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