The Yankees are a beloved and storied part of by ssh14851

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									                     Insider Baseball

          How Current and Former Public
           Officials Pitched a Community
         Shutout for the New York Yankees




Good Jobs New York
July 2007
                                   Acknowledgments

The report was written by Good Jobs New York’s project director Bettina Damiani,
research consultant Eileen Markey, and research analyst Dan Steinberg. Additional
research was conducted by Good Jobs First Research Analyst Allison Lack.

Special thanks for the keen eye and editing expertise of Good Jobs First Executive
Director Greg LeRoy and Research Director Phil Mattera. Thanks to Frank Mauro,
Executive Director of the Fiscal Policy Institute, for his assistance with additional
research requests. Thanks to Betty Grdina.

                              About Good Jobs New York

 GJNY investigates and publicizes the way in which public resources are allocated
   in the name of corporate retention. With this knowledge we hold government
                officials and companies accountable to taxpayers.

GJNY is a joint project of the Fiscal Policy Institute (FPI) and Good Jobs First
(GJF). FPI (www.fiscalpolicy.org) is a nonpartisan research and education
organization that focuses on the broad range of tax, budget, economic and related
public policy issues that affect the quality of life and the economic well being of
New York State residents. Good Jobs First (www.goodjobsfirst.org) is a non-profit,
non-partisan national resource center for constituency-based groups and public
officials, promoting corporate and government accountability in economic
development and smart growth for working families.


Good Jobs New York
11 Park Place, #701
New York, NY 10007
Phone: 212.721.7996
www.goodjobsny.org




Cover photo: Construction of new Yankee Stadium is well underway where 22 acres of parks once
stood. July 2007.
                                   Table of Contents


1. Executive Summary………………………………………………………...…….1


2. Nine Days in June…………………………………………………….…….….…4


3. Background: The New Yankee Stadium …………………....................................5


4. Warm-ups: Randy and Rudy in the Luxury Box ……………………….…….....9


5. Filling out the Roster: Former and Current Public Officials...……………….…11


6. The Stadium Turnstile: Familiar Faces Win Government Approvals…………..16


7. What’s BCIDC and Why Does It Want our Tax Dollars? ...................................19


8. Conclusion and Policy Options………………………………………………….21
          Executive Summary                      Yankees;

To seize public parklands, win rapid             ● Stanley Schlein, a Bronx political
permitting, and land massive taxpayer            operative since the Koch
subsidies for their new stadium in the           Administration, and an attorney for the
South Bronx, the New York Yankees                Bronx Democratic Party who worked
hired numerous former public officials           for Assembly Member Rivera while
and benefited from the actions of a few          also chairing the civil service
current elected officials to play insider        commission until Mayor Bloomberg
baseball, shutting out Bronx residents and       refused to reappoint him after public
New York City taxpayers.                         concerns were raised about his conduct
                                                 as a judicial appointee.
In a secretive, undemocratic process that
climaxed in a lightning series of events in   Numerous other former public servants
June 2005, these past and present officials   and officials – once responsible for
helped the Yankees seize 22 acres of          protecting the public treasury – now work
heavily used public parks and win             at firms whose priority is the Yankees’
development subsidies exceeding half a        pocketbook. For example:
billion dollars. City municipal records,         • Joseph Seymour, former executive
lobbying declarations, legal documents,            director of the Port Authority of
project plans and corporate filings reveal         New York and New Jersey and
that the heavy hitters include:                    now senior vice president at the
                                                   Community Initiatives
   ● Former Mayor Rudolph Giuliani,                Development Corporation (conduit
   who approved millions of dollars in             for the garage financing);
   subsidies to the team including a $21
   million rent reduction and whose firm,        • Bruce Serchuk, a partner at the
   Giuliani Security and Safety, is listed         firm Nixon Peabody (a firm listed
   in court documents as a security                in public documents as being
   consultant for the stadium;                     retained as bond counsel for both
                                                   the Yankees and the New York
   ● Randy Levine, former                          City Industrial Development
   Commissioner of the Office of Labor             Agency) and a former senior
   Relations and then Deputy Mayor for             technical reviewer at the Internal
   Economic Development under Mayor                Revenue Service;
   Giuliani, and now President of the
   Yankee organization;                          • Howard Safir, Giuliani’s former
                                                   police commissioner, now of the
   ● Roberto Ramirez, former Bronx                 firm SafirRosetti, is listed in court
   Assembly Member and Bronx County                documents as a security consultant
   Democratic Chair and now of the                 for the project; and
   Mirram Group, who reported lobbying
   his former colleagues on behalf of the
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   • Frank Chaney and Melanie                  were heavily used by local residents and
     Meyers, former officials at the           children from 20 schools. Today, the
     New York City Department of City          construction of the stadium is well
     Planning, now work for the firm           underway and the former parks are
     Fried, Frank, Harris, Shriver &           occupied by cranes and bulldozers. Public
     Jacobson which was paid to lobby          officials promised interim parks
     the Planning Commission and               (temporary open space while the
     other agencies on behalf of the           replacement parks are constructed) would
     Yankees.                                  be opened shortly after construction began
                                               in August 2006 but they became a reality
Together with others, revolving-door           only recently.
players helped the most valuable sports
franchise in America score over half a         The deal grossly violates the Bloomberg
billion dollars in subsidies. With no public   Administration’s commendable proposals
hearings and hurried votes in both Albany      for sustainable development and reduced
and New York City, they also ensured the       greenhouse gas emissions as outlined in
Yankees could abruptly seize 22 acres of       PlaNYC2030. By destroying open space
Macombs Dam Park and parts of Mullaly          and subsidizing fans to attend games by
Park, popular recreation places in the         automobile (while ignoring a nearby
poorest Congressional district in the          transit station), the new stadium and its
United States and one of New York’s            huge new garages will increase traffic in a
highest asthma-rate neighborhoods.             community already plagued by auto-
                                               induced asthma.
The new Yankee stadium project
undermined democratic planning                 Taxpayer subsidies for the project are still
principles and benefited the Yankee’s          flowing: the City is offering to further
profit margin over the employment,             subsidize thousands of stadium parking
recreational and public health needs of the    spaces on the former park lands by
community. Despite the opposition of the       allocating $190 million in civic facility
local community board and a “no” vote          bonds. The IDA has held a public hearing
from the City Council member                   on the garage financing but has yet to vote
representing the neighborhood around the       on the project.
stadium, the project was rammed through
so hurriedly that community members            Our findings do not suggest any illegal
were only allowed to weigh in after major      behavior or conflicts of interest. But they
decisions had been made.                       do reveal a large, costly redevelopment
                                               project that was rushed through the public
Providing subsidies for this project,          approval process without meaningful
particularly the massive parking garages       participation from the community or
that have already received $70 million of      clearly defined benefits to residents and
state funds, dealt a grave blow to the         taxpayers. Public faith in government is
community’s quality of life. The tree          eroded when private corporations hire
lined Macombs Dam and Mullaly Parks
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former government officials and use their     consultants or lobbyists), including their
expertise and influence to evade              public and private positions and dates of
participatory planning and established        public service.
economic development principles.
                                              Extend the Cooling-Off Period
To guarantee there’s no replay of the         To reduce the revolving-door influence
Yankee Stadium fiasco, Good Jobs New          problem, the City should extend to three
York offers policy options to protect         years the time period which former
residents’ rights.                            elected officials and agency personnel
                                              must wait after leaving office before they
Honor Land Use Policies and the               can work as lobbyists or with firms
Community Boards                              involved directly on projects involving
New York City has a strong democratic         their public-sector jobs. Currently, the
planning process on the books (called the     City’s conflict of interest law has
Uniform Land Use Review Procedure or          loopholes permitting public officials to
ULURP). It should be embraced, not            immediately go to work at firms that do
gamed.                                        business with the city.

Major decisions on this project (the          Scratch the Parking Garages
seizure of the park land, the types of        City and state officials should act on their
public subsidies offered for example)         stated city-wide commitment to fund
were privately agreed to by the Yankees       public transportation as an alternative to
and public officials in the project’s         driving. Recently officials pledged funds
Memorandum of Understanding (MOU)--           to build a Metro North train station near
a copy is available at                        the Yankee stadium. With an estimated
http://www.goodjobsny.org/yankeestadiu        10,000 fans per game choosing Metro
m_mou.pdf. Agreements should not be           North to get to games, the number of
negotiated without the consultation of the    proposed parking spaces can be
local community board and until details of    substantially cut back and park land
proposals are made available and              restored.
mandated public hearings are held.

Disclose the Revolving Door
Just as elected officials must reveal the
companies or partnerships from which
they receive income in financial
disclosure statements, developers seeking
land use approvals or development
subsidies should be required to disclose in
applications the names of all former
government officials involved in the
project (either as direct employees or as

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           Nine Days in June                 Neighborhood residents had never been
                                             informed that such a land grab was being
It was June 2005, and residents of the       considered. There had never been any
South Bronx enjoyed the return of            public hearing on the proposal, nor had
summer while playing in their cherished      the local community board yet been
Macombs Dam and Mullaly Parks. They          advised or consulted.
had no idea that in these waning days of
the legislative session in Albany city and   Dumbfounded and outraged, residents
state representatives were stealthily        organized to protest the deal’s remaining
preparing to introduce “emergency”           formalities. But the land seizure was the
legislation in Albany that would seize the   biggest hurdle and meant the deal was
parks.                                       almost certainly done.

On June 15, 2005, city and state officials   The Yankees are a popular and storied
quietly signed a “Memorandum of              part of New York City, as emblematic of
Understanding” (MOU) with the Yankees        the metropolis as the Statue of Liberty or
committing land and subsidies for the        the Brooklyn Bridge. But the nation’s
stadium project. The officials agreed to     most valuable sports franchise, we found,
make a “collaborative effort to seek State   is also a politically entrenched
legislation as quickly as possible”          entertainment corporation well fed at the
authorizing the construction of both the     public trough.
stadium and large garages on public
parklands, with the Yankees assuming         This report is a follow-up to Good Jobs
“primary responsibility for gathering” the   New York’s February 2006 Loot, Loot,
support of local elected officials.1         Loot for the Home Team (available at
                                             www.goodjobsny.org) report on the
That weekend, the bills were introduced      stadium deal’s public subsidies that
in the state legislature by Bronx Assembly   investigates the web of political
Member Carmen Arroyo and Queens              connections that enabled the Yankees to
State Senator Frank Padavan, and on          shutout Bronx residents and New York
Monday, June 20th, the City Council          City taxpayers.
passed a “home rule message” sponsored
by Bronx City Council Members Joel
Rivera and Helen Foster requesting that
the state move forward (Foster, who
represents the stadium neighborhood and
is chair of the Council Parks Committee,
would later vote against the land-use
approvals for the project).2 By June 23rd,
both houses of the state legislature had
unanimously approved the legislation,
effectively sealing the fate of the parks.

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     Background: The New Yankee                      Borough President Adolfo Carriόn, who
            Stadium Plan                             submitted his approval of the project to
                                                     the City Planning Commission in
The Yankees are building a $1.3 billion              December 2005. In April 2006, the City
stadium one block north of their existing            Council overwhelmingly approved the
location at East 161st Street and River              overall land-use scheme for the stadium
Avenue in the Bronx. The project includes            despite opposition from Council Member
the construction and rehabilitation of               Helen Foster, who represents the district
9,000 parking spaces. The stadium and                where the stadium is situated (although as
garages are being built on      Taxpayer Subsidies Amount           mentioned in the previous
22 acres of heavily used                                 (millions, section, Foster initially co-
public park land, including                              present    sponsored the legislation
                                                         value)
all of Macombs Dam Park                                             requesting that the parks be
                                City Subsidies           $384.1
and parts of Mullaly Park                                           alienated). Carrion would
that were quietly seized –      Direct subsidies for     $203.93    later remove members of
the technical term is           land/infrastructure                 the community board who
“alienated” – by the City       Forgone property         $166.8  4  voted against the plan.10
Council and State               taxes, sales taxes,
legislature in June 2005.       and income taxes on                 When the community
                                bond interest                       group Save Our Parks
                                Rent rebates             $13.45
The local community                                                 challenged the taking of
board subsequently held         State Subsidies          $108       the parkland in court, a
hearings and voted against      Direct subsidies for     $74.76     state judge dismissed the
the plan. The board’s           garage construction                 case partially based on the
resolution concluded that       and stadium                         city’s promise to build
“the alienation of the          maintenance                         interim parks during the
parkland is against the         Forgone sales taxes      $33.3 7    construction phase of the
interests of the community      and income taxes on                 project. 11 Today the new
and its children,” citing       bond interest                       stadium construction has
health concerns associated      MTA Subsidies            $51.2      displaced children from
with increased traffic, lack    Federal Subsidies        $120.2     more than 20 local schools
of community input into                                             and countless residents that
                                Forgone income           $120.28
the plan, and the dangerous                                         used the parks. The interim
                                taxes on bond
precedent of turning over       interest (for stadium               parks were opened
public parkland for private     and garages)                        recently, months after the
use in the heart of a           Total                    $663.5     date initially promised.
                         9
residential community.
                                                     Ground was broken in August of 2006
Despite the community board’s official               and the team expects the stadium to be
role in the city’s Uniform Land Use                  ready for the 2009 season.
Review (ULURP) procedure, its vote is
only advisory and was ignored by

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What Will it Cost?                                  of those “planning costs” were spent on
Although the Yankees have repeatedly                high powered consultants who lobbied the
boasted that the construction of the                city and state for even more subsidies.
stadium will be privately financed,
subsidies for the project stand at half a           These documents were obtained by GJNY
billion dollars in direct grants, tax breaks,       pursuant to a New York City Freedom of
interest rate discounts, and infrastructure         Information Law Request. Copies of the
improvements.                                       billing records submitted to the city are
                              Fiscal Benefits             Amount      available as an online
This includes a cost                                      (millions) appendix to this report:
increase of $80.4 million     City new tax                $178.5      www.goodjobsny.org/ya
which was recently            revenue/savings                         nkee_planning_expenses.
revealed in the Fiscal        Stadium                     $96.212     pdf
Year 2008 New York            construction/operations
                              (see GJNY’s report Loot,
City Executive Capital        Loot, Loot for the Home                 NYC’s Controversial
Plan.                         Team for an analysis of                 Internal Revenue
                              why this estimate for new               Service Ruling
By the city’s own             tax revenue is overstated)              The New York City
calculations, the stadium     Parking garage               $56.8      Industrial Development
will not generate enough      construction and                        Agency (IDA) won a
                              operation
new revenue to cover the                                              landmark ruling from the
over half billion dollars     Rent/maintenance             $15.513    Internal Revenue Service
of subsidies. Many of the     savings (net savings                    (IRS) to issue nearly
900 new “permanent            resulting from the city no              $900 million in low-
                              longer being responsible
jobs” will be seasonal        for maintaining the new
                                                                      interest, triple tax-exempt
and low-wage,                 stadium and no longer                   bonds to finance the
generating paltry “ripple     collecting rent from the                construction of the
effects” and making it        team)                                   stadium, saving the
difficult to justify such a   Salvage value of current     $1014      Yankees an estimated
lavish expenditure of tax     stadium (i.e. selling of                $172 million in interest.16
dollars.                      stadium seats)
                              State/MTA new tax            $137.215    The law firm Nixon
While most of the             revenue                                  Peabody represented the
subsidies were approved       Total Revenue               $315.7       IDA in its dealing with
by the Bloomberg                                                       the IRS. 17 Incredibly,
administration, Mayor Rudolph Giuliani              the firm is also listed by the Yankees in
shortly before leaving office in 2001               court documents as their “bond counsel,”
authorized the Yankees for the next five            as discussed in Chapter 6: The Stadium
year to deduct up to $5 million a year of           Turnstile.
stadium planning costs from their rent
payments to the city. Official documents            The Federal Tax Reform Act of 1986
since uncovered reveal that over $200,000           repealed the use of tax-exempt private

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activity bonds for sports facilities. But     Chief Counsel Donald L. Korb was
Congress, apparently intending to             questioned at length about the process and
preserve tax-sheltered financing for multi-   substance of the decision. 21
use, publicly owned arenas, did not repeal
the tax exemption for bonds that are paid     Despite this attention, in April 2007, the
off with tax dollars. (Private activity       IDA proposed issuing another $190
bonds, such as industrial revenue bonds,      million of tax-exempt debt to finance the
are paid off by the corporation benefiting    construction of the stadium’s three
from the loan, not from general municipal     parking garages, which the city predicts
tax revenues. Because bond buyers will        will create 20 permanent full-time jobs.
accept a lower interest rate when it is       Although the state contributed $70 million
exempt from federal, state and city           to the garages, the Economic
income taxes, companies can borrow            Development Corporation acknowledged
money at interest rates roughly 25 percent    that its first Request for Proposals (RFP)
lower than taxable bonds.)                    was not “economically viable,” and the
                                              second RFP only received two responses
City lawyers submitted a request to the       (the IDA is the bond issuing arm of the
IRS for a special ruling allowing             EDC).22 With the financial viability of
payments-in-lieu-of taxes (or “PILOTs”)       the garages in doubt, the IDA dubbed
to be considered the legal equivalent of      them a “Civic Facility Project” in order to
taxes for the purpose of servicing the        legally issue tax-exempt bonds for their
bond debt and providing the Yankees with      construction.
tax-free bonds.18 This argument
contradicted statements made by the New       The IDA needed a not-for-profit
York City Corporation Counsel as well as      organization to act as a conduit for such
the City’s Budget Director in testimony       tax-exempt financing and selected Bronx
before the City Council in spring, 2005       Community Initiatives Development
when they outlined financing for the          Company (BCIDC). BCIDC is a “special
massive development proposed for              purpose” LLC whose sole member is the
Manhattan’s Far West Side.19                  Community Initiatives Development
                                              Corporation, a non-profit corporation with
In June 2006, the IRS granted the City’s      operations in six states that apparently
request despite language in its own           exists to secure tax exempt financing for
regulations that seemed to contradict the     various projects including parking garage
ruling.20                                     companies.23 Its Senior Vice President,
Hailed as the “deal of the year” by Bond      Joe Seymour is the former Executive
Buyer, the leading national trade             Director of the Port Authority of New
publication on bonds, the maneuver drew       York and New Jersey. 24 The New York
the attention of Congress. The Committee      City Industrial Development Agency has
on Oversight and Government Reform’s          held a public hearing on the garage
Subcommittee on Domestic Policy held a        project; read testimony from the hearing
hearing in March, 2007 at which IRS           at

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http://www.goodjobsny.org/yankeestadiu                Stuart Gaffin, an Associate Research
m_garages_news.htm.                                   Scientist at the Center for Climate
                                                                               Systems Research
                                      What is PlaNYC2030?
A description of                                                               at Columbia
CIDC and its              PlaNYC is a major initiative by the                  University,
subsidy proposal is       Bloomberg Administration to make New                 synthetic turf is
in chapter 7: What        York City a more environmentally sustainable         “un-naturally
is BICDC And              city by the year 2030. Announced in                  warm” and initial
Why Does It Want          December of 2006, the ambitious plan                 studies found “heat
our Tax Dollars?          includes dramatic proposals to benefit New           islands” above such
                          Yorkers by: promoting increased and                  turf in New York
The Stadium               improved access to public transportation,            City, with
Through the Eyes          reducing car traffic, creating more open space       temperatures over
of PlaNYC2030             and affordable housing, improving air and            140 degrees.26 Safe
                          water quality, and cleaning up chemically
In December 2006                                                               plans for disposing
                          contaminated properties (i.e., brownfields),
Mayor Bloomberg           among others.
                                                                               of the potentially
announced an                                                                   hazardous turf also
ambitiously               The plan has been widely recognized as a             need to be
“green” agenda            major achievement by a variety of                    considered since
dubbed                    environmental and advocacy organizations.            the lifespan of
PlaNYC2030,               The comprehensive website offers additional          synthetic turf is
including                 details: www.planyc2030.org                          approximately 10
aggressive targets                                                             years.
for reducing greenhouse gas emissions,
promoting transit use, and improving                  The long term maintenance of current and
quality of life. However, the Yankee                  replacement parks is also a concern. This
stadium project violates the                          is especially true for low-income
Administration’s vision for a sustainable             neighborhoods like the South Bronx.
city.
                                                      Numerous park advocacy reports have
Trees mitigate global warming by                      documented inadequate park maintenance,
converting CO2 into oxygen. Yet the                   most recently a June 2007 report by
Yankee Stadium project replaces trees                 Citizens Budget Commission with support
with synthetic turf, contrary to PlaNYC.              from New Yorkers For Parks which
Synthetic turf, often made of recycled                stated: “All parks are not kept in
rubber, contains potentially carcinogenic             acceptable condition, and parks in poorer
materials.                                            neighborhoods are more likely to be in
                                                      worse condition than parks in wealthier
Public Advocate Betsy Gotbaum has                     neighborhoods.”27
unsuccessfully pushed for the Parks
Department to study the potential health
risks of synthetic turf.25 According to

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  Warm-ups: Randy and Rudy in the             This rent reduction was hammered out by
           Luxury Box                         Levine, who by then was working for the
                                              Yankees, and his successor Deputy Mayor
As mayor from 1994 through 2001, Rudy         for Economic Development Robert
Giuliani anointed himself the Yankees’ #1     Harding. The definition of planning
fan. And he certainly earned the title. A     expenses was left so broad that it included
life-long pinstripe fan who grew up in        an audacious clause allowing the Yankees
Dodger country in Brooklyn and Long           to use at least $200,000 of the savings to
Island, Giuliani as mayor repeatedly          pay lobbying expenses. Copies of the
advocated for building a new Yankee           billing forms submitted to the city are
Stadium on the Far West Side of               available as an online appendix to this
Manhattan.                                    report:
                                              http://www.goodjobsny.org/yankee_plann
Giuliani’s Deputy Mayor for Economic          ing_expenses.pdf
Development, Planning and
Administration from 1997 to 2000 was          Private citizen Giuliani may be benefiting
Randy Levine, who would become                financially from the Yankee project in the
president of the Yankees in 2000. Levine      Bronx. According to an affidavit the New
and Giuliani were colleagues at the U.S.      York Yankees filed in a federal lawsuit
Department of Justice early in their          initiated by the community group Save
careers. Giuliani first named Levine his      Our Parks, Giuliani Security & Safety a
Commissioner of the Office of Labor           division of Giuliani Partners and one of
Relations, a position he took after serving   Giuliani’s post-mayoralty private ventures
as chief labor negotiator for Major League    serves as a security consultant for the new
Baseball (MLB). 28 As Deputy Mayor,           stadium. Another firm, SafirRosetti, run
Levine spent much of his time promoting       by Giuliani’s former police commissioner
the West Side stadium proposal. He also       Howard Safir, will also serve as a security
received a waiver from the New York           consultant. Details of the contracts
City Conflict of Interest Board allowing      including their value have not been made
him to keep a consulting contract with        public. 29
MLB. A copy of the waiver is available as
an online appendix to this report:            According to the most recent federal
www.goodjobsny.org/yankees_levine_coi         campaign disclosure report, Yankee
.pdf                                          officials have already contributed $16,300
                                              to Giuliani’s presidential campaign.30
The Giuliani Administration eventually
backed away from the West Side stadium        After Levine left City Hall to become
plan for lack of public support. But amidst   president of the Yankees organization, his
the debate, Giuliani granted the Yankees a    cozy relationship with his former boss did
$5 million annual rent reduction to pay for   not go unnoticed. Mike Lupica, one of
new “stadium planning” expenses (the          New York’s preeminent sports writers,
City technically owns Yankee Stadium).        wrote upon Levine’s departure: “It is now

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Good Jobs New York - Insider Baseball
completely official that Steinbrenner’s
private box at the Stadium has become an
annex to Giuliani’s City Hall.” 31

The decision by the Yankees’ aging
owner George Steinbrenner’s to step back
from the day-to-day operations of the
team meant Levine was in charge of
delivering the new stadium.




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   Filling out the Roster: Former and           parks that was voted upon three days
         Current Public Officials               later.33

The location and massive public financing       Despite a 1989 change to the city charter
of the new stadium were possible because        that reduced the overall power of the five
the Yankees convinced government                Offices of Borough President, land use
bodies that are established to guard the        policy remains one of the central
public coffers to instead act for the benefit   functions of each office. Borough
of the franchise.                               President Adolfo Carriόn’s support for the
                                                Yankee stadium project was critical in
New York City legislators, as in other big      terms of moving it through the land-use
cities, often defer to the city council         review process and limiting objections
member or state legislator who represents       from other elected officials.
the affected area when voting on large
development projects. Officials will rarely     To help gain the backing of these leaders,
criticize or vote against a project that is     the Yankees hired former Bronx elected
not in their borough or district; in            officials and public servants as lobbyists
exchange, they receive unquestioned             and donated to Bronx political campaigns.
control of their own projects. Thus the
Yankees had only to convince the Bronx          The Yankees’ lobbying roster included
borough delegations. The central                the consulting firm Mirram Group, led by
institution of Bronx politics and the key to    former Bronx party boss Roberto Ramirez
the Yankees’ plan for taking over the           (Jose Rivera’s predecessor) and über-
parks was the borough’s Democratic Party        operative Stanley Schlein.
organization, which has been led by State
Assembly Member Jose Rivera since               Mirram Group
2002.                                           The Yankees paid Mirram Group, a
                                                political consulting and lobbying firm run
Moments before the June 2005 alienation         by former Bronx Democratic Party boss
vote was about to begin, a state assembly       and Assembly Member Roberto Ramirez,
member raised questions about interim           $301,900 in the first quarter of 2006. This
parks. The sponsor of the legislation,          was the single largest lobbying fee
Assembly Member Carmen Arroyo                   registered in the city last year.34
responded, “I recommend you take the
package that Mr. Rivera is offering             Ramirez was elected to the state assembly
today.” It is unclear what the package          in 1990 and became the first Latino to
consisted of or who negotiated it.32            lead a county political organization in the
                                                state when he became chairman of the
Jose Rivera’s son Joel Rivera is a Bronx        Bronx Democratic Party in 1994. He is
Council Member and the Council’s                widely credited with reviving a party
Majority Leader. Joel Rivera co-                organization that grew weak amidst the
sponsored the City legislation to seize the     borough’s economic decline and

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Good Jobs New York - Insider Baseball
demographic changes in the 1970s and         accountability measures or community
1980s. 35                                    representation. In addition, the Building
                                             Trades Employers’ Association claims the
In 1998 after his terms in Albany,           agreement made local hiring
Ramirez founded Mirram Group and the         commitments without its knowledge.38
firm quickly became a major player in
Democratic politics. It delivered big for    Stanley Schlein has been a fixture in
the Yankees by securing the support of       Bronx politics since the Koch
the state legislature and city council.      administration and is widely regarded as
Ramirez’s firm was responsible for           having enormous influence within the
encouraging city council members to vote     Democratic Party and city government.
for the plan even though terms of the        Last year, he worked as the main lawyer
rumored “Community Benefits                  for the Bronx Democratic establishment,
Agreement” between the Yankees and           as an Assembly staffer for Jose Rivera, as
Bronx officials had not been made public.    chairman of the city’s Civil Service
                                             Commission, as a lobbyist for the
The Natural                                  Yankees, and as a court appointed lawyer
Stanley Schlein has a decades-long           for the incapacitated.39
pedigree within Bronx politics. The
Yankees paid Schlein $83,000 to lobby        Schlein served as a key operative in lining
the Mayor’s office, the City Council, the    up political support for the new stadium.
Bronx Borough President, the Department      Randy Levine told the New York Times
of Parks, the Department of Finance, and     that Schlein “knows his way around. He
office of Deputy Mayor Dan Doctoroff.36      was instrumental in helping us frame the
He helped win City Council passage for       issues in getting our legislation through
the stadium plan by brokering a deal in      and dealing with the community.”40
which the Yankees agreed to give 25
percent of jobs to Bronx residents while     In February 2006, state court officials
annually donating for the next 40 years      barred Schlein from accepting
$800,000 worth of cash grants and free       guardianships and other judicial
tickets to the community through “a          appointments, citing “conduct
person of prominence” to be selected by      incompatible with the appointment and/or
the Bronx politicians.37                     unsatisfactory performance.”41 Months
                                             later, Mayor Bloomberg chose not to
The annual donation is the main feature of   reappoint Schlein as chairman of the Civil
the “mitigation agreement” (erroneously      Service Commission, which is the agency
dubbed a “community benefits                 considered “the guardian of the merit
agreement”) by the Yankees and elected       system.”
officials. The deal has been criticized by
local residents as a “slush fund” for the    In October 2006, it was reported that the
Yankees to wield continuing influence in     Federal Bureau of Investigation’s Public
the community, and for failing to include    Corruption Unit was investigating the real

                                                                                      12
Good Jobs New York - Insider Baseball
estate dealings of Schlein and Jose          Federal: Due to land use issues and the
Rivera.42                                    financing structure, the stadium project
                                             required the approval of several federal
The Essential Borough President              agencies: the National Park Service, the
Ironically, Bronx Borough President          Army Corps of Engineers, and the
Adolfo Carriόn early in his tenure chided    Internal Revenue Service. The Yankees
subsidized stadium proposals, saying: “It    targeted the feds by hiring Michael
has to be schools over stadiums. It has to   Rossetti, a lobbyist from the law firm
be our children first.” But by 2005, he      Akin Gump Strauss Hauer & Feld LLP
became one of the project’s biggest          (“Akin Gump”), to lobby the U.S.
cheerleaders.43 The Borough President’s      Department of Interior, where he had
support for the project was critical and     previously worked. Yankee President
Yankee officials worked hard to garner it.   Randy Levine also serves as Senior
                                             Counsel at Akin Gump.48
Yankee President Levine gave Carriόn
$2,000 for his 2005 re-election campaign,    Because the Department of the Interior,
according to New York City Campaign          through the National Park Service (NPS),
Finance Board records.44 Carriόn is the      had paid for improvements to Macombs
only local Democrat to whom Levine, a        Dam Park in 1979 under the Land and
Republican, has contributed. The YES         Water Conservation Fund, the NPS was
Network and its employees also               required by federal law to approve the
contributed $9,850 in 2003 to Carriόn’s      plan to replace the park. The project could
2005 re-election.45 The YES Network is a     not move forward unless the NPS
cable television station owned by the        determined that the replacement parkland
Yankees’ holding company.46                  was of equal or greater value and that “all
                                             practical alternatives” were considered
Executives at Tishman Speyer, the            before the parks were seized.49
developer of the stadium, also contributed
to Carriόn. Chairman Robert Tishman          Correspondence between state and federal
gave Carriόn $1,000 in May of 2003 and       officials indicates that the NPS initially
its managing director of development         expressed concern about the parkland
Valerie Peltier contributed another $1,000   swap. NPS agent Jean Sokolowski wrote
in March of 2004.47                          in a May, 2005 e-mail, “Develop[ing]
                                             recreational facilities atop two of the
The Lobbyists’ Lineup                        garages is a questionable LWCF option.”
The Yankees spent over a million dollars     Over the ensuing months, NPS officials
on high-powered lobbyists on the federal,    corresponded regularly with
state, and city levels to help usher the     representatives from the city, state, and
stadium project through the obstacle         the Yankees, and eventually decided not
course of approvals needed.                  to conduct their own assessment of the
                                             land swap and instead relied on the city’s
                                             Environmental Impact Statement.50

                                                                                        13
Good Jobs New York - Insider Baseball
In April 2006, NPS official Jack Howard        Associates, two prominent PR firms were
told Metro newspaper that the city’s plan      enlisted by the Yankees.55
to break ground on the stadium in the
coming months was unrealistic and that         Assembly Member Jose Rivera leads the
the process could be lengthy. In a startling   Bronx state delegation, but no legislation
turn of events, the NPS approved the           hits the floor of the State Assembly
parkland conversation on June 17, 2006,        without the nod of Speaker Sheldon
about two weeks after it officially            Silver, who represents Lower Manhattan
received the proposal from state officials.    and the Lower East Side. The Yankees
51
                                               hired Brian Meara’s public relations
                                               company to specifically woo the
In the period between January 1 and June       Assembly Speaker. 56Meara is reportedly
30th, 2006, Akin Gump was paid $20,000         a close personal friend and adviser to
by the Yankees to lobby the Department         Silver.57
of the Interior, the cabinet agency that
includes the NPS.52 Lobbying reports           In his lobbying disclosure filings with the
indicate that the Yankee work was              state, Meara reveals a tidy triangle of New
handled by former U.S. Congress Member         York politics. He was working for Powers
and now Akin Gump Senior Advisor Bill          & Company, the lobbying firm run by
Paxon and partner Michael Rossetti.            former state Republican committee
Paxon represented the Buffalo area from        chairman William Powers, who is now a
1989 to 1999 and chaired the National          New York co-chair for Giuliani’s
Republican Congressional Committee.            presidential campaign. According to
Rossetti was counselor to the Interior         records from the state’s Temporary
Secretary until 2004 and had previously        Commission on Lobbying, the Yankees
worked for Governor Pataki’s Office of         began paying Powers & Co. $16,000 a
Advocate for Persons with Disabilities.53      month in February 2002 to lobby state and
                                               local officials and have renegotiated the
State: The Yankee organization spent just      terms each year since.
over a million dollars between 2003 and
2006 lobbying city and state agencies for      Copies of Powers billing documents
the new stadium, according to a report by      submitted to the city are available at
Common Cause/NY. The Common Cause              www.goodjobsny.org/yankee_powers.pdf
report also notes that the Yankees’ owner,
president, and chief operating officer have    Powers & Co. then subcontracted to
contributed a total of $25,600 to the          Meara’s firm at a rate of over $6,000 per
campaigns of city and state politicians key    month for the 24 months of 2005 and
to stadium development since 2003.54           2006.58

New York City public relation firms were       City: To ensure the proposal was cast in
also paid to lobby public officials. Brian     the best light possible Rubenstein &
R. Meara Public Relations and Rubenstein       Associates, a major public relations firm

                                                                                        14
Good Jobs New York - Insider Baseball
in New York was paid $8,500 in 2006 to
lobby the mayor’s office on behalf of the
Yankee organization.59 As discussed
elsewhere in this report, others lobbied
City Hall and numerous public agencies
on behalf of the Yankees: Mirram Group;
Fried, Frank, Harris, Shriver & Jacobson;
and Stanley Schlein.




                                            15
Good Jobs New York - Insider Baseball
The Stadium Turnstile: Familiar Faces            commissioner and administrative city
     Win Government Approvals                    planner at the New York City Citywide
                                                 Administrative Services and a member of
In addition to the elected members of the        the New York City Economic
State Legislature and the City Council, the      Development Corporation (EDC) board.62
Yankee stadium deal required approvals           Chaney served as the Director of Land
from various city agencies                                  Use for Staten Island Borough
and staff. Once again, the      Fried, Frank,               President Guy Molinari from
Yankees hired firms with        Harris, Shriver &           1998 to 2003.63
former insiders who knew        Jacobson LLP,
the city’s planning and         whose history dates         Another Fried, Frank partner
development process from        back to the beginning       who lobbied the Planning
their years as public           of the last century, is     Commission was Melanie
servants. Specifically, the     one the nation’s            Meyers, who served as general
Yankees targeted the            largest law firms with      counsel to the Department of
Planning Commission, the        clients and offices         City Planning under Giuliani
Department of Parks and         worldwide. Fried            from 1994 to 1998.64
Recreation, and the City        Frank’s clients range
Council. 60                     from multinational          Stephen Lefkowitz, a real estate
                                corporations to local       partner for the firm and son of
The degree of each              and foreign                 former longtime state Attorney
individual’s involvement is     governments.                General Louis Lefkowitz, put
not always evident, but the                                 his vast public sector experience
connections include:                             to work for the Yankees as a lobbyist and
                                                 lawyer. According to billing documents
Fried, Frank, Harris, Shriver &                  that the firm submitted to the Yankees,
Jacobson: A law and lobbying firm                Lefkowitz attended numerous stadium
specializing in land use matters, was            meetings and helped the draft the
according to public records paid by the          Memorandum of Understanding for the
Yankees $180,000 in 2005 and $227,290            project. Copies of the billing documents
in 2006 to court the Planning                    are available as an addendum to this
Commission, City Council and                     report. Between October 6, 2004 and
                                       61
Department of Parks and Recreation.              December 20, 2004, Lefkowitz logged in
                                                 52 hours on the project. This work cost
The Fried Frank officials sent to lobby the      taxpayers $36,849 due to the Yankees
Planning Commission certainly know               ability to deduct planning expenses from
their way around the Department of City          their rent payments to the city.
Planning. Frank Chaney, a real estate
associate at Fried Frank, used to be a           Lefkowitz, who worked as a lawyer for
deputy director at the Department of City        the New York State Senate and Urban
Planning. According to his bio on the            Development Corporation in the 1970s,
firm’s website, he was also an assistant         has more recently served as outside

                                                                                           16
Good Jobs New York - Insider Baseball
counsel for developers                                               craft the financing
or public agencies in        Nixon Peabody LLP is one of             structure. Prior to joining
some of the city’s           the largest multipractice law           Nixon Peabody, Serchuk
largest redevelopment        firms in the United States, with        worked in the Office of the
projects, including          offices in sixteen cities and           Chief Counsel at the IRS
Times Square, Battery        approximately seven hundred             and in the Office of Tax
Park City, the Time          attorneys collaborating across          Policy at the Treasury
Warner Center, and           twenty-five major practice              Department.67 According to
Bruce Ratner’s               areas.                                  the Nixon Peabody
Brooklyn Metrotech                                                   website, while at the IRS
and Atlantic Yards projects.                        Serchuk was responsible for drafting and
                                                    reviewing private letter rulings and
Copies of Fried, Franks billing documents           technical advice memoranda, including
submitted to the city is available at               rulings regarding private activity bonds.68
www.goodjobsny.org/yankees_fried.pdf
                                                    As discussed above, the tax-exempt bonds
Nixon Peabody: Possibly hitting the                 for the stadiums were approved by a
biggest public financing                                        private letter ruling from the
home run in recent years,           Sive Paget & Riesel         IRS, in apparent contradiction
this financial services law         is a full service           of the intent of a 1986 federal
firm helped win the IRS             environmental law           tax reform law. 69
ruling that enabled the             firm that specializes
Yankees and the Mets to             in environmental            Sive, Paget & Riesel: Several
receive a combined $1.4             impact review and           partners from this prominent
billion in triple tax-exempt        litigation. The firm        environmental law firm have
financing for the                   has a client base of        histories at the New York City
construction of their               major corporations,         Department of Law
stadiums.65                         environmental               environmental division.
                                    groups, and federal,        Yankee billing documents
While Nixon Peabody                 state, and local            indicate that the firm was
pursued the IRS ruling on           government                  involved in drawing up the
behalf of the New York City         agencies and                team’s amended lease
Industrial Development              municipalities              agreement with the city and
Agency, the Yankees also            throughout New              court documents associated with
list retaining Nixon Peabody        York State.                 the Save Our Parks lawsuit
as “bond attorneys” to                                          indicate they performed “work
perform work “vital” to the new                     vital” to the new stadium also.70
          66
stadium.
                                                    Partner Michael Bogin’s biography for the
According to the New York Observer,                 law firm states that he led the litigation
Nixon Peabody Partner and tax-exempt                section of the state Attorney General’s
bond specialist Bruce M. Serchuk helped             Office of environmental protection. From

                                                                                             17
Good Jobs New York - Insider Baseball
1993 to 1995 he was deputy assistant
chief of the environmental law division
for the New York City Law Department.
Steven Russo, a partner at the firm, was
deputy chief there at the same time. 71
Another partner, Mark Chertok has been
special environmental counsel for EDC
and the Empire State Development
Corporation (ESDC). 72

Partner David Paget defended the
Yankees in Federal Court in 2006 against
Save Our Parks.73 Paget has also advised
the ESDC in its environmental review of
the Brooklyn Atlantic Yards project,
previously worked for its developer,
Forest City Ratner until October, 2005. A
New York State Supreme Court Justice
initially dismissed Paget as the ESDC
counsel, calling it “a severe, crippling
appearance of impropriety.” The decision
was later overturned.74

Copies of Sive Paget billing documents
submitted to the city is available at
www.goodjobsny.org/yankees_sive.pdf

Tishman Speyer: Tishman Speyer was
hired by the Yankees to construct the       Tishman Speyer Properties is
                                            one of the leading owners,
stadium. Tishman’s manager for stadium
                                            developers, fund managers and
development, Anthony Mannarino, was         operators of real estate in the
the former head Executive Vice President    world. It owns properties such
of the New York City Economic               as Rockefeller Center and the
Development Corporation from 1990           Chrysler Building.
through 1994, and served as Acting
President in 1994.

Copies of Tishman Speyer’s billing
documents submitted to the city are
available at
www.goodjobsny.org/yankees_tishman.p
df

                                                                              18
Good Jobs New York - Insider Baseball
What’s BCIDC and Why Does It want             CIDC’s senior vice president, Joseph
         our Tax Dollars?                     Seymour, is the former executive director
                                              of the Port Authority of New York and
Even though the new stadium will have         New Jersey. 75
fewer seats than The House Ruth Built,
the Yankees apparently expect to attract      CIDC’s President William Loewenstein
many future fans from distant parts of the    was a strategic partner with incentives
City and from the suburbs; hence their        procurement advisors Stadtmauer Bailkin
stadium plan calling for massive amounts      Biggins, LLC, until 2006 76 (Biggins is a
of new parking space. While it will enjoy     former executive director of New York
the rewards of greater auto access, the       City’s Office of Economic Development,
team won’t bear the risk of operating the     and was later appointed Commissioner of
garages.                                      Ports, International Trade and
                                              Commerce.)77
On April 4, 2007 the New York City
Industrial Development Agency held            Lowenstein is currently a “market team
hearings on $190 million in tax-exempt        member” with the successor firm
“civic improvement” bonds for a firm to       Stadtmauer Bailkin Economic
build and rehabilitate 9,000 parking          Development Group (SB-EDGe). One of
spaces adjacent to the new stadium.           Stadtmauer Bailkin, LLP’s specialties
                                              involves securing economic development
The firm, Bronx Community Initiatives         subsidies for corporate clients; it is listed
Development Corporation LLC, was              on the New York City Industrial
established in March 2007 immediately         Development Agency’s core application
prior to its application with the NYCIDA      for the parking bonds as legal counsel for
signed in March. BCIDC is not a Bronx         CIDC.78
organization nor can it be said to have
been initiated by the community. Instead,     One of Stadtmauer Bailkin’s managing
it is a “special purpose” limited liability   directors, Jane Orlin, has promoted herself
company whose sole member is a national       as having written incentive guidelines
entity, the non-profit Community              while she was an employee of the New
Initiatives Development Corporation           York City Economic Development
(CIDC). CIDC works in multiple states         Corporation.
and exists to secure tax exempt financing
for a variety of developments, a small        In addition to the Yankees parking
portion of which are parking garages.         garages, CIDC has taken on other risky
CIDC is headquartered in Hudson, New          projects using taxpayer dollars, some of
York over 100 miles north of the stadium      which have failed. The Syracuse
and apparently it has never worked in the     Industrial Development Agency (SIDA)
Bronx before.                                 issued $7 million in tax-exempt bonds for
                                              CIDC to build a senior citizen apartment
                                              complex in the city. The complex opened

                                                                                         19
Good Jobs New York - Insider Baseball
in 2001 but CIDC had trouble renting the
apartments – city officials believed the
rent was too high. CIDC defaulted on the
mortgage, forcing a change in ownership
just one year after the complex opened.79

Syracuse also lost public money on a
risky project facilitated by CIDC’s
president, William Loewenstein. In 1999,
Loewenstein – who was paid $57,000 per
year by the city to help recruit new
businesses – introduced Syracuse officials
to a California manufacturing company,
Spectrum MedSystems Corp. The
company had existed since 1994 with no
history of profitability. Spectrum was
supposed to create 400 jobs and it
received about $2 million in loans from
the city. The company ran out of money
and the factory never opened, leaving the
city responsible for the loans; some had
been borrowed from the federal
government. In 2002 Syracuse’s new
economic development director ended the
city’s 21-year consultancy with
Loewenstein. According to the Syracuse
Post-Standard, the new director said he
knew of no company Loewenstein
recruited that had ever created a job in
Syracuse.80




                                             20
Good Jobs New York - Insider Baseball
     Conclusion and Policy Options            Disclose the Revolving Door
                                              Just as elected officials must reveal the
The Yankees employed firms with a small       companies or partnerships from which
army of former public officials to help       they receive income in financial
win a huge land grab and subsidy package      disclosure statements, developers seeking
at the expense of Bronx residents and city,   land use approvals or development
state and federal taxpayers.                  subsidies should be required to disclose in
                                              applications the names of all former
For our metropolis to flourish, the           government officials involved in the
interests of the profit-driven real estate    project (either as direct employees or as
entities must be balanced with the needs      consultants or lobbyists), including their
of all New Yorkers. Significant               public and private positions and dates of
undertakings, like Mayor Bloomberg’s          public service.
recently proposed PlaNYC, need real
citizen participation to flourish. Good       Extend the Cooling-Off Period
Jobs New York offers these policy             To reduce the revolving-door influence
options:                                      problem, the City should extend to three
                                              years the time period which former
Honor Land Use Policies and the               elected officials and agency personnel
Community Boards                              must wait after leaving office before they
New York City has a strong democratic         can work as lobbyists or with firms
planning process on the books (called the     involved directly on projects involving
Uniform Land Use Review Procedure or          their public-sector jobs. Currently, the
ULURP). It should be embraced, not            City’s conflict of interest law has
gamed.                                        loopholes permitting public officials to
                                              immediately go to work at firms that do
Major decisions on this project (the          business with the city.
seizure of the park land, the types of
public subsidies offered for example)         Scratch the Parking Garages
were privately agreed to by the Yankees       City and state officials should act on their
and public officials in the project’s         stated city-wide commitment to fund
Memorandum of Understanding (MOU)--           public transportation as an alternative to
a copy is available at                        driving. Recently officials pledged funds
http://www.goodjobsny.org/yankeestadiu        to build a Metro North train station near
m_mou.pdf Agreements should not be            the Yankee stadium. With an estimated
negotiated without the consultation of the    10,000 fans per game choosing Metro
local community board and until details of    North to get to games, the number of
proposals are made available and              proposed parking spaces can be
mandated public hearings are held.            substantially cut back and park land
                                              restored.



                                                                                        21
Good Jobs New York - Insider Baseball
                            Appendix A: Taxpayer Subsidies for the
                           New Yankee Stadium and Parking Garages
            City Subsidies                             Amount (millions, present value)
            Land/Infrastructure/Transit                $203.91
            Forgone property taxes                     $144.22
            Forgone sales taxes                        $10.53
            Rent rebates                               $13.44
            Forgone mortgage                           ?
            recording tax
            Tax-exempt bonds for                       $105
            stadium (income tax
            exemption on bond interest)
            Tax-exempt bonds for                       $2.16
            garages
            City Total:                                $384.1
            State Subsidies
            Garage construction/infra.                 $707
            Maintenance funds                          $4.78
            Forgone sales taxes                        $11.49
            Forgone mortgage                           ?
            recording tax
            Tax-exempt bonds for                       $1810
            stadium
            Tax-exempt bonds for                       $3.9
            garages
            State Total:                               $108
            MTA-Metro-North Station                    $51.2
            Federal Subsidies
            Tax-exempt bonds for                       $10011
            stadium
            Tax-exempt bonds for                       $20.2
            garages
            Federal Total:                             $120.2
            Total:                                     $663.5 million


1
  2008 Executive Capital Commitment Plan
2
  Independent Budget Office, “Update to IBO’s Analysis of the Financing for the Proposed Yankee Stadium,” April, 2006.
3
  Ibid
4
  Yankee Stadium Memorandum of Understanding (MOU).
5
  Independent Budget Office’s revised estimate, July 2007.
6
  Industrial Development Agency Cost-Benefit Analysis, Bronx Community Initiatives Development Company, April 5, 2007.
7
  MOU, ESDC GPP
8
  Ibid.
9
  Independent Budget Office, “Update to IBO’s Analysis of the Financing for the Proposed Yankee Stadium,” April, 2006.
10
   Independent Budget Office’s revised estimate, July 2007.
11
   Independent Budget Office’s revised estimate, July 2007.
                                                                                                                         22
Good Jobs New York - Insider Baseball
                               Endnotes
                                                                             16
                                                                                  Update to the Independent Budget Office’s (IBO) Analysis of the
1
    Memorandum of Understanding, New Yankee Stadium Project,                 Financing for the Proposed Yankee Stadium, April 10, 2006.
                                                                             17
June 15, 2005. Available at                                                     Press release from Nixon Peabody
http://www.goodjobsny.org/yankeestadium_mou.pdf                              http://sev.prnewswire.com/banking-financial-
2
  A City Council “Home Rule message” is a formal request for                 services/20060824/NYTH10724082006-1.html
                                                                             18
specific state legislation. Municipalities cannot alienate or                   Ibid
                                                                             19
discontinue the use of parkland without authorization from the state             Transcript of New York City Council testimony is available at
           .
legislature                                                                  www.goodjobsny.org/pagecardozo_pilots.htm
3                                                                            20
  2008 New York City Executive Capital Commitment Plan                          Section 1.141-4(e)(5)(ii) of the Internal Revenue Code stated “a
4
  Update to the Independent Budget Office’s (IBO) Analysis of the            payment in lieu of taxes made in consideration for the use of
Financing for the Proposed Yankee Stadium, April 10, 2006, New               property financed with tax-exempt bonds is treated as a special
York City Industrial Development Agency (IDA) Cost-Benefit                   charge.”
                                                                             21
Analysis, Bronx Community Initiatives Development Company                       Copies of testimony available at:
                      .
LLC, April 5, 2007 Independent Budget Office’s revised estimate,             http://domesticpolicy.oversight.house.gov/story.asp?ID=1228
                                                                             22
July 2007.                                                                      Patrick Arden, “Tight Fit,” Metro, July 5, 2007.
5                                                                            23
  Yankee Stadium Memorandum of Understanding (MOU) available                      CIDC’s 990 form submitted to the IRS.
                                                                             24
at www.goodjobsny.org/yankeestadium_mou.pdf                                       Joseph J. Seymour Appointed Executive Director of the Port
6
  Empire State Development Corporation General Project Plan                  Authority of New York and New Jersey December 13, 2001,
7
  Independent Budget Office, “Update to IBO’s Analysis of the
                                                                             press release from the Port Authority of New York and New
Financing for the Proposed Yankee Stadium,” April, 2006 and
Independent Budget Office’s revised estimate, July 2007.                     Jersey, Press Release Number: 163-2001
8                                                                            25
   Independent Budget Office’s revised estimate, July 2007                        Press release: Public Advocate Gotbaum Calls for Independent
(regarding the stadium bonds). GJNY estimate regarding the parking
                                                                             Testing of Pellets Used in City Parks. April 17, 2007
garage bonds.
9                                                                            www.pubadvocate.nyc.gov/news/ToxicTurf41307.html
  Minutes from the general meeting of Bronx Community Board #4,              26
                                                                                Telephone conversation between Bettina Damiani and Dr. Gaffin
held on November 22, 2005 at the Bronx Museum of the Arts.
                                                                             June 27, 2007
10 Patrick Arden, “Carrion: No payback for foes of stadium,” Metro,          27
                                                                                Making The Most Of Our Parks, Citizens Budget Commission
June 15, 2007.
11                                                                           June 2007, available at www.cbcny.org.
   SAVE OUR PARKS et al. v. THE CITY OF NEW YORK et al.,                     28
                                                                                Wayne Barrett, “Moonlighting for Baseball Giuliani Gets Big
Index No. 110836/06, IAS Part (Cahn, J.)August 15, 2006.
12                                                                           Bucks from Wilpon and Steinbrenner, Village Voice, August 11,
   IDA Cost-Benefit Analysis, Yankee Ballpark Company LLC,
                                                                             1998.
March 9, 2006.                                                               29
13                                                                              Save Our Parks sued the Yankees and the City for the removal of
   Update to the Independent Budget Office’s (IBO) Analysis of the
                                                                             parks citing a clause in the National Park Service policy that parks
Financing for the Proposed Yankee Stadium, April 10, 2006. The
                                                                         .   upgraded with Federal funds must receive prior approval to
IDA had previously estimated this savings would be $41.2 million
14                                                                           alienation. A judge ruled in favor of the Yankees and the City. Save
   IDA Cost-Benefit Analysis, Yankee Ballpark Company LLC,
                                                                             Our Parks et al. v. Dirk Kempthorne, Secretary, United States
March 9, 2006.
15                                                                           Department of the Interior et al, Case No. 06 Civ. 6859 (S.D.N.Y.
     This figure accounts for all state fiscal benefits related to the
                                                                             2006), Declaration of Lonn Trost, filed September 18, 2006, Exhibits
construction of the new stadium, parks, and parking garages and the
                                                                             A and C.
operations of the stadium and garages. The stadium-related benefits          30
                                                                                Campaign contributions for Presidential candidates are available
were calculated by Economics Research Associates and include
                                                                             at: www.opensecrets.org/pres08/index.asp?cycle=2008
revenue from sales tax, personal income tax, hotel tax, parking tax,         31
                                                                                 Mike Lupica, “The Boss’ New City Hall Underboss,” Daily
and other miscellaneous taxes. All of this information is contained in
                                                                             News. January 9, 2000
the project’s Final Environmental Impact Statement.                          32
                                                                                Transcript of the minutes of the New York State Assembly, June
                                                                             23, 2005.
                                                                                                                                                    1
Good Jobs New York - Insider Baseball
33                                                                    53
     Home Rule Request from New York City to request the                   Biography of Michael Rossetti.available at
enactment of Assembly bill 8932, June 20, 2005                        www.akingump.com/attorney.cfm?attorney_id=2301
34                                                                    54
   David Seifman, “City Lobbyists Hit $44 Million Jackpot,” New          Common Cause/NY press release, “As new Yankee Stadium
                       .
York Post, June 8, 2007                                               appears headed for victory, Common Cause/NY releases data on
35
   Public Lives column, The New York Times, September 15, 1999        lobby spending,” April 13, 2006.
36                                                                    55
   New York Temporary State Commission on Lobbying,                      The New York City lobbyist database
www.tscol.org .                                                       www.home2.nyc.gov/lobbyistsearch/
37                                                                    56
   Participation and Labor Force Mitigation and Community                Ibid
                                                                      57
Benefits Program Related to the Construction of the New Yankee           Blair Golson, “Block Those Jets! Will Silver Play or Punt on
Stadium. For a description of Schlein’s role in brokering the         Park?,” New York Observer, June 14, 2004.
                                                                      58
“mitigation agreement,” see The Bronx Bomber, by Tom Robbins,            New York State Temporary Committee on Lobbying, On-Line
The Village Voice, May 2, 2006                                        Lobbyist Registration System: www.nytscol.org/.
38                                                                    59
   Amy Zimmer, “Who benefits from the city’s building boom?,”            The New York City lobbyist database
                    .
Metro, May 30, 2006                                                   www.home2.nyc.gov/lobbyistsearch/
39                                                                    60
   Andrew Wolf, “Move To Bar Insider From Receiving Court                Ibid
                                                                      61
Appointments Raises Brows,” New York Sun, March 2, 2006.                 Ibid
40                                                                    62
   Sam Roberts, “Bronx Lawyer Is a Power Behind Several                  New York City Department of Personnel Civil List
                                                                      63
Thrones,” The New York Times, July 26, 2005.                             The Green Book, the official directory of the City of New York.
41
   Sewell Chan, “Bloomberg to Replace Head Of Civil Service           New York City’s Green Book
                                                                      64
Commission,” The New York Times, August 28, 2006.                        Affidavit State Supreme Court:
42
   Murray Weiss and David Seifman, “Bronx Bigs in Probe – Land        www.dddb.net/litigation/papers/RATNER/motions/MeyersAffidavit.
Deals Eyed,” New York Post, October 2, 2006. In the article Schlein   PDF
                                                                      65
claims there is not basis for the investigation. And                     The New York Yankees received $866 million in tax exempt
Heather Gilmore and Leela de Kretser, “Dems’ Bx Chief: I’m Graft      bonds and the Mets received $527 in tax exempt bonds.
                                                                      66
Dodger,” New York Post, October 3, 2006. In this article Rivera          Save Our Parks et al. v. Dirk Kempthorne, Secretary, United
claims he has never “abused his power.”                               States Department of the Interior et al, Case No. 06 Civ. 6859
43
   Dunstan Prial, “New Bronx Borough President Carrion stresses       (S.D.N.Y. 2006), Declaration of Lonn Trost, filed September 18,
                                                          .
schools over stadiums,” Associated Press, January 6, 2002             2006 Exhibits A and C. www.goodjobsny.org/yankees_trost.pdf
44
   New York City Campaign Finance database, /www.nyccfb.info
45                                                                    67
   ibid                                                                    Matthew Schuerman, “Yankees, Mets Beat the IRS,” The Real
46
   The Yes Network was launched in 2002 with backing from the         Estate (New York Observer blog), December 6, 2006.
        .                                                             68
Yankees                                                                  Details available at
47
   New York City Campaign Finance database, www.nyccfb.info           www.nixonpeabody.com/attorneys_detail1.asp?ID=939
48                                                                    69
   United States Senate Office of Public Records, Federal Lobbyists      Testimony of Dennis Zimmerman, American Tax Policy Institute.
Online Registration: http://sopr.senate.gov/cgi-                      (Mr. Zimmerman was former analyst at the Congressional Budget
win/opr_gifviewer.exe?/2006/E/000/084/000084311|2                     Office):
49
   Yankee Stadium Final Environmental Impact Statement, p. 4-2,       http://domesticpolicy.oversight.house.gov/documents/200703291452
S-18.                                                                 47-13538.pdf
50                                                                    70
   Patrick Arden, “Feds advised city, state, Yanks on stadium plan,      Save Our Parks et al. v. Dirk Kempthorne, Secretary, United
documents show,” Metro, August 31, 2006.                              States Department of the Interior et al, Case No. 06 Civ. 6859
51
   Ibid                                                               (S.D.N.Y. 2006),
52                                                                    71
   Lobbying documents available at the Senate Office of Public           New York City Department of Personnel, Civil List
                                                                      72
Record http://sopr.senate.gov/cgi-                                       Biographies of Sive, Paget & Riesel partners are available at
win/opr_gifviewer.exe?/2006/EH/000/088/000088470|2                    http://www.sprlaw.com/lawyers/index.html



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Good Jobs New York - Insider Baseball
73
     Save Our Parks et al. v. Dirk Kempthorne, Secretary, United
States Department of the Interior et al, Case No. 06 Civ. 6859
(S.D.N.Y. 2006), Declaration of Lonn Trost, filed September 18,
2006, Exhibits A and C.
74
   Transcript of February 14, 2006 Proceedings before Honorable
Carol Edmead, Supreme Court of the State of New York, County of
New York, Index Number 100686/2006.
75
     Joseph J. Seymour Appointed Executive Director of the Port
Authority of New York and New Jersey December 13, 2001,
press release from the Port Authority of New York and New
Jersey, Press Release Number: 163-2001.
76
     See former webpages for Stadtmauer Bailkin Biggins at
http://web.archive.org/web/20060206224626/www.sbb-
incentives.com/people.shtml . February 6, 2006.
77
   Website of Biggs, Lacy, Shapiro and Company: www.sbb-
incentives.com/people/biggins.shtml
78
   Application to the New York City Industrial Development
Agency, http://www.goodjobsny.org/Yankee_Parking.pdf
79 Maureen Sieh, “City Agency Evicts Restaurant, Tenants. City’s
Director of Operations Signs Eviction Notice for Pavilion on James
Complex,” The Post-Standard, August 21, 2002.
80
     Rick Moriarty, “How a City Loses $2M Through Bad Loans,”
The Post-Standard, April 13, 2003.




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