Jones Lang LaSalle

UPDATE: State Balks at Stadium Deal
By Eric Peterson
Last updated: March 13, 2006 01:40pm

EAST RUTHERFORD, NJ-State officials say they are re-thinking the agreement to build a new stadium for the Giants and Jets in the Meadowlands. That agreement, which was negotiated with the two NFL teams late last year by former Gov. Dick Codey, is currently in the form of a memorandum of understanding and not a signed contract. For previous coverage, click here.

Specifically, the state treasurer is looking into the financial aspects of the deal, including tax revenues and the amount of public money going into the $1-billion project. Expected to open in 2010, the stadium would seat 81,000 and be surrounded by more than 500,000 sf of entertainment, retail and restaurant space. Besides the state’s concerns, Mayor James Cassella of this city has said publicly that he wants more tax revenues from the commercial space surrounding the stadium.

And a key sticking point could the subject of a roof for the stadium. “A retractable roof could bring economic benefits for the state,” said George Zoffinger, CEO of the New Jersey Sports & Exposition Authority, a state agency, in a statement. Specifically, state officials cite the potential for bringing the Super Bowl to New Jersey, or staging such major events as national political conventions.

But both team owners, John Mara of the Giants and Woody Johnson of the Jets, say if they were forced to pay for a roof, which would cost an estimated $300 million, it would kill the deal entirely. “We are already north of $1 billion in costs for the stadium, and the numbers don’t support it,” Mara said in a statement. “It’s a bad investment.” Administration officials declined further comment and did not give a timetable for completion of the review of the deal.