ALBANY, N.Y. (AP) -A congressional subcommittee is examining the New York Yankees’ bid for another $350 million in public financing for their new stadium, a move that broadens the question of whether taxpayers should finance professional sports venues.
Domestic Policy Subcommittee Chairman Dennis Kucinich, D-Ohio, is asking whether the Internal Revenue Service can change its regulations and allow stadium projects such as the new Yankee Stadium to receive public-backed financing that comes with tax breaks.
The NBA’s Nets and the New York Mets could also benefit, as well as well pro teams nationwide, if the IRS agrees with the New York City Industrial Development Agency and alters its policy against stadium funding.
Kucinich wants the Treasury Department to answer questions about the proposed change before any financing is granted for stadiums, according to a posting by Kucinich on the committee’s Web site.
“There is national interest in whether sports facilities should be funded by taxpayers,” said New York Assemblyman Richard Brodsky, a Westchester County Democrat. He is critical of public authorities that issue millions of dollars in financing and tax breaks, backed by taxpayers, without public debate or involvement of elected officials.
Other Assembly members on Thursday called for hearings before the Yankees received more aid that they fear could soak up support for parks, transportation and other public needs.
“It’s government by Soviet-style bureaucracy,” Brodsky said Saturday.
The Yankees want additional public support from the city’s industrial development agency to be added to the $941 million in tax-exempt public bonds the organization already has issued for the $1.3 billion stadium. Under current Internal Revenue Service regulations, the Yankees cannot ask for more public debt to be incurred for the stadium.
But city officials have been lobbying Washington for a change in IRS regulations that would allow the Yankees to get the $350 million in additional tax-exempt bonds they say they need. Such a change could help other big stadium projects – not just the new Yankee Stadium.
The Yankees say all their tax-exempt bonding was approved in the overall plan before the IRS cracked down on public financing of stadiums.
“We’re working under the strong leadership of the city and state to seek relief from the regulations and the Yankees believe it is not fair to change the regulations in midstream,” Yankees president Randy Levine said Saturday.
The Yankees plan to have the stadium completed by opening day in 2009, regardless of whether they secure the additional funding.
City Economic Development Corp. chief Seth Pinsky told Brodksy and Assemblyman Sam Hoyt, a Buffalo Democrat, that his office will cooperate with the Assembly investigation of the Yankees’ proposal. Hearings are planned in July.
Pinsky spokeswoman Janel Patterson said Saturday that her office hadn’t yet seen Kucinich’s posting, but is cooperating with federal and state officials.
There was no immediate comment from Kucinich on Saturday.
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