IDA approves financing for Mets/Yankees construction.

New York City Industrial Development Agency (IDA) last week granted final approval for financing assistance for the New York Yankees and New York Mets to allow for the construction of new, state-of-the-art stadiums adjacent to each existing ballpark. The projects will bring more than $1.5 billion in private investment to the South Bronx and Flushing, Queens and relieve the City from maintenance and capital repair costs that would likely have exceeded rent payments at the existing stadiums by more than $113 million over the next 40 years. The issuance of the tax -exempt bonds for both projects is contingent on the receipt from the Internal Revenue Service of a favorable private letter ruling.

The IDA also approved financing for three industrial companies in Brooklyn, Queens and the Bronx. IDA is administered by the New York City Economic Development Corporation.

"New stadiums for the Yankees and Mets will give a tremendous boost to the local economies of the South Bronx and Flushing, Queens and will be major New York City attractions for a long time to come," said Interim IDA Chairman Joshua J. Sirefman. "I'm pleased today's Board approval set the stage for both projects to move forward, so the teams can start building the stadiums and create the nearly 16,000 construction jobs they are expected to generate."

IDA will issue about $920 million in tax-exempt bonds and $25 million in taxable bonds to build the new stadium for the Yankees. The project will result in roughly 9,700 construction jobs and 615 permanent jobs, excluding concessions. For the new Mets stadium, IDA will issue about $528 million in tax-exempt bonds and $104 million taxable bonds. The new Mets stadium will result in about 6,100 construction jobs and 970 permanent jobs, including concessions.

The tax-exempt bonds for both projects will be payable from Payments In Lieu Of Taxes or PILOTs, a structure approved by the City Council on April 25, 2006. The taxable bonds for both projects will be payable from rent payments made by the teams. IDA intends will also use exemptions from real property tax, mortgage recording tax and sales tax in connection with the projects.