Welcome To Newark Speaks.com..........The Most Informed Online Community in New Jersey..........Home of 5Reasons * black4rob2 * counterattack * Doofus1 * jazzyken * JoefromPGH * John Sharpe James, J.D. * Klap Bak * LastCubanStanding * Make Newark Clean * Maximus Returns * Miss Tam-Tam * ProSouth * rice2006 * HAVESEENENOUGH * Mark J. * John360 * RACEMATTERS * Caballero De Newark * Poet * Octavia * brotherderek * NewarkNative * Outside * chad1 * newarksbravest * ACLU-NJ * Diamond * ForOurYouth * BraveHeart * 4thGenerationNewarker * Nwrbr * newarkcentral * zengeist * TeachNewark * Inkwell * RealVest * newarkismyhome * OperationRedd*


Go Back   Newark Speaks > Newark Speaks Forums > Newark Talk

Get Ready. There are New Changes Coming To Newark Speaks starting in January, 2016 that will make our forum Bigger, Better, and More Informative. There will also be Powerful Changes to our forum to make NewarkSpeaks.com one of the most protective of poster's Anonymity and Freedom of Speech.


Reply
 
Thread Tools Search this Thread Display Modes
Old 04-03-2012, 06:39 PM   #1
counterattack
MASTER MEMBER
 
counterattack's Avatar
 
Join Date: Sep 2004
Posts: 5,659
Default Newark gets screwed in arbitration decision for Prudential Center

Newark gets short end in Prudential Center revenue share ruling
Published: Tuesday, April 03, 2012, 4:49 PM Updated: Tuesday, April 03, 2012, 5:05 PM
By David Giambusso/The Star-Ledger The Star-Ledger


Star-Ledger file photoYears of dispute over revenue sharing between Newark and the Prudential Arena were ruled on today with a decision by three arbitrators that leaves neither party with a big check, but undoubtedly favors the Devils in the long run.
NEWARK Years of dispute over revenue sharing between Newark and the Prudential Arena were ruled on today with a decision by three arbitrators that leaves neither party with a big check, but undoubtedly favors the Devils in the long run.

The city, with the Newark Housing Authority acting as its developer, was awarded roughly $15 million in back rent, relocation expenses and fines. But The Devils were awarded $15.3 million in unpaid parking revenue, capital revenue and excess taxes. Both amounts are due in 30 days, barring further legal action, according to the decision.

In the future, the city will be obligated to pay $2.7 million a year to the Devils in parking revenue, practically neutralizing the average $3 million in annual rent payments to the city.

Leaders from the team and the city were locked in conference calls regarding the decision this afternoon and could not be immediately reached for comment. The Star-Ledger obtained a copy of the 79-page decision shortly after it was issued at about 3:30 p.m.

Since before October 2007, when Bon Jovi kicked off opening ceremonies for "The Rock," the city and Devils Arena Entertainment, run by Jeff Vanderbeek, have been locked in a dispute over rent, parking and taxes that has fostered years of acrimony and accusations.

The Devils claimed the city failed to meet crucial elements of the arena deal signed under former mayor Sharpe James' administration. The city, with the Newark Housing Authority acting as the project developer, said the James deal was lopsided and tried on several occasions to renegotiate.

The city initially put up $210 million with the Devils putting up $100 million for arena construction.

After years of fruitless negotiations and a final court battle in 2010 the whole deal went to arbitration last July. Three New-England based arbitrators with the American Arbitration Association have been poring over the deal for months. Their decision today is legally binding. And unless the parties can agree to a new lease agreement, the measures set forth will determine revenue sharing for the next 25 years.

The arbitration focused on a roster of unresolved issues between the two parties. The Devils said that the city owed them more than $3 million for delays in street-widening and site preparation. The city said it was owed about $1.4 million for relocation costs of individuals and businesses that had to move out of the arena footprint.

But the two biggest issues decided today deal with rent and parking. While the rent was never in dispute, a letter signed by Vanderbeek, former NHA director Harold Lucas and former Newark business administrator Richard Monteilh in 2005, the city owed about $10 million to the team in guaranteed parking revenue.

According to the Devils' attorneys, the housing authority never delivered on the original arena deal. That deal, they said, called for the housing authority the arena's developer to secure deals with private parking companies to give a cut of their parking profits to the arena.

Instead, the now infamous "parking letter" guaranteed $2.7 million annually for the team.

According to a 2007 Star-Ledger analysis the total cost of the arena and preparing the surrounding area came in at $467.5 million. City, state and federal funds account for 311.5 million and the Devils put up $156 million.
counterattack is offline   Reply With Quote
Old 04-03-2012, 07:04 PM   #2
Doofus1
MASTER MEMBER
 
Join Date: Sep 2004
Posts: 7,355
Default

Classic. The Arena has been a gift that keeps on giving. Time to tax the c--p out of the private parking lots to pay the Devils.
Doofus1 is offline   Reply With Quote
Old 04-04-2012, 10:11 AM   #3
Make Newark Clean
MASTER MEMBER
 
Make Newark Clean's Avatar
 
Join Date: Mar 2005
Posts: 8,236
Default

Did I read this correctly? Is the city actually PAYING for the privilege of hosting these Devils? Man, wow, someone should be able to organize around this! Why should Joe and Jane Citizen have to provide essential services to the Rock and pay for the privilege?

Cory Booker can no longer blame the previous administration for a crappy deal. Indeed, the article states the city walked away from plans to make the arena deal more equitable. I guess they were holding out for something better. Well, bad call. They and the citizens lost.

I say shut the d*mn place down -- legally or with protest -- until, if not revenue, some relief is provided to Newarkers for the bills. This is plain awful -- a city as impoverished as Newark is being forced to foot the bill for some rich man's sports franchise hobby! Not to mention the hundreds of millions in tax expenditures -- outright grants -- that went into building the place. This is an outrage!
Make Newark Clean is offline   Reply With Quote
Old 04-04-2012, 10:51 AM   #4
Doofus1
MASTER MEMBER
 
Join Date: Sep 2004
Posts: 7,355
Default

Quote:
Originally Posted by Make Newark Clean View Post
Did I read this correctly? Is the city actually PAYING for the privilege of hosting these Devils? Man, wow, someone should be able to organize around this! Why should Joe and Jane Citizen have to provide essential services to the Rock and pay for the privilege?

Cory Booker can no longer blame the previous administration for a crappy deal. Indeed, the article states the city walked away from plans to make the arena deal more equitable. I guess they were holding out for something better. Well, bad call. They and the citizens lost.

I say shut the d*mn place down -- legally or with protest -- until, if not revenue, some relief is provided to Newarkers for the bills. This is plain awful -- a city as impoverished as Newark is being forced to foot the bill for some rich man's sports franchise hobby! Not to mention the hundreds of millions in tax expenditures -- outright grants -- that went into building the place. This is an outrage!
I find it interesting that this all turned on a side letter that was not part of the agreement. And it promised to get a cut from private property owners, as if that was something the city could do with a snap of a finger. Of course, those property owners are big beneficiaries of the arena and political pals of the past and current administrations, so we can all guess what the game is. The counsel needs to immediately impose a parking lot tax to recoup some of these costs.

Make, as for the proposal the city turned down, I would like to see what it was. Probably just lipstick on a pig, but if not, you are correct that the city should have taken it if its position was so shaky.
Doofus1 is offline   Reply With Quote
Old 04-04-2012, 11:06 AM   #5
Make Newark Clean
MASTER MEMBER
 
Make Newark Clean's Avatar
 
Join Date: Mar 2005
Posts: 8,236
Default

Quote:
Originally Posted by Doofus1 View Post
impose a parking lot tax
Agreed. It should be a tax stiff enough to cover all the Imprudential Arena's costs to the city.

Can they tax something else that would predominantly affect this NHA tenant? Maybe the city sell the land out from under it? -- I'm reaching here. Some councilmember needs to get real inventive too!

Is Booker going to speak out about this? Dare he?
Make Newark Clean is offline   Reply With Quote
Old 04-04-2012, 11:30 AM   #6
chad1
Superior Member
 
Join Date: May 2006
Posts: 796
Default

Quote:
Originally Posted by Make Newark Clean View Post
Did I read this correctly? Is the city actually PAYING for the privilege of hosting these Devils? Man, wow, someone should be able to organize around this! Why should Joe and Jane Citizen have to provide essential services to the Rock and pay for the privilege?

Cory Booker can no longer blame the previous administration for a crappy deal. Indeed, the article states the city walked away from plans to make the arena deal more equitable. I guess they were holding out for something better. Well, bad call. They and the citizens lost.

I say shut the d*mn place down -- legally or with protest -- until, if not revenue, some relief is provided to Newarkers for the bills. This is plain awful -- a city as impoverished as Newark is being forced to foot the bill for some rich man's sports franchise hobby! Not to mention the hundreds of millions in tax expenditures -- outright grants -- that went into building the place. This is an outrage!
MAKE--


THIS is an OUTRAGE!!!! A CITY POOR OF RESOURCES TO BE SADDLED WITH THIS DEBT! THIS IS GRAND THEFT!

This flies in the face of those who Claim CORY BOOKER SHOULD BE GOVERNOR or better yet PRESiDENT!

Has there been any response from our great and Prolific Leader of the largest city in the one of the richest States? Will he BE On MSNBC or Morning Joe fighting for this incomprehensible ACTION.....

I think Not, he's off in Simi Valley ATTENDING A power luncheon...

Doing what, you ponder? The work of the Lord...or maybe in this case, the Devils!


Another Sad Day In NEWARK!
chad1 is offline   Reply With Quote
Old 04-04-2012, 01:00 PM   #7
Poet
Superior Member
 
Join Date: Oct 2005
Posts: 1,771
Default

Watch Booker's response live, in 5... 4... 3... 2...

https://www.facebook.com/corybooker/app_196506863720166
Poet is offline   Reply With Quote
Old 04-04-2012, 01:22 PM   #8
Poet
Superior Member
 
Join Date: Oct 2005
Posts: 1,771
Default

Booker's righteous indignation should be accompanied by a check returning the $2,200 contribution to Booker Team and $7,200 contribution to Empower Newark, along with any other political contributions Vanderbeek has made to the Mayor and his political efforts. Put your money where your mouth is.
Poet is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 02:45 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2016, vBulletin Solutions, Inc.

Legal Disclaimer: The opinions, findings and posts of forum participants and authors expressed herein are those of the forum participants and author and do not necessarily state or reflect those of Newark Speaks.com. Newark Speaks.com does not assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information. Any material contained on this forum may include inaccuracies or errors. Newark Speaks.com reserves the right to make changes and updates to any information without prior notice.
Ad Management plugin by RedTyger