Mayor Bloomberg Is "Trying To Help" Nearly Bankrupt Yankee Stadium Parking Company
Wednesday, October 17, 2012 - 11:31 AM
(New York, NY - WNYC) With the company that owns the Yankee Stadium parking system staring down bankruptcy, Mayor Bloomberg called the situation "sad," and said his administration is "trying to help them."
Speaking during a press conference Q & A, the mayor addressed the issue of the stadium's foundering garages and lots, which have been only 42 percent full this season, according to this latest report.
"There just wasn't the business there that the owners, who made the investment, thought that there was going to be," the mayor said in answer to a question posed by a WNYC reporter. "If the owners of the parking garage can't make money, that's sad. We've got to find a way to help them."
The Bloomberg administration has already tried to help the company by having the city's Economic Development Corporation attempt to broker a deal with a real estate developer to build affordable housing and stores on some of the underused lots near an existing retail mall. But those talks have ended without a deal.
NYC EDC spokesman Kyle Sklerov wouldn't give specifics on the failed negotiations. Nor would he comment on an idea by Bronx Borough President Ruben Diaz Jr. to have the Bronx Parking Development Company build a hotel atop an empty garage. Sklerov would only say:“New options to develop the site will be considered moving forward as part of a larger effort by the BPDC board to get back on sound financial footing."
The scramble to find new revenue for the BPDC was set off by the company's long slide into default on $237 million in tax-free bonds. The NYC EDC acted as the conduit for those bonds, not the seller, so taxpayers aren't holding the debt.
Still, the default is a blow to the agency's reputation. Before the Yankees' new stadium was opened in 2009, Bronx residents and some civic groups tried to warn the city and the team that 9,000 parking spots spread across eleven lots and garages weren't needed. Their concerns went unheeded and the EDC facilitated the tax-free bonds that created a parking system sized to suit the Yankees' misguided desire.
The lots and garages have been underused--even during seasons, like this one, when the Yankees make the playoffs--and the BPDC is now in financial free fall.
Perhaps Mayor Bloomberg said it best when first asked at the press conference about the stadium parking: "Not everything works."