As Ratner's Nassau Coliseum plan moves ahead, analyst predicts developer will try to renegotiate deal with county
Dennis Coates, a professor at the University of Maryland, Baltimore County, who specializes in sports economics, said he doubted that the arena could generate the revenue it needed without the draw of a big sports team that can fill seats for roughly 40 home games a year, forcing the arena to rely mainly on concerts.Wouldn't this have been the perfect time for writer Joseph Berger to quote an article he co-wrote last September with Charles Bagli, that Ratner has a "reputation for promising anything to get a deal, only to renegotiate relentlessly for more favorable terms"?
While it can attract big-name entertainers, he said, it will have at least three competing sites: Barclays, Madison Square Garden and the Izod Center, at the Meadowlands in New Jersey.
“The bottom line is,” Professor Coates said, “are they going to have to back out of the deal at some point and come back to the county and say we need more money, and the county will be on the hook.”
Forest City Ratner has offered to finance the entire $229 million cost of refurbishing the Coliseum and pay the county, which owns the building, 8 percent of gross revenue and 12.75 percent of parking revenue, with a minimum guaranteed payment of $4 million a year — a rental amount that would rise 10 percent every five years during the 34 years stipulated by the lease. The county in theory will not have to pay anything, but Mr. Ratner has indicated that he will ask the county’s Industrial Development Agency for some tax exemptions.
Did cost-ben. analysis include this? As predicted: MT @NetsDaily Part of Barclays deal w/Nassau permits it 2 sell naming rights for Coliseum
— Norman Oder (@AYReport) September 2, 2013
In his pitch, Mr. Ratner predicted the transformed Coliseum would generate $9.6 billion in county economic activity over 30 years and more than 2,700 jobs.