Everyone had agreed the facility will cost $325 million. At issue for the past three years has been the amount of public money involved. Whitman had drawn the line at $75 million, while YankeeNets, owner of the Nets and Devils, first asked for $125 million in aid, then bumped that up over $200 million (see earlier story).

In the end, YankeeNets got what they wanted--a $215 million package including a $50 million cash grant from the state and up to $90 million in loans from Newark and Essex County. It also includes a $75 million state loan, to be repaid over 25 years with money diverted from taxes generated by concession sales. It also calls for a no-compete clause with the state-owned Continental Airlines Arena, which would stay open as a venue for concerts, college sports and other events. Whitman justified the change of heart by saying that only $50 million would be a cash outlay and the rest would be loans.

But the issue will become a very hot potato. First, it has to be approved by the Republican-dominated legislature, which is miffed at Whitman for excluding them from negotiations. Next, the final package rests with acting governor (and state senate president) Donald DiFrancesco. A Republican like Whitman, he has said he supports the project, but wants to work out his own agreement.

Finally, this is an election year and DiFrancesco is running for the state's top job in his own right. So he has to be concerned about the backlash of moving the Nets and Devils from heavily Republican Bergen County, the state's most populous county, into heavily Democratic Essex County. Legislative passage of the deal before the November election is considered unlikely.

Besides the $90 million in loans from Newark and Essex, mayor Sharpe James and county executive James Treffinger have agreed to spend $90 million to buy the land, demolish existing structures and build parking garages.