Now that the company that runs the Yankees parking lot is near bankruptcy, they’ve hired Rudy Giuliani in the hope that his juice will help them wriggle out. The bad news is that it’s taxpayer money that is on the line.
“The firm originally financed the project with $100 million in direct city and state subsidies, plus another $237 million in tax-exempt bonds issued by the city’s Industrial Development Agency.”
Sounds like the taxpayers paid for it.
“Bronx Parking has been unable to generate enough revenues to pay the interest on its bonds and has had to repeatedly dip into its reserves, The company itself concedes those revenues will be exhausted by the end of the year. Meanwhile, Bronx Parking has not paid a penny in rent or taxes for more than 20 acres in city park land on which the garages stand. It currently owes the city more than $25 million.”
And the taxpayers aren’t getting the rent they’re owed.
“The city, on the other hand, insists this is all a problem between Bronx Parking and the bondholders.”
And Bloomberg washes his hands (by the way, the Industrial Development Agency is run by the Economic Development Corporation which is controlled by — surprise! — Mayor Bloomberg).