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December 2, 2009
So, are tax-exempt bonds for infrastructure ruled out forever? Where would infrastructure funds come from?
Atlantic Yards Report
Norman Oder ponders the Atlantic Yards financing mystery.
Though the Empire State Development Corporation (ESDC) does not "foresee" having to issue tax-exempt infrastructure bonds to make up the current project funding gap, that doesn't preclude them from doing so in the future.
"ESDC does not foresee a scenario in which the abandoned financing structure would be taken up again," responded spokeswoman Elizabeth Mitchell.
So how will the funding gap be made up?
"The funding for the entire project will be a combination of tax-exempt bonds, New York State funds, and New York City funds," Mitchell responded. "Any additional funding required will be made available by Forest City Ratner Companies."
She left out taxable bonds--unless that's subsumed under FCR funding. Still, there's a gap. Will the developer go back to the city and state for "extraordinary infrastructure" funding? Stay tuned.
NoLandGrab: The State of NY is on the brink of issuing tax-exempt arena bonds, but there is no public information on how developer Bruce Ratner expects to finance the entire project. Obviously Ratner knows how he expects to fund the project.
Shouldn't prospective bond holders and the public be in on the secret?
Posted by lumi at December 2, 2009 6:34 AM