parkland, in the green-space challenged South Bronx, to then be re-distributed into “eight smaller parks” (some on top of parking garages!). (Doesn’t exactly sound like a good deal, does it?)

And then there are those tax-free bonds. Sports writer Mike Lupica gave a great overview in the New York Daily News on January 17th which is worth reading:

The Yankees had a perfect right to make the best possible deal for themselves, even though somebody like the IRS is eventually going to ask why the assessed value of the land the Yankees needed to build the new Yankee Stadium went from $26 million to $204 million one day because that’s what the bond underwriters wanted.

Nobody ever doubted that the Yankees, and the Mets, would get the additional tax-free bonds the city’s Industrial Development Agency gave them Friday. The IDA does what it is told by Bloomberg the way our valiant City Council does on term limits.

You are not supposed to say no to this mayor. You are not supposed to say no to the Yankees when they want an additional $370 million in these tax-free bonds (on top of the nearly $1 billion in tax-free bonds they’ve received originally). All you are supposed to do is this: When told this is a sweetheart deal for the city instead of for the Yankees, you are supposed to nod your head and act grateful.

These aren’t stadium deals between Bloomberg and the baseball teams. They are mergers. And Bloomberg needs them as much as the Yankees and Mets do. Because without them, New Yorkers would start asking this mayor who promised big, huge growth projects where those projects are.

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Today’s New York Times has additional information in its article, “Report Cites Unexplained Costs of New Parks in the Bronx” (apparently $16 million is unaccounted for), to which the Parks Department responds: basically, that’s “old news.” Story here.

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