Curran Announces Proposed Amendments to Coliseum Lease with New Tenant Recognizing Ongoing Impact of Pandemic
Nassau County Executive Laura Curran has announced that, in recognition of the ongoing impacts of the COVID-19 pandemic and continued uncertainty presented to Coliseum operations and finances, the County is filing amendments to modify the Lease with new tenant Nassau Live Center, LLC as well as to adjust the timelines outlined in the 2019 Development Plan Agreement for the acreage known as the “Nassau HUB.” The proposed amendments are expected to be considered by the Nassau County Legislature in December.
“Our agreement with Nassau Live and RXR Realty recognizes the impact of COVID on Coliseum operations and the surrounding development. Those impacts include lost time and delay. The new tenant and development team need additional time to evaluate post-COVID operations at the Coliseum and develop a sustainable Coliseum plan,” said Nassau County Executive Laura Curran. “This extension coupled with the suspension of rent payments will give Nassau and the HUB team the opportunity to plan for the future, post COVID, when the entertainment industry restarts. Once again, as part of our agreement, we will be ensuring that the New York Islanders and the Long Island Nets will play at The Barn in 2021, if the State and League rules permit play. These actions further solidify my commitment to the Coliseum’s success and our vision for a reimagined HUB.”
The Lease amendment modifies certain obligations of the tenant, including:
affords a “COVID-19 Relief Period”, during which there is an abatement of the “minimum rent” payment. The relief period ends 6 months from when “NYS Pause” occupancy restrictions are lifted on the Coliseum, not to extend beyond December 31, 2022;
continues tenant responsibility for utilities, security and other maintenance of the arena;
ensures that the Coliseum can host the New York Islanders and Long Island Nets for play in 2021, if and when the venue is permitted to open and operate consistent with applicable New York State and League rules;
provides additional time for the tenant to submit to the County for review and approval its plan for sustained Coliseum operations that addresses any on-going COVID-related implications on building operations and presents a vision for future operations consistent with HUB Site development.
The related proposed amendment to the Development Plan Agreement:
replaces Nassau Events Center, LLC (“NEC”) as a development partner and substitutes Nassau Live or other designee of the tenant;
extends certain Project Action timelines of the Development Plan Agreement for the “COVID-19 Relief Period” affording the parties more time to negotiate and secure approval of documents required to develop the HUB Site.
In order to provide the parties time to file with Amendments and obtain approval by the Nassau County Legislature, the County extended the standstill period through December 31, 2020 by letter dated as of November 16, 2020. During this period the County has agreed not to issue any notices of default for non-payment of rent by the Tenant.