RSS 2.0 FeedJuly 15, 2011, Featured Articles, Freeport-Baldwin Leader
Nassau Coliseum finances explained
NIFA still has not given support to the project.
The plan to use $400 million of taxpayer dollars to rebuild the Nassau Coliseum will generate $1.2 billion for Nassau County, said a report issued by Camoin Associates, a firm that looks at private and public sector economic development.
The revenue will be used to pay off the $350 million in construction costs associated with the new arena, $433 million in debt service payments and an additional $403 million for the county to hold the line on property taxes.
Furthermore, Camoin Associates estimates the creation of 1,515 new jobs during the arena construction phase, and the creation of 3,040 permanent jobs beginning in the first year the arena is operational.
But Democrats say the plan is folly and will bring the county into further financial crisis, as well as create new and higher taxes.
Here’s how the plan works. Under the terms of the agreement, county taxpayers are guaranteed a return of 11.5% ($14 million) generated at the new arena from all events, not just Islander games.
The lease also caps Nassau County’s construction, demolition and other project costs at $350 million.
If residents approve the construction of a new arena at the August 1 public referendum and the lease is signed, the Islanders will reimburse the county for costs of the public referendum, which is $2 million.
However, the Nassau Interim Finance Authority (NIFA) must also approve the deal, and to date, it has not given its support to the project.
The lease agreement is for a new arena only. Any potential development at the site of the Nassau Veterans Memorial Coliseum will be subject to a Request for Proposals (RFP) and will have to adhere to the terms set forth by the Town of Hempstead, the municipality responsible for the zoning and development at the Nassau Hub.
Meanwhile the county has gone ahead and picked Frank Boulton, CEO and founder of the 14-year-old Atlantic League of Professional Baseball Clubs including the Long Island Ducks, to develop a minor league baseball field at the Hub site.
“If taxpayers believe that they will own anything other than a higher tax bill, then I have a bridge to sell,” said Nassau County Democratic Chairman Jay Jacobs.
But the Long Island Association, which represents business interests on Long Island, supports the project.
“Consistent with our mission of strengthening the Long Island economy by supporting economic development projects that will create jobs and enhance our region, the Long Island Association is supporting Nassau County Executive Edward Mangano’s plan to build a first-class destination center at the Nassau Coliseum site that will keep the New York Islanders here,” said Kevin S. Law, president and CEO of the LIA, in a press release.
