City, Devils Reach Arena Deal Agreement

Under the terms of the agreement, the Devils would pay $100 million of the total $310-million cost to build the facility, with the city paying the rest. The city's share would come mostly from a bond issue secured by rent payments from the Port Authority of NY/NJ for city-owned land that's used for seaport functions.

The city would own the facility and lease it to the Devils for 30 years for $2 million a year. The city would also get 7% of revenues generated by the facility, including everything from concessions, to luxury-box rentals to naming rights. It's estimated that would run between $3.5 million and $4.5 million a year. City officials also expect to garner up to $12 million a year in various tax revenues.

Besides the arena itself, the project would include a parking garage, a hotel and an office building. The Devils have also agreed to build a $25-million community center that would include a practice rink for the team, but would be used mostly for community functions. And the team has also agreed to fund a variety of community programs, totaling up to $250,000 a year.

The next step is a final review of the deal sheet by a special commission appointed by Mayor Sharpe James. If all goes well, the whole thing could be finalized by early next month, according to city officials.

The arena/parking garage/office building/community center complex is the centerpiece of a larger redevelopment effort the James administration has mapped out for a 24-acre piece of Downtown Newark. That larger project could add as much as 5.5 million sf of office, retail and residential space, with a projected price tag of $1 billion.