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 1 Good Jobs New York - Insider Baseball

• 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 2 Good Jobs New York - Insider Baseball

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 all of Macombs Dam Park value) 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 10 “alienated” – by the City Forgone property $166.84 voted against the plan. Council and State taxes, sales taxes, legislature in June 2005. and income taxes on When the community bond interest 5 group Save Our Parks The local community Rent rebates $13.4 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 $33.37 construction phase of the 11 interests of the community and income taxes on project. 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 8 and countless residents that the plan, and the dangerous Forgone income $120.2 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. residential community.9 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- jobs” will be seasonal longer being responsible interest, triple tax-exempt for maintaining the new 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 16 lavish expenditure of tax stadium (i.e. selling of $172 million in interest. 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 In December 2006 water quality, and cleaning up chemically plans for disposing contaminated properties (i.e., brownfields), Mayor Bloomberg of the potentially among others. 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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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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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

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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

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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

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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.

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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 Department of Parks and Recreation. 61 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

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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 stadium.66 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

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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

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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

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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

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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.

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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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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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