22 June 2011
Uniondale, NY- Nassau County Executive, Ed Mangano, and Islanders owner, Charles Wang, unveiled specific details for the proposed $400 million bond referendum for a new arena and minor league ballpark.
In a press conference, held in the lower lobby of the Nassau Coliseum, Mangano announced the lease agreement that would keep the Islanders on Long Island until 2045, as well as important specifics to revenue sharing agreement between Wang and the county.
The county exec told reporters that through an agreement with the Islanders owner the county would generate $1.2 billion in revenue for the county, with $433 million going towards the debt service payments and leaving $403 million left over for the county to “ hold the line on property tax.”
Debt service payments will be $26 million annually and it is expected that the new arena would generate 28.2 million in the first year, allowing for a profit of around $2 million.
Also included is a guaranteed minimum payment of $14 million and limits the counties spending to a maximum of $350 million for the entire process of demolition and construction of the new arena. Any costs over that figure would be the responsibility of Charles Wang to pay. Michael Picker, Islanders senior vice president, also made sure to note that the cost for demolition was included in the $350 million.
"This is a giant step forward for Nassau's economy," Mangano said during the press conference. Mangano later added, "every pretzel, every hot dog, ticket, the taxpayers of Nassau County will receive a share of the revenue generated."
The surrounding area will be open for future development as well. Mangano said that further development for the coliseum area would involve a request for proposal (RFP) and that the Islanders would have input, but the final decision would rest with the county of Nassau.
The deal, should the referendum pass, would go into effect in 2015 leaving a two or three year gap, depending on the time of groundbreaking, between when the beginning of construction begins and when the revenue sharing begins. This is where the cost of around $50 to tax payers comes in. However it is believed that the revenue sharing would offset the increase in taxes down the road.
Ed Mangano will host a series of public information sessions as part of the PR campaign to help inform the public on the benefits of the proposed project. The first will take place next Wednesday, June 29, 2011 at the East Meadow Library at 1886 Front Street.
Ed Mangano speech
Q & A Part 1
Q & A Part 2
Q & A Part 3
Q & A Part 4
Q & A Part 5
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