Red Card for Red Bull Soccer Stadium

Like a referee ejecting a soccer player for overly aggressive play, the New Jersey Tax Court has thrown out a tax appeal that claimed Red Bull Arena, home to the New York Red Bulls Soccer Club, is a tax-exempt entity.

Image via Wikipedia

The arena sits on a 12-acre parcel that is located within a designated redevelopment area under the local redevelopment and housing law (“LRHL”).  While the property is owned by the Harrison Redevelopment Agency, a municipal entity created pursuant to the LRHL, it is leased to Red Bull through the Hudson County Improvement Authority. Pursuant to the terms of the lease, Red Bull is responsible for the payment of any real property taxes assessed.  Red Bull argued that the property was acquired by the Harrison Redevelopment Agency to be redeveloped for the “public good” and that since the stadium provides a “public good” and the redevelopment agency is a tax-exempt entity, the stadium should be tax-exempt.

Much like an unsympathetic referee ignoring the pleas of a player whistled for a hard foul, the tax court judge rejected Red Bull’s argument. The court found that once the property was transferred to Red Bull and no longer held by the redevelopment agency, it no longer fulfilled the statutory purpose of redevelopment and was no longer exempt.    Red Bull, undeterred by the judicial red card, has vowed to appeal the decision.

See story from the Jersey Journal here.