View Single Post
06-14-2013, 12:55 PM
LadyStanley's Avatar
Join Date: Sep 2004
Location: Sin City
Country: United States
Posts: 67,907
vCash: 500

After hashing out a landmark revenue sharing agreement months ago, the city of Newark, the New Jersey Devils and the Newark Housing Authority signed off on a lease agreement today, potentially ending years of acrimony between the parties, city officials said today.

One of the last stumbling blocks in the deal was roughly $4 million in legal fees owed to the housing authority from the city, after the city unsuccessfully fought the revenue sharing deal in court. The City Council approved that money last week, according to the officials.
But one caveat remains. The Newark Housing Authority has to negotiate with the city to relieve itself of its responsibilities and allow the city's parking authority to take over as the arena landlord — a role held by the housing authority since the arena began constriction in 2005.

Among the deal's provisions:

• Newark will build a parking deck next to the municipal courthouse on Green Street and the Devils will rent a significant number of spaces, guaranteeing income for the city.

• Newark will pay the Devils $2.7 million a year in parking revenue for other lots surrounding the arena, as mandated by arbitrators last year.

• The city will impose a 1.37 percent tax on all tickets to Devils, New York Liberty and Seton Hall University games.

• For other events, like concerts and conventions, the city and the Devils will share a $1.25 facility fee per ticket that will increase after five years.

City officials estimate the new deal could bring Newark as much as $50 million over the life of the lease, which will extend at least 25 years.

The new parking deck, whose construction could begin as early as 2014, will bring in additional revenue.

Aside from new money, the proposed parking deck is expected to provide competition to Pepe Lopez, the owner of a surface lot on Lafayette Street across from the arena. Officials said they hoped the new deck would push Lopez to convert his lot to a mixed-use development.
All that remains now is for the state Legislature to agree to the ticket tax. The bill is out of a Senate committee and should get a full vote over the next couple of weeks.

Last edited by LadyStanley: 06-14-2013 at 01:01 PM.
LadyStanley is offline   Reply With Quote