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.For more stories from Curbed, go to curbed.com.