EDC Closes on 10th New Market Tax Financing

NEW YORK CITY-Warehouse space on Pier 36 in Lower Manhattan will be converted into a recreational sports and special events facility thanks to $13 million in New Market Tax Credits financing. A summer 2011 opening is expected for the 63,000-sqare-foot facility being developed by Basketball City USA.

Closing on the NMTC financing marks the 10th such collaboration between the New York City Economic Development Corp. and United Fund Advisors LLC since 2008. Additionally, EDC executed a nearly $2.7-million funding agreement with Basketball City USA to further the project's development. In all, the EDC/UFA partnership has arranged more than $500 million in development costs using $89 million in NMTC allocation from National Community Fund I LLC, an affiliate of UFA.

“Working with United Fund Advisors to provide NMTC financing for 10 projects has enabled us to facilitate much-needed development in underserved communities across New York City,” says EDC president Seth Pinsky in a release. “By leveraging unique financing streams such as this, we are building a foundation for a more livable and stronger city.”

According to the EDC, the NMTC financing will allow Basketball City to build a more energy-efficient, high-tech facility that includes solar panels, “Green Play” composite wooden floors, and energy-efficient lighting and insulation. The project will be a key component of the city’s East River Waterfront Esplanade Project.

Prior to the Basketball City project, EDC and UFA had provided financing for nine other projects across the city. They included Greenpoint Manufacturing and Design Center, the International AIDS Vaccine Initiative Design and Development Laboratory at BioBAT, National Heritage Academies, Bedford Stuyvesant Restoration Corp. and L+M Development Partners’ 11 Broadway, all in Brooklyn; Morris Heights Health Center in the Bronx; and the Museum for African Art, DiMenna Center for Classical Music and Gateway School of New York, all in Manhattan.