NEWARK, N.J., Jan. 25 (UPI) -- The New Jersey Devils will play hockey in a new Newark arena starting in 2007 after posting a $100 million letter of credit with the city.
The move capped a tumultuous negotiation process, near the breaking point at times, and signaled the go-ahead to begin construction on the Devils' downtown Newark arena.
The Newark Star-Ledger reports the 18,000-seat center will cost at least $310 million to build.
City funds will cover $210 million, including $25 million already used to clear the 24-acre tract of land for construction said Newark Mayor Sharpe James.
The Devils had until Tuesday to deliver the $100 million guarantee, which they got through CIT Group Inc., a Livingston-based finance company.
Negotiations stalled because of contract language the Devils felt uncomfortable with and continued until just hours before a news conference Tuesday.
The Newark Housing Authority is the agency in charge of the project and has secured the letter of credit.
The authority is being investigated by the federal government for financial mismanagement and may be taken over by the U.S. Department of Housing and Urban Development.
