Barclays Team Wins Nassau Coliseum Redevelopment Project

15/08/2013 5:50 pm

The development team behind Barclays Center in Brooklyn, New York , led by Forest City Ratner and Russian billionaire Mikhail Prokhorov, has obtained the rights to redevelop the 63 acre Nassau Coliseum in Uniondale, Long Island. The team beat out archrival Madison Square Garden Co.

Nassau County Executive Edward Mangano made the announcement Thursday morning, praising the winning bid as the most promising for the future of the arena site and the county as a whole.

"I really wish we could have engaged both teams," Mr. Mangano said at a press conference at the county building in Mineola before announcing the winner as the Barclays team. Ultimately the decision came down to who offered the county more of a share in the revenues of the project, which based on the numbers the county released Thursday, appear to run into the billions of dollars over the life of the contract.

Mr. Mangano said the decision was backed unanimously by his 17-member business advisory council.

Crains reported,  that the Barclays Center team has a 34-year lease on the property now, with the contract signed this morning, with a 15-year option to renew. Over the initial term, the county would receive $195 million in revenue, coming from a mix of rents, ticket sales and other agreements, which could rise to as much as $335 million if Barclays exercises its right to the full 49-year term. The minimum annual payment would by $4 million per year, increasing by 10% every five years. MSG offered only a 5% increase each year, for a total of $112 million the first 34 years, Mr. Mangano said.

The Barclays Center bid has promised a $229 million project designed by SHoP Architects that sheathes the arena in a nest of glass and steel, looking like a hypertrophied Barclays Center. The remade arena would host 309 events a year, including boxing matches, college hoops, even six games by the Islanders hockey team, which are poised to move to the Barclays Center as soon as the 2013-2014 hockey season. Concerts will be led by the Barclays partners in the bid, Live Nation and Jay Z's Roc Nation.