Frances Walton, chief financial officer of the Empire State Development Corporation, told reporters after a Citizens Budget Commission conference that she did not expect lawsuits filed by opponents of the multibillion dollar Atlantic Yards project would block the debt issue by a local development corporation.In other words, they're not waiting for the resolution of the eminent domain case, nor do they think any other lawsuits could stymie the project. The driver is a December 31 IRS deadline.
"The expectation is that they will be issued," she said. This would not be first time that bonds have been issued despite "legal challenges," Walton said.
"We have begun discussions with ratings agencies," she said.
Bond buyers and the bond insurance company, however, had better calculate some risk, as Michael D.D. White pointed out.