Tuesday, November 1, 2011
Diaz Proposes Bailout for Yankee Parking Lot Owners
Here is a piece in the NY Post by Nicole Gelinas about Bronx Borough President Ruben Diaz, Jr.'s proposal to bailout the company that operates the parking garage at Yankee Stadium. The company, the Bronx Parking Development Co, borrowed $230 million to build the lot through the issuance of bonds. Now that the company is close to defaulting on those bonds, Diaz is pushing to build a hotel on the site. His proposal would call for the hotel bailing out the parking lot company, and that hotel company getting multi-million dollar subsidies. Gelinas says of the proposal, "Diaz’s proposal relies on fear of a bond-market panic, which would force another 2008-style bailout of sophisticated investors. Apparently, such bailouts are OK as long as they come in the form of useful goodies, like the promise of taxpayer-subsidized construction jobs for Bronx voters."