by Hector Flores
"Economic development in Nassau County has been flat-line, and we need new development," Bivone said. "If this project is developed and all questions answered, then it would bring development to Nassau County. But how would this affect local businesses?"
In March, Nassau County Executive Thomas Suozzi selected the Lighthouse Development Group, headed by Long Island software mogul Charles Wang and real-estate developer Scott Rechler, to redevelop the Coliseum. The group agreed to spend $320 million to upgrade the sports arena and develop the surrounding 77 acres into offices, retail businesses, hotels and housing. Wang, who owns the Islanders hockey team, also agreed to keep the team at the Coliseum through 2025.
Nassau County Legislator David Denenberg, a Democrat of Merrick, raised Bivone's concern during a special hearing of the Legislature's Planning, Development and Environmental Committee last Friday. The committee heard testimony from Washington Square Partners, a consulting firm specializing in sports arena leases that the county Office of Legislative Budget Review hired.
Denenberg, the committee chairman, asked the firm and members of the budget review office whether neighboring businesses would be affected by businesses proposed for the Coliseum. Eric Naughton, the budget review director, said the surrounding communities would not be affected by new retail businesses at the Coliseum because the stores would cater to people living in housing created by the developer at the site. In addition, the businesses and restaurants would specialize in sports and tourism themes.
Legislator Norma Gonsalves, a Republican of East Meadow, said there is no real way to know the true impact on surrounding businesses because not enough information is available. "No one knows if the retailers established would compete against other areas," she said.
Gonsalves added that a study should be done to determine the possible economic impact on surrounding businesses. If the Legislature were to request such a study, the budget office would conduct it. "We are waiting for a clear direction on what needs to be studied and an official request," Naughton said. "Our office would conduct the study, and a consultant would be brought in to help."
Gonsalves is also concerned that the surrounding communities would not share in the revenue brought in by the Coliseum and the surrounding commercial developments. "People living in the residential building would attend Uniondale schools," she said. "That district stands to receive the school taxes. And how big is the residential development? Would they need their own school district? The whole thing is premature. We are banking on assumptions."
Denenberg, however, said that Coliseum development would benefit the county. "The building costs for the new arena and associated building are at no cost to the county," he said.
In addition, the project is expected to bring in $2 billion in one-time construction jobs, and $4 billion to $5 billion in recurring revenue from 2009 to 2025 from hotels, housing, retail businesses, a convention center and the Coliseum itself.
The Nassau Chambers of Commerce will hold a meeting to discuss the next phase of the Hub and Coliseum projects on Tuesday, June 27, at 8 a.m., at the administrative building of the East Meadow School District, at 718 The Plain Road in Westbury. For more information, call (516) 396-0200.
Comments about this story? HFlores@liherald.com or (516) 569-4000 ext. 283.
