NJ Sports Authority readies offer to Nets to stay: stake in Izod, renovations

Sports Authority wants to keep Nets in New Jersey long term
by Ian T. Shearn and Dave D'Alessandro/The Star-Ledger
Thursday October 16, 2008, 7:58 PM
Jarrett Baker/Getty ImagesA deal to keep the Nets in New Jersey would include renovations to Izod Center.

Calling construction of a Brooklyn arena "unlikely at best," New Jersey Sports and Exposition Authority chairman Carl Goldberg said Thursday he is interested in offering the Nets a chance to take a stake in Izod Center to keep the Nets there long term.

Such a move would include renovations to the aging arena in the Meadowlands that has already lost the Devils to Newark.

Goldberg's remarks, which came during a public session of a real estate conference in Teaneck, echoes a growing chorus of those who question whether owner Bruce Ratner can come up with financing for his proposed $950 million arena project in Brooklyn, which has been downscaled and delayed since it was rolled out more than four years ago.

"I do think the Nets will stay in New Jersey," Goldberg said.

In an interview, he said there have been no discussions about any proposal with anyone in the Ratner organization. He declined to discuss more details.

Nets chief executive Brett Yormark said the team isn't interested in any proposal to keep the team in New Jersey.

"I obviously respect Carl, but my only reaction is that we're unequivocally moving to Brooklyn," Yormark said.

Some financial experts and state and city officials who have heard the developer's private pleas for more government aid say the failing economy and frozen credit markets has created a far bleaker picture for the project, called Atlantic Yards.

Ratner is still awaiting a ruling from the federal Treasury Department about whether he can get tax-exempt financing for the arena. Having to get taxable loans for the project would increase the cost of building the arena, which is already set to be the most expensive in the country, according to sports industry insiders.

Rep. Dennis Kucinich (D-Ohio), Chairman of the Domestic Policy Subcommittee of the House Committee on Oversight and Government Reform, Thursday announced a hearing Oct. 24 about a deal to use so-called PILOTs (payments in lieu of taxes) to repay bonds for the new Yankee Stadium. The hearing could also impact a similar plan for the Atlantic Yards arena.

Earlier this month, a self-imposed deadline came and went for Ratner's investment banker Goldman Sachs, which publicly promised to have a financing secured by Oct. 1.

That followed another setback days earlier, when Ratner said ongoing legal disputes had again pushed back the groundbreaking for the arena. Originally slated to open in 2006, and most recently in 2010, the Nets' new home will now not be ready before 2011.

"The present litigation will be resolved, we expect a favorable ruling sometime in the spring, and then we'll break ground," Yormark said. "The sponsors are behind us, we continue to sell inventory at Barclays Center, and the understanding throughout the marketplace that the project will go through has not changed."

Any discussions between Ratner and the Sports Authority, as Goldberg envisions, would surely ratchet up tension and competition that already exists between Bergen County and Essex County interests. The year-old Prudential Center in Newark, where the Devils play, finds itself in stiff competition with Izod for entertainment bookings.

Neither Newark Mayor Cory Booker nor Devils owner Jeffrey Vanderbeek responded to calls seeking comment.

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Booooooo. NO!

 

They say this economic crisis is going to prevent the move to Brooklyn. Then they say they're going renovate the arena. With who's money?

If Nets can't move to Brooklyn, they're either going to sell the team to anyone, or they're going to stay in an outdated, inaccessible arena. It's upsetting Newark isn't even mentioned as a viable option, because the county freeholders and public officials in Bergen and Essex can't get over themselves.

 

Please god no.

Not moving to Brooklyn would be horrible for this team. At least get us out of E. Rutherford.

 

why can't they play in prudential, its a nice arena.

 

the rock is an amazing arena... been there... and its very nice... the bathrooms have flatscreen tv's wut? even when u pee u can watch the game

 

And it'd be much worse for the citizens of Brooklyn who are forced out of their homes at below market prices. And the same taxpayers would have to kick in tax revenue for the very building that is replacing their homes. I love basketball, but it's not right.

 

Spoke to my team contact yesterday and was told that that the Nets will NEVER act like Newark is a viable option. That would spook the funding and Barclays which they cant afford right now. So obviously with any idiot seeing that Brooklyn is a hail mary right now - this Izod story comes out. My contact said that the Izod people would renovate the entire stadium and give Rat a big piece.

They dont mind that story so much cause its clear it would be a last resort play - the real elephant in the room is Newark which will heat up as quickly as the Meadowlands did once the West Side Stadium was officially killed. You never heard Woody mention any othr option besides West Side - watch how things change once this Brooklyn deal is officially killed sometime next year.

 

So Baba, let's say Brooklyn officially dies next year. Then does Newark officially step up and compete with Izod, and does Newark have a better chance? Obviously, that stadium doesn't need ANY renovation...is right off the path, bus stops, river, and easy to get to by car.

 

Yeah, but I don't care about that. I'm trying to get Lebron, baby!

 

Brooklyn? Newark? East Rutherford?

<small>October 16, 2008, 11:28 pm</small> Politicians sure love the Nets. Brooklyn Boro President Marty Markowitz wants them in Brooklyn. Newark Mayor Cory Booker wants them in Newark. Now the head of the NJSEA, Carl Goldberg, says he is willing to revamp the IZOD Center to keep the Nets there. Brett Yormark, Nets CEO, says forget it: Despite problems with financing issues and lawsuits, the Nets are going to Brooklyn.

<!-- BEGIN LINKS --> Sports Authority wants to keep Nets in New Jersey long term - Ian T. Shearn & Dave D'Alessandro - Star-Ledger
Offer to keep Nets at Izod Center seems like regional posturing - Norman Oder - Atlantic Yards Report

 

You should care. Do you own a home? Do your parents?

 

I think when Brooklyn dies Newark will come full force - the key will be what kind of real estate deal can they offer the Rat. He really does not care about the team or arena - the team is a means to an end for his bread and butter which is real estate,

Izod knows it is done if the Nets leave so you gotta expect them to step up with a huge offer as well - if I was a betting man I would put money on Newark.

 

No. Yes, but not in Brooklyn.

 

Again. Is there any reason to believe Ratner wants to build anything in Newark, or is that entirely speculation? I think it's a lot more likely he'll sell the team.

 

As much as I love the Prudential Center, and how much it's done for Newark, the county, the state...there's something missing.

It seems odd to have an arena in Newark and not have an NBA team there. It's absolutely perfect for one. Having Seton Hall play there is nice, and it's going to get nicer when they get their program back on track, but it won't be the same.

 

Quite simply...a lie. Ratner has paid double and triple the market prices for the homes he has already purchased and the LAW requires that when eminent domain is used, market prices must be paid. The LAW also requires that if a property owner objects to the price offered, they can appeal.

There are now fewer than 100 people still living in the Atlantic Yards footprint, perhaps less than 50. Most of the objection to the Barclays Center and Atlantic Yards comes from nearby residents who fear the construction, congestion, traffic, etc., NOT from those within the footprint. Ratner has acquired 85% of the land required for the project. Indeed, of the 13 original plaintiffs in the key suit, two have settled with Ratner and sold their properties while two others have dropped out. One may yet settle.

BrooklynBound's posts should be scrutinized. Most are mistaken or lies.

 

I remain unconvinced. The supposed benefits have yet to be realized. There is no development around the Rock, and the promised amenities, the triangle park and the elevated walkway from the Rock to Penn Station using the old CRNJ trestle--a Newark version of New York's Highline, haven't even been started. The walkway alone will cost an estimated $60 million. Who's going to pay for that? Not the city of Newark.

 

We probably will end up in Brooklyn.. but not in 2010, maybe 2012-2013

 

And this is based on...