L&M Publications
Merrick Life • Bellmore Life • Freeport-Baldwin Leader • Wantagh-Seaford Citizen

Curious and confused.
   
That’s how residents appeared during Legislator David Denenberg’s Hub Referendum public forum at the Bellmore Memorial Library last week  about the upcoming bond referendum vote to build a new Coliseum.
   
“I won’t take a position on the referendum,” explained Legislator Denenberg. “This might frustrate you, but I just want to provide information for you to make your own decision.”        

Legislator Denenberg told residents he  voted in favor of holding the bond referendum vote because “voters are smart and can decide for themselves.”
   
Monday, August 1 Nassau County residents will go to the polls to decide if they wish to spend $400 million of taxpayer money, in the form of a 30-year bond, to rebuild the Nassau Coliseum, create a minor league baseball field and develop the surrounding Hub area for mixed-use development.        

The proposal will also create a new tax line that will cost  approximately $58 a year per household for a home assessed at $400,000.               

Additionally, the special election will cost taxpayers $2 million that will be paid for by Charles Wang, owner of the New York Islanders – if the bond garners voter approval. If the bond is not approved, taxpayers are on the hook for the cost of the election.
   
Democrats in the county Legislature wanted to move the referendum vote to election day in order to save $2 million. But county Republicans said that partisan politics could get in the way of the vote; they also had concerns about a delay in construction if the vote was held in November.
   
Legislator Denenberg told residents at last week’s meeting he wanted to wait five more weeks and move the vote to Primary day [in September]. “It wouldn’t cost us any more money, and it would still give us enough time so we wouldn’t miss the construction season. But that was voted down,” he said.
   
“This five weeks could have given us more time to gather information on the bond, which we don’t have now.”
   
“It’s all nonsense,” one man replied.
   
Another resident voiced concern that “people are on vacation and won’t turn out for the vote on August 1,” she said.

Low voter turnout
Legislator Denenberg agreed. “Voter turnout may be low except for special interest [voters]. They will come out for this.”
   
Special interests include Islander fans, afraid they may lose their hockey team by 2015 if the Coliseum isn’t built, as well as the construction industries, which anticipate creation of 1500 new jobs. The Nassau Council of Chambers also support the bond issue, predicting that 3,000 permanent jobs will be created by this project.
   
If the bond passes on August 1, it will cost taxpayers approximately $800 million in principle and interest over 30 years, or $26 million a year.        

However, the county is guaranteed, in an agreement with the coliseum’s new tenant, Arenaco SPE LLC, [a company created by Mr. Wang] a minimum revenue of $14 million a year, or as much as 11.5% of its gross revenues a year, estimated to be about $28 million a year.
   
“But that $14 million goes to the general fund,” said Mr. Denenberg. “I believe that monies raised by this should be deposited into a revenue fund, not the general fund. Otherwise, the revenue never offsets the tax.”
   
“So, we pay out $26 million a year and maybe we can get $28 million back,” said one man. “That’s $2 million a year. You can do better in the bank.”
   
However, Legislator Denenberg pointed to indirect revenue streams, including “sales tax, hotel tax revenue, jobs and businesses in the area that also will earn money.”
   
In a report issued by Camoin Associates, a firm hired by the county to look at private and public sector economic development, the project will generate $1.2 billion for Nassau County, and create 3,000 permanent jobs.
   
But, “Camoin Associates prepared the study for the Nassau County Industrial Development Agency,” said Mr. Denenberg, “and the IDA is appointed by the county executive.”
   
The county Office of Legislative Budget Review has stated that the cost to taxpayers could be reduced to $13.80 a year per homeowner [assessed at $400,000] if all the revenue from the agreement – $14 million from the agreement and an additional $4.9 million in sales and entertainment taxes – was used to pay down the debt.
   
But to date, Mr. Denenberg explained, the Republican majority would not agree to include this provision in the law. “I wanted to put in law – Section 2B, Amendment 4 – that monies raised would be deposited into a revenue fund,” he said.

Pass or fail – what’s next?
If the bond referendum passes, there will be a public hearing at the county Legislature to hash out the details of the contract. Legislator Denenberg rattled off a list of questions he intends to raise, including “What happens if the Islanders go bankrupt? If the team is sold in two years, will it still be obligated to stay until 2045? Why don’t we have any [revenue sharing from] television rights?”
   
Also, “the agreement says that Mr. Wang will pay for all construction costs above the $350 million [set aside by taxpayers]. I want specifics. We need to know what that means and what does it cover?”
   
Mr. Denenberg told residents that “we [the Legislature] still get to vote on any lease agreement with the Islanders and the Ducks [who won the right to build a minor league baseball field at Mitchel Field]. We must also approve the construction contract. I won’t authorize the bonds if it is not in favor of the people.”
   
“Sounds like a pig in a poke,” one man muttered.
   
“But NIFA doesn’t seem to support this,” said one woman. “How much control does NIFA have?”
   
Mr. Denenberg said he thinks “NIFA would go along with it. It’s the people’s will. Besides, the revenue stream would be there.”
   
And if it fails?
   
“As public officials we can’t just throw up our hands,” said Mr. Denenberg.
   
“I’d suggest that we put out an RFP [Request for Proposals] to all those [failing] NHL and NBA teams for an anchor tenant and then talk about development rights. We now have the Town of Hempstead’s [zoning] plan and we can see about private development.”
   
“It all sounds like scare tactics,” one woman said.
   
“If The Islanders leave they don’t have a lock on musical events or the circus. People will still spend money there,” said another resident.
   
But one man said, “It really comes down to whether or not you think it’s worth spending $58 a year to have a major sports and entertainment arena and a ballpark. I look at what I spend in gas and think I’d like to take my grandkids there.”

By Laura Schofer

Laura Schofer, staff writer for L&M Publications, has been recognized with several awards for many of her feature pieces published in Bellmore and Merrick Life, The Citizen and The Leader.