By Ian Koski
Managing Editor

It did not take long for the idea of using public money to build new stadiums for the Yankees and Mets to resurface after all. With four days before the end of his term as mayor, Rudolph Giuliani announced a $1.6 billion deal to build the two stadiums by the year 2007, with city taxpayers paying half.

The non-binding deal, which will not take effect until newly-inaugurated Mayor Michael Bloomberg gets on board, would have the city float $1.6 billion in tax-free bonds to foot the construction bill. The teams and the city would then each pay half of the $50 million annual debt service on each stadium.

Just a month ago, the mere mention of using public money for new baseball stadiums drew sharp scowls from city politicians, including Mr. Giuliani.

But on Dec. 28, the outgoing mayor stood shoulder-to-shoulder with Mets and Yankees officials and unveiled architectural models of the new parks, and a plan to pay for them.

It was the public's first glimpse at the Yankees' new home, a colossal structure decorated with glass and steel and wrapped in a facade reminiscent of original 1923 exterior of Yankee Stadium. The new park would seat 47,000 fans and be covered by a retractable roof. The field dimensions would be exactly the same as they are now in Yankee Stadium.

"You can't underestimate the effect on civic pride and the economy of the city," Mr. Giuliani said at the City Hall news conference.

Mr. Bloomberg, who was not present for the announcement, said in his inaugural address that new cultural and sports facilities would be built "when we can afford them."

Due mainly to the Sept. 11 attacks, the city will have to bridge an estimated $4 billion budget gap next year and $40 billion over the long term. Mr. Giuliani said he believes the city will recoup its investment easily.

Unlike the current agreements, the new deal requires the teams to pay for their own stadium maintenance, and give 4 percent of their ticket sales and 35 percent of their net revenues to the city.

While construction of the new Mets stadium would likely begin in 2003 and be finished by 2006, built on a parking lot attached to the current stadium, construction of the new Yankees stadium would not begin until 2004 and be finished until 2007 because it would require legislation authorizing the use of the city-owned Macombs Dam Park.

The Yankees' new stadium would be built northwest of the current stadium, with the main entrance and home plate positioned at the corner of 161st Street and the Macombs Dam Bridge Approach, almost directly on top of where Babe Ruth Field sits today.

As promised by Gov. George Pataki years ago, between $200 million and $300 million would be spent by New York State on transportation improvements around Yankee Stadium, including the a new Metro North station.

"Everything moves ahead," Yankees' owner George Steinbrenner said, justifying the demolition of the historic park. "The city moves ahead. We're not the same team as we were in '27 when [Lou] Gehrig and Babe Ruth were there."

"We were happy to be able to do this for New York," Mr. Steinbrenner said, almost comical considering his frequent threats to leave New York if the city didn't ante up for a new park.