Taxpayers Hammered on Yankee Stadium Garages . . . Again?

  • Posted at 11:46, January 07, 2014
  • By QuidnuncRE Staff

A few items that surfaced on Monday gathered and linked below:

  • The business horror that is the city’s development deal that produced the Yankee Stadium parking garages may get more taxpayer money thrown at them.  Columnist Juan Gonzalez reported in the Monday Daily News that Bronx Parking Development Co. LLC could get a $200 million financial bailout plan that the Bloomberg administration approved last month.  The Yankees and partner Manchester City club, owned by billionaire Sheik Mansour Bin Zayed Al Nahyan, are proposing to pay an estimated $25 million for one of the garages.  The partnership wants to demolish the W. 153rd St. garage, and build a new $350 million Major League Soccer stadium for its New York team. Gonzalez writes that the new reorganized garage company would get a 42-year rent-free lease for the other garages, noting that under current terms, the company was supposed to pay $3.2 million annually to rent the land as well as pay taxes.  But the company owes $50 million on those charges and is nearly bankrupt, with the city bill, according to Gonzalez, in line behind the $237 million it owes bondholders.  The garages are overpriced and barely used. The new deal would not repay the $50 million, but, at least theoretically, repurpose the land to bring in new revenue instead.  The article is HERE.
  • Capital New York noted yesterday that the soccer stadium deal is on shaky ground because Councilwoman (and City Council-speaker frontrunner) Melissa Mark-Viverito doesn't like the details, and its in her district.
  • The Daily News also had the details on more Bronx development, a new two-story Hunts Point mall, which it reports has dumped plans for an eight-story housing building above the retail center, “making the project less appetizing to some residents.” The details on the 40,000-square-foot shopping center, which will be called “The Crossings,” can be found HERE.
  • What’s next for the loans from the boom?  We mean those mortgages written during the real estate boom part of the '00s, pre-2007.  This year, those loans will begin approaching their terms, as well as the termination of their prepayment penalty periods.  And rates are still low, despite rises in 2013.  So it’s the perfect time for many to refinance, right?  National Real Estate Investor raises some questions about the fate of the estimated $1.4 trillion in commercial mortgages scheduled to mature between now and 2017 in “Flood of Debt, Opportunity Hits CRE.”  Available HERE with registration.
  • New York-based mall developer Rouse Properties Inc., an NYSE-traded REIT announced that it plans a public offering of seven million shares of its common stock.  In a press release today, the company said it will use the proceeds “to repay indebtedness incurred under the Company’s secured revolving credit facility primarily in connection with the Company’s acquisition in December 2013 of two enclosed regional malls from certain affiliates" of the Macerich Co., another retail center-focused developer, "and for general corporate purposes, including future acquisitions, working capital and other needs." Rouse closed Monday at $21.68 a share, up slightly.


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