Sitting next to Devils' principal owner Jeff Vanderbeek at the signing yesterday afternoon, Newark Mayor Sharpe James called the event "one of the greatest days in the history of this city." Vanderbeek termed the deal, which had been in the making for more than six years, "a long time coming. We are signing a definitive, binding agreement."

The NBA's New Jersey Nets were originally to have been part of the deal. But the team was sold last year to developer Bruce Ratner, who promptly announced his intention to move that franchise from the Meadowlands to a proposed new arena in Downtown Brooklyn, NY.

If all goes as planned, the team and the city expect to break ground in mid-summer, with the arena slated for completion in time for the 2007-2008 season. The team's lease at the Meadowlands is set to run out at the end of the 2006-2007 season.

Under the terms of the agreement, the city will own the completed venue and will foot $210 million of the total cost. According to city officials, most of Newark's contribution will come from the money that the Port Authority of NY/NJ pays to lease Newark Liberty International Airport. The Devils will pay the remaining $100 million of the construction and will lease the building for 30 years.

The minimum annual rent will be $2 million, but could wind up being a lot more in any given year because the final figure is tied to 7% of revenues generated by the Devils and 4% of revenues generated by other events. The final annual amount is also capped at $6 million for the first 10 years, rising to $7 million for the 11th year. After that, the annual cap is tied to the Consumer Price Index.

The deal also calls for the NHL team to manage the arena and to pay its operating expenses. The team has also agreed to make the facility available for public events at least 10 days a year.

The arena, which is doesn't have a name yet pending the sale of naming rights, is the centerpiece of a larger plan by the James administration to remake a major portion of this city's Downtown. Site assemblage is under way, and the Devils have agreed to be responsible for construction of a new 300-room hotel, 100,000 sf of office space and a community center. The latter projects are expected to be farmed out to private developers.

Late last year, city officials had agreed to give the team control over the arena's design. To accomplish that, Morris Adjmi Architects of New York City have already been brought into the mix, and KUD International, a California-based firm that specializes in such venues, has been tapped as the general contractor.