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June 3, 2005

State Vote on West Side Stadium Is Postponed

Hours before a vote on the embattled plan for a West Side stadium was set to take place, Mayor Michael R. Bloomberg announced today that it had once again been postponed. Mr. Bloomberg said he thought the vote should take place on Monday, but no specific date for it was set.

The $2.2 billion project requires the unanimous approval of the Public Authorities Control Board before it can move forward, and a vote had been scheduled for 2 p.m. today. Mr. Bloomberg and Gov. George E. Pataki favor the project, but two skeptics in Albany - Sheldon Silver, the Assembly speaker, and Joseph L. Bruno, the Senate majority leader - have expressed reservations, especially Mr. Silver.

"We are going to postpone that vote until Monday and work through the weekend to see if we can satisfy all of the parties, each of whom have legit concerns," the Mayor said on his live radio morning radiio show. "I believe there are ways for us to get together."

Asked if there will be weekend horse trading on the project in an effort to reach an agreement, the mayor said: "It's people of good faith sitting down and working through finding ways to express their concerns, and the party on the other side saying here's how I can help in making sure your fears don't come to reality and that your aspirations come to life.

"It isn't so much trading - I think the public wants 'I want mine and I won't give you yours unless I get mine' -there are some legitimate concerns people have and we are trying to address those."

On Thursday, supporters of the project won an important court ruling that they hoped would help persuade Albany lawmakers to approve it. The ruling was issued in State Supreme Court by Justice Herman J. Cahn, who dismissed a challenge to the pending sale of the development rights over the West Side railyards to the Jets.

In the hours that followed, Mr. Bloomberg and Mr. Pataki spent the day trying to turn the courtroom victory into momentum to get the project moving toward final approval.

"It's time to go ahead and vote yes," Mr. Bloomberg said on Thursday.

But Mr. Silver and Mr. Bruno showed no sign of relenting, despite mounting pressure from the mayor and the governor. Mr. Silver renewed his pledge to support a stadium - but not necessarily on the West Side - if New York wins its bid for the 2012 Summer Olympics. Mr. Bruno issued a similar-sounding letter to the International Olympic Committee.

Both men questioned whether an immediate vote by the Public Authorities Control Board was necessary, despite the mayor's insistence that the project be approved immediately if the city is to have any chance of winning its bid for the 2012 Games when the committee makes its decision in a little more than four weeks.

Doing otherwise, the mayor said, jeopardizes the city's chances to land the 2012 Olympics and "would fail the country."

If either legislator was looking for a reason to vote against the project in the wake of Thursday's court decision, they got one from State Comptroller Alan G. Hevesi, who told members of the control board that it was premature to make a decision on the stadium. It is still unclear how the state and city will provide a $600 million subsidy for the stadium, Mr. Hevesi said in a letter to Mr. Pataki, Mr. Bruno and Mr. Silver.

Although there were intense back-room discussions going on among all the parties, there were signs in Albany as early as Thursday afternoon that the stadium issue would not be resolved today at the little-known board, which is controlled by Mr. Pataki, Mr. Bruno and Mr. Silver. Mr. Pataki was insisting on a vote, but Mr. Silver and Mr. Bruno have the power to delay it again, having already done so twice. The jockeying does not bode well for Monday, when the I.O.C. plans to release its evaluation of the bids for the 2012 Games from New York, Paris, London, Madrid and Moscow. New York had hoped a triumphant announcement of the stadium's final approval would counter any concerns about the project's progress that might emerge in the evaluation.

The most prominent lawsuit dismissed Thursday by Justice Cahn was filed by Cablevision, which owns Madison Square Garden and considers the stadium a potential business threat. The company had bid more money for the stadium site, now a railyard owned by the Metropolitan Transportation Authority, and contended that the authority violated its responsibility by agreeing to sell the land to the Jets for a lower price.

Justice Cahn disagreed, saying the authority acted reasonably in basing the sale on factors other than price, including the timetable of construction and the long-term value of development rights for the land, which the M.T.A. said could be transferred to nearby parcels.

"If the Jets' proposal was deemed by the M.T.A. board to be more beneficial for the M.T.A. than the mixed-use proposal made by M.S.G., the board was justified in accepting it," the judge wrote.

Jay Kriegel, executive director of the city's bid committee, NYC2012, embraced the ruling, saying the court had rejected the "bogus arguments" intended to stop the project. "There is now no longer any reason or excuse for the P.A.C.B. to delay approval of the stadium tomorrow," he said.

Despite the decision, the stadium's legal problems are not over. Cablevision and other stadium opponents in the case vowed to appeal. And Justice Cahn dealt with only one of four challenges to the project. Other opponents have challenged it on environmental and financial grounds.

In a statement released yesterday, Madison Square Garden said that it was confident that the court's ruling would be overturned. "Far more important," the statement said, "is the issue of whether or not taxpayers should be forced to subsidize a $2.2 billion football stadium on the West Side of Manhattan that New Yorkers do not want and cannot afford."

The legal issues may ultimately pale before the geopolitics of the situation. Mr. Silver has raised a number of issues about the stadium and the city's plans to build a new office district on the West Side. He has said the stadium could undermine efforts to revitalize his downtown district, which still suffers from a relatively high vacancy rate.

The Pataki administration and the Bloomberg administration have been meeting with members of Mr. Silver's staff to fashion a program of tax breaks and cash incentives to lure companies downtown. A senior member of the Pataki administration said the incentives would be steeper than those offered by the Bloomberg administration on the West Side.

Meanwhile, they are also negotiating with Mr. Bruno for state funds for upstate projects that would be comparable to the state's $300 million subsidy for the stadium.

Reporting for this article was contributed by Al Baker and Michael Cooper, in Albany, and Nicholas Confessore and Jim Rutenberg, at City Hall.

 

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