Friday, February 03, 2012

Operator of NY's Taxpayer Financed Yankee Stadium Garages Nears Default

Don't ever say governments don't invest in our communities. Allegheny Center, was an investment that took the heart out of The North Side, while Mellon Arena was an investment in the lower Hill- which just happened to remove it's residents and businesses.

The Cross Bronx Expressway was an amazing feat of engineering, leaving a wonderful gash through the Bronx. Often tax investments are given to vital interests like sports teams who have the community's interest at heart.

Few were as misguided and despicable than the 2005 deal between NY City and The New York Yankees. It's blowing up now.

From The Daily News

THE FIRM that built and manages the new Yankee Stadium parking garages can’t repay $237 million in tax-exempt bonds the Bloomberg administration arranged for it four years ago, new financial records show.

Bronx Parking Development Company LLC is running perilously low on cash reserves and faces a looming default by the end of the year, according to a report filed Friday by a trustee for the firm’s bondholders.

Time is running out, in other words, to avoid one of the biggest failures in decades of bonds issued by a New York City agency.

Local politicians who supported the deal like Council Speaker, Christine Quinn thought...
“I think it would be great if people could go to sporting events exclusively on mass transit but that’s not going to happen,” she said. “So one has to, when they’re developing projects like this, have a reality sense of what the needs are as it relates to parking.”

Even though more than fifty percent of game goers used mass transit.

The positive thing is that, as the garages go belly up, people are finally thinking of actual money making ways to use the land, like building hotels and conference centers. The problem is that, with the city so eager to bend over and hand out tax dollars, sports teams have little incentive to make good use of their properties. Honestly, George Steinbrenner's obsession with expanded parking revealed how little he thought of The Bronx.

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