Newark city officials proposed two funding plans
yesterday for a new downtown arena for the Nets, "one that
would require state assistance and one for an arena that
could be built without it," according to Ronald Smothers of
the N.Y. TIMES. The first proposal, which was submitted to
the Newark Central Planning Board by Mayor Sharpe James and
city planners, includes an "ambitious option" for a $375M,
18,500-seat arena, $75M of which would come from the state,
along with infrastructure improvements and parking. The
project would then "stimulate further private investment"
and lead to the "development" of a 25,000-seat, soccer-only
stadium, offices, parking garages, stores and restaurants.
But city planners "also submitted a scaled-down proposal"
for a $295M arena that would include only the arena and
"more modest" development plans. Smothers notes the "two-
track approach is a concession" to the city's "inability so
far to draw a second team to the arena to make it more
economically feasible." Although the Nets ownership has
"committed" to moving the team to Newark and investing "as
much as" $100M in a new arena, NJ Gov. Christine Whitman
"has insisted that the state will not back or help finance
such a move if the arena does not also house" the Devils
(N.Y. TIMES, 1/11). Whitman Press Sec. Peter McDonough: "It
would be awfully hard to justify a major investment in an
arena that can be lit for 75 nights a year" (RECORD, 1/11).
But in Newark, George Jordan wrote that the "clearest path
for both teams in Newark" would be for Devils Owner John
McMullen to sell the team to the YankeeNets. McMullen is
currently "deep into negotiations" with the YankeeNets to
sell for $165M and "also is trying to acquire a minority
interest in the Jets and may be more likely to sell the
Devils if that deal goes through" (STAR-LEDGER, 1/9).
