Another "Potential" Lease on Life

I know that most of my content lately has been Lighthouse-centric and for good reason. It's simply the most important facet of anything going on in Islanders Country right now (and quite simply the most newsworthy story out there). So without further ado, I present to you the latest in the long line of small victories the Lighthouse Project has achieved in these past few months: a new "Lease on Life" as it were, from Nassau County!

It has been common knowledge for quite some time that the Lighthouse Development Group has been working with Nassau County on a new Lease Agreement for the Nassau Coliseum site in parallel to the SEQRA Environmental Review being conducted and voted on, by the Town of Hempstead. This is certainly not the end, however. Understand that the tentative Lease Agreement can only be approved once re-zoning and building permits are issued by the Town of Hempstead. That means that there is still work to be done. Here are some of the details of what the new lease will provide:

1. The New York Islanders will be required to play all regular season home games at the newly re-developed Coliseum until July 31, 2030.


2. The land lease for the entire 150 acre span (77 of that is the Coliseum site) is for a total of 99 years.


3. The Lighthouse Development Group will be required to pay $1.5 million to Nassau County to lease the land per year (remember how much Nassau County reported losing on the land in maintenance costs per year...$1.4 million anyone?)


4. The Islanders will receive all profits for ticket sales, parking and concessions (as of right now with the current lease, SMG, the arena managing firm based in Philadelphia, is receiving roughly 80% of the ticket sales, all of the parking and concessions. The only pure profit the New York Islanders make is on their merchandise sales **UPDATE: My buddy NYIsles1/IslesTigers corrected my numbers: SMG at this time receives 11% of Isles gate receipts, all parking and concessions and 40% of all the team's advertising revenue. Thanks for the help. I could have sworn the gate receipts (tickets) were higher though...**). The LDG will also be responsible for all maintenance and repair costs on the site that the County has been shouldering throughout the current lease.


5. The Lighthouse Development Group is allowed to procure monies from many different sources to finance the Project, including Industrial Development Agency Bonds.

Here are the advantages and benefits of IDA funding (directly from the Town of Brookhaven IDA website):

ADVANTAGES & BENEFITS OF IDA FUNDING

• The Company may receive 100% financing for the total project cost - including construction, equipment and planning costs and financial expenses.


• The Company pays a rate of interest generally lower than the rate on conventional financing.


• The Company may receive real estate Tax Abatement of Up to 100% on all new capital investment for Up to 10 Years


• The Company may save the sales tax on material and equipment purchased during the construction period from proceeds of the bond issue. This benefit may save a company Up to 5% of the total project cost. For accounting and federal income tax purposes, the Company is treated as the constructive owner of the project. Accordingly, it carries the project as an asset on its books and the total obligation under the lease or sale agreement as long term debt.


• The Company is entitled to the investment tax credit under Section 38 of the Internal Revenue Code, and is entitled to the depreciation allowance under Section 167 of the Code (Rev. Rul. 68-590).


• The Company may: (a) increase the size of borrowing to include an amount equal to the interest payable during the construction period, and (b) defer the first payment of principal during this period of time. As a result, the Company need not divert cash flow from other sources to make payments on the debt until the construction has been completed.


• Tax exempt bonds are generally exempt from the registration requirements of the securities laws and State "blue sky" laws and are consequently considerably less complex and time consuming than the public or private placement of corporate bonds. Bonds subject to federal tax will also be exempt from registration under most circumstances if the bonds are sold pursuant to the private placement exempt transaction rules.


• Cost applicable to an industrial development revenue bond issue include fee of bond counsel, Agency fee, fees to trustee or paying agent, other legal fees, and placement fees if outside bond placement is required. However, the fees and expenses incurred in connection with IDA financing, make questionable the feasibility of any project funding under $750,000.

So what does this mean for the Lighthouse approval process? It basically puts the puck back in the Town of Hempstead's end. With a tentative Lease Agreement and re-zoning hearing that occurred on September 22nd, it's the Town's turn to send a counter-offer to the Lighthouse Project possibly scaling back some aspects of the construction. That's how negotiations work until both sides get the concessions they want and reach a compromise.

It's my belief that the LDG and Nassau County tried to accommodate some of the demands of the Town of Hempstead (granted we won't know the details of the Lease Agreement until noon today). It is known that the Lease Agreement will still provide the LDG access to tax-exempt money but another one of the important issues being addressed was that the Islanders stay for more than the original agreement of 2025.

**Side Note: In the Newsday article in today's edition regarding the Lighthouse Project, the reporters only state that the Islanders will be required to remain in the Coliseum for 15 years. This number is not accurate. What the authors did not take into account was that the Lease Agreement for the Lighthouse Project would terminate the current lease on the property. If the Lighthouse is approved for zoning and permits this year or next, then the new Lease Agreement will take effect in 2010 and will provide for 20 years.**

**Side Note 2: Nassau County legislative Minority Leader Peter Schmitt (R-Massapequa) was quoted in the same article saying that the numbers provided in the Lease Agreement will be inaccurate without knowing what the LDG will build on the site. The only question I have to ask in regards to this line of questioning is, "Why then, would the Town of Hempstead send an open letter of suggestions/demands to the County, the LDG and the citizens of Long Island for the Lease Agreement if there has been no decision on what will be constructed on the site?"**

Any way you slice it, this is a big step forward in the process of getting the Lighthouse Project approved. Now is the time for diplomacy and compromise. Let's look forward to October 3rd, not as date for "certainty" on the Project but as the start of the future on Long Island and the Islanders hockey season.

Be on the lookout for my Season Preview post tomorrow!

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Welcome: We'll Leave the Light(house) On!

After all the posturing over the past two years, the anti-climatic nature of the Public Hearing on August 4th overshadowed the huge crossroads the Project has arrived at. Many a powerful voice came out in support of the Lighthouse including principal developer Charles Wang, former Islander greats Bobby Nystrom and Mike Bossy, NHL Commissioner Gary Bettman and local politicians and community leaders. However, I'm more concerned about those who have spoken out AGAINST the Project. What are the issues that they want examined?

After the jump, I have a special treat for you guys: A slide show of the pictures I took at the Rally and the Public Hearing. Be sure to check it out...

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This was a comment I posted over at James Mirtle's From the Rink in response to a post about concerns that were being raised by those in opposition of the Lighthouse Project. You can read his whole article and the myriad of other comments here.

1) Environmental Concerns

Here’s the issue. The State mandated process for Environmental Impact Survey is to DETERMINE ANY ENVIRONMENTAL ISSUE THAT WILL EFFECT THE OVERALL FOOTPRINT OF THE PROJECT. The reason that this process is so drawn out is due to the fact that many agencies, most importantly the Town of Hempstead, must review each and every area of concern before moving into the Final Environmental Impact Study. Water, sewage and conservation of the Hempstead Plains area are all included in the DGEIS that was submitted in February. Remember, THINGS ARE NOT FINALIZED! Nor will they be until the Town of Hempstead, Nassau County and the State of NY have done their due dilligence as far as reviewing each and every inch of the proposed site.

Another thing to note is that the proposed construction site, what amounts to an abandoned parking lot (at least during the summer), the surrounding buildings (RexCorp Plaza on the South side of Hempstead Tpke., the Omni Building to the North and the Marriott Hotel which sits on the extreme East of the site are ALL OWNED BY THE LIGHTHOUSE DEVELOPMENT GROUP! The only piece of land that is not owned by them is the 77 acres where the Coliseum sits.

2) Development in a County that doesn’t develop

No offense to anyone else who has commented so far on this topic, but you simply don’t have the same perspective that I do. I live here. I’m in the thick of it everyday. Nassau County has no available land to develop. It’s a simple fact that really hampers the status quo. Neighborhood after neighborhood of Suburbia has created more TRAFFIC, SEWAGE CONCERNS and ENVIRONMENTAL IMPACT than the Lighthouse will in 25 years. The idea is to build to conform to environmental GREEN standards. The Lighthouse is needed to create a new status quo, a “New Suburbia”.

I’m 25 years old. Don’t I deserve a place to live? Finding an apartment on Long Island below $1000 is a challenge at best. What’s wrong with placing a series of “below-market housing”, not “welfare-housing” as someone stated before, next to luxury condos? These units will be utilized by people my age, between 25-34, to stay in a County that is only comprised of 8% of people in that age group. There are no jobs, no place to live and no where to go but off Long Island.

3) Who pays?

This is an issue that can’t even be a concern at this point. For the Lighthouse Development Group, yes. But not for the general public. Funding isn’t even going to be discussed until the Re-Zoning Hearing which is far off in the distance as far as the process goes. Whether the money comes from China or bank loans as I’ve heard directly from some inside in the LDG, it doesn’t matter. This is the ultimate Republican wet dream: A developer (big business) who’s willing to pay for 99% of a development project. You tell me where else you’ve heard that before? Please remember, this is not going to be built in a day. This is an 8-10 year build out process. The money will not be needed all at once. From what I know the $400 million for the Coliseum is the only guaranteed number right now.

Many of you ask: “What’s is Charles Wang’s motive for building this development project?” Allow me to answer that for you.

Charles is has been losing $20 million+ a year on a team since 2000. The lease that Nassau County has for the site is overseen by a third party company that maintains the building called SMG (the same people who take care of Nationwide Arena in Columbus). The lease is so restraining, that the only pure profit the Islanders receive is from their merchandise and their TV deal. Major percentages (in some cases up to 90%) of tickets, parking and concessions all go to SMG and the current lease extends until 2015. If the LDG builds the Project then the lease is re-negotiated to better favor keeping the team on Long Island.

Also of note, Nassau County which loses $1.5 million on the site a year, stands to gain $60-$70 million in fresh tax revenue annually. The Uniondale School District, which will end up enrolling a significant amount of new students just struck a deal with LDG that will pay them huge sums of money (somewhere in the range of $26 million) to fund revitalization of the District.

If you still think that Charles Wang is only the owner of the Islanders to build the Lighthouse then you are seriously mistaken. If you read any newspaper articles from when Wang bought the team in 2000, you’ll find that Nassau County was promising the new owner a new building in 5-7 years. Nassau Coliseum is in disrepair and is no longer viable to contain a major sports franchise.

Not only will this Project be a reason to keep the Islanders where they belong, but it will be a catalyst to the region. New tax revenues, jobs and the opportunity to keep the younger generation around long enough to utilize the tax dollars that are spent on them to educate them on Long Island will be a significant boon the the local economy. After the Lighthouse is constructed, these younger people (myself included) will be re-insert back into the work force and be a part of the “New Suburbia” the Lighthouse will create.

Things That Make You Go...Hmmm

"I believe community outreach was really the key to the success of the hearing and rally today. But I realize, you can't reach everyone. I was very sad to hear from a woman who was 'horrified' by the project and how things were not on the up-and-up informing the community on its impacts. When I attempted to offer her an outreach meeting, or to even bring her in to discuss the project, she declined and refused to tell me who she was."

--Katrina Doell from
The Light Post: Official Blog of the Lighthouse Project

It's amazing to me how those opposed to the Lighthouse Project try to justify their claims of opposition with little to no information and then simply turn away from any attempt to help them understand the finer points involved in the Project.

Final Takeaway

This was a huge event in the process of getting the Lighthouse Project approved. If I'm not mistaken, about 90% of those who came to the Public Hearing were in favor of the Project. It's about time that people who are out of work and watch other towns around North America re-develop and start with a fresh slate, get their chance at a new beginning.

The fight is not over. Our resolve must stay as focused as ever. The Public Comment period ends on August 17th. Keep the pressure on. We need to see this through...

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The Race for Long Island's Future is On

Last night I received a simple text message from my buddy Nick Giglia around 7:20: "It's Kristen McElroy."

Frankly, at first I had no idea who the sender even was because my Blackberry decided it wanted to start a new life as a paperweight and I had to take different components from about 3 BB Curves to make the current phone I'm using. So in short, I didn't have Nick's number stored in the phone. After a short back and forth I realized what he meant: Kristin McElroy, an attorney in Garden City, was chosen as the opponent to the heavily-favored incumbent, Town of Hempstead Supervisor, Kate Murray.

I'm gonna go back to my post at the beginning of the month where I compared the struggle of the Lighthouse to Star Wars and define the characters a little better.

As it stands we have:

Kate "Darth" Murray

Charlie "Yoda Momma" Wang

Scott "I'm Goin' Solo" Rechler

Joe "Emperor" Mondello

Tom "Obi-Wan" Suozzi

(Yes, I got a little Photoshop happy this morning but it was too funny after I did Charles to not keep going)

That's some cast of characters. However, now there is a new one that threatens to balance "The Force" on Long Island and bring peace to Galaxy/Town. I give you:

Kristin "Skywalker" McElroy

From what little I remember and what I heard last night, McElroy could be the kind of opponent that has a good chance at an upset. After nearly rocking Kemp Hannon's world last year, it stands to reason that the Nassau Democrats saw potential in Ms. McElroy. As an attorney from Garden City, who is unequivocally pro-Lighthouse, McElroy may be able to bridge the gap between the voters in the Town of Hempstead. It's a promising start.

Please don't ever forget to read some of the most ardent and informed Lighthouse advocates Nick Giglia and Dee Karl as they had their posts up well before mine (The Photoshop took forever).

Also, the Long Island Business News was at the Cradle of Aviation last night and as always wrote a nice piece on the proceedings. Newsday, however, left much to be desired.

Let's just hope that this race is going to be as exciting as it was foretold to be, "A long time ago, in a Town far, far away....."

For Questions, Comments or New Force Abilities you can contact me at DougD84@optonline.net, in the Comments Section or on Twitter @NYIsles10.

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An "Unprecedented" Time in Our Lives

Last night, I attended the 180th Community Outreach Meeting conducted by the Lighthouse Development Group along with about 1,000 other supporters, politicians and sports figures. I went in with a clear mind as to what topics would be covered and I was not disappointed. The only thing that I regret not hearing about was any opposition to the project. Now please, don't jump to conclusions. I'm completely behind the Lighthouse Project 110%. However, I'm interested in hearing the reasons for people to be against a project such as the Lighthouse. The Lighthouse will effect every Long Islander's life and it's important to garner as much input as possible before hopefully moving forward and getting a shovel in the ground.

A little after 7:00 PM, Charles Wang, Scott Rechler, President of the Lighthouse Development Group, Michael Picker and Nassau County Exec Tom Suozzi all took to the stage to answer as many questions they could in a two hour period.

Mr. Wang began by acknowledging the event as the 180th Community Meeting and referring to it as "unprecedented" that the number of meetings had been reached. Frankly, the sheer number of community meetings that the Lighthouse Group has conducted is staggering. They've done everything in their power to inform the public about the inner workings of the project and what their plans are to move forward.

"Why haven't you started it yet?"

That's a question that Mr. Wang has had to face for quite some time. We all know by now that the state has very stringent laws about how building developments and especially one this size have to be approved. There simply is no way around it. Several times last night, Mr. Wang was his acknowledged for his "patience, vision and passion" to get the project done. Charles in turn replied, "Don't bet against us on Long Island" to rousing applause.

County Executive Suozzi tempered the joyous mood by listing the major problems that Nassau County is facing and how the Lighthouse would be a great starting point to resolving these four issues:

• Property Taxes
• Young People Moving Away or Not Coming to LI
• Traffic
• Pockets of Poverty that have been left for far too long

What interests me most about the project is it's effect on the people of my age group and the reality that we face. I'm speaking about the Generation X and Y people out there between the ages of 24-35 who need to find work and a place to live. With little options to remain on Long Island due to rising rental and housing costs and the horrendous state of the current job market, it is becoming extremely difficult to find your way once you graduate college. Many people spoke last night of their friends and family moving off of Long Island to find a better cost of living and quality of life.

I believe Scott Rechler, Head Developer of the Lighthouse Project, put it best:

"We are losing the future of Long Island. This is about competing to keep companies coming to Long Island and bringing young people in who want to work on Long Island."

"When companies are looking, they're not looking to Long Island. They can't find a young workforce who want to come to Long Island because they can't find the type of housing, the type of lifestyle that they want to live by. Instead, they go to places like White Plains, Hoboken or other parts of New Jersey. LONG ISLAND IS NOT EVEN ON THE MAP!"

This is the reality that people my age face. I've even resigned my fate to somewhere off of this Island where I was born and raised. It's simply a fact of life. However, a project such as the Lighthouse would provide ample opportunities for people to find jobs and affordable housing that will be required in what has been termed as "new suburbia".

Last night was an endless parade of supporters, local political figures and sports legends. Each of them voiced their support and many asked what could possibly be done by the public to get the project moving at a quicker pace. Unfortunately, there really is no answer for that issue. County Executive Tom Suozzi made it clear that we would know about the next step "by early to mid-April" and that the process will hopefully be progressing at a faster rate following that milestone (approval of the Environmental Impact Statement by the Town of Hempstead and their issuance of a Negative Declaration. Please see my friend Nick's site, Let There Be Light(house) for a Glossary of Terms used in the approval process).

Correction: My astute friend Nick, the proprietor of Let There Be Light(house),had to set me straight on some of the terminology that I alluded to. Guess I need to read his Decoding the SEQR Series Part 1 and Part 2 again.

The Lighthouse will truly be "Long Island's own Stimulus Package". This is the point in Long Island history where the public needs to take a stand and unite in one voice to approve a project that will not only revitalize the Uniondale and Hempstead area but all of Long Island from Long Beach to Montauk. Our time has arrived and I personally plan on taking full advantage of the opportunities afforded to me by this project. I hope that someday soon I'll be able to say to my friends and family: "Meet me at the Lighthouse!"

Please take in my two previous posts on the subject: Crossroads at the El Coliseo and Meet Me at What is the Next 25 Years on Long Island for further insight.

Also, don't forget to check out the links at the right that will have numerous accounts of last night's meeting. Get them some hits as well because they are certain to have a different take than I do.

I will be back in the coming days with more notes and quotes from the Meeting. There is an enormous amount of information that came out of it and it will take more than one post to cover. Check back soon.

For Questions, Comments or General Housing Development Issues, please refer to your superintendent at DougD84@optonline.net or in the Comments section.

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Crossroads at the El Coliseo

As Islander fans and Long Islanders we face a myriad of challenges each and every day. Whether it's a team that might as well be compared to Jekyl and Hyde so far this season, our economic woes on this little Island of ours or the daily battle with traffic, Long Islanders still manage to stand up to every hurdle. We simply try to take as much out of life as we can. Unfortunately, there are some of us who would prefer to stand in the way of change and block the quest for progress.

I was reading a post over on my friend Nick's, Let There be Light(house) site and I came across his most recent post on how the politics of the most recent news regarding the Lighthouse may affect proceedings as time moves forward. As we all know, our local political leaders are up for re-election come this November. To be completely honest I think one is trying to win the favor of his constituents, while the other is trying to alienate them.

Tom Suozzi has done everything short of put the shovel in the ground himself trying to win the favor of potential voters for the upcoming elections. He's approved the Lighthouse Development Group as the developer of the Coliseum site and most recently has entered into negotiations for the new lease that will accompany the project.

Kate Murray on the other hand has done everything in her power to basically stall the Lighthouse Project and provide political misdirection as far as the renovation of the aging Coliseum. She's been absent at key meetings and has generally steered clear of any and all questions regarding the development project as a whole.

So where does this leave Islanders fans and their fellow Long Islanders, who will be equally effected by the Lighthouse Project's approval or denial?

To put it succinctly, it leaves us at the voting booth.

Kate Murray is slowly but surely destroying her own political career by not speaking in a more positive light about the $3.75 billion development project that will not only increase tax revenue, jobs and housing options but will also bring Long Island into the 21st century.

I don't want to demonize Kate Murray. She's done a good job for a Town I don't live in (I'm in the Town of Oyster Bay). But, her actions of late have started to solidify her political fate. If she wants to salvage any semblance of a career, she'll be at the March 26th meeting at the Long Island Marriott adjacent to the Coliseum to smile her little smile and answer questions of puzzled Long Island residents.

What this also means is YOU SHOULD BE THERE TOO! The meeting is on Thursday, March 26th and will consist of Michael Picker, the head of the Lighthouse Project; Charles Wang and Scott Rechler, the head developers; Tom Suozzi, Nassau County Executive; and the TOH Board; all of whom will be on hand to answer questions. This is our chance to voice our opinions on the process and support a cause that will positively affect all of us. I hope you can all make it.

(Photos courtesy of Barry Melrose Rocks and Newsday)

For Questions, Concerns or To Talk Everything Islanders, Hockey and Lighthouse, e-mail me at DougD84@optonline.net or Leave a Comment in the space provided.

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