Everyone agrees the facility will cost $325 million; at issue has been the amount of public funding. Whitman drew the line at $75 million, while YankeeNets, owner of the NBA Nets and NHL Devils, primary tenants of the proposed facility, first asked for $125 million in aid, then bumped that up to $200 million.

DiFrancesco emphasizes that he isn't killing the arena plan, only the deal Whitman had worked out with the YankeeNets. Of particular concern is that "it doesn't really address the future of the Meadowlands complex" and the economic impact on Bergen County of closing the existing arena.

Indeed, 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.

In the Whitman deal, YankeeNets got what it 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 included a $75-million state loan, to be repaid over 25 years with money diverted from taxes generated by concession sales. It also called for a non-compete clause with the state-owned Continental Airlines Arena, which would stay open as a venue for concerts, college sports and other events. 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.

But the issue is heating up. First, it has to be approved by the Republican-dominated legislature, which is miffed at Whitman for excluding them from negotiations. For his part, acting governor (and state senate president) DiFrancesco agrees with the key points, but "I haven't been included in the negotiations and I have to learn more about how [the deal] came about."

For related news, click on:Governor Oks Arena Plan for Newark, %50 Mil of $215 Mil Package to Come from State