The Real Deal New York

Yankee Stadium parking owner would get $200M under bailout

January 06, 2014 02:40PM

The financially-imperiled Yankee Stadium garage company may receive a new taxpayer subsidy of over $200 million if a financial bailout plan designed during the Bloomberg administration is approved.

Major League Soccer announced in May it would form the league’s 20th team in the city, to be jointly owned by Manchester City owner Sheik Mansour bin Zayed al-Nahyan and the New York Yankees. The partners have put forward a proposal to pay about $25 million for one of The Garages On West 153rd Street owned by nonprofit Bronx Parking Development Company, which operates the stadium’s garage system.

But the bailout plan – which was approved on Dec. 18 by Bronx Parking’s board of directors and the holders of its debt – stipulates that the nonprofit will operate rent-free until 2056 on more than 20 acres of city-owned land where its other stadium garages are located, according to the New York Daily News.

Bronx Parking was meant to pay an annual rent of $3.2 million under a 2007 agreement in which it received $237 million in tax-exempt bonds to build the garages. But the company has been struggling to make an income from the garages, and currently owes the city more than $50 million in back rent, taxes and interest, according to the newspaper.

Under the terms of the bailout, the city will lose out on rent of about $150 million, and also forgo the $50 million currently owed, according to the Daily News.

“There is no final restructuring agreement at this point,” Benjamin Branham, a spokesperson for the city’s Economic Development Corporation, said in a statement last week to the newspaper. [NYDN] – Hiten Samtani

  • Glenn Krasner

    One of the biggest real estate scams in the history of NYC. We haven’t seen something like this since Mayor Lindsay. It was a giveaway from the start, when they built the garages for the new Yankee Stadium, and it seems that it is the gift that keeps on giving. Although it is a so-called non-profit, somebody is making a ton of money on this boondoggle. The board of directors, one of whom I seem to recall is in city government in some capacity, must receive salaries and perks and benefits, for an entity that has done nothing but lose millions of dollars since its inception. Now, it will be allowed to forgo its obligations under the new soccer stadium plan, for its previous debt and future rent payments. The bondholders must be immensely pleased with this arrangement, and naturally, the taxpayers get left holding the rather empty bag. Glenn in the Bronx, NY.

  • Daniel

    Every garage in New York City is full. Garages charge up to $1,200 a month. I think the average is close to $400 a month. This garage is just a few stops on the 4 & 5 trains from the Upper East Side. With a bit of marketing the owners could have filled every space with monthly $200 spaces. There is something very wrong here…

    • noclist

      In the Bronx you’re not getting $400/mo for parking anywhere. These garages are only convenient if you’re attending a Yankee Stadium event and even then street parking is usually plentiful if you don’t mind walking a block or two.

  • Larry Commercial Mortgage

    There is a term in economics called the ‘elasticity of demand’. When prices rise to a certain level consumers reduce their consumption of that item, and beyond a certain price the consumer will look for substituted. In the case of parking at Yankees Stadium the fees charged by the garages are so ridiculously high that I refused to pay them ever since the new stadium was built, opting for either the private lots a few blocks away from the stadium on River Road or even street parking even further away. The garage across the street from the current stadium went from $13 to $17 to $19 to $25 before the new stadium was built and is currently $35 per game – NOT going to happen.

  • ralphpetrillo

    Funny for the rate was $ 35 but they would not take credit cards. Who knows if the bankruptcy was real or not?