Fulbright & Jaworski has developed a landmark innovation in public-private financing in the US, in the process ensuring that the New York Mets baseball team will have its long-awaited new stadium for the 2009 season.
Fulbright’s public finance, tax securities and asset finance practices worked to develop the payment in lieu of tax, or ‘PILOT’ structure, which required the approval of the US’s Internal Revenue Service before the financing could close.
Fulbright finance partner Joel Moser led the team advising on the financing.
The financing includes $547m of tax-exempt publicly offered PILOT bonds, plus another $65m of private bonds. New York State and New York City also provided infrastructure funding for the stadium, to be opened for the 2009 season on a site adjacent to the current Shea Stadium.
“Because of the size of the project and limitations of New York State law, creative thinking was needed to secure financing in a manner that would meet the needs of all parties,” said Moser. “The PILOT bonds are a true advance in public-private financings, and have helped to secure a new home for the Mets after 43 years.”
Fulbright’s work on the Mets stadium follows other stadium and arena financings the firm has worked on, including stadiums in Los Angeles, Dallas, Houston, San Diego and San Antonio.
Moser was assisted by Fulbright partners Richard Kornblith, David Gillespie, Lawrence Spector and Sean Corrigan.