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Yes, Nassau Legislature agrees to waive $1M penalty, at BS&E's request, so Islanders can return to Coliseum

Yes, it happened in Nassau. From The Island Now, 2/27/18:
...the Legislature also approved the waiving of a $1 million penalty, clearing the way for the Islanders to return to the Nassau Coliseum. The penalty would have been imposed if the team did not play at least six games per year in Nassau through 2027.
In January, Gov. Andrew Cuomo announced that the Islanders would split their home games between the Coliseum and the Barclays Center in Brooklyn while a new area is being built in Belmont.
Although legislators held reservations about waiving the penalty instead of deferring it, all agreed that not waiving it would sabotage any plans for the Islanders to play at the Coliseum. In the end, the measure was approved unanimously.
That's because the managers of the Coliseum and Barclays, Brooklyn Sports & Entertainment, made it a condition of having games at the Coliseum.

But what if the Nassau Legislature had played hardball? Doesn't BS&E want the hockey team out of Brooklyn and filling seats in Nassau? Who had the leverage here? (Well, the County Executive wanted it done.)

The Coliseum deal, as I'd warned, was revised again.