The IRS approval of tax-free bonding for sports facilities means developer Bruce Ratner could tap into this budget-saving resource as he continues work on a new Brooklyn arena for the relocating New Jersey Nets (NBA).
The IRS approval of tax-free bonding for sports facilities means developer Bruce Ratner could tap into this budget-saving resource as he continues work on a new Brooklyn arena for the relocating New Jersey Nets (NBA).
Technically, the borough of Brooklyn will be issuing the bonds, which will be repaid by Ratner. The new arena is the centerpiece of the $4-billion Atlantic Yards project, occupying 22 and also containing residential and office space.
While the Brooklyn project is technically eligible to receive the proceeds of the financing and the city plans to go ahead with it, the arena construction is still not a done deal. The bonds still need to be sold, and given the current state of the credit markets, floating almost a billion dollars in bonds is not a given. Plus, Ratner will still need to arrange financing on the remainder of the project.
