Jones Lang LaSalle
A ballpark deal, but with a big 'if'
Wednesday, May 17, 2006
BY MATTHEW FUTTERMAN
Star-Ledger Staff
After months of fighting, the developers of the Xanadu complex in the Meadowlands and the owner of a minor-league baseball team have reached a deal to build a ballpark.
However, according to three executives involved with the negotiations, the deal between the developers, Mills Corp. and Mack-Cali Realty, and minor-league baseball impresario Steve Kalafer requires Gov. Jon Corzine to approve $13 million in public funding for the ballpark, and Corzine has not yet decided whether the ballpark is a good investment.
"We've been working very hard on this and we are making progress," said George Zoffinger, chief executive of the New Jersey Sports and Exposition Authority, the state agency that operates the Meadowlands. "It's an important piece of the Xanadu plan, and we want to see the project happen."
Under the terms of a tentative agreement for a $20 million ballpark, Mills/Mack-Cali would contribute $6 million, Kalafer would pay $1 million and the state would contribute a $3 million cash loan and $10 million in bonds. Kalafer's annual rent payments of $1.15 million would repay the state's debt.
Bob Sommer, a spokesman for Mills/Mack-Cali, said the developers have been "working hard ... to complete a deal for the ballpark, and we are very close."
Now, Corzine has to decide whether the ballpark is viable, especially since independent minor league teams in nearby Montclair and Newark often play in half- empty stadiums. Brendan Gilfillan, a spokesman for Corzine, said the governor remains committed to making minor league baseball a part of Xanadu, but he stopped short of committing funding to the project.
Kalafer did not return phone calls seeking comment.
After Kalafer signed on as a partner with Mills/Mack-Cali in 2002, helping them win the rights to build the $1.3 billion Xanadu complex, he became frustrated as the developers showed little interest in following through on their commitment to build the ballpark for the proposed Bergen Cliff Hawks of the independent Atlantic League of Professional Baseball.
The two sides bickered for months, then Kalafer sued Mills/ Mack-Cali for breaching a contract. The developers countered with a threat to bring a different minor league team to the Meadowlands.
The crux of the dispute was who would pay for the ballpark, with Kalafer trying to hold Mills/ Mack-Cali to an earlier pledge to build the stadium and the developers claiming the two sides had never formalized a deal. With pressure mounting from local politicians, the sports authority stepped in to try to mediate a deal.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
A ballpark deal, but with a big 'if'
Wednesday, May 17, 2006
BY MATTHEW FUTTERMAN
Star-Ledger Staff
After months of fighting, the developers of the Xanadu complex in the Meadowlands and the owner of a minor-league baseball team have reached a deal to build a ballpark.
However, according to three executives involved with the negotiations, the deal between the developers, Mills Corp. and Mack-Cali Realty, and minor-league baseball impresario Steve Kalafer requires Gov. Jon Corzine to approve $13 million in public funding for the ballpark, and Corzine has not yet decided whether the ballpark is a good investment.
"We've been working very hard on this and we are making progress," said George Zoffinger, chief executive of the New Jersey Sports and Exposition Authority, the state agency that operates the Meadowlands. "It's an important piece of the Xanadu plan, and we want to see the project happen."
Under the terms of a tentative agreement for a $20 million ballpark, Mills/Mack-Cali would contribute $6 million, Kalafer would pay $1 million and the state would contribute a $3 million cash loan and $10 million in bonds. Kalafer's annual rent payments of $1.15 million would repay the state's debt.
Bob Sommer, a spokesman for Mills/Mack-Cali, said the developers have been "working hard ... to complete a deal for the ballpark, and we are very close."
Now, Corzine has to decide whether the ballpark is viable, especially since independent minor league teams in nearby Montclair and Newark often play in half- empty stadiums. Brendan Gilfillan, a spokesman for Corzine, said the governor remains committed to making minor league baseball a part of Xanadu, but he stopped short of committing funding to the project.
Kalafer did not return phone calls seeking comment.
After Kalafer signed on as a partner with Mills/Mack-Cali in 2002, helping them win the rights to build the $1.3 billion Xanadu complex, he became frustrated as the developers showed little interest in following through on their commitment to build the ballpark for the proposed Bergen Cliff Hawks of the independent Atlantic League of Professional Baseball.
The two sides bickered for months, then Kalafer sued Mills/ Mack-Cali for breaching a contract. The developers countered with a threat to bring a different minor league team to the Meadowlands.
The crux of the dispute was who would pay for the ballpark, with Kalafer trying to hold Mills/ Mack-Cali to an earlier pledge to build the stadium and the developers claiming the two sides had never formalized a deal. With pressure mounting from local politicians, the sports authority stepped in to try to mediate a deal.
© 2006 The Star Ledger
© 2006 NJ.com All Rights Reserved.
posted by Jones Lang LaSalle NJ News Blog at 3:05 PM
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