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Newark gets short end in Prudential Center revenue share ruling


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#1 thelastonealive

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Posted 03 April 2012 - 04:08 PM

http://www.nj.com/ne...d_in_prude.html

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.


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#2 Blown01NJ

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Posted 03 April 2012 - 04:12 PM

Isn't the parking all privatized?
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#3 Devils731

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Posted 03 April 2012 - 04:19 PM

So much for all the people arguing the Devils were screwing the city by not paying.

This can only help the Devils with the refinancing this summer, takes away a lot of uncertainty.
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#4 Chuck the Duck

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Posted 03 April 2012 - 04:19 PM

That's a great ruling for the Devils. Basically playing rent free at an arena they take all revenue from for the next 25 years. If nothing else, it makes them much more attractive to potential new owners and it makes it extremely unlikely that the team will move from here during the term of that lease.
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#5 sundstrom

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Posted 03 April 2012 - 04:22 PM

That's a great ruling for the Devils. Basically playing rent free at an arena they take all revenue from for the next 25 years. If nothing else, it makes them much more attractive to potential new owners and it makes it extremely unlikely that the team will move from here during the term of that lease.


exactly. newark gets destroyed with this ruling though - because the devils take so much of the revenue the building generates as well.
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#6 Chuck the Duck

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Posted 03 April 2012 - 04:29 PM

Isn't the parking all privatized?


The parking lots around the arena (except for the VIP parking deck attached to it) are privately owned. However, the City guaranteed the Devils in writing that they would get at least $2.7 million per year in parking revenue from the lot owners even though the city doesn't own the lots. Although the article doesn't say it, I'm sure the City thought that it could leverage the lot owners by demanding they pay a % kickback in parking fees otherwise face the City taking the lots through eminent domain. When the economy tanked in 2007-2008, the City lost their leverage because they couldn't afford to purchase the lots even through eminent domain proceedings and couldn't obtain financing for this legal maneuver.

Great deal by the Devils and a horrible gamble by Newark.
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#7 NewarkDevil5

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Posted 03 April 2012 - 04:41 PM

Oops, didn't see this thread. Posted an identical one in the Rock forum.
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#8 maxpower

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Posted 03 April 2012 - 04:42 PM

Told ya that Sharpe James signed a crooked deal with the Devils. Why do you think Booker wanted the building scrapped and has been so quiet about this?
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#9 MadDog2020

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Posted 03 April 2012 - 04:55 PM

So anyone think this will help Vanderbeek find an investor now? I mean, this is pretty good news for the Devils.
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#10 maxpower

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Posted 03 April 2012 - 05:01 PM

So anyone think this will help Vanderbeek find an investor now? I mean, this is pretty good news for the Devils.


No really, it's an additional $3M a year in revenue, but what does that really mean when you owe a bajillion dollars, let alone a bajillion dollars that hasn't been paid and is gaining interest. Who knows what's going on with that, it's been real quiet for awhile.
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#11 MadDog2020

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Posted 03 April 2012 - 05:27 PM

No really, it's an additional $3M a year in revenue, but what does that really mean when you owe a bajillion dollars, let alone a bajillion dollars that hasn't been paid and is gaining interest. Who knows what's going on with that, it's been real quiet for awhile.

Well if anything, as Chuck said, they are essentially now playing rent-free and collecting all of the revenue the building generates. At the least, that would have to make the Devils somewhat more attractive for any potential investor/investors.
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#12 msweet

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Posted 04 April 2012 - 12:01 AM

Things finally going right for the Devils
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#13 devlman

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Posted 04 April 2012 - 01:28 AM

exactly. newark gets destroyed with this ruling though - because the devils take so much of the revenue the building generates as well.


Destroyed? Newark still gets $7 mill in annual parking revenue.
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#14 Neb00rs

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Posted 04 April 2012 - 03:57 AM

Destroyed? Newark still gets $7 mill in annual parking revenue.


and 100 million dollars from facebook.

Edited by ben00rs, 04 April 2012 - 03:57 AM.

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#15 sundstrom

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Posted 04 April 2012 - 07:45 AM

Destroyed? Newark still gets $7 mill in annual parking revenue.


no, newark HOPED to get $7MM in parking revenue after guaranteeing the devils $2.7MM. They haven't gotten $10MM in parking revenue so they're making next to nothing on parking.
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#16 Chuck the Duck

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Posted 04 April 2012 - 09:14 AM

Don't cry too much for Newark. They knew, or should have known, what they were getting themselves into when they agreed to put public financing into this arena deal. Anyone who can read can see that all of the leading economic experts agree that publically funded stadiums, arenas, and ballparks do not generate enough revenue for the city to justify the costs associated with same over the life of the building. City's largely use the team and stadium to take "blighted" property and remake an area of their town to their liking (see, Washington's Verizon Center, Camden Yards in Baltimore), while also creating a place where new businesses are likely to open. The arena becomes a vehicle to drive investment in a certain area of town that usually needs it.

Newark is beginning to see some of this, but it has taken way longer than most people thought when this deal was struck because of the economic turmoil that coincided with the arena's opening in 2007.
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#17 LucifersDog

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Posted 04 April 2012 - 10:09 AM

As a NHL fan, Devils fan and a resident of New Jersey why don't I feel good about the decision?
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#18 MadDog2020

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Posted 04 April 2012 - 10:27 AM

As a NHL fan, Devils fan and a resident of New Jersey why don't I feel good about the decision?

I don't know. Does the ability to do basic math elude you? :P
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#19 oofrostonoo

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Posted 04 April 2012 - 11:05 AM

https://www.facebook...196506863720166

Live streaming right now.

*Booker not sounding very happy with Vanderbeek.

Edited by oofrostonoo, 04 April 2012 - 11:06 AM.

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#20 Daniel

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Posted 04 April 2012 - 11:09 AM

Don't cry too much for Newark. They knew, or should have known, what they were getting themselves into when they agreed to put public financing into this arena deal. Anyone who can read can see that all of the leading economic experts agree that publically funded stadiums, arenas, and ballparks do not generate enough revenue for the city to justify the costs associated with same over the life of the building. City's largely use the team and stadium to take "blighted" property and remake an area of their town to their liking (see, Washington's Verizon Center, Camden Yards in Baltimore), while also creating a place where new businesses are likely to open. The arena becomes a vehicle to drive investment in a certain area of town that usually needs it.

Newark is beginning to see some of this, but it has taken way longer than most people thought when this deal was struck because of the economic turmoil that coincided with the arena's opening in 2007.


Just feel bad for the people that didn't vote for Sharpe James knowing how utterly corrupt he was.
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