NYCIDA Authorizes Financing Assistance for New Stadiums for Yankees and Mets
IDA Also Approves Financing for Industrial Companies in Brooklyn, Queens and the Bronx.
New York City Industrial Development Agency (IDA) today granted final approval for financing assistance for the New York Yankees and New York Mets to allow for the construction of new, state-of-the-art stadiums adjacent to each existing ballpark. The projects will bring more than $1.5 billion in private investment to the South Bronx and Flushing, Queens and relieve the City from maintenance and capital repair costs that would likely have exceeded rent payments at the existing stadiums by more than $113 million over the next 40 years. The issuance of the tax -exempt bonds for both projects is contingent on the receipt from the Internal Revenue Service of a favorable private letter ruling.
The IDA also approved financing for three industrial companies in Brooklyn, Queens and the Bronx. IDA is administered by the New York City Economic Development Corporation.
“New stadiums for the Yankees and Mets will give a tremendous boost to the local economies of the South Bronx and Flushing, Queens and will be major New York City attractions for a long time to come,” said Interim IDA Chairman Joshua J. Sirefman. “I’m pleased today’s Board approval set the stage for both projects to move forward, so the teams can start building the stadiums and create the nearly 16,000 construction jobs they are expected to generate.”
IDA will issue about $920 million in tax-exempt bonds and $25 million in taxable bonds to build the new stadium for the Yankees. The project will result in roughly 9,700 construction jobs and 615 permanent jobs, excluding concessions. For the new Mets stadium, IDA will issue about $528 million in tax-exempt bonds and $104 million taxable bonds. The new Mets stadium will result in about 6,100 construction jobs and 970 permanent jobs, including concessions.
The tax-exempt bonds for both projects will be payable from Payments In Lieu Of Taxes or PILOTs, a structure approved by the City Council on April 25, 2006. The taxable bonds for both projects will be payable from rent payments made by the teams. IDA intends will also use exemptions from real property tax, mortgage recording tax and sales tax in connection with the projects.
IDA approved about $7.3 million in real estate, sales tax and mortgage recording tax benefits for the Federal Express Corporation and McMahon Development Group to construct and equip a new facility in the Bronx. Federal Express is moving out of its West 34th Street site to allow the development of the Hudson Yards area and the construction of the number 7 subway extension. The global parcel shipping company will renovate and construct an approximately 98,000-square-foot facility located at the Harlem River Yards in the Bronx. The project will retain and create more than 250 jobs and represents approximately $42 million of new City tax revenue over 25 years.
IDA approved $5.4 million in real estate, sales tax and mortgage recording tax benefits for Samuel Feldman Lumber Co. Inc. to acquire, renovate and outfit a new approximately 32,000-square-foot manufacturing facility in East Williamsburg, Brooklyn. Samuel Feldman Lumber Co. Inc. has seen growth in its lumber distribution business and can not remain in its current location due to space constraints. The company explored alternate facility options in New Jersey, but IDA financing will allow it to remain in Brooklyn, keeping 133 existing jobs and creating 15 new jobs.
Simon’s Hardware and Bath, a wholesaler of architectural hardware and bath fixtures, will receive sales and real estate tax benefits of about $1.7 million to acquire and renovate an approximately 18,000-square-foot property in the Long Island City Industrial Business Zone in Queens. The new facility will allow the company to accommodate growth of its currently constrained product lines and add new ones. The increased warehouse space will result in an additional 16 jobs added to the 9 existing jobs. The company will also receive Industrial Business Zone tax credits of $25,000.
“The Administration is committed to helping industrial and manufacturing companies thrive and grow in the five boroughs and I am pleased IDA continues to play an important role in that effort,” said Steven M. Berzin, IDA Executive Director. “IDA assistance will allow these companies to continue operating in New York City, investing in expansion projects that will retain and add over 400 jobs in Brooklyn, Queens and the Bronx.”
The New York City Industrial Development Agency provides financing assistance to businesses, including small industrial and manufacturing companies and not-for-profit organizations. IDA is a conduit agency that issues tax-exempt industrial revenue bonds to assist eligible commercial, industrial, not-for-profit and other qualified entities to finance expansion opportunities. IDA also offers qualified companies abatements on sales, real estate and mortgage taxes. To request information and details on IDA programs, call (212) 312-3600 or e-mail [email protected].