Barclays Center scores: City says arena generated $14 million in tax revenues in its first year

Corey Sipkin/New York Daily News

City provides first economic impact study of Barclays Center, which just celebrated its one-year anniversary.

The Barclays Center has generated an estimated $ 14 million in tax revenues in its first year, city officials told the Daily News, providing the first tally of the $ 1 billion arena’s contribution to the city’s coffers.

The estimates, which come from the New York City Economic Development Corp., are based on data provided by Barclays Center developer Forest City Ratner.

Overall, the direct output from the 18,200 seat arena, which just celebrated its first year anniversary and in its first year became the country’s No.1 concert venue, has been $ 145 million, the city told the News.

That number reflects spending done by visitors – non-New York City residents – both inside and outside the Barclays Center, on things like ticket sales, merchandise, concession purchases, restaurants and transportation.

These are dollars that would not been flowed into the local economy had the arena not been in operation, city officials said.

When other factors are taken into account, such as indirect business generated by the arena, the full economic activity spawned by the Barclays Center in its first year was $ 251 million, the city said.

The $ 14 million in tax revenues includes sales tax associated with purchases inside and outside the sports and entertainment complex, as well as income tax generated by Barclays Center employees and the Brooklyn Nets.

Forest City Ratner executive chairman Bruce Ratner called the numbers confirmation that the city and state’s investment in the Barclays Center was money well spent.

A total of $ 305 million in public subsidies have been committed to Atlantic Yards, Forest City’s $ 4.9 billion Brooklyn project, anchored by the Barclays Center.

“This just proves that the arena is a very strong economic engine for the city and the state,” Ratner told the Daily News.

Likewise, Mayor Michael Bloomberg, who provided critical support for the Atlantic Yards project, touted the first-year numbers.

“In just its first year, the Barclays Center is already proving to be a major win for New York City and its economy,” Bloomberg told the News. “Tens of thousands of New Yorkers, as well as visitors from across the globe, have visited Brooklyn to experience this world-class venue, leading to a significant economic impact, additional tax revenue, and critical jobs for local residents.”

The city declined to say whether the numbers met its projections.

A 2009 study by the city’s Independent Budget Office estimated that New York would lose $ 40 million over 30 years on its investment. The study looked only at the Barclays Center, not at the overall project.

A 2010 study conducted by the city projected that the project would generate $ 411 million over 30 years.

In spite of the arena’s strides, critics say it has yet to generate enough jobs to justify the public subsidies it has received. And some local businesses near the arena say they have yet to see a much expected increase in revenues.

pfurman@nydailynews.com

Yahoo Local News – New York Daily News

http://newyork.greatlocalnews.info/?p=14835

via Great Local News: New York http://newyork.greatlocalnews.info