Yankees parking garage operator defaults on payment

From the Daily News:

Even as the Red Sox thrashed the Yankees on Opening Day, the company that operates the Yankee Stadium garage system struck out big time.

Bronx Parking Development LLC failed to make a $6.9 million payment due April 1 on more than $237 million in tax-exempt bonds arranged by the Bloomberg administration back in 2007.

The group, which is not connected to the Yankees, thus fell into one of the biggest defaults of a New York City-sponsored bond in decades.

That failure ramps up the pressure on City Hall to avoid an embarrassing full-blown bankruptcy by reaching some kind of deal for the company’s bondholders to take a hit on their holdings.

After all, Mayor Bloomberg originally signed off on a new 9,000-space garage system, something the Yankees demanded before agreeing to build a new stadium. The mayor even appointed two city officials to Bronx Parking’s board of directors.

“These garages were part of his legacy, hook, line and sinker,” an official with Bronx Parking said. “It’s better he deal with the problem now, than leave it to the next mayor.”

City economic development aides have privately acknowledged they were ordered by City Hall back then to “make the numbers work” in order to justify tax-exempt bonds.

But the garages were a financial disaster from day one, even though Bronx Parking received more than $100 million in city and state subsidies on top of the bonds.

Since they opened in 2009, they have operated at less than 50% capacity. That’s perfectly understandable given the $35 price tag to park — $48 for valet service.

It’s been obvious for a long time that Bronx Parking would eventually run out of money.