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Originally Posted by CroFlames
The first comment on the article is "NO PUBLIC MONEY". Some people need to learn economics is all I can say.
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Public money can come in lots of different forms. American Dream Mall is a colossal example of tax breaks combined with other complicated monetary incentives to developers. Not advocating similar, just saying there are as many alternatives to straight up 'public money' as tax attorneys can come up with...
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Who’s Footing the Bill?
Last November, the EDA approved its largest tax break ever to help Triple Five finish construction. Under the terms, the developer is eligible for up to $390 million in tax breaks over the next 20 years.
At the same time, the state’s Local Finance Board approved a complicated deal between Triple Five and East Rutherford that has the borough monetizing anticipated developer Payment in Lieu of Taxes (PILOT) payments as bonds. These bonds, which have yet to be issued, are expected to be purchased by the Bergen County Improvement Authority (BCIA), which then plans to turn around and package them with additional bonds secured with the $390 million in expected tax breaks from the EDA. Together, these bond issues are expected to result in over $500 million in upfront cash to help finish construction.
The developer will avoid municipal tax payments by giving East Rutherford an immediate $20 million to pay off debt on its new justice center and more than $80 million over the next three decades.
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http://www.njspotlight.com/stories/1...ing-this-time/