It may or may not help the Atlantic Yards project get financed if the credit market isn't interested, but the project has won a big victory today. Atlantic Yards Reports notes that the "in a big boost for developer Forest City Ratner, worth perhaps $165 million, the U.S. Treasury Department has issued a regulation...that would grandfather in tax-exempt bonds for the planned Atlantic Yards arena." The IRS calls it a "loophole." The Treasury Department would eliminate tax-free financing for such projects in the future, but there will be "transitional rule for certain projects substantially in progress" allowing tax-free bonds for the arena. In addition, the Yankees and Mets could issue more tax-free bonds for their new stadiums under the IRS rules.
· New Treasury Department regulations would grandfather in tax-free bonds for Atlantic Yards arena [AYR]
UPDATE: Develop Don't Destroy has issued a statement late today strongly disagreeing that the ruling allows such financing for Atlantic Yards because it says it is not "substantially in progress." More to follow.