It is
almost certain Nassau Coliseum will go dark in 2015, and that is only the
beginning of the unfortunate news for residents of the county. With Nassau’s
high unemployment rate, and growing debt Mr. Wang will seemingly get the last
laugh after years of failed bids to improve his coliseum. He has pulled off a
deal to move his belittled franchise from what is largely regarded as the worst
arena in hockey, to the largest of NY’s five boroughs.
Annually
the Islander’s contribute around 60 million dollars in revenues to the Nassau
County economy, a combination of ticket sales, vendor sales, transportation,
and money spent at retailers around the arena. The big hole in the county’s
pocket is magnified when you take into consideration the stimulus the
renovations to the coliseum would have provided to the area. Some local
politicians strongly believed with the increases in ticket sales, prices, and
interest in the team the 60 million dollars in revenue could easily increase
25%.
Mr.
Wang’s proposal to the county earlier in the year would have created $400
million dollars in municipal bonds, which the NY Times estimates would cost the
average resident about a $300 dollar increase in property taxes. The
short-sighted implications led many who voted on the proposal to ignore the
long term benefits the New Nassau Coliseum would have brought.
The
economic benefits of the project were understated, and now the county will deal
with the worst case scenario, the departure of their only sports franchise. For
starters Mr. Wang’s plan would have taken full advantage of record low interest
rates in the bond market; never before could such a project in the region be financed
so cheaply. It is estimated the new development would have created around
50,000 construction related jobs, which leads to increase income levels of
residents, which of course is taxed. With new jobs the region would see a
decrease in unemployment, which of course has its own benefits to the economy
like a growth in consumption. The county would see a rise in property values,
and the revenues of businesses to the surrounding area. All of the investment
and job creation to the county would have provided a much needed stimulus, in a
-time of budget shortfalls. It is no secret in economics that austerity
measures during recessions stifle growth. While voting no wasn’t a vote for
austerity, it was a vote against investment, which would have jumpstarted the
region through a countless number of economic ripple effects.
Ultimately
for Islander fans life will go on, and many are optimistic about the positive
effects the move could have with free agency. In my opinion the only loser in
the situation is Nassau County, and that is a real shame.
