The New York City Industrial Development Agency yesterday gave its initial approval for a plan to issue nearly $1.4 billion of tax-exempt debt for the construction of a pair of new stadiums for Major League Baseball’s Mets and Yankees.
The agency’s board passed “inducement resolutions” for both projects, which served as its first official action indicating its intention to proceed with the projects. The Mets project was approved by a vote of 13 to 0, and Yankees project was approved 12 to 0, with one abstention by Barbara Basser-Bigio.
Both projects still have to come back for final authorization, and a date for that vote has not been scheduled. An official with the agency said that would occur only after the New York City Council conducted its review of both projects. At this point, the agency expects to hold its final vote in May or June.
“Both projects are part of larger, area-wide revitalization plans — the Yankees in the South Bronx and the Mets in Flushing near Willets Point, Queens — that will help increase the economic vibrancy of the neighborhoods and create valuable jobs,” IDA chairman Andrew Alper said in a statement after the meeting.
The agency will issue $632 million for the Mets, with $528 million of that as tax-exempt and $104 million as taxable debt. An additional $930 million of debt will be sold for the Yankees, with $866 million of that being tax-exempt and $64 million taxable.
The tax-exempt bonds will be backed by payments in lieu of taxes, or PILOTs, from both the Mets and the Yankees. The taxable bonds will be backed by rent payments from the teams.
The next step in the process is for the City Council to hold hearings to review both the financing and land use aspects of the projects.
Maria Alvarado, a council spokeswoman, said a public hearing on the land use plan for the Yankees’ project is scheduled for March 28 before the subcommittee on planning, disposition and concessions. It will then go to the land use committee and then to the full council for a vote. A hearing date for a land use review of the Mets project has yet to be set, Alvarado said.
Councilman David Weprin, chairman of the finance committee, said he expects to hold hearings on the financing plan for the Yankees a week or two after the subcommittee review. Weprin said that in a presentation to him about two weeks ago, Yankees’ representatives talked about PILOTs to the city in the range of $40 million to $60 million annually for at least 20 years and as many as 30.
“Right now, we kind of have a range, which is a broad range, and they are going to fine-tune that,” Weprin said yesterday, adding that he tentatively expects the hearing on such payments from the Yankees to be held April 7.
Weprin said the Mets at this point were looking at annual PILOTs of $30 million to $45 million.
In January, the Empire State Development Corp. gave preliminary approval for its plan to sell nearly $150 million of tax-exempt debt in connection with both projects. The ESDC’s board is expected to affirm that decision at a meeting next week. It then goes to the New York State Public Authorities Control Board for approval and then back to the ESDC for final approval.
Each team will receive $74.7 million of that money, with the Mets franchise using nearly all of its money to make infrastructure improvements and the Yankees using its team proceeds to help pay for the construction of four new parking garages.
