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NYC, Nuveen strike out with Yankees over new soccer stadium and hotel/retail development
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An eleventh-hour dispute between bondholders, New York City and the New York Yankees appears to have doomed a long-anticipated, $1 billion project that would have resulted in the construction of a new professional soccer stadium, low-income housing and a broader redevelopment of one of the nation’s poorest neighborhoods, FOX Business has learned.
The dispute involves around 5,000 parking spaces the city and bondholders agreed to give the Yankees as part of the development project – a complex, multi-year effort to bring economic growth to the poor South Bronx neighborhood Yankee Stadium calls home.
The development included a new stadium for New York City’s professional soccer team, New York City F.C., a hotel and retail stores on grounds that currently house parking lots and garages for Yankee games that the city is mandated to provide under a 2007 agreement with the team. It would be financed with private money arranged by a consortium that includes a housing developer and the owners of the soccer team.
BITCOIN, CRYPTO IN MLB NO LONGER OUT OF LEFT FIELD
Bonds issued in 2007 to build the parking facilities have fallen into default in recent years, while the parking garages owe the city millions of dollars in back taxes. The consortium also agreed to pay $50 million to restructure the defaulted debt.
For years, city officials and bondholders have said they were eager to find a solution to the Yankee parking imbroglio and until last week, all indications were that they had one.
But Yankee officials say the city and bondholders have reneged on a key piece of the deal that has put the entire project on hold indefinitely and possibly forever. That deal involved a guarantee of first-class parking for its fans even as the team agreed to reduce the city’s initial 9,000 plus parking space commitment.
A term sheet providing details of the agreement between bondholders, the city’s Economic Development Corporation (EDC) and the Yankees were reviewed by FOX Business.
"I’m very disappointed," said Yankee President Randy Levine, a former prosecutor and top city official under former Mayor Rudy Giuliani who was the architect of the redevelopment proposal. "This would have gone a long way to salvaging the bonds plus we were going to spend a billion dollars in private money to revitalize this area that would produce thousands of good paying jobs."