The New York City Independent Budget Office reports that those in-default Yankees parking garages that the city and state helped build are not only still in default (no surprise there), but that they’re desperately trying to raise funds to make their bond payments by selling off development rights to parking lots on city-owned land:
With the Bronx Parking Development Company, which runs the parking system, in default and in need of new revenue, a request for proposals was issued to sublease and redevelop two lots near Yankee Stadium. The responses were due June 5 to the Bronx parking company. Edward Moran, who was hired to restructure the parking company, did not respond to two e-mail requests and a follow-up phone call for information about the number of proposals received and when a selection is expected to be made.
Before you start drawing any lines: These lots are not the ones that Bronx borough president Ruben Diaz Jr. referenced earlier this week regarding the possible site of a New York City F.C. soccer stadium. These lots, known as Site D in city lease documents, are a pair of small lots on either side of 151st Street between River and Gerard Avenues, which wouldn’t be nearly big enough for a soccer stadium.
How much Bronx Parking Development is looking to get for its land isn’t immediately clear — the RFP documents just say that applicants “must include a proposed rent schedule for the entire term of the sublease,” which runs through 2106, so plan ahead, applicants. Whatever they get, though, it’s unlikely that the city will share much if any of it: As the IBO’s Doug Turetsky points out, Bronx Parking has yet to make any of its annual $3.2 million rent payments or additional payments in lieu of property taxes to the city, and under the terms of its lease, “money owed to the city takes a back seat to payments to bondholders if revenues are insufficient to cover both.”
Maybe if NYC F.C. gets involved in talks for the larger site to the north, then there’ll be enough money for the city to finally start to get repaid for its $39 million garage investment. (The state’s $70 million was a gift, not a loan, and is gone for good.) Though given that MLS doesn’t think its teams should pay anything for land or property taxes, maybe it’s best not to hold your breath on that.
Dear KJ,
This deal is pretty similar to the one you’re attempting to complete in Sacramento. Just thought you’d want to know.