$355-Mil Arena Is Set for Devils, Nets

Now, DiFrancesco has his own deal. He's agreed to terms with YankeeNets for a new arena, and the only stumbling block is legislative approval. That's not expected to be a problem, because the agreement involves no direct cash outlays by the state over the long term.

Under the terms of the agreement, the $355 million facility, expected to hold between 18,000 and 20,000 people, would be owned by the State of New Jersey. It would be built, operated and maintained by YankeeNets, and would be ready for occupancy in 2004. In terms of the funding, it would include a $115 million cash outlay by YankeeNets. Another $190 million would be derived from state and local taxes generated by the complex, although the state would presumably stake YankeeNets to the money to cover construction costs. The remaining $50 million would come from local urban enterprise zone moneys.

The site is currently occupied by a vacant warehouse and parking lot strung out along six blocks Downtown here. The complete arena package is proposed to include a parking garage, a hotel, a retail component and a television/radio broadcast facility. The two sports franchises would sign 30-year leases to be the facility's primary tenants.

Essentially, the facility will replace the Continental Airlines Arena in the Meadowlands, East Rutherford, in terms of housing the two teams and offering a full slate of entertainment events. Reports on the fate of the existing arena are conflicting. One news source said its fate hadn't been determined, while another indicated that razing the arena is part of the deal. Speculation has arisen that if the existing arena were razed, the site would be made available for the Mills Co.'s very controversial mega-mall project currently proposed for elsewhere in the Meadowlands region.

"This will be a world-class facility," enthused YankeeNets part owner Finn Wentworth at the announcement of the agreement for the arena. Wentworth and real estate partner Stan Gale (Gale & Wentworth) are both part owners of YankeeNets, which has George Steinbrenner as managing partner. "It will have many elements, including a broadcast production studio," Wentworth added.

"This project will be completed without any direct outlays from the State of New Jersey," acting governor DiFrancesco added at the press conference. "That, and the fact that Newark will get the next step in its rebirth and the Nets and Devils will get a state-of-the-art facility make this a 'win-win' agreement for everyone involved."