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November 17, 2010

Nets could leave Brooklyn after 30 years, not 37, if arena bonds are paid

Atlantic Yard Report

I hadn't noticed this earlier, but if the financing is paid off early, before the 38-year term, the Nets (or whatever their name will be) could leave the Atlantic Yards arena after 30 years.

From the Empire State Development Corporation's 2009 Modified General Project Plan:

The Nets will also enter into a non-relocation agreement with the City and ESDC pursuant to which the team will agree to play substantially all of its home games at the new Arena for the life of the PILOT Bonds but in no event no less than 30 years.

From the bond offering statement:

New Jersey Basketball's obligations under the Non-Relocation Agreement will terminate on the earliest to occur of (i) the thirty-seventh (37th) anniversary of the effective date of the Non-Relocation Agreement, (ii) the abandonment of the Arena Project prior to the date of the opening of the first season or (iii) the thirtieth (30th) anniversary of the effective date of the Non-Relocation Agreement if on or prior to such date all bonds, debentures, loans, credit facilities or other financing or liability issued, facilitated or incurred by the Issuer in connection with the acquisition, construction, development or operation of the Arena Project have been indefeasibly paid or otherwise satisfied in full.

link

NoLandGrab: 30 years should be considered the maximum, since "contractual obligations" between professional sports franchises and their arenas and stadiums are about as reliable as Bruce Ratner's jobs and affordable-housing promises.

Posted by eric at November 17, 2010 12:23 PM