Newark Arena

[Kris]

November 15, 2003

Newark Sets Out Plan for 'Urban Village'

By RONALD SMOTHERS

NEWARK, Nov. 14 — City officials on Friday presented a $550 million redevelopment plan to include an "urban village" in a sagging section of the city's downtown, although the proposed arena for the Nets and the Devils that would be its northern anchor and premier attraction remains in limbo.

It was a clear effort by Mayor Sharpe James and other local officials to recover the lost momentum of revitalization that had been heavily tied to the planned $355 million arena. Plans for the arena have recently become mired in disputes within the group that owns the two teams, the YankeeNets. Some argue for building the arena, while others want the teams to remain at their current home at the Continental Airlines Arena, and still others talk of moving the teams to other localities.

Mr. James said the arena proposal was "still very much alive." But he insisted that the planned 13-acre "village," , which would include midrise and high-rise housing, parks and retail spaces stretching along Mulberry Street, could succeed on its own and solely on the basis of recent demand for moderately priced housing steps away from traditional urban amenities. The project would be just blocks from commuter lines and PATH trains and near a planned light-rail line.

"This is not predicated on the arena," the mayor said. "This is predicated on the demand for housing in downtown areas."

Echoing this view was Dean Geibel, the president of Metro Homes, one of the developers involved in the plan, called the Mulberry Street Promenade.

"It's getting quite expensive to live in Hoboken, and the land there is increasing in value," said Mr. Geibel, suggesting that the overflow from Hoboken and areas like Manhattan and Brooklyn would fuel demand for living in Newark. "People who buy here early will in a year or two see real appreciation."

The Newark business administrator, Richard Monteilh, said the proposed 2,000 housing units in the village would feature balconies, roof gardens and large windows, representing a departure from recent development projects in the city.

"Previous development was low density," he said. "But we want to offer some different choices that will allow the city to grow its population."

Newark's population had been in steep decline from the 1960's, when it had more than 400,000 residents, but its current population of 275,000 has been relatively stable in the last five years.

Mr. Geibel — surrounded by brightly colored and stylized architects' renderings of the three- to six-story blocks of buildings with street-level retail space — said a two bedroom unit would sell for about $225,000.

But the buildings would include starter units and small studios, all with underground parking garages and within walking distance of Newark Penn Station, he said.

The amenities proposed for the area are based on a nationwide survey conducted by a Rutgers University planning professor, Anton E. Nelessen, who was asked by the National Association of Realtors to determine the right mix of businesses, services, park areas and building heights that might attract people to urban areas.

Mr. Monteilh said the two- and three-family dwellings currently in the area bounded by McCarter Highway, Broad Street, Scott Street and Lafayette Street, as well as the smattering of small businesses there, returned only $139,000 in property taxes to the city last year.

The proposed development could result in properties that would bring the city $6 million a year in taxes, he said.

The plan still faces opposition from some residents who are unhappy with relocation plans and the initial discussion over what they might be offered for their property in the expected city condemnation process. And, the Newark City Council, citing similar concerns about displacement, was unanimous last spring in blocking Mayor James's initial steps to advance the proposal.

But on Friday, city officials were confident they could begin to seek the council's approval again starting next month and begin construction by next spring on five acres in the parcel already owned by the developers.

Completion of all stages is projected to take five years.

Copyright 2003 The New York Times Company

[Kris]

January 24, 2004

In Newark, Arena Pursuit Drives on Without Nets

By RONALD SMOTHERS

NEWARK, Jan. 23 - Few could accuse Newark politicians of faintheartedness this week after the sale of the New Jersey Nets to a developer who plans to move them to Brooklyn.

City officials are trudging on with their bid for a Newark arena minus the Nets. The basketball team, with its playground heroes, would have been the marquee anchor for a two-team arena that Newark officials still envision as the crown jewel of the city's revitalization. Newark officials insisted on Friday that they could still make a scaled-down version of their proposed arena economically viable with just one team, the decidedly un-urban New Jersey Devils of the National Hockey League, whose players are more likely to be heroes to those skating around suburban ice rinks.

But in order for any such arena to be remotely workable, said Richard Monteilh, Newark's business administrator, it would have to attract a host of other events through the year such as Bruce Springsteen concerts, the Ice Capades, the circus and all manner of trade shows.

And in order to do that, he said, the Continental Arena at the Meadowlands, 12 miles away, where the Nets and Devils currently play and which would compete for such events, would have to close. This would require the approval of Gov. James E. McGreevey and George Zoffinger, the president of the New Jersey Sports and Exposition Authority.

"The governor has said from the beginning that he will support wherever in New Jersey the state's sports teams want to go,'' said Mr. Monteilh, noting that Devils management and one of the team's principal stockholders, Raymond Chambers, wanted to move to Newark. This week, Lou Lamoriello, the team's president and general manager, spoke in favor of a new arena in Newark.

Mr. Monteilh added, "Well, we have a team in the Devils, and Continental Arena doesn't have a sports team.''

As of this week, Mr. Zoffinger had no plans for closing Continental Arena and was talking about repositioning it in the marketplace to compete for other, non-sports events.

"Whether the Meadowlands arena closes or not is a decision that the governor and George Zoffinger have to make,'' said Essex County Executive Joseph DiVincenzo. He added, "I see a Newark arena as a New Jersey arena and it should be here in Newark because it is just more convenient with the public transportation and the roads widening.''

Years ago, when momentum seemed to be with the idea of a Newark arena for the Nets and the Devils, it was envisioned that the Meadowlands arena, which both teams considered lacking in many of the money-making amenities of newer arenas, would be torn down. It was this prospect that drove Governor McGreevey to promise, and eventually deliver, a new economic engine for the Bergen County sports complex in the form of Meadowlands Xanadu, a $1.4 billion family entertainment, sports, retail and office complex unveiled last month along with a long-promised rail spur to the Meadowlands.

The momentum has now shifted in favor of the Xanadu project, with Mr. Zoffinger insisting that such a development would also help make a refurbished Continental Arena an attractive site next door.

Rick Thigpen, a former executive director of the state's Democratic Party who is a lobbyist and political consultant, said that from the beginning, white and black New Jersey residents were of very different minds about a Newark arena, according to polls.

"White New Jerseyans did not want to come to Newark for sports events, and they didn't want to spend public money to help keep teams in the state,'' said Mr. Thigpen. "Because of the public opinion polls and the racially distinct viewpoints, it has had a significant political impact on the governor's behavior. And it has tied the state's hands on putting public money into the effort.''

The same dynamic could affect any decision about closing Continental Arena, said Mr. Thigpen, noting that it sat there "like a mountain.''

Newark Councilwoman Gayle Chaneyfield-Jenkins added that from the beginning, "the pink elephant standing in the middle of the room that no one wants to acknowledge in all of it is race." But she added that the governor should be able to argue that there is no need to treat Newark "like some welfare case or some child that needs taking care of" because the city has its own resources to bring to the table.

Those resources are working in Newark Mayor Sharpe James's favor. They amount to nearly $200 million in cash, which the city has on hand to aid any arena project. The money is an upfront payment growing out of a recent renegotiation of the city lease with the Port Authority of New York and New Jersey for Newark Liberty International Airport. Consequently no state money is likely to be needed to aid in the construction of the arena.

But at the same time, an arena with only a hockey team might not look as compelling to Newark residents who argue that the money could be better spent on city neighborhoods, schools and property tax relief. Many members of the City Council, which can reject any arena plan, may see the mayor's case for an arena as weakened by recent events.

"I don't think people would see this as his failure politically,'' said Mr. Thigpen. "But it is a loss of an opportunity for the mayor to have a big success."

Copyright 2004 The New York Times Company

[Kris]

Originally posted by STT757.


Newark arena deal is said to be imminent

An announcement could come by Monday, officials say

Saturday, February 07, 2004

BY GEORGE E. JORDAN AND MATTHEW FUTTERMAN
Star-Ledger Staff

Newark and Devils officials continued negotiating last night toward an agreement that would revive a long-stymied arena deal for the state's largest city. Three officials closely monitoring developments said a deal may be announced as soon as Monday.

"They are as close as you can get," said Richard Codey, the state's Senate president and a longtime supporter of the Newark arena.

An agreement would be the first significant step toward building a scaled-down $300 million arena near Broad and Market streets in the heart of the city. The project would largely be funded by Newark, which has $210 million set aside from its airport lease with the Port Authority of New York and New Jersey.

Newark Mayor Sharpe James this week has lobbied for support among the nine-member city council and told them a vote to approve using the Port Authority money could come later this month.

City Business Administrator Richard Monteilh -- who also yesterday said negotiations were "close" -- said private developers and the hockey team would cover the remainder of the price tag.

"It's good that there's no (direct) taxpayer dollars involved," Codey said. "It's an enormous benefit for the city of Newark, and it's time to move forward."

But it may not be that simple.

If James' plan is approved, Gov. James E. McGreevey still faces a sensitive political choice because the viability of a Newark deal requires closing the Continental Airlines Arena in East Rutherford, where the Nets and Devils play.

While that would satisfy James, who has seen three governors fail to push arena funding plans through Trenton, it would anger officials in Bergen County, another key voting block.

"In Newark, they have nothing more than a piece of paper, and frankly we don't think the numbers add up," said State Sen. Paul Sarlo, a Democrat whose district includes the Meadowlands.

Sarlo was joined yesterday by other politicians and business leaders who railed against any plan that would close the Continental Airlines Arena.

Dennis Marco, the Meadowlands Regional Chamber of Commerce president, said the mission was simple: "To make sure the Continental Airlines Arena does not go dark," he said.

Micah Rasmussen, a spokesman for McGreevey, deflected all arena questions.

"George Zoffinger is the administration's point person on professional sports and the future of the Meadowlands," Rasmussen said. "He speaks for us on these issues and we have full confidence in him."

Zoffinger, the chief executive of the New Jersey Sports and Exposition Authority, yesterday backed off an earlier refusal to close the Continental Arena. He said the state would study the feasibility of two major entertainment venues operating only 12 miles apart.

"If the team owners show some patience, we think they can be a part of what will be a very dynamic growth situation," Zoffinger said. "We think it can be repositioned to produce a positive contribution to the taxpayers. Why would the state want to walk away from that?"

For his part, James remained focused yesterday on a deal with the Devils, who will be the lone team with "New Jersey" on their uniforms if the Nets' new owners successfully move the team to another new arena in Brooklyn.

"I'm not trying to put Newark against Bergen," James said yesterday. "I'm not concerned about the state of Continental Airlines Arena. I can't talk about that arena. The owners (of the Devils) wish to build an arena in Newark."

Key members of the Newark City Council said they were prepared to support the mayor's plan.

"Newark needs the arena," said Central Ward Councilman Charles Bell. "It's the missing piece of the big picture of all the great things happening in Newark."

The lone naysayer was Donald Tucker, who questioned whether the Devils would share profits from concessions, ticket sales and parking around the arena. "As usual, no financial figures, no feasibility study, no nothing," he said. "I'm not against it. I just don't like making decisions without the proper financial background."

Even as the debate intensifies, a team of bond lawyers hired by Raymond Chambers, a principal owner of the Devils and champion of a Newark arena, continues to work on the deal with Newark officials. Both Chambers and his son-in-law, Michael Gilfillan, his point man on the Newark project, declined comment.

The $300 million facility, James said, would be surrounded by office buildings, parking garages, a hotel- conference center and Newark Board of Education headquarters.

The latest attempts to revive the project come while the Devils ownership is in transition. Jeffrey Vanderbeek, a minority investor in the team who built his fortune as a member of the executive committee at Lehman Brothers, is negotiating to become a major owner of the franchise.

Vanderbeek declined to comment until his deal is finalized, which could happen within days. According to people close to Vanderbeek, who lives in Warren, he wants to keep the team in New Jersey. The Devils' lease at the Continental Airlines Arena expires in 2007.

[STT757]

Newark Arena:

http://www.ci.newark.nj.us/Site_Images/arena.jpg

http://www.ci.newark.nj.us/Site_Images/arena.jpg

http://www.soccernova.com/images/stadiums/proposed_specific/nj_metrostars/newark2.gif

[Gulcrapek]

The exterior rendering is a little vague... at least we can tell it's glass.

[Kris]

February 10, 2004

Newark Tries Again With Proposed Arena for Hockey

By RICHARD LEZIN JONES

NEWARK, Feb. 9 - In the latest show of civic one-upmanship over New Jersey professional sports teams, officials in Newark on Monday unveiled a revised plan for an arena to house the New Jersey Devils and a letter of intent in which the team says it plans to play there beginning with the 2007 hockey season.

The agreement, which comes after the apparent collapse of plans to lure the New Jersey Nets basketball team to Newark, is a product of ferocious politics inside the state and beyond. Within New Jersey, the agreement is an attempt by Sharpe James, the Newark mayor, to force Gov. James E. McGreevey to support an arena in Newark despite strong opposition elsewhere in the state. Beyond that, it also represents the latest gambit in a three-way battle between supporters of an arena in Newark, the Continental Arena in the Meadowlands and a new arena for the Nets expected in Brooklyn.

The proposal unveiled Monday raised as many questions as it answered and is hardly the last word on the long-debated arena project in the state's largest city. City officials said they would provide more specifics on the project at a news conference on Thursday.

But the proposal also reflects Newark's determination to stay in the game in pursuit of a signature arena that once seemed within its grasp but, with the sale of the Nets, seemed in danger of slipping away.

With the plan disclosed Monday, the Newark officials sketched out their new vision for the arena project that they say is, at the least, revived. "We can look forward to thousands of construction and permanent jobs opportunities and new hope," Mayor James said in a statement.

City officials released a copy of the letter of intent - signed by Lou Lamoriello, the Devils' chief executive, president and general manager - which calls for the Devils to move to Newark by the summer of 2007 and the team to play in a new 18,000-seat arena.

The deal, which also calls for the construction of an office and entertainment complex, including a hotel, a municipal building and parking garages, is at the heart of a plan to revitalize Newark's downtown. The plan calls for up to four million square feet of office space, half a million square feet of retail, a 300-room hotel, a new building for the board of education and city municipal business and garages for 3,500 cars within a block of the arena.

City officials also estimated that the plan would bring in $28 million a year for Newark and create more than 13,000 permanent new jobs, and they said the entire development project would cost more than a billion dollars.

The proposed arena, on Lafayette Street between Mulberry and Broad, is slightly west of a site designated for the arena in previous proposals. One Newark official, speaking on the condition of anonymity, said the plan was contingent on several factors, chief among them an engineering study into whether the soil in the arena can withstand the weight of such a structure.

The city previously resolved part of one other tricky question: money. Newark already has about $200 million garnered from lease revenue at Newark Liberty International Airport ready to contribute to the cost of the project. Earlier estimates placed the cost of a new arena at $355 million.

One lingering issue is the fate of the Continental Arena in East Rutherford, N.J., 12 miles south of Newark. That Meadowlands arena's future would be uncertain if the new structure were built in Newark. In recent days, George Zoffinger, president of the New Jersey Sports and Exposition Authority, which operates the Continental Arena, continued to press a plan to keep that arena open.

Mr. Zoffinger had questioned the viability of a one-team arena in Newark, but he insisted that a Continental Arena without both the Nets and Devils would still be able to schedule events throughout the year and could remain profitable.

Besides finances, questions also remain about the appeal of a hockey team in Newark. In a statement, Gary Bettman, commissioner of the National Hockey League, said that some teams with the highest attendance play in downtown arenas.

"We have seen great success with one-team arenas, as 19 of our teams are the only major league team and primary tenant in their home venues," Mr. Bettman said.

One further hurdle may be the public perception of Newark. Even as the sale of the Nets was announced, many fans said that although they were disappointed that the team was poised to move to Brooklyn, a Newark arena had little or no appeal.

"I wouldn't go to Newark," said Frank Ranu, 32, a Web site producer from Clifton, N.J., who noted the city's reputation for high crime rates. "Newark is rebuilding but Newark is still Newark."

Copyright 2004 The New York Times Company

[BrooklynRider]

As I've stated in other posts, I think a move toward urban arenas without parking is the way to go.

[Kris]

February 11, 2004

McGreevey Adds to Woes of Newark Arena Project

By RONALD SMOTHERS

NEWARK, Feb. 10 - Just a day after Newark officials sought to regain momentum in their drive for an arena for the New Jersey Devils, Gov. James E. McGreevey appeared to slam on the brakes Tuesday, saying that he supported keeping the Meadowlands Continental Arena open.

Most economic studies indicate that two such arenas in such close proximity to each other and competing for the same nonsporting events, would be doomed.

Speaking through a spokesman, Governor McGreevey took note of the efforts over the last year by the New Jersey Sports and Exposition Authority to transform the 25-year-old Meadowlands arena, where the Devils hockey team now plays, from a drain on the state treasury to a moneymaker. Those efforts included attracting a proposal for a $1.4 billion family entertainment, office and retail complex to an adjacent parcel.

"We have worked hard to turn a profit and provide a benefit for taxpayers, so of course it is going to remain open,'' said Micah Rasmussen, the governor's spokesman.

As for the proposed Newark arena, Mr. Rasmussen said all projects must be evaluated on their own merits. But, he added, as a matter of policy the McGreevey administration would not support any sports venture that used taxpayer dollars. He would not comment on whether the governor viewed Newark's planned source of financing for its arena, lease payments for Newark Liberty International Airport, as taxpayer dollars.

The governor's comments came barely a day after the city hurriedly unveiled a letter of intent with the New Jersey Devils to help build the arena and occupy it by 2007. The announcement by Mayor Sharpe James was seen by many business and civic leaders as his attempt to reassure local leaders that he was still pursuing the goal of revitalizing the city's downtown. They said it also served as a pointed signal to Governor McGreevey to honor longstanding commitments to support revitalization. And for a short time Tuesday, the announcement seemed to be boosting confidence in the city's chances.

The mayor's office did not return calls Tuesday seeking a response to the governor's late-afternoon statement.

Newark had originally envisioned its arena as home to both the Devils and the New Jersey Nets, who also play at Continental Arena. After last month's sale of the Nets to a developer who plans to move the basketball team to Brooklyn, Newark was confronted by an aggressive effort by the head of the New Jersey Sports and Exposition Authority, George R. Zoffinger, to keep open the Continental Arena, just 12 miles away in East Rutherford. At the same time, Mr. Zoffinger, a key economic adviser to the governor, loudly disparaged any thought of Newark's building an arena to house one sports team.

Until the governor weighed in Tuesday, the city's effort to rally its supporters seemed to be working.

Arthur Stern, the president of the Cogswell Real Estate Group, who supports revitalization efforts, said the letter of intent was "a wonderful thing that will psychologically encourage other investors and capital markets" interested in the city. It signaled the city's commitment, he said, noting the investment of $200 million of its own money into the project.

"It is my hope that the governor gets behind this," Mr. Stern said before the governor's statement supporting the Meadowlands. "One of the things that got lost in the whole dialogue over a Newark arena was that it was to be an economic stimulus for the city. Some have tried to make it a debate over whether public money should benefit wealthy sports team owners."

And even as the governor's spokesman was suggesting that that indeed was the issue, State Senator Leonard Lance, the Republican Senate leader, echoed that view when asked for his reaction to the Newark arena proposal.

"We at the level of state government in Trenton contribute greatly to the city of Newark and we do not favor subsidizing rich owners of sports teams," Mr. Lance said. "We have to know a good deal more about these contractual arrangements."

By contrast, the Democratic Senate president, Richard Codey, has said he supports the arena, saying the state should not try to block the city from spending its money the way it wants to.

The proposed $300 million, 18,000-seat arena is envisioned as the center of nearly $1 billion of commercial and residential development in aging downtown Newark, including the construction of a new headquarters for the city's 56,000-student school system.

The current proposal calls for the city to put up $200 million, while the Devils owners would contribute $100 million and get the right to operate and manage the arena. The proposed site, two long blocks from Pennsylvania Station, where PATH, New Jersey Transit and Amtrak trains stop, would also have parking decks to accommodate 3,500 cars.

The deal depends on many factors, including confirmation through engineering studies that an arena area deep below the surface could be accommodated without added construction costs. One city official close to the negotiations said the Devils wanted to make sure they could get a builder willing to sign a deal with "a guaranteed maximum price," and to do that there had to be confirmation in advance of the engineering complexities.

Among the other issues to be worked out are how revenue from concessions and other booked events would be split between the city and the team, what annual lease payments the team would pay and whether or not the city's investment would be recouped.

Copyright 2004 The New York Times Company

[Kris]

February 13, 2004

Newark Holds Rally to Back New Arena for Devils

By RONALD SMOTHERS

NEWARK, Feb. 12 - Newark's cheerleader-in-chief, Mayor Sharpe James, donned skates and took to the ice at a recreation center here Thursday to rally support for the city's plan to build an arena for the New Jersey Devils.

In what was billed as a "pep rally," Mayor James put on hockey gear with the East Side High School hockey team and joined the owners of the Devils, some of the team's stars and local corporate and political leaders in welcoming the team to the city.

No mention was made of comments by Gov. James E. McGreevey this week supporting the continued operation of the Meadowland's Continental Arena, which some economic studies have indicated would pose crippling competition for the proposed $300 million, 18,000-seat arena in Newark. Nor did Mayor James or the Devils' officials release financial details of the proposal, insisting that those had yet to be worked out.

Instead an ebullient Mayor James and a more diffident Lou Lamoriello, the Devils' president and general manager, mugged like new in-laws at a wedding. It was a ceremony in the Ironbound Recreation Center's ice rink, with the singing of the national anthem, balloons and a Zamboni. "While we will cheer you affectionately as the Devils," said Mayor James, wearing skates and a jersey with "Newark '07" on the back, "we will always see you as angels of hope.'' More than 250 people gathered to cheer the mayor and the speakers who portrayed a revived downtown Newark as the home of hockey's Stanley Cup champions.

"Our moving here will give the state the opportunity to get out of a business they should never have been in the first place," said Mr. Lamoriello, referring to the operation of the Continental Arena by the New Jersey Sports and Exposition Authority.

Mayor James said that for the Devils to play here in 2007, the team and the city would have to wrap up their deal in time for construction to start before the end of the year.

About $200 million of city revenue from the leasing of Newark Liberty Airport and about $100 million from the Devils would pay for the arena.

Copyright 2004 The New York Times Company

[STT757]

Mayor rolls out red (and black) carpet for Devils

Friday, February 13, 2004

BY MATTHEW FUTTERMAN AND JEFF MAYS
Star-Ledger Staff

With all the pomp of a high school pep rally, Newark Mayor Sharpe James welcomed the Devils to Newark yesterday but said nothing about how the team and the city would pay for the project.

As a crowd of several hundred Newark residents and municipal workers arrived at the Ironbound Recreation Center, James skated across the ice wearing a Devils sweater and pushing a puck.

"This is not a day for specifics, it is a day for a celebration," said James, who was joined by state Senate President Richard Codey (D-Essex), U.S. Rep. Donald Payne, state Commerce Commissioner the Rev. William Watley, the East Side High School marching band and hockey team.

Several Devils players including defenseman Scott Niedermayer and former player Ken Daneyko participated.

The mayor unveiled a plan for an 18,000-seat, $300 million arena, surrounded by nine office buildings, a hotel, 500,000 square feet of retail space and parking for 3,500 cars. He said the development just blocks from the state's largest mass transit hub would produce $28.4 million annually for the city.

However, James acknowledged the numbers were only projections. The city has not gained any commitments from businesses to move into the city if the $300 million arena is built.

Two-thirds of that amount would come from the city's airport lease with the Port Authority of New York and New Jersey. The Devils would be responsible for the rest in some form.

James and Devils president Lou Lamoriello declined to answer any questions regarding the arena's financing yesterday.

The mayor did say the Devils will operate and manage the arena, something team officials have said they need to do to remain competitive as player salaries rise.

"Once we lease the arena to them we're going to let them run it," he said.

But the issue of rent has not been clarified.

Devils owners Michael Gilfillan and Jeffrey Vanderbeek declined to answer any questions.

While James was jubilant about an arena he said would open in 2007, others involved -- city council members, Newark School Superintendent Marion Bolden, and various citizens groups --were skeptical. Until James delivers on the figures, they said, no one will be able to throw their full support behind the ambitious project.

"We want a full package. We want the concrete numbers," said North Ward Councilman Hector Corchado. "I don't know what we are dealing with and I don't think anyone does."

James needs the city council to approve what is being called the Newark Downtown Core Redevelopment District. Only two council members, both strong James supporters, showed up yesterday.

George Zoffinger, Gov. James E. McGreevey's point man on professional sports, said the city needs to disclose the full details of the arena deal.

"We are very anxious to see what the Devils' cash contribution to the project is," said Zoffinger, chief executive officer of the New Jersey Sports and Exposition Authority, owner of the Continental Airlines Arena.

James' investment in the Newark arena is risky on several levels. The Devils acknowledge they have $70 million in debt. The NHL itself is facing a potential labor war with its players that may wipe out next season and the following one.

In a national news conference yesterday, NHL Commissioner Gary Bettman and Arthur Levitt, the former chairman of the Securities and Exchange Commission hired by the NHL to assess the league's economics, presented a stark picture of a sport struggling to survive.

Levitt said his year-long study of the NHL revealed the league was "on a treadmill to obscurity."

He reported the NHL lost $273 million last year on revenues of roughly $2 billion, with 19 teams losing an average of $18 million and 11 teams posting an average profit of $6.4 million. Devils officials have projected the team will lose in excess of $10 million this year.

"I asked myself if I as an investor would find this attractive," Levitt said. "I would neither underwrite as a banker any of these businesses nor would I invest a dollar of my personal money in a business that appears to be heading south."

He also contradicted claims the Devils owners have made that controlling their own arena where they could keep all the money from concessions, luxury suites, and tickets from concerts and family shows would make a substantial difference in their bottom line.

[Kris]

More Newark news...

(Star Ledger)...

Judge sides with Newark on bonds for an arena
Rejects referendum bid and notion of city debt

June 09, 2004
BY MATTHEW FUTTERMAN

Newark Mayor Sharpe James and supporters of a planned arena in downtown Newark won a sweeping victory yesterday when a state court judge ruled against holding a public vote on the use of bonds to pay for the project.

State Superior Court Judge Donald S. Goldman ruled the public did not have the right to push for a referendum because Newark's city government would not incur debt.

Opponents of the arena vowed to appeal the ruling today, but the decision clears the way for the independent Newark Housing Authority to sell $200 million in bonds. Critics had collected 4,600 signatures in an effort to force a referendum on the bond sale.

James wants to use the bulk of the money from the bond sale to build a $310 million arena that would be the centerpiece of the city's downtown redevelopment plan. The Devils would be the major tenant and pay the rest of the tab.

"The market is going to have a much greater comfort level with this bond sale now that the referendum issue is off the table," said Angelo Genova, who led a team of eight lawyers representing the Housing Authority and the city. "This opens the way for the initial steps of the bond transaction."

James and the majority of the Newark City Council want to assign $12.5 million in annual rent payments from the Port Authority of New York and New Jersey for its seaport for the next 33 years to raise the $200 million. The transaction is crafted to keep the money from entering the city's coffers and gives the Port Authority sole responsibility for paying off the debt.

The mayor has promised to distribute $10 million from the bond sale to community projects in Newark's outlying neighborhoods.

Glen Scotland, a bond lawyer handling the deal, said the Housing Authority and its financial advisers, Citigroup and Powell Capital, would now restart the process of selling the bonds, which could be complete by the end of the month.

Richard Monteilh, city business administrator and lead negotiator, could not be reached for comment.

Ira Karasick, who represented council members Luis Quintana and Augusto Amador, leaders of the opposition, said Goldman failed to understand that committing the lease payments to the bondholders causes the city to incur a debt. He said he would seek an injunction barring the Housing Authority from selling the bonds until the litigation ends.

"If the bonds are issued, and it turns out the whole deal is illegal, millions of dollars in taxpayer money will have been wasted because of the impatience of the people pushing this bond issue," Karasick said.

No members of the Devils organization attended the hearing. Team executives have tried to distance themselves from the political infighting the past week and make the issue about the city's right to float the bonds rather than a debate over the merits of the arena project.

Devils principal owner Jeffrey Vanderbeek and Monteilh did not return phone calls seeking comment. Vanderbeek will testify today in front of the blue ribbon commission James has appointed to evaluate the arena project.

The two sides battled during more than two hours of oral arguments yesterday morning, with Goldman peppering the lawyers with questions on how to define municipal debt.

The city's lawyers accused opponents of the arena project of misleading the public during the referendum drive by calling the effort a "Petition Protesting Ordinance Incurring Indebtedness To be Paid by the City of Newark."

Quintana objected to that characterization and vowed not to quit.

"The city wants to spend money on lawyers and bankers and arenas and we want to spend money on recreation for our children," he said.

[NYguy]

(Star Ledger)

Devils give the details on Newark arena
Owner pledges $25M skate center and lots of jobs if facility is built

June 10, 2004
BY MATTHEW FUTTERMAN AND NIKITA STEWART

Devils owner Jeffrey Vanderbeek yesterday promised to deliver to the state's largest city "much more than an arena" during four hours of testimony in front of a blue-ribbon commission studying the downtown project.

Vanderbeek pledged to build a community center and to designate jobs for Newark residents if the $310 million arena is built. But he stopped short of saying the city would get a stake in revenue generated by the arena.

The testimony, delivered at Seton Hall Law School before a commission led by the school's dean, Patrick Hobbs, provided the clearest description yet of how the hockey organization plans to integrate itself into the fabric of Newark. The commission was appointed by Newark Mayor Sharpe James.

In a phone interview after his testimony, Vanderbeek said he "made a strong case that this project is good for the city and good for the Devils organization."

Newark is committing $210 million for the construction of the arena, which would be the centerpiece of a downtown redevelopment plan that includes 500,000 square feet of retail space, a headquarters for the board of education, a hotel and seven office buildings.

To pay its part, the city plans to sell roughly $200 million in bonds today through the Newark Housing Authority, city business administrator Richard Monteilh said. If that happens, the money could be available by the end of the month.

The housing authority will use annual rent payments of $12.5 million from the Port Authority of New York and New Jersey for its lease of Newark's seaport to pay off the bonds.

The Devils have committed $100 million to the proposed, city- owned arena planned for Broad, Lafayette and Market streets, but have not revealed how much the hockey team will pay Newark each year for the right to operate and control the building.

Negotiations between the team and the city are continuing, though two sources with knowledge of the talks said the team has offered to spend $2 million each year on the maintenance of the arena. However, it remains unclear whether that would serve as the team's total payment to rent the building.

"Their $100 million up-front contribution is really equal to about $7 million each year" over a 30-year lease, Monteilh said. "The notion is for the city to have no obligations running with this building."

In other words, the Devils would have full control and responsibility for the proposed arena, but would likely not have to share the money from sales of tickets, concessions or luxury suites.

In addition, Vanderbeek made several other commitments if the project moves forward, which he announced in a statement he released after delivering his testimony.

Thirty-five percent of construction jobs would go to Newark residents.

After the arena is completed, 20 percent of the jobs at the building, including management, concessions and security, would go to Newark residents.

At least 15 percent of contracts for concessions and retail within the arena would be designated for Newark businesses.

The team will build a $25 million community ice center, which will be used by the team for practices and by Newark residents.

Sources with knowledge of Vanderbeek's testimony said he also committed to spending $250,000 for a public school educational program and another $250,000 for a training program to teach youth about sports management.

Shortly after yesterday's meeting concluded, opponents of the project took their quest to hold a special vote on the bond sale to state Appeals Court Judge Howard Kestin.

The opposition, led by Newark council members and James rivals Luis Quintana and Augusto Amador, tried to force a referendum by collecting 4,600 signatures from city residents, but a state court judge ruled Tuesday the public did not have a right to vote on the bond sale because the city will not incur any debt. Ira Karasick, a lawyer for the opposition, appealed that decision yesterday.

"We ought to win," Karasick said. "In reality this is a debt transaction for the city and there is no getting around that."

The court battle delayed the initial sale of the bonds for six days, but Cliff Goldman, the former state treasurer and a consultant to the city on the bond sale, said a diverse group of institutional investors and mutual funds have committed to buying the bonds as early as today. They are insured if the court ultimately rules in favor of the opponents.

[NYguy]

Newsday...

Bond sale raises $200M for Newark Arena

June 11, 2004

NEWARK, N.J. -- The proposed downtown hockey arena for the New Jersey Devils moved a step closer to reality as the city's housing authority raised $200 million in a bond sale to help pay for it.

The sale was handled Thursday by Citigroup and several smaller financial institutions less than two days after a judge ruled that residents did not have the right to vote on the funding arrangement through a public referendum.

The sale is expected to be completed June 24. But two city councilmen, Luis Quintana and Augusto Amador, got an appellate judge to agree to hear a request for a temporary restraining order that would stop the sale process until the litigation surrounding it is complete.

The housing authority will pay off the bonds during the next 33 years using annual lease payments from the Port Authority of New York and New Jersey of $12.5 million for Newark's marine terminal.

Mayor Sharpe James sees the arena as the centerpiece of Newark's downtown redevelopment, which envisions 500,000 square feet of retail space, a hotel and seven office buildings.

Newark plans to spend $210 million on the arena, which it would own. The Devils would spend $100 million and control nearly all of the revenue from sales of tickets, concessions and luxury suites.

The Star-Ledger of Newark reported that James plans to spend $20 million immediately to cover the predevelopment costs for the arena, such as surveying and testing the ground at the site.

[NYguy]

(Star Ledger)

Bond sale garners $200M for Newark arena
Foes decry housing authority's actions

June 11, 2004
BY MATTHEW FUTTERMAN

The Newark Housing Authority raised $200 million yesterday in a controversial bond sale that is the first major financial step toward building a downtown arena.

The sale, handled by Citigroup and three smaller financial institutions, took place yesterday morning, less than 48 hours after a state court judge ruled the public did not have the right to vote on the matter.

Newark Mayor Sharpe James, the driving force behind the effort to build a $310 million arena for the Devils hockey team, was in Trenton yesterday and did not return phone calls seeking comment. Pam Goldstein, the mayor's spokeswoman, confirmed the sale.

The city will not have access to the money until June 24 when the sale is completed. But even as buyers were committing funds to the bonds, opponents of the arena project, led by Newark Councilmen Luis Quintana and Augusto Amador, continued efforts to stop the sale from going forward and hold a vote on the project.

Yesterday, state Appellate Division Judge Howard Kestin agreed to hear a request for a temporary restraining order, also known as a stay, that would stop the sale process until the litigation surrounding it is complete. Lawyers for both sides must submit papers this afternoon regarding the request.

The housing authority will pay off the bonds during the next 33 years using annual lease payments from the Port Authority of New York and New Jersey of $12.5 million for Newark's marine terminal. The lease was signed in 2002.

James has proposed the arena as the centerpiece of the city's planned redevelopment of its downtown core, which includes 500,000 square feet of retail space, a hotel and seven office buildings. The city plans to spend $210 million on the city-owned arena, with the Devils committed to spend $100 million and controlling nearly all of the revenue from sales of tickets, concessions and luxury suites.

Last week, the city said it would delay the bond sale until the judge made a decision on the referendum. State Superior Court Judge Donald S. Goldman ruled the public did not have the right to seek a referendum because Newark's city government would not incur debt.

City officials said the bond sale went ahead now because interest rates are on the rise and waiting could be costly.

After all the fees have been paid, the proceeds and the first two years of lease payments from the Port Authority leave Newark with $221 million to spend on economic development projects, including the arena, said Cliff Goldman, a former state treasurer and a financial consultant on the bond issue.

"The money will now go into a construction fund," he said.

James plans to spend $20 million immediately to cover the pre-development costs for the arena, such as surveying and testing the ground at the site of the project at Broad, Lafayette and Market streets.

If Kestin, meanwhile, does not grant the restraining order, lawyers say he may still consider the entire case before the sale closes.

"The important thing here is events that have already happened don't become subject to the stay," said Angelo Genova, a lawyer for the housing authority. "The stay only affects events in the future."

Amador and Quintana held a news conference yesterday on the steps of Newark City Hall voicing their opposition to the lower court's decision Tuesday not to hold a public vote.

They also criticized Devils owner Jeffrey Vanderbeek's offer to give Newark residents 35 percent of construction jobs and 20 percent of the jobs at the completed building. In addition, 15 percent of the concession contracts would go to local businesses.

Vanderbeek said Wednesday his proposals made it clear Newark would get far more than a sports arena if it decided to pursue the project.

"The proposal is an insult to the city of Newark," Amador said. "Since the city is paying 65 percent of the $310 million cost, Newark residents should be getting more jobs," Amador said.

[Kris]

June 12, 2004

Newark Bond Sale Advances an Arena

NEWARK, June 11 (AP) - The city moved a step closer to building a downtown hockey arena for the New Jersey Devils as the Newark Housing Authority raised $200 million in a bond sale to help pay for it.

The sale was handled on Thursday by Citigroup and several smaller institutions less than two days after a judge ruled that residents did not have the right to vote on the financing arrangement in a referendum.

The sale is expected to be completed on June 24. But two city councilmen, Luis Quintana and Augusto Amador, got an appellate judge to agree to hear a request for a temporary restraining order that would stop the sale process until any litigation involving it is complete.

The Housing Authority is to pay off the bonds over the next 33 years using annual lease payments of $12.5 million from the Port Authority of New York and New Jersey for Newark's marine terminal.

Mayor Sharpe James sees the arena as the centerpiece of Newark's downtown redevelopment.

Newark plans to spend $210 million on the arena, which it would own. The Devils would spend $100 million.

Copyright 2004 The New York Times Company

[Kris]

August 6, 2004

Education Building to Get Different Site in Newark Plan

By RONALD SMOTHERS

NEWARK, Aug. 5 - As the finishing touches were being put on the lease between Newark and the New Jersey Devils for a planned $310 million arena that is at the core of a downtown redevelopment plan, officials said that a proposal to build a new Board of Education headquarters on one of the more commercially viable plots in the redevelopment area had been scrapped.

News of the change in plans came as Newark city officials said they were preparing to submit details of the nearly five-year-old arena proposal to both the City Council, which must approve it, and a blue ribbon commission that Mayor Sharpe James created to provide some independent evaluation of the envisioned benefits. Those details are scheduled to go first to the Council and then to the commission.

But already, changes in the plans for the 24-acre area in the heart of downtown reflect concerns of many on the commission and the City Council about the ability of the district, which will include a community center, office buildings, a 300-room hotel and the new education complex, to support economic growth. Early in their deliberations, commission members questioned the wisdom of placing the planned Board of Education headquarters prominently in the heart of the business district, at the corner of Lafayette and Broad Streets, the plan that has now been scrapped.

"It's no longer in that location, but it is still in the downtown core area," said a city official involved in shaping the plan. He would not disclose the final location on which officials had agreed.

The change was revealed as the Devils deal firmed up. Details of that agreement, being ironed out in the lease negotiations, said the official, include language on how revenue from the arena would be shared, on the guarantee of a no-risk construction contract in which the Devils' ownership would ensure that any overruns would not be paid for with public money and on an affirmative-action program for hiring by contractors and subcontractors for both construction and arena operations.

Patrick Hobbs, dean of the Seton Hall University Law School and chairman of the blue ribbon commission of academics, business leaders and civic leaders, said of the changes: "We think some of the revisions are a response to our ongoing work. That work has a vision of trying to make connections between the arena and other parts of downtown to enhance economic development."

Already, there is agreement that the city would provide $210 million of the cost of the arena and the Devils would provide $100 million. The city portion of the financing is essentially already in hand, as a result of the sale of bonds whose repayment is backed by 30 years of Port Authority lease payments to the city for Newark Liberty International Airport.

Still to be revealed are details of the location and construction of the hotel, some 500,000 square feet of office space, 150,000 square feet of retail space, a $25 million community center promised by the Devils owners and a 3,200-space parking garage to be operated by the city.

Since it was first proposed as the new home for both the New Jersey Nets and the Devils in 1999, the idea of a Newark arena has been caught in a labyrinth of state political rivalries and competing development priorities, local fiscal pressures and the vagaries of the shifts in the ownership of sports franchises. During that time, the plan has often looked to be down for the count, only to rise slowly with some new strategy. But it has remained the centerpiece of the city's redevelopment efforts.

Copyright 2004 The New York Times Company

[tmg]

The New York Times
Three Designs Unveiled for Arena in Newark
By RONALD SMOTHERS

Published: October 22, 2004

NEWARK, OCT. 21 - Newark officials unveiled three architectural designs on Thursday night for a proposed sports arena that the city hopes will lead to a sweeping redevelopment of its downtown.

The designs for the $355 million, 18,000-seat arena, which would be the home of the New Jersey Devils hockey team, ranged from a Roman Colosseum-like oval to the layered curves of a design that simulated a sheath of melting ice.

The design competition is the latest phase of a five-year effort to build the sports arena in Newark, the state's largest city.

The plan, which has been dogged by political and financial setbacks under three governors, now appears near finalization.

While there are some local hurdles and pockets of opposition, the sole remaining questions seem to be the viability of the National Hockey League, which has shut down due to a labor dispute, and the continued willingness of the Devils' owners to put up their $100 million share of the arena cost.

The arena, which would be bounded by Market, Mulberry, Lafayette and Broad Streets, is expected to spur office and retail development that would fit in with other city plans to building upscale housing in a new downtown community.

"This arena is part of a holistic redevelopment plan," Mayor Sharpe James said at the presentation at the New Jersey Performing Arts Center.

The idea of a design competition, said the city administrator, Richard Monteilh, harks back a century ago when Newark's leaders held a competition that resulted in the design of its ornate, gold-domed Beaux-Arts City Hall, which opened in 1908.

That was a golden age for the city, he said, adding, "We are again resurging as a powerhouse city in America, and we want this building to exemplify that.''

One of the designs, by Morris Adjmi Architects of New York, chose the Colosseum as its model, a large tiered oval in dark red brick that evoked Newark's past as a center of brick making. The facade tiers are punctuated by iron columns, and the structure is capped by a sleek pediment.

Mr. Adjmi said that the black of the iron and the red of the brick on the arena also evoked the team colors of the Devils.

Another design, by the Hillier Group of Princeton, employed a distinctive roof for the glass- and steel-walled arena that looked like two silvery leaves angled over the top and cantilevered over the sides of the building. The design would be both grand and functional, said Robert Hillier, the head of the firm.

Another proposal from Kohn Pederson Fox Associates of New York, showed a translucent, curving and tiered design that seemed to encase the inside of the arena in ice while surrounding it with other buildings of more solid materials.

The shell would include low-resolution L.E.D. screens which could animate the walls with messages about events and even advertising.

"A building has to not only communicate with its place but communicate with the world," said William Pederson, the firm's founder.

Newark residents will be invited to comment on the three designs, Mr. Monteilh said, but the final decision will be made by a group made up of the Devils management and city officials.

[STT757]

Three faces of Newark's arena
Design firms offer competing visions at NJPAC
Friday, October 22, 2004

One looks like a coliseum, the other a spaceship and the third a transparent bowl within a bowl.

Those are the concepts offered by three architectural firms competing for the right to design the exterior of the 18,000-seat Newark sports arena.

Drawings, renderings and models by the trio -- Morris Adjmi Architects, The Hillier Group and Kohn Pedersen Fox -- were unveiled last night at the New Jersey Performing Arts Center.

"This is a huge moment -- we're talking about design in Newark," Lawrence P. Goldman, NJPAC's president and CEO, said during the presentation. "Ten years ago, this wouldn't have happened."

Design figures prominently in the $310 million arena that will anchor a 26-acre redevelopment zone that boosters say will make the area a monument to the resurgence of the nation's third-oldest city.

The stakes are huge: design fees that top $20 million and bragging rights.

"We will evaluate these designs and incorporate the one that meets our city's needs and achieves its dreams in a cost-effective manner," said Newark Mayor Sharpe James.

A committee made up of Newark officials, representatives of the New Jersey Devils and civic leaders will pick a design next month, said Pamela Goldstein, the city's spokeswoman.

The interior of the arena is being designed by HOK Sport + Venue + Event, which has little competition in the design of sports venues. The Kansas City, Mo.-based firm has designed or renovated 24 of the 30 major league baseball stadiums and 30 of the 32 stadiums for the National Football League.

Newark said it would spend no more than $210 million in public money on the arena, with the hockey franchise contributing $100 million. The project also includes a hotel, parking deck, entertainment center and offices for the Newark Board of Education.

The three designs shown at NJPAC represented a counter-point to Newark's dominant architecture -- the fortress-style office towers near Newark Penn Station and pre-World War II buildings that date to the era when Newark was a regional center of banking, insurance and retail.

Morris Adjmi, a Manhattan-based firm, envisions an arena with large brick columns and an aluminum curtain wall that give the structure the height and shape of the coliseum in Rome.

Hillier Group, a Princeton-based company that has worked since the late 1990s on the long-stymied project, proposes a low-scale building featuring a sweeping, dish-shaped metal roof with three arching sections. It has tall banks of windows overlooking a plaza, similar to NJPAC.

Kohn Pedersen Fox, another Manhattan-based company, proposes a building of glass ribbons that slope in and out around a bowl that forms the arena seating. The entire glass exterior would emanate light of various colors.

Like NJPAC, all three designs encourage sports fans to mingle on a large outdoor plaza, highlighting a simple principle: More people downtown will go a long way toward repairing Newark's image.

Martin Moeller, a vice president at the National Building Museum in Washington, D.C., said sports venues have become gateways and signature structures, fulfilling a function in cities similar to skyscrapers, bridges and churches.

"These public and quasi-public structures can bring back some sense of identity and re-establish a sense of place," Moeller said. "These kind of facilities can have a rejuvenating effect and benefit for the community."

Matilda McQuaid, author and exhibitions curator at Cooper-Hewitt National Design Museum in Manhattan, said the arena design need not be cutting edge to become a destination. She said it must encourage sports fans to explore the rest of downtown.

"It can't become an indoor garage," she said. "It can't be people park in there and don't venture outside. The perimeter of the building, the surrounding arena, has to be brought into the fabric of the building.

"It must have an architectural presence and be something that fits."

[NYguy]

A few scans from the paper (Star Ledger)


Hillier Architecture

http://www.pbase.com/nyguy/image/35396635/large.jpg


http://www.pbase.com/nyguy/image/35396639/original.jpg


Kohn Pederson Fox

http://www.pbase.com/nyguy/image/35396643/original.jpg


http://www.pbase.com/nyguy/image/35396645/large.jpg


Morris Adjmi Architects

http://www.pbase.com/nyguy/image/35396646/large.jpg

[Johnnyboy]

i don't really like any of these desighns But, from the choices they had resieved, i pick the first desighn by hiller.or maybe the second desighn. Its kind of odd but in a way good looking.

[ZippyTheChimp]

The Morris design is awful.

[TLOZ Link5]

The Morris design is awful.

Madison Square Garden reprised.

[NYatKNIGHT]

More info in the New York Times:


October 22, 2004

Three Designs Unveiled for Arena in Newark

By RONALD SMOTHERS


NEWARK, OCT. 21 - Newark officials unveiled three architectural designs on Thursday night for a proposed sports arena that the city hopes will lead to a sweeping redevelopment of its downtown.

The designs for the $355 million, 18,000-seat arena, which would be the home of the New Jersey Devils hockey team, ranged from a Roman Colosseum-like oval to the layered curves of a design that simulated a sheath of melting ice.

The design competition is the latest phase of a five-year effort to build the sports arena in Newark, the state's largest city.

The plan, which has been dogged by political and financial setbacks under three governors, now appears near finalization.

While there are some local hurdles and pockets of opposition, the sole remaining questions seem to be the viability of the National Hockey League, which has shut down due to a labor dispute, and the continued willingness of the Devils' owners to put up their $100 million share of the arena cost.

The arena, which would be bounded by Market, Mulberry, Lafayette and Broad Streets, is expected to spur office and retail development that would fit in with other city plans to building upscale housing in a new downtown community.

"This arena is part of a holistic redevelopment plan," Mayor Sharpe James said at the presentation at the New Jersey Performing Arts Center.

The idea of a design competition, said the city administrator, Richard Monteilh, harks back a century ago when Newark's leaders held a competition that resulted in the design of its ornate, gold-domed Beaux-Arts City Hall, which opened in 1908.

That was a golden age for the city, he said, adding, "We are again resurging as a powerhouse city in America, and we want this building to exemplify that.''

One of the designs, by Morris Adjmi Architects of New York, chose the Colosseum as its model, a large tiered oval in dark red brick that evoked Newark's past as a center of brick making. The facade tiers are punctuated by iron columns, and the structure is capped by a sleek pediment.

Mr. Adjmi said that the black of the iron and the red of the brick on the arena also evoked the team colors of the Devils.

Another design, by the Hillier Group of Princeton, employed a distinctive roof for the glass- and steel-walled arena that looked like two silvery leaves angled over the top and cantilevered over the sides of the building. The design would be both grand and functional, said Robert Hillier, the head of the firm.

Another proposal from Kohn Pederson Fox Associates of New York, showed a translucent, curving and tiered design that seemed to encase the inside of the arena in ice while surrounding it with other buildings of more solid materials.

The shell would include low-resolution L.E.D. screens which could animate the walls with messages about events and even advertising.

"A building has to not only communicate with its place but communicate with the world," said William Pederson, the firm's founder.

Newark residents will be invited to comment on the three designs, Mr. Monteilh said, but the final decision will be made by a group made up of the Devils management and city officials.

Copyright 2004 The New York Times Company

[Kris]

February 3, 2005

Newark and Devils Sign Lease and Agree to Build an Arena

By RONALD SMOTHERS

http://graphics8.nytimes.com/images/dropcap/n.gifEWARK, Feb. 2 - Newark officials and the owners of the New Jersey Devils signed a lease agreement on Wednesday, clearing the way for the long-delayed construction of a $310 million, 18,000-seat arena for the National Hockey League team.

Officials in the state's largest city hope that the planned arena downtown, a few blocks from Pennsylvania Station in Newark, will generate hundreds of millions in office and retail development.

Under the terms of the 30-year lease, the city will contribute $210 million to the construction of the arena, while the Devils' owner, Jeff Van der Beek, will contribute $100 million.

The city's portion of the cost is already in hand and comes from money borrowed last year by the Newark Housing Authority. The funds were secured by windfall rent payments won in a legal dispute between the city and the Port Authority of New York and New Jersey for the operation of Newark Liberty International Airport.

If all goes well, Mayor Sharpe James said, the team, now using Continental Arena at the Meadowlands, could be playing in the new arena by October 2007.

Neither city officials nor Mr. Van der Beek seemed troubled that the current lockout of the league's players over pay issues, now nearly five months long, is threatening to lead to the cancellation of the season.

"It is clear to us that with the lockout and the negotiations, hockey is where professional baseball and professional basketball will eventually be in dealing with the salary cap issue," Mr. James said. "The players and owners will realize that they need each other, and what will emerge is a viable National Hockey League."

Whatever N.H.L. labor difficulties may remain, they pale alongside the litany of challenges that a sports arena in Newark has faced since it was first proposed in 1998.

Initially, the arena would have served the New Jersey Nets basketball team alone, and would have required state financing and strong support from Trenton. Then it was to be the home of both the Devils and the Nets, once the franchises were brought under a single ownership.

It would still have required state financing and support from Trenton, both of which repeatedly failed to materialize.

In 2002, the need for financing from the state was overcome when the city, with the help of the governor, James E. McGreevey, settled a dispute with the Port Authority over back rent for the agency's operation of the city's airport. The windfall freed the city from the politically arduous quest for state money.

But then came disputes within the ownership ranks of the two teams, eventually resulting in the sale of the Nets to a group that plans to move them to Brooklyn and the sale of the Devils to Mr. Van der Beek, a newcomer to sports.

What followed was a long courtship period between the city and the new owner of the hockey franchise.

Mr. Van der Beek, who joined Mr. James at a City Hall ceremony to sign the agreement, said: "It was a long time coming, with a lot of fits and starts. But we're signing a definitive, binding agreement with the City of Newark today."

Copyright 2005 (http://www.nytimes.com/ref/membercenter/help/copyright.html) The New York Times Company (http://www.nytco.com/)

[TLOZ Link5]

2005 census estimate says that Newark gained population for the third year in a row.

[alex ballard]

2005 census estimate says that Newark gained population for the third year in a row.

And who do you think (in your opinion) is moving in?

My opinion, a combo of Immigration, affordable housing seekers and of course, Manhattanites.

[STT757]

"And who do you think (in your opinion) is moving in?"

Brazilians, and lots of them. They are taking over the Iron Bound as the Portugese and Spanish move to the Suburbs.

[JCMAN320]

Here is what the new arena will look like once completed.

http://www.newjerseydevils.com/2005/html/theteam/images/teamnews/newarkarena-day1024.jpg

http://www.newjerseydevils.com/2005/html/theteam/images/teamnews/newarkarena-night1024.jpg

Slideshow of model and site of arena, in it you will see site work started already
http://www.newjerseydevils.com/2005/html/fanzone/galleries/arenamodel/gallery.html

[JCMAN320]

Groundbreaking signals start of arena construction

Today Newark Mayor Sharpe James, along with other politicians and dozens of dignitaries stuck symbolic shovels into the ground near Newark City Hall to mark the start of construction on the Newark Arena, future home of the Devils hockey team.

A major sporting venue in downtown Newark was eight years in the making.

For months, bulldozers, wrecking balls and a massive compacting plate have been preparing the Broad Street site, between the City Hall complex and Edison Place. Now, the building process begins on a project expected to cost roughly $350 million, including $210 million from city coffers.

The Devils and the city never would have reached this point had it not been for the multimillion-dollar spending spree that snapped up more than 30 lots on roughly 10 acres, where the main arena complex will rise. The deals involved negotiations with a dozen property owners; none of the properties was acquired through condemnation.

[NYatKNIGHT]

This Time, Newark Leaders Say, the Arena Will Be Built

By RONALD SMOTHERS (http://query.nytimes.com/search/query?ppds=bylL&v1=RONALD SMOTHERS&fdq=19960101&td=sysdate&sort=newest&ac=RONALD SMOTHERS&inline=nyt-per)
Published: October 4, 2005

NEWARK, Oct. 3 - In what officials insisted was the last of several ceremonies over the last seven years trumpeting the construction of a professional sports arena in New Jersey (http://topics.nytimes.com/top/news/national/usstatesterritoriesandpossessions/newjersey/index.html?inline=nyt-geo), Newark broke ground on Monday on a $310 million building that will be the home of the New Jersey Devils (http://topics.nytimes.com/top/news/sports/hockey/nationalhockeyleague/newjerseydevils/index.html?inline=nyt-org) at the start of the 2007-8 hockey season.

Mayor Sharpe James, the five-term mayor who fought for the project from its inception, told a crowd of about 400 people gathered under a large tent at the downtown building site that the city had "climbed the rough side of the mountain" in finally breaking ground for the 18,000-seat arena.

"We have labored for seven years and pleaded with four governors," said Mayor James as he prepared to introduce the owner of the Devils, Jeffrey Vanderbeek, who has agreed to pay for a third of the cost and any overruns. "One man stood up through all the stones and bricks thrown our way, and it seems we finally met an owner who believes that the team and the town are family."

Mr. Vanderbeek told the audience that the arena would draw three million people a year to games and other evening events in a city whose downtown generally empties out after the workday. He said that it would become the focal point of Newark's downtown redevelopment plans, which include a Marriott hotel, new office space, a community center, a new Board of Education headquarters, restaurants, retail stores and new residences.

Morris Adjmi Architects of New York is designing the arena, which will take up nearly one square block. The arena will be a large glass oval, punctuated by black iron columns and partly encased in a frame of dark red brick and a sleek pediment. Mr. Adjmi said that the black of the iron and the red of the brick were intended to evoke the city's past as a brickmaking center and the crossroads of rail lines. Black and red are also the Devils' team colors.

The interior, designed by HOK Sport, will include a 4,800-square-foot L.E.D. screen, restaurants, 750 television monitors, 12 escalators and 78 luxury suites overlooking the ice. The arena is to be built by the Hunt/Bovis Strategic Alliance.

Richard Monteilh, Newark's business administrator, said some last-minute adjustments in the contract between the Devils and the construction consortium remained to be worked out. In the end, he said, the cost with the extras sought by the team was likely to surpass the original $310 million estimate, but the Devils would pay those extra costs.

Under the deal, the city will build a parking garage and keep the revenue from that, and will also receive 7 percent of the gross revenue from the arena's operation, concessions and the 300-room hotel that is to be built across the street. In all, Mr. Monteilh said, the arrangement is likely to generate about $17 million annually for the city over the 30-year lease.

The arena plan has surmounted numerous obstacles. The State Legislature, dominated by suburban lawmakers, declined to provide money for the project. The New Jersey Nets (http://topics.nytimes.com/top/news/sports/probasketball/nationalbasketballassociation/newjerseynets/index.html?inline=nyt-org), which were to share the arena, departed for Brooklyn, and the group that owned both teams broke up. Last year's hockey season was lost to a strike. And proponents have battled lawsuits and opposition from some community groups, which have insisted that the city's money should be spent on schools, police and housing outside of downtown.

One of those opponents, Douglas R. Forrester, the Republican candidate for governor, held a news conference nearby and called on Acting Gov. Richard J. Codey to halt the project and said the city should devote its share of the cost to purely local needs.

But Mr. Codey has no authority to stop the project because the only public money involved is the revenue Newark gets from leasing its airport to the Port Authority of New York and New Jersey.

Mr. Codey, in a brief statement that did not mention the arena, Mayor James or the financing, applauded the Devils' decision to stay in New Jersey and linked it to his administration's success in keeping the Giants and the Jets (http://topics.nytimes.com/top/news/sports/profootball/nationalfootballleague/newyorkjets/index.html?inline=nyt-org) at the Meadowlands.

http://graphics8.nytimes.com/images/2005/10/04/nyregion/04newark.large1.jpg
A model of Newark's $310 million arena, which is set to be completed by 2007 and will be the home of the New Jersey Devils hockey team. The arena is part of an ambitious plan to redevelop the city's downtown.

http://www.nytimes.com/2005/10/04/nyregion/04arena.html

[Derek2k3]

hideous

[TLOZ Link5]

I don't think it's that bad, actually.

[lofter1]

I'm sure it ha to do with cost, but this boxy thing is UGLY and deadening from the outside, especially compared with the 3 finalists that were shown previously.

[STT757]

Alot better than MSG, that's for sure.

[TLOZ Link5]

Alot better than MSG, that's for sure.

Well, no contest if that's what we're judging against.

[macreator]

The diamond design windows are awful. Haven't we learned anything with arena design? This thing screams crappy architecture.

[JCMAN320]

I don't think it's bad at all. I think once it gets built that it will blend in nicely with the surrounding architecture. It will do wonders for the city and the area. This is can only do good for Newark which has been turning around slowly for about 5 years now and this will help speed up the process. Newark already has the NJPAC which is far better than the Lincoln Center and this arena will be far better than the Garden, hell Newark's Penn Station is better than New Yorks, that is until Moynihan Station is or if ever constructed. Cmon NYC gotta keep up your falling off. :p

[TLOZ Link5]

::sneezeBrooklynNetssneeze::

Just kidding :D

[JCMAN320]

:::snezzeMeadowlandsStadiumsnezze:::

lol

[lofter1]

No doubt it will be a help to Newark business-wise.

It doesn't make it good architecture.

Check the slideshow for shot showing the kitschy red and black wall with the humungous Stanley Cups as background to the church.

YIKES!

[STT757]

::sneezeBrooklynNetssneeze::

Just kidding :D

According to Governor Codey on the Mike and the Mad Dog show the move to Brooklyn is not a definite.

[212]

the wastebasket-shaped atriums are a nice touch.

could somebody pay $210 million to keep this monstrosity *out* of newark?

[stache]

What's really funny is the almost complete absence of people of color in the illustration.

[STT757]

What's really funny is the almost complete absence of people of color in the illustration.

It's a Hockey Arena.

[stache]

Right, in Newark. This is a bad joke.

[lofter1]

^ So its gonna be another drive-in / drive-out set up -- where no one hangs around in the city center and no money is actually spent at the local businesses.

Time to buy a parking lot in downtown Newark (but they've no doubt got that angle figured out already).

[lofter1]

It's a Hockey Arena.
I don't know squat about hockey; how many games a year in this place?

[STT757]

^ So its gonna be another drive-in / drive-out set up -- where no one hangs around in the city center and no money is actually spent at the local businesses.

Time to buy a parking lot in downtown Newark (but they've no doubt got that angle figured out already).

Heck no, the Iron Bound which is a couple blocks from the Arena has some of the best Spanish and Portugese restaraunts anywhere, they will make a fortune. Plus there are tens of thousands of Downtown Newark Employees who will stick around to watch a hockey game. The Devils are a great franchise, they are also close to Newark Penn Station so plenty of folks will take the train.

Im sure Bruce Springstein will also spend a week or two playing sold out concerts.

[STT757]

I don't know squat about hockey; how many games a year in this place?

41 Regular Season home games, not Including the Playoffs and Stanley Cup race which the Devils are a perinial contender. Perhaps during a good year they play 51 home games including the playoffs.

[stache]

I walked by the lot today. They are really pushing the dirt around, little colored flags in the ground etc. It's 1 1/2 blocks from the Northern entrance to the Skyway. They need to extend the Skyway across Mulberry St. I wonder why they didn't do that originally?

[Jake]

I don't know if there's been another thread, there probably has so please merge. In short there's a new hockey arena being built in Newark to replace the Continental Airlines Arean in E.Rutherford as the home of the NJ Devils.

This webcam is quite nice, you can even control it yourself, each user gets something like 90 seconds to move it around and zoom it and stuff. I haven't checked if NYC is visible yet since it's nightime and raining so conditions are bad, anyway below the cam you can see the construciton site for the arena.

Here it is. NEWARK ARENA WEBCAM (IE needed)
http://www.newjerseydevils.com/2005/html/fanzone/video/newarkarena/camindex.php

[Jake]

First Columns of Steel Put in Place for Devils Arena

New Jersey Devils owners Jeff Vanderbeek and Michael Gillfillan looked on as members of Ironworkers Local Union No. 11 erected the first columns of steel for the Devils Arena located in the heart of downtown Newark, NJ.
The 18,000 seat arena and entertainment complex is schedule to open for the start of the 2007 NHL hockey season.





http://www.newjerseydevils.com/2005/html/theteam/images/teamnews/Steel-034.jpghttp://www.newjerseydevils.com/2005/html/theteam/images/teamnews/Steel-007.jpghttp://www.newjerseydevils.com/2005/html/theteam/images/teamnews/Steel-042.jpghttp://www.newjerseydevils.com/2005/html/theteam/images/teamnews/Steel-045.jpg



What a lovely neighborehood! I think I'll park my BMW right in front of that red building!

[TLOZ Link5]

Who knows; maybe once the arena's finished, it will give the surrounding area a boost. That's what happened in Detroit.

Still, all that sky scares me. Haha.

[JCMAN320]

You know what Jake it isn't a bad neighborhood at all, just buildings need sprucing up, which will happen as and once arena is built. By the way you won't have to drive, you can take the PATH to Penn Station and walk two blocks to it once it's done. Also the "car theft capital of the world stereotype" is so 1990s. :)

[Jake]

As always I'm just exagerrating, you kinda have to take that into account when reading my posts. I used to have season tickets to the Devils a few years back and I'm still a fan but E.Rutherford was just too complicated to get too. That's why I usually just go to MSG.

I personally hoped the arena would be in JC, I don't exactly find Newark to be a safe city. PATH accesability is probably the only hope this arena has as a giant chunk of Devils fans are NYers. The PATH could take a little improvement though, past Grove St, it isn't an inviting system either (although the Exchange Pl and WTC stations should be applauded).

[JCMAN320]

I know I'm just kidding around. Also if you had checked my post in JC thread, 2 new towers going up a JSQ which will improve it vastly on that strecth of the line. Yes a large number are NY'ers but also of course hell of ALOT here in NJ, but I understand that is what will make the PATH work for the arena. Also god willing (lol) NJ has agreed to have the Nets move in there if the arena in Brooklyn falls through. So well wait and see.

[NYatKNIGHT]

I occasionally get out to Newark for work and there happens to be a pretty cool bar I've been to for lunch (called Murphy's I think) in or next to that red building. They are incredibly excited that a new arena is being built across the street. The highrise in the background is attached to the train station, so it's not a far walk, and the area is nowhere near as bad an area as a lot of people seem to think. In fact, it seems perfectly suited to be transformed by a whatever new businesses arenas attract. We'll see.

As for the trains themselves, with New Jersey Transit among others at Newark Penn Station, now New Jersey residents will also be able to take transit to the game, as will people coming from New York Penn Station, so PATH access is just a part of it. I agree PATH could use an upgrade but I also don't think any part of it is cagey enough to discourage ridership.

[Dagrecco82]

Newark Arena as of today. Couldn't get much of a shot. Security was everywhere.

http://img151.imageshack.us/img151/5858/img03642qz.jpg

[JerzResident]

I was over there the other day too, It's good to see the construction actually taking place

[Jake]

http://i16.photobucket.com/albums/b6/JakeW16/oneshotimage2.jpg

Just took this a minute ago from the live cam, which you can use with the link I posted higher on this page.

[Marv95]

Word from Vanderbeek before last night's game is that steel should start to arrive tomorrow. Yep, with this place surrounded by over 20 different bus routes from across the state, Newark Penn Station, and several bars/eateries, this arena will rule for the commuters. And for those complaining about safety, the last time I checked the South Bronx, Flushing, parts of midtown Manhattan, Detroit, South Philly and D.C. aren't safety havens either. Even Jersey City at times is MUCH dangerous than Newark. It's being built in the downtown business district, the safest part of the city, not the ghetto of the SouthCentral ward(which has a Home Depot and about to have an Applebees built).

I live in a town that borders Newark and because of the rivalries, I don't like to defend the Brick City too much, but common sense is common sense.

[Dagrecco82]

I live in a city that borders Newark as well and I've never experienced any type of crime. Maybe I'm lucky but I've never felt unsafe in downtown Newark.

[JerzResident]

Both of you guys are right, and Newark is not even on the top 20 most dangerous cities anymore, people who say Newark is dangerous (which it still is on some levels) obviously havent stepped foot in the city within the past 4-5 years

[JCMAN320]

Marv 95 there are a few areas in JC which are dangerous but not as many as that exist in Newark. I agree Newark's crime has gone down but still has alot of rough areas.

[JerzResident]

Marv 95 there are a few areas in JC which are dangerous but not as many as that exist in Newark. I agree Newark's crime has gone down but still has alot of rough areas.

Newark still has that severe gang issue

[macmini]

Even Jersey City at times is MUCH dangerous than Newark. It's being built in the downtown business district, the safest part of the city, not the ghetto of the SouthCentral ward(which has a Home Depot and about to have an Applebees built).

I live in a town that borders Newark and because of the rivalries, I don't like to defend the Brick City too much, but common sense is common sense.

This is the most ignorant comment I've ever seen most of the violence in Jersey City is coming from gangs from Newark.The Greenville section of JC is not a ghetto it may have it's problems but it is not a ghetto. Only place in NJ that has more crime then Newark is Camden and thats not saying much about Newark.

[JCMAN320]

Yea you know what Marv Applebees and Home Depot is on the city's Westside, which aint the ghetto. Westside Ave is a great shopping drag and is extremely diverse with mainly a large filipinno community. NJCU is building a new campus 5 blocks from my house and luxury homes amd apartments are rising within blocks of NJCU and the Lightrail station. Also by Lincoln Park which is beautiful, there are turn of the 20th century mansions going for $900,000. Also my neighborhood aint ghetto I live 5 blocks down off of Westside Ave by where Danforth meets 440. Greenville aint ghetto either, there are alot of nice homes in there and although it has its rough spots, macmini is right, most the gangs are comin from Newark to start BS over here cus they aint nothin left in Newark to steal or shoot up. I know this for a fact since im friends with a few officers in the South Precient. So learn to speak of what you know and not to speak of what you dont.

Now enough of this bull back to this great topic of the brand new Newark Arena. If anyone wanna start a Jersey City/Newark rivalry thread where we can discuss this bull be my guest.

[JerzResident]

Does anybody know the schematics of the arena? I heard its supposed to have a hotel too and and office space

[stache]

They have put up a model of the stadium in the Gateway Plaza.

[TimmyG]

Builder let go in Devils arena flap

Team's owner cites a breakdown in contract talks on final price for Newark project
Thursday, June 15, 2006BY GEORGE E. JORDAN AND MATTHEW FUTTERMAN
Star-Ledger Staff
The Devils have dismissed the management company supervising construction of its arena in downtown Newark, the team's owner and city officials said last night.
The Devils parted ways 11 days ago with BovisHunt, a leading builder of professional sports venues, after they failed to negotiate a final price tag for the 18,000-seat arena.
"We did not agree with the monetary issues," said Devils owner Jeff Vanderbeek, who insists work on the arena's steel frame continues ahead of schedule to open in time for the 2007 hockey season next October.
New Jersey's oldest construction company, Wm. Blanchard Co., is temporarily running the site, and a new a construction supervisor should be hired next month, Vanderbeek said.
"What's important is we're working to keep this project on schedule," he said.
The departure of BovisHunt highlights long-running concerns about the final cost of the arena, projected to run $310 million. It also represents the first major construction flap to spill into public since Newark handed the Devils control of the project in December 2004.
"There is something really not right about this," said Rod Taylor, managing director of Breitstone & Co., a major Long Island construction adviser with work in New Jersey. He said contract negotiations with BovisHunt should have been completed before the arena's steel frame began rising in late winter.
"It can happen, but most of the time it would have happened before they were on the job site," Taylor said of the breakdown in the final contract negotiations. "You would have to think it would have been worked out."
BovisHunt, which built Busch Stadium in St. Louis and the Arizona Cardinals' new football stadium, was selected two years ago from a field of five companies that submitted bids to Newark to oversee construction.
A spokesman for BovisHunt could not be reached last night. The company is an alliance formed two years ago between construction giants Hunt Construction Group and Bovis Lend Lease.
Under an agreement between the city and hockey team, taxpayers will provide $210 million of the construction costs and the franchise will pay the rest. In exchange, the Devils get to keep most of the ticket and concession revenue.
Mayor-elect Cory Booker has said he fears the final cost of the arena could run much higher, and suggested he may try to pull the plug on the project.
"What does it mean? It means this is a poorly conceived project, an unnecessarily rushed project," Booker said last night. "A project that is not the best use of land and city resources."
Vanderbeek, a former Wall Street executive, declined comment on Booker's threat.
Richard Monteihl, Newark's business administrator and executive director of the nonprofit group overseeing redevelopment around the arena, said the city has spent at least $80 million on the arena so far, and the balance of the $210 million in public funding is committed.
"The arena is under contract, and based on those contracts people have invested huge amounts of money. It would be inadvisable to damage the project," he said. "It would leave the city with substantial legal exposure because everyone entered into these contracts in good faith."
BovisHunt was hired under a short-term contract as "temporary" construction manager to get the project underway, while final price negotiations continued, Vanderbeek said.
"It's not like we're switching construction managers mid-stream," Vanderbeek said.
The Devils are looking for a "guaranteed-maximum price" contract, an all-inclusive construction deal popular with the sponsors of public and private developments to hold the line on cost overruns. The final price is based on underground soil analysis, design features and engineering schematics.
Manhattan lawyer Barry LePatner, a corporate construction adviser, said many construction managers would likely bid to complete the arena, a trophy project, and replacing BovisHunt would not cause construction delays.
"It is certain ownership will find a replacement to get up to speed and proceed with its schedule for completion of the project," he said.

George E. Jordan and Matthew Futterman may be reached at (973) 392-4141. Jeffery C. Mays and Ian Shearn contributed to this report.

[TeddyJ]

Doesnt sound like too much to worry about

[OmegaNYC]

Yeah I hope. It would be cool to see a brand new arena in NJ largest city. :)

[OmegaNYC]

Here are some pics of Newark Arena.

http://www.newjerseydevils.com/2005/html/theteam/teamnews/newarkarenainterior.php#


http://www.newjerseydevils.com/2005/html/fanzone/galleries/arenainterior/medium/0001.jpg


http://www.newjerseydevils.com/2005/html/fanzone/galleries/arenainterior/medium/0009.jpg





http://www.newjerseydevils.com/2005/html/fanzone/galleries/arenainterior/medium/0011.jpg

The Outside.http://www.newjerseydevils.com/2005/html/theteam/images/teamnews/newarkarena-night.jpg

http://www.newjerseydevils.com/2005/html/fanzone/galleries/nwkarena52206/medium/0009.jpg

Nice, huh? I just hope the Devils don't suck. :)

[TeddyJ]

The arena looks wonderful, perfect for an NBA as well:)

[ramvid01]

I must say that is quite a fine looking arena going up, and hopefully the devils will continue to play well.

[OmegaNYC]

The arena looks wonderful, perfect for an NBA as well:)

Yeah, that is a mighty fine arena that is being built. Too bad the Nets won't be here to enjoy it.

[colux10]

The Army Corps of Engineers are working on some waterfront promenade by FBI building. I can't seem to find any info on this other than some some master plan info and out of date photos and drawings from the Corp's web site. It was supposed to be completed in 2006. does anyone have any info on this?

[JCMAN320]

Joesph G. Minish Park should be done soon. There will be a pedestrian bridge built acorss the Passic River connecting it to the new development and Red Bull Park in Harrison and to a current park in Harrison on the Passic River.

[NYatKNIGHT]

All I know is the FBI building apparently screwed up the plans for the waterfront park in that area. There was supposed to be direct access to the river from the Performing Arts Center. Last I heard they are going to make the best out of it, still a park but not the quite as grandiose as once planned. But good to hear that something is happening there.

[JCMAN320]

Newark arena to become a piece of the rock

Prudential Financial has reached an agreement in principle to pay about $5 million a year for the rights to put its name on a new hockey arena being built in downtown Newark, the owner of the New Jersey Devils said today.

The multi-year agreement between Prudential and the Devils calls for the $365 million arena to be named the Prudential Center, Jeff Vanderbeek, principal owner of the hockey team, told The Star-Ledger.

“We have been in discussions and we’re very close,” Vanderbeek said today. “It’s down to the short strokes.”

The deal could be for as long as 20 years, another person familiar with the talks said.

Corporations around the country pay tens of millions of dollars for naming rights to stadiums and sports arenas. Last month, Citigroup unveiled a deal with the New York Mets valued at about $20 million a year to put its name on the baseball team’s new stadium being built in Queens.

Prudential, the insurance and financial services giant whose logo and ad campaigns feature a rock, was assumed to be a strong candidate to buy the 18,000-seat arena’s naming rights from the beginning, sports marketing consultants said. The company’s headquarters on Broad Street are just a few blocks from the arena now under construction at Lafayette and Broad streets.

In addition, Prudential has long been committed to Newark, both financially and physically. The company was founded in the city in 1875 as the Prudential Friendly Society and last year the Prudential Foundation gave more than $6 million to organizations in Newark.

Prudential spokesman Harold Banks confirmed the company was in discussions with the Devils about buying naming rights for the arena, set to open in October, but declined to comment further.

Frank Vuono, principal at sports marketing firm 16W Marketing in Rutherford, said he considered the agreement a great deal for the Devils.

“It’s smart for Prudential,” Vuono said. “The new arena will get a lot of publicity, so they’ll get their share of exposure.”

Contributed by Greg Saitz, Matthew Futterman and Katie Wang

[Transic]

http://www.forbes.com/feeds/ap/2007/01/08/ap3310420.html

Associated Press
Prudential Pays $105M for NJ Arena Name
By JANET FRANKSTON LORIN 01.08.07, 3:35 PM ET

For a chunk of change, a piece of the rock will be the next home of the New Jersey Devils.

Prudential Financial Inc. (nyse: PRU (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=PRU) - news (http://www.forbes.com/markets/company_news.jhtml?ticker=PRU)- people (http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=PRU)) and the NHL team on Monday announced the company will pay $105.3 million over 20 years to call the Devils' new arena the Prudential Center.

The $375 million downtown venue, under construction nearly across the street from the Newark world headquarters of the life insurance and investment company, is expected to open for the 2007-2008 NHL season.
"As far as I'm concerned, you can't get a better name," said team owner Jeff Vanderbeek.

Prudential CEO Arthur F. Ryan said the company wanted to be associated with a world-class arena and a team that has won three Stanley Cups since 1995. He said deepening Prudential's ties to its home city was more important than increasing recognition of an already well-known company.

"Very frankly, Prudential doesn't need that," Ryan said. "So we had to look a little bit deeper. Part of it, of course, started with Newark. We've been here 130 years."

Ryan also said he doesn't mind if the arena is referred to as "The Rock," after the company's symbol of the Rock of Gibraltar.

"We're going to put 'Prudential Center' up there. I suspect someone before long will be calling it 'The Rock,' and that's fine with us," he said after a news conference Monday. "That's been our icon for over 100 years and we're not uncomfortable with that."

The city of Newark is contributing $210 million to the arena, which was initially expected to cost $310 million. The Devils are paying for cost overruns, Vanderbeek said.

Newark Mayor Cory Booker, who once called the arena "a bad political deal," is now a supporter after the team last year agreed to contribute more than $500,000 annually to aid minority business development and recreation and public parks programs in the city.

The arena is to seat 17,625 people for hockey games, 18,500 for basketball games and 19,500 for concerts. Amenities are to include a 350-seat restaurant, 2,200 club seats and 78 luxury suites.

The Devils now play at the Continental Airlines (nyse: CAL (http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=CAL) - news (http://www.forbes.com/markets/company_news.jhtml?ticker=CAL)- people (http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=CAL)) Arena in East Rutherford. The NHL team shares the building with the New Jersey Nets, whose new owner is moving forward with plans to build an arena for the NBA team in Brooklyn, N.Y.

Prudential, which had profits of $2.25 billion for the first nine months of the year and $586 billion in assets under management as of Sept. 30, has long been a benefactor in Newark. The major space at the nearby New Jersey Performing Arts Center is called Prudential Hall for the company's contributions.

[JCMAN320]

Prudential Center plans a hat trick of its own
Promoter promises to add top artists and shows to hockey lineup

Sunday, February 18, 2007
BY PEGGY McGLONE
Star-Ledger Staff

When the New Jersey Devils signed an exclusive management deal with the nation's second-largest concert promoter last week, the hockey team that owns the Prudential Center signaled it wants to make entertainment as high-profile as sports.

That's good news for the region's music fans, who may get to see many of Anschutz Entertainment Group's big-name tours in the new 17,500-seat venue, set to open in October. What it means for Continental Airlines Arena in East Rutherford remains unclear.

"A great (hockey) team is going to play in there; there's great acoustics, state-of the art technology; and now we're linking up with great content provider," said Jeff Vanderbeek, president of the New Jersey Devils. "We expect headline acts from the beginning. I'm looking forward to many, many great concerts and events."

As a promoter, AEG is a distant second to industry giant Live Nation in terms of tickets sold each year. But this year it promoted a slew of top-notch artists and tours, including Justin Timberlake, Christina Aguilera, Rod Stewart, "Dancing with the Stars" and "High School Musical." Expect to see them play the $375 million Prudential Center whenever possible.

The company is committed to shows promoted by others, too, said Nick Sakiewicz, president of AEG NewYork/New Jersey. Sakiewicz is the former general manager of MetroStars soccer team, now known as the Red Bulls.

We are "going to be taking a very aggressive and active role in booking the building in terms of music and family shows," said Sakiewicz, who won't name any acts that are definite, even though the opening is just eight months away. "New Jersey audiences and fans really don't have any idea how exciting this building is going to be."

With the addition of Prudential, AEG now owns or manages 23 venues in cities around the world, including Los Angeles, Chicago, London and Berlin. The company also co-owns Red Bull Park, a 25,000-seat soccer stadium under construction in Harrison where Sakiewicz's former team will play. AEG expects to present outdoor summer concerts at Red Bull, which is scheduled to open in July 2008.

Both Vanderbeek and Sakiewicz said the Prudential Center will have an open-door policy allowing any promoter to do business in Newark. Vanderbeek said the management contract has incentives to keep the venue as busy as possible and thus prevent AEG from boxing out competing promoters.

But AEG is talking tough. With its deal in place in Newark, Sakiewicz said AEG will no longer promote acts at Continental Airlines Arena. That adds to the growing Meadowlands exodus.

Continental officials say they aren't worried. Ron Vanderveen, who books the arena, said AEG promoted only three shows at the arena last year, compared with 12 acts by Live Nation and five by Metropolitan Hybrid. Vanderveen added that almost half of his bookings are secured before a promoter is hired, making AEG's claim to boycott Continental seem premature.

But it's part of a growing chorus calling for the state to close Continental. Newark Mayor Cory Booker publicly suggested the state should shut it down. Sakiewicz said the "old, worn building" should be reevaluated. The recent and forced resignation of George Zoffinger, chief executive of the New Jersey Sports and Exposition Authority, also has sparked worries about the arena's future.

Continental officials insist it can survive.

"We're working on a number of things that reinforce my opinion that Continental has a very bright future in the concert and family entertainment business," Zoffinger said.

Vanderveen questioned the rush to decide.

"We have the Nets for two or three more years and we have contracts with Feld Entertainment (promoter of "Disney on Ice" and Ringling Brothers' circus)," said Vanderveen. "Why is anyone considering making a decision when we know we have to stay open for three years? Why not wait (until) we have hard numbers to make an educated decision?"

Gary Bongiovanni, editor of the concert trade publication Pollstar, said the New York metropolitan market is big enough for both. Compared to other markets, he said, New York is not "facility rich" and could sustain several venues.


Peggy McGlone may be reached at (973) 392-5982 and pmcglone@starledger.com.

[STT757]

Took the wife to Iberia on Saturday night for dinner, was pleasantly suprised how far along the construction on the arena has progressed since my last visit, it's really going to be an attractive venue.

[JCMAN320]

Bon Jovi to open new Prudential Center arena

Posted by The Star-Ledger May 02, 2007 7:19PM
Categories: Events

New Jersey rock band Bon Jovi will open Newark's new 18,000-seat Prudential Center on Oct. 26, officials said this evening.

The band will play at least three shows at the arena, and maybe more, said Nick Sakiewicz, president of AEG New York/New Jersey, part of Anschutz Entertainment Group, which is booking concerts and special events for the Prudential Center.

The $365 million arena, which will be known as "The Rock," will be home to the New Jersey Devils hockey team,

"It's going to be rockin', baby," Devils owner Jeff Vanderbeek said. "It's unbelievable. (Jon Bon Jovi) is a Jersey guy. He's at the height of his career on a brand new tour. From day one, we said we wanted to bring the top acts and certainly Bon Jovi is synonymous with the best in New Jersey."

Sakiewicz said landing Bon Jovi proves the Prudential Center will be a premier arena able to attract top acts.

"With a number of Bon Jovi shows, we're off to a great start at this exciting new venue which will play a major role in the revitalization of the city," Sakiewicz said in a statement. "Newark will never be the same."

Bon Jovi, the veteran rock band led by Sayreville native Jon Bon Jovi, is a top concert attraction throughout the world, and has an exceptionally strong bond with its home-state fans.

The group has performed at the state's largest concert venue, Giants Stadium, many times - most recently, last summer. Initially known as a pop-metal band in the 1980s, the group became more of a mainstream-rock act in the 1990s, and has recently had some success on the country charts, too. Group members have always taken obvious pride in their Jersey roots, and even titled their 1988 album "New Jersey."

Last year, their hit single, "Who Says You Can't Go Home," was used in a state tourism campaign. The band has a new album, "Lost Highway," coming out on June 19, but currently, no other local shows are scheduled.

Tickets for the concerts are scheduled to go on sale next month.

Contributed by Jeffrey C. Mays

[fronti]

Bon Jovi to open new Prudential Center arena

Posted by The Star-Ledger May 02, 2007 7:19PM
Categories: Events

New Jersey rock band Bon Jovi will open Newark's new 18,000-seat Prudential Center on Oct. 26, officials said this evening.

The band will play at least three shows at the arena, and maybe more, said Nick Sakiewicz, president of AEG New York/New Jersey, part of Anschutz Entertainment Group, which is booking concerts and special events for the Prudential Center.

The $365 million arena, which will be known as "The Rock," will be home to the New Jersey Devils hockey team,

"It's going to be rockin', baby," Devils owner Jeff Vanderbeek said. "It's unbelievable. (Jon Bon Jovi) is a Jersey guy. He's at the height of his career on a brand new tour. From day one, we said we wanted to bring the top acts and certainly Bon Jovi is synonymous with the best in New Jersey."

Sakiewicz said landing Bon Jovi proves the Prudential Center will be a premier arena able to attract top acts.

"With a number of Bon Jovi shows, we're off to a great start at this exciting new venue which will play a major role in the revitalization of the city," Sakiewicz said in a statement. "Newark will never be the same."

Bon Jovi, the veteran rock band led by Sayreville native Jon Bon Jovi, is a top concert attraction throughout the world, and has an exceptionally strong bond with its home-state fans.

The group has performed at the state's largest concert venue, Giants Stadium, many times - most recently, last summer. Initially known as a pop-metal band in the 1980s, the group became more of a mainstream-rock act in the 1990s, and has recently had some success on the country charts, too. Group members have always taken obvious pride in their Jersey roots, and even titled their 1988 album "New Jersey."

Last year, their hit single, "Who Says You Can't Go Home," was used in a state tourism campaign. The band has a new album, "Lost Highway," coming out on June 19, but currently, no other local shows are scheduled.

Tickets for the concerts are scheduled to go on sale next month.

Contributed by Jeffrey C. Mays

Bon Jovi was on idol tonight and he said its going to be 10 nights.

[kevin]

Bon Jovi was on idol tonight and he said its going to be 10 nights.

Well, he's halfway there...

oooh

[OmegaNYC]

I can't wait untill October. Man I just wanna see this thing so bad.

[OmegaNYC]

I just got this picture of the New Jersey Devils website. This is how The Prudential Center looked like back in March:

http://www.newjerseydevils.com/njd/prucenter/images/pru550.jpg


Nice! :D