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NEW YORK CITY-The New York City Industrial Development Agency have paved the way for two stadium projects here to move forward. It has given preliminary approval for financing assistance for the New York Yankees' and New York Mets' stadium efforts. In total, IDA will issue about $930 million in tax-exempt and taxable bonds for the Yankees and approximately $632 million in tax-exempt and taxable bonds for the Mets. For previous GlobeSt.com coverage on this issue, click here.
The repayment structure for the tax-exempt bonds will be submitted to the city council for approval. "The Yankees and Mets are tremendous assets of New York City," says IDA chairman Andrew M. Alper. "Both projects are part of larger, area-wide revitalization plans--the Yankees in the South Bronx and the Mets in Flushing near Willets Point--that will help increase the economic vibrancy of the neighborhoods and create valuable jobs."
IDA will issue about $930 million in tax-exempt and taxable bonds to build the new stadium for the Yankees. Of that amount, $866 million is expected to be in tax-exempt bonds and $64 million in taxable bonds. The bonds will be repaid solely from payments made by the Yankees. The tax-exempt bonds will be payable from Payments in Lieu of Taxes or PILOTs, a structure that will be submitted to the city council for approval. The taxable bonds will be payable from rent payments. IDA also intends to use exemptions from real property tax, mortgage recording tax and sales tax in connection with the project.
The Yankee Stadium plan involves creating an open-air, five-level stadium with approximately 53,000 seats, standing room for 1,000 and 60 suites. It will have approximately 1.3 million sf of space. Four new garages would be constructed which would provide around 4,735 new parking spaces.
For the new Mets stadium, IDA will issue about $632 million in tax-exempt and taxable bonds. It is expected that $528 million of that will be in tax-exempt bonds and $104 million will be in taxable bonds, both of which will be repaid in the same manner as with the Yankees--through PILOT payments (subject to city council approval) and direct rent payments. IDA intends to use exemptions from real property tax, mortgage recording tax and sales tax in connection with the project.
The plan at Shea involves creating an open-air, seven-level stadium with capacity for 44,100 spectators. There will be approximately 1.26 million sf of space. There will be 8,800 parking spaces on-site and adjacent to the site in addition to 3,680 spaces in remote lots in the surrounding area.
The projects are expected to bring more than $1.5 billion in private investment to the South Bronx and Flushing Queens. They will relieve the city from having to pay maintenance and capital repair costs that would have exceeded rent payments by more than $113 million over the next 40 years for both stadiums. The teams will be responsible for maintaining the new stadiums.
In another Bronx development, construction has gotten under way for the $56.7-million Hub Retail and Office Center in the South Bronx. The Related Cos. will build an approximately 170,000-sf, mixed-use facility on vacant, formerly city-owned property at the northern end of the Hub commercial district and will also renovate a former municipal parking garage. The Department of Finance will relocate an additional 225 employees to the new facility from other locations in the Bronx.
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