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Jets arena set to soar solo

Real Estate Weekly, May 19, 2004 by Barbara Nelson

The proposed $1.4 million New York Sports and Convention Center will be built "green" and will go forward with or without the city hosting the 2012 Olympics or the Javits Center expansion, said a New York Jets official last week.

The Jets support and area part to the city's Far West Side plan, but each project is not dependant on the another, said Thad Sheely, Jets vice president of development, at a Real Estate Lenders Association breakfast at The Sky Club.

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"The New York Sports and Convention Center is stand alone in terms of its approvals, in terms of its development and also in terms of its financing," Sheely said. "We think our 200,000 s/f convention space can fit into the existing convention corridor or the expanding convention corridor. There's no physical connection or reason why one has to go with the other." This week, five cities remain in the competition to host the games. In July 2005, the final decision will be made by the Olympic Committee.

He said last week whether or not the city hosts the 2012 Olympics is not a factor in the decision to build. But in order to show the Olympic Committee that the city is serious about its bid, construction on the center must breakground by next summer.

The Jets lease at the Meadowlands expires in 2008, and the team would like to move into its home by September of 2009. The stadium will function as a football stadium 17 Sundays per year, with the 200,000 s/f convention area drawing 35 to 40 events per year, he said.

Financing still must be worked out for the $1.4 billion New York Sports and Convention Center, with the Jets will having to come up with $800 million and the city and state kicking in $300 million a piece, Sheely said.

The stadium itself is $800 million, the deck atop the rail yards has a price tag of $400 million, and the retractable roof over the stadium, to hold non-football events, is $200 million.

The Jets may utilize some creative financing to build the most expensive sports facility in the nation.

"It could be an air rights deal. It could be a lease," said Sheely. "More than likely it will be financed like a lot of other sports facilities, which is more of a project financing, based on revenue stream."

The Jets contractually receive $100 million annually from tickets sales, sports merchandise and other miscellaneous income. It could also increase revenue from other equity sources from concession operators or other equity partners in the proposed center, he said.

The team is also eligible for a $150 million loan from the NFL.

In designing the center, sustainability was a guiding principle, Sheely said.

Kohn Pedersen Fox Associates are designing the environmentally responsible center that will be include a museum, a community theater, several restaurants and more than 10,000 square feet of retail space along the avenues.

"They wanted it to be a real model for a sustainable building," said Sheely. "So we plan to have 38 wind turbines on top of the building, 100,000 s/f of photovoltaic cells, and we are talking about collecting rainwater on top of the roof for grey water needs."

"We would be able to generate all the power requirements for football, so it would be the greenest building of its type," he said.

But the Jets have had to dispel preconceived notions that urban areas aren't suitable for a sports stadium. To help downplay those concerns, studies were conducted in the cities of Baltimore, Pittsburg, Cleveland, Cincinnati and Seattle where new stadiums were recently built.

"We think you have to have an open mind and the right planning and architecture and design it could become an important part of any neighborhood," said Sheely. "The downtown areas were back to normal within one of hour after the game and none of the cities had the transit potential or the mass transit system that New York City has."

Business Services Industry

Jets arena set to soar solo

Real Estate Weekly, May 19, 2004 by Barbara Nelson

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