On a busy streetcorner in downtown Brooklyn, the steel girders are starting to rise. After a decade of protests by residents (including local celebrities like Steve Buscemi, Jennifer Egan and Jonathan Lethem) and innumerable lawsuits, developer Bruce Ratner’s vision of a new arena to bring the New Jersey Nets basketball team to Brooklyn—with the aid of about $500 million in city and state subsidies—is taking root, with a scheduled opening in September 2012.
Yet Atlantic Yards, as Ratner has dubbed his twenty-two-acre development project on the edge of the bustling neighborhood of Prospect Heights, won’t look much like the image he first unveiled in 2003. The “Miss Brooklyn” office tower, which was supposed to bring jobs to the community, is gone, a victim of the virtual collapse of New York’s commercial real estate market. Meanwhile, the condo towers that were supposed to provide more than 2,250 units of affordable housing are unlikely to be built anytime soon, if at all. (The latest plan involves a “modular” building, akin to stacking shipping containers thirty-four stories high.) The Nets, meanwhile, are spending two seasons playing in Newark’s Prudential Center, another heavily subsidized building ($200 million fronted by taxpayers) that was supposed to revitalize its surrounding neighborhood but that still rests among the same discount stores and fast-food joints that lined Market Street before the arena opened in 2007.
It’s a story that could have been told in almost any American city over the past two decades. Owners of teams in the “big four” sports leagues—the NFL, MLB, NBA and NHL—have reaped nearly $20 billion in taxpayer subsidies for new homes since 1990. And for just as long, fans, urban planners and economists have argued that building facilities for private sports teams is a massive waste of public money. As University of Chicago economist Allen Sanderson memorably put it, “If you want to inject money into the local economy, it would be better to drop it from a helicopter than invest it in a new ballpark.”