N.Y. City, State Skim 'Profits’ From Battery Park City Authority

New York City and New York State have agreed to each sweep $200 million from the Battery Park City Authority to help close their budget gaps.

“The state’s receiving the $200 million, the city is receiving an equal amount,” BPCA chairman William Thompson Jr. said. “The intention was to see the excess in Battery Park City go to affordable housing. Using it for gap-closing both in the city and state kind of is an indication of the tough financial position both are in right now.”

Gov. David Paterson proposed the fund sweep in last year’s budget but Mayor Michael Bloomberg and the city comptroller’s office — then run by Thompson — who had to sign off on the plan initially balked. The future of an agreement was very much an open question as the state has tried to close a $9.2 billion budget deficit for fiscal 2011, which began April 1.

A memorandum of understanding  was signed March 29, according state Division of Budget spokesman Matthew Anderson. The deal also will provide $400 million for affordable housing and $261 million of pay-as-you-go capital for the city.

The authority doesn’t have to issue any additional debt to make this work, Thompson said.

“This is money the authority has gotten and received over a period of time,” he said. “Battery Park City, for want of a better phrase, makes a profit.”