Wang bets on a winner with Lighthouse

Real Estate Weekly, June 18, 2008 by John Majeski

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The New York Islanders this past season ranked last in attendance figures out of all 30 National Hockey League teams. This marks the third year in a row that the Long Island franchise has finished in the bottom three slots.

But team owner Charles Wang is hoping a revitalized arena will fix such woes. Wang, of course, has partnered with' RexCorp Realty to develop the long-discussed Lighthouse at Long Island, a 150-acre plan proposed for the Nassau Veterans Memorial Coliseum site. The main component will be the new arena, but it is to be surrounded by residential, lifestyle, retail and entertainment offerings, a conference and exhibition area, a minor-league baseball stadium and a 5-star hotel.

Wang's plan recently inched forward with the completion of two public scoping hearings, part of the state environmental review protocol. The final draft scope is expected within a couple of weeks.

The project's figures are large: 5.5 million s/f of new mixed-use development, an expected 16,000 construction jobs generated and the addition of $60 million of annual tax revenue. The project will cost an estimated $2 billion.

Built in 1972, the Coliseum, also home to Wang's New York Dragons, is the second oldest arena in the NHL. The development company has said fans don't like coming to the Coliseum because of its lack of amenities and outdated infrastructure. They said it's not a question of the region's fan base being able to support the team.

"There's an overwhelming complaint that the building is terrible," said Lighthouse Development spokeswoman Katrina Doell. "It's time for a change."

Among the list of issues on the developer's Web site: tight concourse, lack of restrooms and uninteresting food choices.

The improvement plan is described as a "drastic makeover" for the arena, including new seating, restaurants, suites and club seating.

The residential component of Lighthouse at Long Island features 2,300 units. The hotel room is slated for 300 rooms, while the convention center will boast 250,000 s/f. Some 500,000 s/f will be dedicated to retail and restaurants while a plaza, dubbed Celebration Plaza, will rival Bryant Park in size.

While the economy continues to sag and construction materials costs rise, development officials are not worried, Doell said. At least not now.

"I think it's probably too early at this point," she said. "Everything kind of cycles. I think it will work out all right."