Today: 18.06.2018
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‘Value-capture financing’ isn’t a silver bullet.

Memo to taxpayers: Beware of pols hawking “value-capture financing” as a magical way to fund new subways, bridges and so on. From Mayor de Blasio to Gov. Cuomo to President Trump, politicians are suggesting this is a painless way to raise cash for infrastructure. But it’s just one tool, not a cure-all. The idea is...
Time: 22:47     Date: 17.02.2018
Last US News - Opinion: ‘Value-capture financing’ isn’t a silver bullet. NY Post 24 - US News

From Mayor de Blasio to Gov. Cuomo to President Trump, politicians are suggesting this is a painless way to raise cash for infrastructure. But it’s just one tool, not a cure-all.

The idea is that a big public project, like a new subway station, will boost the value of nearby private properties, pushing up assessments and ginning up new tax revenue — which can be used to pay off the bonds that funded the project in the first place.

The model is Mayor Mike Bloomberg’s financing for the extension of the No. 7 line from Times Square to 34th Street and 10th Avenue. The subway was sure to help make the Hudson Yards development viable, so Bloomberg agreed to dedicate real-estate taxes on new buildings there to pay back the billions spent on the new subway.

Now Gov. Cuomo is talking about doing something similar to fund other MTA projects in the city, like the one to bring LIRR trains to Grand Central. Under his plan, the MTA would get 75 percent of any new tax revenue after such projects boost real-estate values.

De Blasio also floated the idea to pay for a light-rail line along the Brooklyn-Queens waterfront. And Trump’s new infrastructure plan seeks to force the use of value-capture financing on projects that get federal funds. All fair enough — if it’s done right, with an eye on the pitfalls.

One problem: It’s impossible to know how much of any rise in property values comes from a given project. The gimmick can easily divert more (or less) in dedicated funds than it really should.

Oh, and if the project turns out to not boost values, the new funds never show up.

Estimates of how much values will rise are just estimates — whereas bond covenants require a guaranteed source of income.

In the case of the No. 7 extension, the new revenue has yet to cover bond repayments — which has left the city making up the difference from its other revenues.

Plus: Hudson Yards was built from scratch — a high-end development on what’s now some of the most valuable real estate in the world, sitting above low-value railyards. That won’t be the case in many other places.

Finally, the scheme ought to target every property whose value rises thanks to the project.

The Grand Central upgrade, for instance, will largely benefit Long Islanders. But Cuomo’s plan doesn’t aim to “capture” any new tax revenue from the island.

In short, “creative financing” is a two-edged sword. It can be a fine way to finance infrastructure — or it can be highway robbery.

Opinion

Last US News - Opinion: Watergate prosecutor says Mueller should wrap up now and other commentary. NY Post 24 - US News
Watergate prosecutor says Mueller should wrap up now and other commentary.
Historian: To Stop Trump, Dems Need the Senate Democrats increasingly are focused on regaining control of the House. But...
Last US News - Opinion: Trump’s trade policy, IG report leads to stock market jitters. NY Post 24 - US News
Trump’s trade policy, IG report leads to stock market jitters.
What happens in Vegas may stay in Vegas — but what happens in Washington goes around the world in a blink of an eye. US...
Last US News - Opinion: The stunning evidence of Harvard’s racism. NY Post 24 - US News
The stunning evidence of Harvard’s racism.
Harvard University records unveiled Friday show the school engages in blatant, egregious racism in the name of diversity....
Last US News - Opinion: Keep breaking the Albany logjams. NY Post 24 - US News
Keep breaking the Albany logjams.
As state lawmakers get set to wrap up for the year, some logjams are starting to break. Let’s hope the trend continues....

Opinion

Last US News - Opinion: Watergate prosecutor says Mueller should wrap up now and other commentary. NY Post 24 - US News
Watergate prosecutor says Mueller should wrap up now and other commentary.
Historian: To Stop Trump, Dems Need the Senate Democrats increasingly are focused on regaining control of the House. But...
Last US News - Opinion: Trump’s trade policy, IG report leads to stock market jitters. NY Post 24 - US News
Trump’s trade policy, IG report leads to stock market jitters.
What happens in Vegas may stay in Vegas — but what happens in Washington goes around the world in a blink of an eye. US...
Last US News - Opinion: The stunning evidence of Harvard’s racism. NY Post 24 - US News
The stunning evidence of Harvard’s racism.
Harvard University records unveiled Friday show the school engages in blatant, egregious racism in the name of diversity....
Last US News - Opinion: Keep breaking the Albany logjams. NY Post 24 - US News
Keep breaking the Albany logjams.
As state lawmakers get set to wrap up for the year, some logjams are starting to break. Let’s hope the trend continues....
Last US News - Opinion: Stop breaking up families at the border. NY Post 24 - US News
Stop breaking up families at the border.
House Speaker Paul Ryan says he wants to stop the mass separation of children from their families along the border, but his...

Living

US Living News: Going gluten-free linked to unhealthy weight loss behaviors. NY Post 24 - US News
Going gluten-free linked to unhealthy weight loss behaviors.
Gluten-free eating has a dark side. A new study led by researchers at the University of Minnesota found that young adults...
US Living News: How to keep your cool when your job drives you insane. NY Post 24 - US News
How to keep your cool when your job drives you insane.
Work on your anger. That’s what most Americans are doing, anyway: More than half (52 percent) of employees said they’ve...
US Living News: Millennials are uniformly bad tippers. NY Post 24 - US News
Millennials are uniformly bad tippers.
Hot tip for millennials: Tip your waitstaff. Millennials are cheapskates compared to other generations, a new CreditCards.com...
US Living News: Animal rescuers race to end China’s annual dog meat festival. NY Post 24 - US News
Animal rescuers race to end China’s annual dog meat festival.
The ninth annual ten-day Yulin Lychee and Dog Meat festival in China’s Yulin, Guangxi, is slated to begin on June 21, sending...
US Living News: Dogs vs. Cats: Scientists finally reveal which is smarter. NY Post 24 - US News
Dogs vs. Cats: Scientists finally reveal which is smarter.
A dog’s bark is only a ruff means of communication. Instead, we should be looking at its wiggles and squirms. Jumping...
US Living News: Philanthropy is the latest sign that the rich are getting richer. NY Post 24 - US News
Philanthropy is the latest sign that the rich are getting richer.
The US cleared a generous milestone in 2017, with Americans donating a record amount to charity. But the numbers are also...
US Living News: 1,000-year-old Arabic amulet discovered in Jerusalem. NY Post 24 - US News
1,000-year-old Arabic amulet discovered in Jerusalem.
Archaeologists in Israel have unearthed an extremely rare ancient clay amulet with a blessing in Arabic. The clay artifact,...
US Living News: Army algorithm optimizes caffeine ‘dosing’ for civilians. NY Post 24 - US News
Army algorithm optimizes caffeine ‘dosing’ for civilians.
If you’ve ever wanted to know the best time of day to drink coffee to maximize the benefit or neurobehavioral performance,...

Business

Last US Business News: AT&T basically now owns everything except your soul. NY Post 24 - US News
AT&T basically now owns everything except your soul.
Earlier this week, a judge decided the fate of the AT&T-Time Warner deal, and the result was a big thumbs-up in the general...
Last US Business News: Bank of International Settlements says Bitcoin is not a trustworthy currency. NY Post 24 - US News
Bank of International Settlements says Bitcoin is not a trustworthy currency.
Bitcoin doesn’t cut it as a currency. The problem with the cryptocurrency and its brethren is that they are not scalable...
Last US Business News: This is how Trump’s corporate tax cut is backfiring. NY Post 24 - US News
This is how Trump’s corporate tax cut is backfiring.
The corporate tax cut passed by President Trump and fellow Republicans that was in part designed to help dissuade US companies...
Last US Business News: Audi CEO detained in diesel emissions case. NY Post 24 - US News
Audi CEO detained in diesel emissions case.
BERLIN — German authorities on Monday detained the chief executive of Volkswagen’s Audi division, Rupert Stadler, as...
Last US Business News: Bill Gross got revenge on ex-wife with fart spray: court papers. NY Post 24 - US News
Bill Gross got revenge on ex-wife with fart spray: court papers.
The bitter divorce battle between billionaire bond king Bill Gross and his ex-wife is beginning to stink — like vomit,...
Last US Business News: These French bosses may be the world’s worst. NY Post 24 - US News
These French bosses may be the world’s worst.
Talk about your bad bosses. The former head of France Telecom and six of his executives must stand trial over their alleged...
Last US Business News: Subway hires Bain to help with sales slump. NY Post 24 - US News
Subway hires Bain to help with sales slump.
Subway, the struggling family-owned sandwich chain, has hired consultant Bain & Company to professionalize operations...
Last US Business News: An absurd suggestion on how to fund Trump’s border wall. NY Post 24 - US News
An absurd suggestion on how to fund Trump’s border wall.
Dear John: If we are so concerned about China owning so much of our Treasury debt, why don’t we do this: Allow Americans...

Metro

Metro News: One of NYPD’s first black commanding officers dies. NY Post 24 - US News
One of NYPD’s first black commanding officers dies.
One of the NYPD’s first black commanding officers has died and will be laid to rest Tuesday in The Bronx. Albert Dandridge,...
Metro News: NYPD commissioner joins push to add cameras near schools. NY Post 24 - US News
NYPD commissioner joins push to add cameras near schools.
NYPD Commissioner James O’Neill joined local politicians and school officials Monday to demand that Albany push through...
Metro News: ‘Grid Kid’ murder suspect’s lawyers claim prosecutors framed him. NY Post 24 - US News
‘Grid Kid’ murder suspect’s lawyers claim prosecutors framed him.
Attorneys for a Brooklyn man facing retrial for the 15-year-old murder of a college football player say they’ve unearthed...
Metro News: Quincy Enunwa, Dan Churchill to attend Muscular Dystrophy Association gala. NY Post 24 - US News
Quincy Enunwa, Dan Churchill to attend Muscular Dystrophy Association gala.
Jets wide receiver Quincy Enunwa and celebrity chef Dan Churchill will be on hand at a Muscular Dystrophy Association fundraising...
Metro News: Cyclist dies after fall from bike bath on Manhattan Bridge. NY Post 24 - US News
Cyclist dies after fall from bike bath on Manhattan Bridge.
A cyclist died when he fell and hit his head on a support beam on the Manhattan Bridge, police said Monday. Phillip Ginsberg,...
Metro News: NY’s top health official wants to legalize marijuana. NY Post 24 - US News
NY’s top health official wants to legalize marijuana.
Another barrier to legal pot just went up in smoke. The state’s top health official said Monday that he’s going...
Metro News: NYPD presidential boat dedicated to slain cops. NY Post 24 - US News
NYPD presidential boat dedicated to slain cops.
A new NYPD boat — which will be used to ferry America’s president through the city’s waterways as needed...
Metro News: Ex-SUNY Polytechnic president rigged bids to keep Cuomo happy: prosecutors. NY Post 24 - US News
Ex-SUNY Polytechnic president rigged bids to keep Cuomo happy: prosecutors.
A prominent Albany scientist who once headed a state college rigged bids for hundreds of millions of dollars in New York...

Sport

Last US Sport News: Clyde Frazier touts Porzingis, makes Knicks draft request. NY Post 24 - US News
Clyde Frazier touts Porzingis, makes Knicks draft request.
Walt Frazier joined forces with probable No. 1 Deandre Ayton Monday at a pop-up shop across the street from Barclays Center...
Last US Sport News: FIFA investigates Mexican fans after homophobic slurs. NY Post 24 - US News
FIFA investigates Mexican fans after homophobic slurs.
ST. PETERSBURG, Russia — FIFA has opened disciplinary proceedings against Mexico after its fans used an anti-gay slur during...
Last US Sport News: There are ‘problems’ between two of the Timberwolves’ stars. NY Post 24 - US News
There are ‘problems’ between two of the Timberwolves’ stars.
Despite posting 47 wins this season and reaching the postseason for the first time since 2004, it appears there is tension...
Last US Sport News: Capitals’ Stanley Cup coach resigns in intriguing move for Isles. NY Post 24 - US News
Capitals’ Stanley Cup coach resigns in intriguing move for Isles.
Lou Lamoriello said earlier this month he would get “the best coach available.” Barry Trotz is available. After...
Last US Sport News: Yankes turn back to Clint Frazier at expense of fan favorite. NY Post 24 - US News
Yankes turn back to Clint Frazier at expense of fan favorite.
This Clint Frazier call-up will last longer than the last one. The Yankees brought the young outfielder back to the majors...