The nonprofit Bronx Parking Development Company could go bankrupt amid the New York City Football Club’s plan to build a $400 million soccer stadium near Yankee Stadium.
The city’s Economic Development Corporation formed Bronx Parking in the mid-2000s to borrow $240 million in bonds and create a five-garage complex, which is largely vacant to date. Bronx Parking defaulted on its debt and continues to struggle. The soccer team, which is majority-owned by Manchester City Football Club, wants to tear down one of the 2,000-space garages to build the stadium.
If the stadium project becomes a reality, the bondholders will likely not accept a write-down on the debt. Therefore, the city would potentially see none of the profits from the stadium. Last week, Mark Page, director of the Office of Management and Budget, brokered a deal between Bronx Parking and creditors to delay a debt restructuring until late 2015. Millions in interest on the loan would nevertheless accrue over time.
But Marlene Cintron, president of the Bronx Overall Development Corporation and Bronx Parking board member, told Crain’s she was worried that the nonprofit would not make enough money to cover its expenses.
“We’re dealing with an entity that can and should be in Bankruptcy Court,” Cintron said. [Crain’s] — Mark Maurer