soccer stadium bonds sap new jersey town as condo dreams vanish - translucent polycarbonate
On a Friday night, fans saw a poster on the sidewalk in Harrison, New Jersey, with a non-existent cafe and park.
They head to the $0. 2 billion Red Bull Arena, which sits above warehouses and industrial debris, and will become an apartment for commuters in New York City and transform the town.
Harrison predicts that rebuilding revenue will pay its $39 million in debt to buy and clean up land under the stadium for a Major League Soccer team owned by billionaire founder Dietrich matesquez of the same name energydrink company.
Most construction projects have not yet started.
From Newark through the community of the Pasay River, each
Per capita income was 69% of the country's average, credit ratings were downgraded, and police and firefighters were fired.
"There is no point in these figures;
Economics doesn't make any sense, "said George zofinger, who criticized the deal in 2006 as chairman of the New Jersey Sports and Expo authority, a sports and entertainment complex that operates
"Taxpayers are paying now.
"The bigger community has also been stung: The recession has weakened the finances of the Houston-Cincinnati stadium deal.
Harrison, a small town with a population of 14,000, spent many years fighting for a football team, only to find the award a burden.
There is no long term in this town
Moody's Investors Service said in a rating report in May 20 that the company's debt burden was "a long-term solution ".
The company downgraded Harrison's fifth rating to Ba3.
Bond rating, Baa1 from eighth place
Highest level of investment
Municipal officials had to borrow $3 in December. 1 million --
21% of municipal taxes--
Moody's said that in order to repay the debt at the time of the 2006 issue, they expect to do so again in December.
Meanwhile, New York Red Bull, whose owners are not.
On Forbes magazine's global list of billionaires, 208 are challenging their tax status.
The team refused to pay $1.
According to Moody's, the real estate tax is 4 million.
According to an email, in order to narrow the budget gap of $6 million, Harrison plans to fire 17% of the police and 29% of the firefighters in July 1.
An email from town clerk Paul zambeki.
Mayor McDonough is also considering selling seven parking lots.
People involved in Harrison's plight say thousands of apartments, shops and offices will emerge in its building 1.
If not 18 square miles.
The one-month recession that ended in June 2009 was the longest since the Great Depression.
"Maybe we are a little aggressive," McDonough said in a telephone interview . ".
He said he would not do anything different.
"It will succeed in the end.
"12 miles from Harrison during 1950 and 1960 (19 kilometers)
Prosperous west of Manhattan.
Drivers for wire and cable manufacturers-Harris Co.
Crucible Steel Co. , Ltd.
Thousands of people were hired.
Eventually, the manufacturers moved south and overseas, making the view by the River de PASSIA messy by empty brick warehouses and broken windows. McDonough, 62year-
The retired old plumber has been mayor for 16 years.
He said an "old woman" cried in his office saying that she could not afford the money she owed to the town, prompting him to look for ways to raise the tax base.
In 1997, Harrison designated a third town, including the stadium area, for reconstruction.
Because it's 20-
Just a few minutes from Wall Street by train, the town leader envisioned the community. S.
According to the Census, Hispanic or Latino accounted for 44%.
Fees for professionals in New York City.
They see how the waterfront in Hoboken and Jersey City attracts these commuters, although Harrison's Skyline View is Passie and Newark, not the towers of the Hudson River and Manhattan. To jump-
From the beginning of 2000, officials in the town, Hudson County and the state have tried to draft a stadium agreement for the team and then call it the metropolitan star.
In 2006, Harrison agreed to pay $39 million for the land. the county invested $45 million in a parking lot and the team paid $0. 2 billion for the construction of the stadium.
The official statement of Harrison bonds said development revenue would fund debt servicing, which was sold through the Hudson County Improvement Authority and supported by the town and county.
The issue also bought bond insurance from MBIA, now known as the National Public Finance Guarantee Company.
In the past month, the average yield on Hudson County Improvement Authority bonds due in 2016 was between £ 4% and £ 4.
32%, the average rate of comparison is 1.
Top 53%rated five-
According to data compiled by Bloomberg, annual municipal bonds.
Bond issuance specifically describes two investments. One, a 331-
James Bruno, a lawyer representing Harrison's Reconstruction Agency, said the development of the townhouse was about half built.
The other has not yet started construction.
Edward McManimon III, partner of Newark-based bond lawyer McManimon & Scotland, said no feasibility study was conducted when the debt was sold.
According to the town's forecast, the total payment of developers will reach $2.
In 2008, it was $3 million, up to $11.
Moody's data showed 5 million in 2011.
Instead, Harrison received only $980,000 and $1 in 2009.
1 million of 2010 and 2011.
Herman chambono, senior vice president, New York
Underwriters based at Roosevelt and cross
, Declined to comment on the record.
According to the issuance statement, the company's bond issuance fee is $354,603.
Dennis Enwright, head of financial advisers for Northwest Financial Group in Jersey, did not respond to two requests for comment.
Restaurant owners and shopkeepers are cautious about opening a shop around the arena because they will not attract tourists every day, said Andrew zimbast, an economics professor at Smith College in Northampton, Massachusetts.
"If you're talking about an area where the economy is stagnant and you're simply putting the facilities into it, then things are unlikely to happen," he said in a telephone interview . ".
Harrison was the city that recently invested in sports, but the financial forecast was not confirmed.
Hamilton County, Ohio paid for the stadiums for Major League Baseball Cincinnati Reds and National Football League Bengalitax increase.
County operations director Terry Evans said the drop in receipts since 2008 has caused losses: a $33 million deficit in capital repairs is expected in 2013.
The Houston Sports Authority, which financed the three teams, used its reserves in November after the global financial crisis shaken its variables --rate debt.
In Harrison, critics such as MP Maria McCormick and property owner Steven Adler say the plan has never been adopted.
They say town leaders are dazzled by promises.
"You can't imagine high quality development by drawing beautiful photos," Adler said . " Adler received $24 million in development costs.
"The idea that you can transplant this to the industrial community is to pretend, arrogant, and stupid heights.
"Even the stadium that has been completed does not provide the expected income of the town.
Bruno, counsel for the agency, said the team argued that it should not pay a property tax because the Harrison reconstruction agency owns the land.
"We continue to work with them to find friendly solutions," said Eric Stover, managing director of the team . ".
Stover said the Red Bull team was successful.
"It's a huge economic impact to form and bring this team in," he said in a stadium Sky box, in a game with the Colorado Rapids, where the crowd roared, henry of the team.
Several fans interviewed before the game, such as Bobby Coko from Queens, said they liked the two players. level arena.
The seat is close to the action and is covered by translucent polycarbonate and aluminum.
Average attendance rate of 25,000
According to Red Bull spokesman Jurgen Mainka, the seat range is between 16,000 and 17,000.
Harrison continues to agree with the team.
The company's website announced the phone number, and drivers on Route 280 will receive a signal to welcome them to the Red Bull House.
A month later, when police and firefighters leave their posts, residents may see the consequences of betting on football.
"It bothers me," McDonough said . ".
"I had some sleepless nights.