NEW YORK, July 17 The U.S. Internal Revenue
Service is investigating $237.6 million of tax-exempt bonds that
were used by New York's Yankee Stadium to finance the building
of parking garages, according to a regulatory filing on
The Bronx Parking Development Company, which runs the car
parks, defaulted on a $6.9 million payment on April 1. The last
payment to bondholders was made in October 2012.
As fans use public transportation to avoid parking fees
ranging from $25 to $48 per game, the use of the 9,300 parking
spaces has been well below expectation. Fewer than half of the
parking spots were used in April, according to a filing.
New York City's comptroller blasted the project in an audit
last year that found "revenues were based on questionable
occupancy rates and inflated attendance figures and did not
account for demand fluctuations that would result from price
increases and competition."
The IRS review is "to determine compliance with the Federal
tax requirements," the filing said. The Civic Facility Revenue
Bonds were issued by New York's Industrial Development Agency in
2007 on behalf of the Bronx Parking Development Company.
Bonds maturing in 2037 last traded at 44.19 cents on the
dollar on July 2, according to Municipal Market Data, a unit of
The IRS declined to comment. "Federal law prohibits the IRS
from discussing specific tax payers or situations," an IRS