The Shire: Lighthouse Project Reduced to Hobbit Village
Nick Giglia | Jul 16, 2010 | Comments 13
Many Islanders fans are frustrated with the whole Lighthouse Project saga, and claim they only want to talk about hockey. In reality, the Islanders have never been just about hockey. They were formed because the NHL wanted to keep the WHA from putting a team in Nassau Coliseum, an arena built after severe compromises that was out of date about 5 years after it was finished, and designed with an initial capacity of a little over 12,000. Original plans called for a 20,000 seat arena with an underground Long Island Rail Road station, and the only indication of what could’ve been is that in the Coliseum Expo Hall, you can still see a hidden door that reads “Subway Entrance.” The Coliseum was a patronage mill for corrupt Nassau County politicians for decades, including the deal with SMG to manage the facility, which, despite being crippling, has kept the Islanders here long after they may have left.
Nassau County has been broke for a long time, and the Lighthouse Project came about because just building an arena would’ve been flushing money down the toilet. The development was meant to raise the money for a renovation of Nassau Coliseum, and most people responded strongly to it.
The Lighthouse Project was introduced at a seminal moment in Long Island’s history, and many people hoped it would signal a new way of thinking for an area that began the whole idea of suburbia but, like its only professional sports team, had fallen on hard times.
Monday, Kate Murray threw on the brakes and spit in all of our faces. The Town of Hempstead unveiled its “vision” for the Coliseum site, a 61% reduction to the original vision. What was promised as the beacon of hope for Long Island became a Hobbit village, and the Islanders’ future is in flux as a result.
Is the Lighthouse Dead?
Let’s get one thing out of the way: reports of the Lighthouse Project’s death on Monday have been greatly exaggerated, because in all honesty the vision as first proposed has been dead since last October. It was clear that the Town of Hempstead, which controls zoning over the Nassau County-owned land for the Lighthouse Project, which was approved 16-2 by the Nassau legislature in 2006, had serious reservations about the size and scope, as evidenced by repeated comments about “preserving the suburban way of life“.
Before going dark, even Charles Wang acknowledged the likelihood of a scale-down, repeatedly begging the Town of Hempstead to “just tell me what I can build.”
We all expected the Town to reduce the project.
None of us expected this.
The Gutting
Make no mistake about it: What Kate Murray unveiled is a brainless, gutless, visionless insult to Charles Wang and all of us. The project claims to be mixed-use, yet it doesn’t follow even the most basic economic principles. The Town is also completely misrepresenting the actual size, including the parking lots in their claims of new construction. Traffic plans included some elements the Town itself criticized at the September re-zoning hearings, which would be funny if it wasn’t so sad. Then again, one of the Hempstead council members also once objected to a traffic light because “people could just not stop at it.”
Kate Murray, in her introductory press conference, made a statement so shocking and so galling that I have to question her fitness to hold elected office. Murray admitted that she never considered whether the plan would be economically viable for any developer to actually do it. I understand that Kate Murray has to think about what she believes is the best project for the Town, but to avoid basic fact is both stupid and dangerously naive. If the project is not economically viable for a developer to build it, the project will never exist. If the project doesn’t exist, it will by definition do nothing to benefit the community. For Kate Murray to stand there and say she wasted $200,000 of my and your tax dollars on a plan when she has no clue whether or not its viable is naive at best and negligent at worst.
I can’t believe this needs to be said again. People are in business to make money. Since it’s been proven an arena cannot be profitable if built as a stand-alone, and the government will not provide any funds (usual amount is about 65-75%, according to sports economist Andrew Zimbalist), developing the land to raise money for a new arena is the only solution. In addition, the Lighthouse was designed as an integrated whole, so changing pieces could throw the whole thing off kilter. The retail was meant to support the 2300 residential units planned. Cutting the residential units down to only 500 without corresponding cuts to the retail will do MORE to exacerbate the problem of vacancies in commercial space that so many people suddenly started caring about when the Lighthouse Project was proposed.
Reaction from residents has been largely negative, and it seems that Charles Wang has gotten the point. Friends who work around Nassau Coliseum say that the Lighthouse billboards and murals are being taken down.
Charles Wang should have been better with explaining exactly why this project existed at the size and scale it did, but people still supported it in record numbers (though, sadly, not at the polls). It’s a shame to think it could all end like this.
Leaving Long Island?
Brooklyn and Queens are constantly mentioned as possible relocation places for the Islanders, since Brooklyn is building a new arena and certain interests in Queens are interested in building a new home for the Islanders next to Citi Field at Willets Point. It’s a possibility, but there still has not been a confirmed solid offer from someone in a position of actually making it happen. There have been lots of rumors and lots of posturing from politicians and community leaders who have no power in the situation (Brooklyn Borough President, Queens Chamber of Commerce President), but despite a lot of speculating there hasn’t been a confirmation.
Some frustrated Islanders fans are also pushing Suffolk County as a potential relocation option. Please stop doing that; it’s completely not viable.
Let’s also remember one other thing: Charles Wang’s actions suggest he genuinely doesn’t want to move.** He has had many opportunities to make public overtures to Brooklyn and Queens, but he hasn’t. The fact that nobody with power has come out to woo the Islanders could also suggest that these options aren’t the slam dunks that frustrated hockey fans want them to be.
Personally, even though it makes more sense to stay in the area, I have to be concerned the Islanders will leave until there is a solid deal to prevent that. Remember, nobody thought the Brooklyn Dodgers would ever move….until they did.
Moving Forward
Developers and economists have roundly panned Hempstead’s new proposal, even though Kate Murray continues to defend it and insist there will be no negotiation.
This ridiculous “plan” has also fractured the Republican Party, pitting County Executive Ed Mangano against Murray and the Town of Hempstead. Mangano released a joint statement with the Lighthouse Development Group panning the project as not viable, either for the owner of the site (Nassau County) or the group still bound by a Designated Developer Agreement (The Lighthouse). Kate Murray has made it clear that she believes there should be no negotiation from here, so the County Executive is ostensibly going in a different direction…
As sources stated to Islanders Point Blank (and as I heard in Ed Mangano’s office last week), Nassau County is attempting to pivot toward a casino at the Coliseum site in partnership with the recently-recognized Shinnecock Nation. As was the case with the new Consol Energy Center in Pittsburgh (which is already having trouble paying its bills), the Shinnecock Nation would be expected to provide the money to replace Nassau Coliseum in exchange for receiving development rights to a casino and entertainment complex on the property. Some believe this is an attractive option because the land would be granted to the Shinnecock Nation as a federal “land-in trust.” This would be approved by the state and not subject to the zoning regulations of the Town of Hempstead, nor would it be susceptible to local lawsuits.
However, let’s not get ready for the roulette tables just yet. A casino is expected to meet fierce opposition, and the Shinnecocks, who waited 30 years to get this close to federal recognition, have repeatedly said they won’t build a casino in a place where they aren’t wanted. In addition, a group connected to casino interests in Connecticut (home to both Foxwoods and Mohegan Sun) has filed suit challenging the decision to recognize the Shinnecock tribe, which will delay any planned casino for months, or even years.
Speaking of plans, neither Mangano nor the Shinnecocks actually have a casino plan. The Shinnecocks have a development partner but no solid plans, and Ed Mangano’s office seems to only have some rough revenue projections based on loose requirements. It’s not like this plan could go through tomorrow, or possibly even within the year.
The political angle is important, too. The NY State Assembly is controlled by Democrat Sheldon Silver of Manhattan, and two potential “racinos” are proposed at the Aqueduct and Belmont race. Would Silver and the assembly approve a project at the Coliseum that denied the city that revenue? It’s not clear they would.
We also have to consider that this could be a ploy. Kate Murray may have said that the proposed disgrace new zone is not negotiable, but she could quickly change her tune when she sees what could alternatively be done with the site. It’s likely not a ploy, but the thought of a casino and complete removal of her own power in this situation could bring Kate Murray back to the table.
We’ve reached a point where we all want a resolution, but this news has seemingly put us farther away from that. Expect this to get a lot uglier before it gets better.
One thing’s for sure: the chances that we will get a visionary project are now slim to none. In the end, we may be left with nothing more than the cheap cash grab of a casino….or a vacant parking lot and the distant memory of the New York Islanders and what could’ve been.
As her annoying and self-serving TV commercials say: Thanks, Kate Murray.
Filed Under: Featured • New York Islanders • NHL
Look at the Town of Hempstead. Not much there in the way of a viable “business” operation. I can’t think of a single area within the borders of the town that one could call a “business district.”
In comparison, look at Huntington Township. Check out Brookhaven. Look at North Hempstead. Just off the top of my head — three townships with strong, viable business districts.
Someone please correct me if I am wrong. I am not as intimate with Hempstead — other then as I said earlier in the week — every time I drive into and around the town, I feel like I need a bath with heavy brown soap. People keep their HOMES very nicely in most of Hempstead. I am talking about the condition of the public spaces — the roads, the town streets — it looks dirty, desolate — no foot traffic and are largely “dead.” Exceptions do exist. Parts of Garden City are very nice. But I would not call that a business district. Those are retail stores. When I say business district — Im referring to Lake Success and the Northern Boulevard Corridor in North Hempstead (as an example). You know….corporations…..
My point in raising this comparison…
How can there be any expectation of a narrow, dogmatic, “small” in stature empty suit like Kate Murray, or any of her Town Clowns to have any understanding of your key bottom line business point? A business making money is a foreign concept to people who don’t bring business into its community.
The Hooples of Hempstead are content to keep things as they are or go backwards — as one quote in Newsday pointed out — Murray’s plan takes us backwards. That is fact based.
Economic growth is a foreign concept to people like Murray, and certainly to the small town, bedroom community thinking that she, and Joe Mondello share. They don’t want to see large business come here. There would be no point to it. Having business like that come to their town, using their thought process only brings commuters, and congestion. It would require “work” on their part and they don’t want to work. Every resident I have talked to has commented that Kate Murray and the entire board does not lift a finger.
NVMC has long been a patronage operation, and a fund skimming operation. As long as Mondello and Murray are in power — it will continue to be just that. The sad part about this — If Charles Wang had given the Nassau County GOP $25,000 — the ground breaking would have been 2 years ago. Murray and Mondello operate solely on the pay-to-play principal.
My own view is for Charles to publicly reach out to other municipalities — such as Queens. He has nothing to lose. Further — he owes NOTHING to Hempstead, and NOTHING to Mangano.
If Mangano is so determined to keep the Islanders in Nassau County, he needs to go see his Party leader, Joe Mondello, and Kate Murray. HE is supposed to be the titular head of the Nassau County Republican Party. Not Kate Murray. And if he believes — as he has said — that keeping the Islanders in Nassau is critical to the economic viability of the County, and Long Island, then he best find a way to put another Ring Ding in Kate Murray pie hole, and hand some cash over to Mondello.
Let Mangano spin his wheels with big momma and the mafia boss while Charles explores other options. The heat needs to be dialed up on the Hooples to the point where their makeup melts!
It’s all about VOTES for the GOP in Nassau County. Kate Murray figures if she pisses off the people who don’t want the LH built, she’ll lose their votes. The simply won’t go out and vote for her on Election Day (they’d rather DIE than vote the other way, you know, for the “Socialists”). But, for the Republicans and Murray supporters who are in favor of the LH, very few of them will change their vote or hold back their vote over this. They’ll just say, “Well, I liked the idea but it’s dead and done. I’ll just go on voting like I always do.” And the cycle will go on and on and on and on and on. Soon we’ll have to travel to Old Bethpage Village Restoration to see what a futuristic society looks like.
As a former political operative, I can say without hesitation — the following statement is the mindset for most political beings:
You cant govern if you dont win.
Which then leads to how do you win?
The really bad thing about politics, and the reason why youth get shafted is because the people you are talking about Brenna — you know — the people who actually vote. They are largely seniors on a fixed income. They don’t want to pay taxes. They dont want to pay for services and things they don’t use.
Everybody gets all excited about a Presidential election. But when it comes to real day-to-day governing, and the decisions that are key to our lives, and quality of life, it is the “off year” elections, the ones for Town government that matter most.
So the seniors that are voting for her — all they care about is building a good Senior Center because that is what they will use. They don’t care about the school and if the budget for the school passes —and more then likely, they want it to fail. They really could care less about the Islanders, and the business it may keep here, or bring in because of the scope of the development. They just see it as “something else I have to pay for that I will never use,” and “great more people, and more traffic.”
But that “narrow” thought process is what reduces their property value. Having an good school is good enough for them. But they don’t see that having a great school raises their property value. The “net” gain is something they dont understand.
Charles Wang could have, and should have had a high level, door-to-door effort on behalf of the candidates in support of the Lighthouse. With his resources, and the ability to get every Islander fan involved to knock on doors, it should have been a landslide with a huge turn-out in support of McElroy.
He may have felt it was a “conflict” of interest. But if we are going to have any chance at change, we need to get elected. If he was going to have any chance of this project working, he needed to either fund Murray/Modello, or build the infrastructure to beat them with a PAC or other political fundraising mechanism to put the people on the street.
I know…democrats like me can indeed think the same way as republicans like Murray and Mondello when it comes to “what do I need to do to win?”
Changing the minds of Murray supporters is not the goal. Nobody is going to change their minds. They will vote in their usual dogmatic way – even if they are fans of the Islanders, or believe in a good smart plan like the Lighthouse.
In 2008 I went to campaign for the ‘socialist’ as you called it :) I drove to Pennsylvania and knocked on doors. As a former operative, I was asked to give a speech on behalf of the socialist in Virginia. I was inspired to do these things. And once I was there, the operation that awaiting me, and all of the others who drove in from New York and New Jersey was impressive.
I raise this not to make it about one party or another. I raise it because that is what Charles Wang should have done! That inspiration should have been so easy for Wang – even with a bad team on the ice, he could have asked any number of Mike Bossy, Brian Trottier, Bobby Nystrom, Billy Smith, Clark Gillies to come and help on the level I am talking about. He should have gotten players like Bailey and Okposo out on the streets with the fans. Knocking on doors, working the campaign.
Charles Wang comes across to me as a “nice guy.” Doesn’t really want to anger anyone. But nice guys who expect reason, and intelligent negotiation and debate from a thick, dogmatic, narrow person like Murray and the Hooples is going to lose every time. The “nice guy” thing works only when the person on the other side of the table is operating in “good faith.”
HyeDray, Ive been thinking about ways to be proactive and maybe build a LHP activist group to fight Murray and Mondello. From your back ground you might be able to help come up with some ideas. email me @ rjcuillo@gmail.com if you care to work with myself and Metelchick to possibly do something. Murray has too much power and its just wrong that she should be able to ruin this wonderful endeavor to help give the LI economy a boost. Its a disgrace
RobC—I sent you an email with all of my info.
HyeDray – we have much to discuss. Can you send me an email – lettherebelighthouse@gmail.com
Thanks
Nick – I sent you an email as well.
Sometimes when I’m angry my eloquence suffers. You said everything beautifully, but you really captured my exact frustration with the following statement:
“Changing the minds of Murray supporters is not the goal. Nobody is going to change their minds. They will vote in their usual dogmatic way – even if they are fans of the Islanders, or believe in a good smart plan like the Lighthouse.”
I honestly believe that at this point humans are genetically programmed to feel a certain way politically speaking. Almost impossible to change someone’s mind, so all the screaming and name-calling and threats is a waste of time. When I get lectured, I not only want to vote my way, but I kind of want to vote ten thousand times my way. A little bratty, but true. Mind-changing only happens when a significant experience, often negative, happens to the individual or someone that the individual cares about.
Thanks, HyeDray, for really taking the time to make sense of what makes no sense and all. And thank you for all the hard work you did for that election. Your borscht is in the mail ;o)
Very good blog depicting an unfortunate situation.
Is there anyway Wang can fund the project on his own?
It was a lot different in Chicago as the Wirtz family owned the old Stadium and the land surrounding the building.
When the UC was built…for around $240 mill at the time I think….
Wirtz had one partner, Jerry Reinsdorf…no bond offering or city/state money needed.
Wang has bizillions can’t he find a way to build the new arena on his own without state/municiple help?
Is it a problem of acquiring the necessary land?
Hey Al – you’re asking the right questions here, and the short answer is that Charles Wang is planning to privately finance the new arena. However, with materials and labor costs being what they are in this area, a renovation is slated to cost $320 million, with a brand-new arena costing almost $500 million. The Coliseum is in a region with Madison Square Garden and the Prudential Center in Newark, so it can’t count on being the best option for traveling acts like the United Center is in the big city.
This post I made on Let There Be Light(house) last year explains it pretty well:
http://www.lettherebelighthouse.com/2009/10/back-to-basics-why-is-there-lighthouse.html
Short answer, Wang can privately finance the arena with either his own funds or through financing, and while it would almost certainly make the Islanders profitable, there is a big difference between making money and making enough money to cover your investment. Reinsdorf and Wirtz clearly could, but based on the numbers I’m seeing I don’t know if it’s true here.
The goal of the Lighthouse Project was to develop the (barren) land around Nassau Coliseum to raise the money to privately finance the arena, and that’s why this scale-down is so insulting.
Thanks….big difference is Wirtz owned almost all the land surounding the Old Stadium…that is why the UC was built across the street.
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