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Update October 22, 2013- The bonds went to market and the cash will be in the BPCA bank account this week. Of note, the proposed F2014 budget has only $48.5 Million in capital expenditures planned, despite almost $100 Million of the latest bond offering supposedly going toward BPCA infrastructure. Stay tuned as we investigate.
Update October 1, 2013- By Steven E. Greer
At the BPC subcommittee of the CB1 meeting tonight, the Dynamic Duo of Anne Fenton and Matt Monahan presented various updates. The issuance of bonds was discussed, and the amount of revenue to be raised is now up to $800 Million. Recall when the CEO/CFO Robert Serpico presented before the NYPACB in Albany, a resolution was passed allowing $1.1 Billion in bonds, but the plan was to only issue $300 Million.
The Dynamic Duo could have their facts wrong. If not, then $800 Million is a dramatic increase for the bond market (The plans for the Federal Reserve to taper the quantitative easing, might be the reason for the urgency).
Anne Fenton explained that still only $85 Million from the revenue raised will be spent on Battery Park City “infrastructure” and the rest will refinance older bonds (The city and state could also have plans for the cash).
August 21, 2013- As expected, the NYPACB met today and approved the resolution allowing the BPCA to issue approximately $300 Million in new bonds, $95 Million of which will be new revenue. The rest will be used to refinance older bonds. The resolution actually allows for a total of $1.1 Billion in bonds, should the BPCA decide to dip into the markets for more cash.
The newly appointed BPCA President and CFO, Robert Serpico, made the presentation. He seemed to do a convincing job since he is no stranger to these meetings in Albany.
Despite the state Public Authority vote, the bond issuance in September is not a done deal. Chairman Dennis Mehiel announced at the August 20th board meeting that City Comptroller Liu is stepping in the way by holding up the BPCA budget, that is tied to the bond issuance.