RSS 2.0 FeedJune 24, 2011, Cover Stories, Freeport-Baldwin Leader
Taxpayers could foot bill for a new Coliseum
Coliseum development would keep the Islanders here through 2045.
County Executive Edward Mangano calls it the “Economic Development and Job Creation Plan”; Democrats call it a plan with few concrete details that relies on public money – $400 million – that would have to be raised through a public vote on August 1 for a bond referendum.
The plan, announced this month by the county, includes rebuilding the Nassau Coliseum as well as creating a minor league baseball field. Mr. Mangano believes it will bring thousands of construction and white-collar jobs to the area.
It will also keep the New York Islanders at the Nassau Coliseum through 2045. Islanders’ owner Charles Wang has said that he will move the Islanders by 2015, when their contract at the Coliseum expires, unless there is a new facility.
It also includes a revenue-sharing plan between the New York Islanders and Nassau County.
But this private-public partnership will cost taxpayers more money. The $400 million bond means each household will pay from $48 to $59 a year for the next 30 years. It will also create a new tax line, called the Hub Development Tax line, which is a binding referendum, if approved by the voters.
County spokeswoman Kara Guy explained that once the tax line is created by the voters, it would be the responsibility of the county Legislature to authorize the money to be bonded.
And, little is known about the revenue-sharing plan. “We haven’t seen any kind of agreement. We know very little about how this would work,” explained county Legislator David Denenberg, Democrat of Merrick.
“Any revenue the county wouldft receive [from this revenue-sharing plan] would go into the general tax line; it doesn’t change that you are still paying more taxes. I’d like to see something go into the agreement that any revenue sharing go to the Hub Development Tax line.”
The August 1 vote will also cost taxpayers $2 million for the election itself.
“[Legislator] Wayne Wink asked to move the vote to Election Day so as not to incur any further costs,” explained Legislator Denenberg, but “the Islanders, the county executive and the Republicans [caucus] said they need to move fast for construction [sometime in 2012 if passed].”
Mr. Denenberg said he also suggested “We move the vote to Primary Day [September 13] but that was also voted down.”
In the end, the Legislature voted 10-8 to move ahead with the referendum vote on August 1.
Even if the referendum moves ahead, the county must get the approval of the Nassau Interim Finance Authority (NIFA).
NIFA shows concern
“NIFA is deeply concerned about the county executive’s proposal and its fiscal implications for the county. There was no consultation with NIFA regarding this major proposal,” reads a prepared statement from NIFA.
“NIFA’s approval is required for all county borrowing, including the $400 million in new debt and for all major contracts. As we await necessary information from the county regarding the 2011 and 2012 budgets, NIFA requires details of this new plan, which must be evaluated in the context of the county’s fiscal crisis the wage freeze on county employees and the reductions in services to county residents.”
The Legislature is also requesting more information, said Mr. Denenberg, who had hoped to receive more details on June 15. “If we don’t get the information, then County Executive Mangano will have a lot of explaining to do.”
However, county spokeswoman Katie Grilli-Robles said all details of the contract with the Islanders will be given to the legislature “within a few days.”
She added that an “RFP [Request For Proposals] has been isssued for the minor league fields. There were two responses from the New York Mets and the Long Island Ducks.” More information will be made available to the Legislature and the public later in the month, said Ms. Grilli-Robles.
Mr. Denenberg said he intends “to hold two or three public information meetings for my constituents so they can to learn more about this plan – the positive and the negative. Then the public can decide,” concluded Legislator Denenberg.
Development critical
“A new sports arena and minor league ballpark are critical to advancing Nassau’s job generating economic development plan,” said County Executive Mangano at last month’s bill-signing ceremony.
“With passage of this legislation, and approval by residents, the county will take a giant step forward with creating a world-class sports-entertainment destination center in Nassau County.”
