Wang in 2006 spent twenty two million dollars to renovate the hotel built in 1982. He purchased it in 2005 for ninety million dollars, and partnered with Scott Rechler later in it's ownership as part of the Lighthouse Project. In 2010 Wang bought back Rechler's share after doing more renovating which was announced on the Islanders website.
In 2006 the Town of Hempstead's Industrial Development Agency approved a 10-year property tax abatement program for the hotel. If foreclosure is approved and the hotel is sold, the abatement will not transfer, said Fred Parola, executive director of the Hempstead IDA.
There was a 2011 lawsuit against Charles Wang/parties over some broker fees that went back as far as 2008.
NYIFC Comments:
I remembered the article on this last year almost to the date (1/26/13) the time line for the renovations included 2007-08.
Yes I know, that's sixty four million for Vanek (8years/8 million) where he's going to want forty million in the first three years front-loaded) so he losses no money in a possible future buyout, another 25-30m for Andrew MacDonald. (also front-loaded)
And come July there will be five other teams (some corporate) more than happy to give it to both of them less the eighth year for Vanek.
I guess those eight dollar tickets just don't pay the bills like they used to along with decades of Wang being one of the few owners not to receive a taxpayer funded arena or exemption for owning the Islanders.
At least he got a tax abatement on the hotel.
If Wang losses the hotel (via bankruptcy/default/foreclosure) or if it's sold off he likely losses the walk of champions connecting abatement to the Coliseum or the area between where Bruce Ratner plans to renovate to another party which could explain why a plan was not filed with the TOH by Ratner to date.
Ratner's final plans are detailed. I added in who controls what to scale.
Wang losing the hotel means, he also losses revenue from NHL/other teams visiting, plus whatever savings to house his players there, to say nothing of his investment which could impact his financial ability to run the Islanders.
It's a story worth following because if Ratner follows through on his plans which he said was on schedule this week, the Coliseum is closed, and begins renovations in Sept 2015, or as soon as Smg's lease expires.
Someone else in the future may own the land between where Ratner's planning to renovate.
With the Coliseum closed for renovations there is no NHL/AHL business to be conducted there. There is no one booking the hotel for events.
This also gives Wang less reason to house an AHL team there in the future or bring the Islanders back to a renovated facility, with those promises made by Bruce Ratner as part of his verbal agreement which he can walk away from at any time.
Ok, Wang contested, and there will be a hearing. We'll see.