Of course we get interesting comments about the arena:
J. Bruce Miller // May 14, 2013 at 10:15 pm
I read where the Arena Authority is considering the possibility of refinancing the bonds. Their present interest rate averages a little above 6%. Can you imagine what the interest rate would be when the bond rating agencies note that the major (and only) tenant is a 501(c)(3) charity, which takes 88% of the suite revenue stream by virtue of a lease that was negotiated with the 501(c)(3) charity by many of its largest benefactors and members of the charity’s various boards — which results in the building making a couple hundred thousand dollars a month in what it calls ‘operating income’ but DOESN’T INCLUDE its principal and interest payments. When you include them the INTEREST PAYMENTS, ALONE, ARE APPROXIMATELY $1.6M A MONTH — so the ‘thing’ is losing about $1.2-1.5 million a month! Sorry, but ‘that dog doesn’t hunt’ in New York City — even though the cool-aid tastes good around here.