Housing Authority Says Devils Must Immediately Pay Rent
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Newark Housing Authority Says Devils Must Pay
$2.4M In Rent For Use Of Prudential Center |
The Newark Housing Authority (NHA) has stated that the Devils "must 'immediately' pay" $2.4M in rent for the Prudential Center, according Maura McDermott of the Newark STAR-LEDGER. The NHA, which owns the arena, in a letter to the Devils Friday said that the team has "defaulted on its lease by failing to pay the rent." The letter also indicated that the team now owes $700,000 in "base rent," plus nearly $1.4M in additional rent and $347,500 for community programs. The additional rent is "based on a portion of the arena's revenues," and the NHA "plans to audit the team's books to make sure the calculations are accurate." According to the team's lease with the NHA, if the dispute is "not resolved within 30 days, it will go to arbitration, and a panel chosen by the two sides will issue a decision." NHA Exec Dir Keith Kinard said that the authority also is "considering declaring the team in default for failing to earn a final certificate of occupancy." According to an October 21 letter from the team to the NHA, the Devils "maintain they do not owe any rent." The team "argues that the authority owes nearly $800,000 in penalties due to construction delays, as well as a $210,000 credit on the following year's rent." Calculations submitted by the team to the NHA indicated that in its first eight months of operation, from opening day on October 25, 2007 until July 1, 2008, the Prudential Center took in $30.5M from "suite sales, concessions, advertising, naming rights and other revenues" (Newark STAR-LEDGER, 11/4).
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