Agency Preliminarily Approves $1.5B in Financing for New York Baseball Stadiums
03.16.06 (10:50 am) [edit]
The New York City Industrial Development Agency has granted preliminary approval for financing assistance for the New York Yankees and the New York Mets, both of which plan to build new state-of-the-art stadiums.
The agency will issue approximately $866 million in tax-exempt bonds and $64 million in taxable bonds to build a new Yankee stadium in the South Bronx, which will be repaid solely from payments made by the Yankees through a payments in lieu of taxes structure, which will be submitted to the New York City Council for approval. The taxable bonds will be payable from rent payments made by the Yankees. The agency also intends to use exemptions from real property tax, mortgage recording tax and sales tax in connection with the project.
The Mets will be issued approximately $528 million worth of tax-exempt bonds and $104 million in taxable bonds for a stadium in Flushing, Queens, to replace the existing Shea Stadium (pictured). The bonds will be repaid in the same manner as the Yankees. Agency officials were unavailable for comment by deadline.
The stadiums will bring more than $1.5 billion in private investment and relieve New York City of 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. They will also generate approximately $157 million per year more in direct and indirect tax revenue than the city would have received from the teams without them. Estimated construction costs are $1 billion for the Yankees and $800,000 for the Mets, and both are projected to require more than 15,000 construction jobs and more than 1,800 permanent jobs.
The agency will issue approximately $866 million in tax-exempt bonds and $64 million in taxable bonds to build a new Yankee stadium in the South Bronx, which will be repaid solely from payments made by the Yankees through a payments in lieu of taxes structure, which will be submitted to the New York City Council for approval. The taxable bonds will be payable from rent payments made by the Yankees. The agency also intends to use exemptions from real property tax, mortgage recording tax and sales tax in connection with the project.
The Mets will be issued approximately $528 million worth of tax-exempt bonds and $104 million in taxable bonds for a stadium in Flushing, Queens, to replace the existing Shea Stadium (pictured). The bonds will be repaid in the same manner as the Yankees. Agency officials were unavailable for comment by deadline.
The stadiums will bring more than $1.5 billion in private investment and relieve New York City of 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. They will also generate approximately $157 million per year more in direct and indirect tax revenue than the city would have received from the teams without them. Estimated construction costs are $1 billion for the Yankees and $800,000 for the Mets, and both are projected to require more than 15,000 construction jobs and more than 1,800 permanent jobs.