Nassau legislative committees approve $4M in rent relief for Coliseum

Two Nassau legislative committees Thursday approved changes to the county's agreement with Nassau Coliseum's new leaseholder, including $4 million in annual rent relief until six months after the state fully lifts restrictions on live arena events.

Lawmakers in the Finance and the Rules committees advanced two amendments to the Coliseum lease proposed by the county executive's office for final approval by the full legislature later this month.

Deputy County Executive for Economic Development Evlyn Tsimis said the administration was asking the legislature to provide greater certainty to the Coliseum leaseholder by granting rent relief because the arena and the development plan for the surrounding 72-acres of county land have been negatively impacted by the state's ban on live audiences during the pandemic.

The Islanders are scheduled to play at the Coliseum on Saturday without an audience.

"These steps avoided foreclosure and lengthy and costly litigation," Tsimis told legislators in testimony.

The Uniondale arena, owned by Nassau County, has been shuttered since March 2020, just as the pandemic hit the metropolitan region. The county collects more than $4 million in annual rent under the current lease.

The new leaseholder, Nassau Live Center LLC, headed by Nick Mastroianni II, has not paid rent since taking over in August after Russian billionaire Mikhail Prokhorov, the former owner of the Brooklyn Nets, had shuttered the building and walked away from $100 million in debt.

Mastroianni was legally entitled to take control of the Coliseum lease, and by default, is a partner with RXR Realty in development of the area, because he coordinated the loan for the Coliseum’s 2015 renovation.

One of the two lease amendments being considered includes protection for the county against potential legal action from investors in the federal EB-5 program, which allows foreign investors to loan up to $500,000 to help fund U.S. development projects in exchange for visas. Mastroianni's Jupiter, Florida-based company, U.S. Immigration Fund, raised $100 million from 200 Chinese investors through the EB-5 program. USIF is not affiliated with the government.

Legis. Arnold Drucker (D-Plainview), during the Finance committee meeting, questioned whether Mastroianni had applied for federal pandemic assistance. Tsimis said she was not sure and the administration would find out.

"The PPP also covers rent," Drucker said. "So if they are entitled to or are getting any relief in that regard then we should be getting paid. Right?"

Tsimis told lawmakers on Thursday that the administration believed the agreement with Mastroianni was "a very good deal for the county" because he continues to pay the utilities on the building even during the loss of revenue during the pandemic.

"Our position is that they have considerable expenses just to keep the building running," Tsimis said.

By Candice Ferrette

candice.ferrette@newsday.comcandiceferrette

Candice Ferrette covers Nassau County government and politics on Long Island. She has been a reporter at Newsday since 2011.