Deal for Newark Arena is Dead--for Now

While plenty of pork was passed in the waning days of the Republican-dominated legislature and statehouse, the arena bill didn't make the cut. Ironically, the obituary was read after political in-fighting between DiFrancesco and Collins, both Republicans. According to observers, too many add-ons aimed at projects in South Jersey caused a rift that couldn't be mended in time to get the deal done. For the record, at stake is a $355 million arena in Newark, slated to be the new home of the NBA Nets and NHL Devils.

The bill would have utilized state, county (Essex) and city (Newark) bond issues, as well as a contribution of about one-third of the total cost by Nets/Devils owner Yankee/Nets. State funding would have utilized sales tax revenues from several specially-designated entertainment districts around the state.

The issue hasn't been totally buried, however. New Gov. Jim McGreevey, a Democrat, has stated his support for the project, but he wants it on his own terms, especially in the face of a budget shortfall that could approach the $2 billion mark, according to state government estimates.

"My immediate priority is not the arena," McGreevey told reporters at a press conference here yesterday. "My priority is to make sure the state budget is balanced. That means setting forth necessary reductions and making some difficult decisions on spending."

Indeed, McGreevey has said more than once that the project should be done as part of an economic development stimulus package that would not only get the arena built, but also provide for the redevelopment of the Meadowlands, which the Nets and Devils would vacate in favor of the Newark arena. He has said publicly that he wants to re-start the initiative within the first six months of his administration, which starts now.

Another bill that went by the boards when the session ended was one that would have give corporate New Jersey a $250 million tax break. But activity hasn't really ceased here: Unlike most states, the New Jersey legislature meets all year round, except for a summer recess.