News: Nassau Coliseum Tax Raise
(Long Island, N.Y.) Nassau County Executive Edward Mangano has a plan that is poised to generate thousands of jobs and millions in revenue. Sources stated that Mangano’s plan will cost taxpayers an estimated $13.80 per household to finance the new Coliseum each year. Additional reports stated that the plan includes borrowing nearly $400 million to fund the Coliseum and a minor league baseball park.
Sources stated that Mangano highlighted the benefits of the plan by speaking about new jobs, revenue, and an increased quality of life. To reach the low $13.80 figure per household the county will have to apply the money it receives to a revenue sharing deal with the New York Islanders franchise. This would likely reduce Nassau County’s general property tax fund levy.
Sources stated that the revenue projections will create $19 million a year in revenue for Nassau County. An estimated $14 million comes from promised funds taken from the Islanders franchise as well as $5 million in sales and tax revenue. The amount due for the debt portion of the project is estimated at $25.6 million for thirty years, and the $13.80 per home would cover the additional amounts due.
The previous figure calculated by the Office of Legislative Budget Review was $58 annually per household in addition to property taxes used to complete the project and minor league park. Nassau County officials stated that there was no guarantee that the revenue sharing would be used to offset homeowner taxes.
The final figure, if revenue is not used to offset the property tax, is estimated at $51.50 per year. The owner of the Islanders has stated that he may move the franchise if a new arena is not constructed. A consultant stated that Nassau County’s economy could lose $243.4 million annually if the team moves.
Reports also stated that labor unions are supporting the plan for the new Nassau Coliseum because of the jobs it may create. The Civil Service Employees Association is in support of the Coliseum. Sources claimed that the union did not urge anyone to vote for the $400 million loan.
An estimated $350 million would be spent on the new arena, $26 million on a minor league ballpark, and $24 million on improvements to the area around the Coliseum. The vote to borrow the necessary $400 million to fund the plan will be completed on August 1st. The president of the Civil Service Employees Association emphasized the importance of the Islanders and the new Coliseum, but refused to encourage union members to vote for the plan.
