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#1
November 15th, 2003, 09:36 AM
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Newark Arena - Prudential Center
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 
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#2
January 24th, 2004, 12:02 AM
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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
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#3
February 7th, 2004, 01:45 PM
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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.
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#6
February 10th, 2004, 12:38 AM
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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
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#7
February 10th, 2004, 03:14 PM
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As I've stated in other posts, I think a move toward urban arenas without parking is the way to go.
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#8
February 11th, 2004, 07:52 AM
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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
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#9
February 13th, 2004, 11:54 AM
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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
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#10
February 13th, 2004, 07:01 PM
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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.
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#11
June 9th, 2004, 04:43 PM
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Quote:
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#12
June 10th, 2004, 09:26 AM
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(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.
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#13
June 11th, 2004, 04:41 PM
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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.
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#14
June 11th, 2004, 04:52 PM
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(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.
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#15
June 12th, 2004, 02:42 AM
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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
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