Key Form of AY Arena Financing Appears Shaky
A big chunk of financing for Atlantic Yards may be in jeopardy, the Times reports. The IRS is looking to end the days of tax-exempt bond giveaways for pro sports teams’ projects, a form of financing that Forest City Ratner was counting on for its $950 million Barclays Center. The Nets facility is expected to…
A big chunk of financing for Atlantic Yards may be in jeopardy, the Times reports. The IRS is looking to end the days of tax-exempt bond giveaways for pro sports teams’ projects, a form of financing that Forest City Ratner was counting on for its $950 million Barclays Center. The Nets facility is expected to be the most expensive arena in the world. Forest City Ratner had expected to raise about $800 million in tax-exempt bonds. Real estate pros say the arena will be much harder to bring to fruition if the tax-exempt dough doesn’t come through. Forest City Ratner is poised to get more than $2 billion in tax subsidies for Atlantic Yards, according to reports published earlier this year, but the developer says that may not be enough public financing for the project to be realized. The move by the IRS could also impact plans for the new Yankee Stadium in the Bronx among other projects.
A Question Mark Looms Over 3 Expensive Projects [NY Times]
You Pay and the Nets Will Play [NY Times]
Photo by andriz.
One of the things they talked about is making the change non-applicable to projects already in the pipeline or under construction. AY would possibly be considered not far enough along to be protected (yay!).
Beyond that I am sticking my neck out to say I think it’s not the best way to spend our money- so to speak. AY reps say the project will return $1 billion in tax revenues over 30 years to the city. considering how much we’ll put into it, and inflation, etc., that’s piddling.
Johnny,
you’re right! and i just thought of another idea too. if it’s about jobs then Bloomberg should just take our $2 billion (!) in taxpayer money that he’s decided to give Ratner and give it to the people who need jobs. it would go a lot further toward its goal that way. who needs Ratner to make jobs??
If in fact the IRS gets rid of tax exempt financing for sports facilities, Atlantic Yards is a dead duck. That being said, I seriously doubt that this measure will go forward. This sort of ruling will not only effect Atlantic Yards. Let’s keep in mind that this financing mechanism is the scheme pursuant to which most cities finance sports stadia. Despite the fact that most people on this blog are Anti -AY, this would also impact Yankee Stadium, Citi Field and just about every other sports facility in the country (including popular, publicly supported projects in other parts of the country. Furthermore, it’s a powerful and popular tool for municipalities throughout the country. I doubt it comes to fruition.
Perhaps Barclay’s has pulled out of the project and has been replaced by Deutchesbank.
One thing for sure: die Katze ist nett! (cute)
Montrose Morris
Yes, 9:21, that’s definitely the cat from yesterday’s forum post. She’s trying to register for one of the AY affordable housing units, having been thrown out on the street by her insensitive landlord. She’s curled up for a nap because she knows it’s going to be a bit of a wait until the units are ready.
bxgrl wins brownstoner today. brilliant!
Is that the new Gehry plan?- Jeesh! They redrew them again? Gonna say I’m liking the organic lines and the toned down colors though. Still not sure about the striping but the design seems much more cohesive overall. Is that furry stuff a new hi-end exterior finish?
Less and less likely everyday there’ll be an arena.
ATM Guard Cat says
No Cheezburger, No Dough.
Wait a second, what site is this?