The New York Islanders took an important step forward Wednesday toward their goal of getting a new arena that will allow them to stay on Long Island.
Nassau County Executive Edward P. Mangano announced that the county has reached a lease agreement in its plans to create a state-of-the-art sports-entertainment destination center at the Hub in Nassau County that retains Long Island's only major professional sports team through 2045 should residents approve building a new arena at the site of Nassau Veterans Memorial Coliseum.
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According to an independent economic impact analysis conducted by Camoin Associates, a nationally recognized firm in public and private sector economic development, the agreement will generate $1.2 billion. This revenue will be used to pay off the $350 million in construction costs associated with the new arena, $433 million in debt service payments and provide an additional $403 million for the County to hold the line on property taxes. Furthermore, Camoin Associates estimates the creation of 1,515 new jobs during the arena construction phase and the creation of 3,040 permanent jobs beginning in the first year the arena is operational.
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Under the terms of this agreement, County taxpayers are guaranteed 11.5 percent of dollars generated at the new arena from all events -- not just Islander games. According to Camoin Associates independent report, this revenue sharing requirement, coupled with sales, hotel, and entertainment taxes generated from the new arena will produce over $28.2 million to Nassau County in the first year. The projected amount of revenue to Nassau County is expected to grow in subsequent years. With debt service payments fixed at approximately $26 million annually, Camoin Associates projects the new arena would generate the dollars needed to pay off this debt and an additional profit of over $400 million during the 30-year lease term. Residents will continue to receive millions in revenue without debt service payments; similar to paying off your mortgage and renting your home while keeping all income associated with that rental property.
The construction of a new arena will retain and create significant employment opportunities for the residents of Nassau County. According to the independent report issued by Camoin Associates, the project will create a total of 1,515 construction jobs and generate $121 million in wage earnings during the construction phase. After the construction phase, it is estimated that 3,040 permanent jobs will be created with $138.8 million in new wage earnings.