Kucinich Plays Hardball

Rep. Dennis Kucinich, D-Ohio, last week requested documents from New York City about the use of luxury boxes in two Major League Baseball stadiums under construction.

The new ballparks for the Yankees and Mets are owned by the city and leased to the franchises under long-term agreements. As part of their lease agreements, the two teams agreed to give the city the right to use a luxury box free of charge as well as priority rights to purchase up to 180 Yankees tickets and 145 Mets tickets for home games.

Kucinich, who chairs the House Oversight and Government Reform Committee’s panel on domestic policy, has criticized the use of bonds backed by payments in lieu of taxes to finance sport stadiums, and said he plans to hold a hearing next month on so-called PILOTs. Last month the Treasury Department said that it could not prohibit the use of PILOT bonds to finance such stadiums under current law.

The Yankees are seeking a reported $350 million of additional tax-exempt bonds to complete their stadium and the Mets are seeking about $52 million.

The New York City Industrial Development Agency sold $943 million of tax-exempt bonds on behalf of the Yankees and $528 million on behalf of the Mets for the two stadiums.

Andrew Brent, a spokesman for Mayor Michael Bloomberg,  said in an e-mail that the city and its IDA would share the information requested.

“No determinations have been made about whether the city will exercise the options [for the suites and tickets] or, if it did, how the tickets would be used,” Brent said.

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