The developer of an Islamic cultural center in Lower Manhattan will seek $70 million of tax-exempt bond financing to build the new $100 million facility modeled after religiously affiliated community organizations like the YMCA or New York’s 92nd Street Y, according to a news report.
Sharif el-Gamal, president of Soho Properties Inc., told the New York Times that he wanted to finance the project, called 51Park, with tax-exempt bonds and raise the rest of the money through a nonprofit partner.
The project would house a theater and swimming pool, and offer educational programs and a restaurant. Critics and media have dubbed the project the “Ground Zero Mosque” due it being two blocks away from the World Trade Center site and the planned inclusion of a prayer room in the 15-story building. Despite controversy surrounding the project, el-Gamal can legally build the project “as of right” on the property.
YMCAs and a Jewish Community Center in New York have borrowed money through the state industrial development agencies in the past. From 1997 to 2006, the New York City Industrial Development Agency issued $79.9 million of new-money and refunding bonds on behalf of the YMCA of Greater New York, according to the Municipal Securities Rulemaking Board’s EMMA system.
IDAs in Erie County, Monroe County, Onondaga County, Cattaraugus County, Westchester County, and Middletown have sold at least $47.9 million of bonds for YMCAs over the past 12 years. The New York City IDA sold $48 million of bonds on behalf of a Jewish Community Center in 2000 and 2001.
With the expiration in 2008 of the law allowing IDAs to sell tax-exempt bonds for civic facilities on behalf of nonprofits, IDA financing is not currently an option for 51Park. Some municipalities in the state have gotten around the law’s sunset by creating local development corporations to issue bonds for civic facilities projects.
Spokesmen for Mayor Michael Bloomberg and city Comptroller John Liu said they have not been approached by the developer about financing the project.
“We have no plans to create an LDC for that purpose,” said Bloomberg spokesman Andrew Brent. Though Bloomberg has been a vocal supporter of the project, Brent said he would not comment on hypothetical financings.
“The comptroller does support the project,” said spokesman Scott Sieber. “Provided it’s financially feasible and can demonstrate ability to pay off the bonds and comply with tax-exempt financing laws, we would certainly consider it.”
Calls and e-mails to el-Gamal and Soho Properties were not returned by press time.
