In light of this analysis, the BALDC property is not tax exempt if used for arena purposes. Consequently, payments-in-lieu of taxes cannot be used to secure the bonds, and they are effectively worthless. If ESDC knowingly misrepresented the legitimacy of these bonds, this raises the spectre of fraud.The letter was also sent to Attorney General Andrew Cuomo and state Comptroller Thomas P. DiNapoli.
I asked Perkins (off camera) what happens now.
"We sent that out yesterday; I spoke with the governor's counsel," he responded. "He seemed to acknowledge that he needs to take a look at it. He indicated that he would get back to me."
And if they don't?
"I'm going to reach out to them again this week," he said. "But in the event that they have a different point of view, we'll see some legal measures we can take."/
"As I said to him, the murkiness of this situation flies in the face of the [public authorities reform] legislation we just passed," Perkins said. "This is a representation of the old way of doing business."
The issue was unearthed by Amy Lavine, a staff attorney at the Albany Law School's Government Law Center who has been studying public authorities. (She has been advising Perkins on eminent domain issues as part of her job and also offered pro bono help in off-hours for Develop Don't Destroy Brooklyn.)