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September 12, 2010
Yankees parking garages nearing default on bonds
Field of Schemes
The publicly-subsidized parking garages for the new Yankee Stadium are losing money. This is an example why claims like the $6 billion lie for the Atlantic Yards project need to be examined closely so that government doesn't give away taxpayer money while receiving no public benefit.
When New York Daily News columnist Juan Gonzalez reported back in June that the parking garages at the new Yankee Stadium were losing money and could cause the garage operator to skip rent payments to the city, city Economic Development Corporation spokesperson David Lombino wrote to Gonzalez (and to me):
When the bonds were issued, an independent analysis found that typical parking demand would eventually generate enough revenue to cover bond expenses, rent and PILOT. Last year, occupancy was lower than the analysis predicted. As the economy improves, we can expect that occupancy would improve. So far this year, there are more vehicles using the parking lots (through April), and if occupancy returns to typical historical levels in line with the independent analysis, revenues will increase and based on these assumptions the lots will generate enough revenue to cover bond expenses, and to begin paying rent and PILOT. That could be as soon as this year.
Or not. Gonzalez writes in today's News that the garages are on the verge of defaulting on their bonds, with the nonprofit Bronx Parking Development warning bondholders that it has "insufficient funds" to make a $6.8 million payment due October 1. The problem: Too many Yankees fans are taking the train to the game, or parking at the nearby Gateway Center mall where rates are much cheaper.
Posted by steve at September 12, 2010 10:48 AM