City to feel the hurt from Bronx stadium deal

New York /
Dec.December 16, 2013 05:45 PM

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


Related Articles

arrow_forward_ios
1065-1075 Gerard Avenue in the Bronx 

Prana pays Related $36M in Bronx multifamily play

Prana pays Related $36M in Bronx multifamily play
448 East 143rd Street in the Bronx (Credit: Google Maps)

Private developer’s NYCHA project in Mott Haven lands $79M in financing

Private developer’s NYCHA project in Mott Haven lands $79M in financing
1159 and 1184 River Avenue with Maddd Equities' Jorge Madruga (left) and Joy Construction's Eli Weiss (right) (Credit: Google Maps)

Maddd Equities, Joy Construction score $64M for massive Bronx project

Maddd Equities, Joy Construction score $64M for massive Bronx project
Silvercup Studios (Getty)

Outer-borough loan activity fired up in October

Outer-borough loan activity fired up in October
2055 Anthony Avenue and 1416 Ferris Place (Google Maps)

Ved Parkash picks up Fordham Heights apartment building

Ved Parkash picks up Fordham Heights apartment building
41 Haight Street in Flushing and 1290 Viele Avenue in Bronx (Google Maps; iStock)

Deal for pizza-pan manufacturer rounds out last week’s mid-market sales

Deal for pizza-pan manufacturer rounds out last week’s mid-market sales
Bronx-Manhattan North Association of Realtors' Eliezer Rodriguez and Hudson Gateway Association of Realtors' Richard Haggerty (Photos via Facebook)

New York’s biggest MLS gets bigger after merger

New York’s biggest MLS gets bigger after merger
AIG CEO Brian Duperreault and Brooklyn Navy Yard project, with Andrew Joblon and 980 East 149th Street (Turnbridge, Brooklyn Navy Yard)

These were the top outer-borough loans in September

These were the top outer-borough loans in September
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...