Despite claims from Develop Don't Destroy to the contrary, yesterday's IRS ruling on the regulation of triple-tax-exempt bonds for private developers may not mean curtains for the Barclay Center Arena, according to Atlantic Yards Report. Although the new regulation does eliminate a loophole for most projects, it also creates a “transitional rule for certain projects substantially in progress” that appears to give the Atlantic Yards Arena (along with the new Yankees and Mets stadiums) a free pass. One potential snag for FCR: The new regs require that the bonds be issued by December 31, 2009.
New Regulations would Grandfather Atlantic Yards Arena [AYR]
IRS Gives Thumbs Up to Tax-Free Bonds [NYO]
IRS Decides Tax-Free Financing for AY Okay [Curbed]
Press Release [DDDB]
