Nassau County Seeks $2 Million From Coliseum Lessee

NASSAU COUNTY, NY — Nassau County is seeking $2 million in rent from the lessee of the Nassau Coliseum after it was announced last month that it would be shuttering the venue indefinitely.

On June 16, it was announced that the tenant of the Coliseum, Nassau Events Center, LLC (NEC), which is controlled by Onexim Sports and Entertainment Holdings USA, Inc., would be closing the venue due to the losses it suffered during the coronavirus shutdown. Onexim is looking for investors to take over the lease and pay of the $100 million balance. Onexim is owned by billionaire Mikhail Prokhorov.

But the county issued a Notice of Default to NEC, demanding $2 million in payments that are due. If the payment isn't made in 15 days, it would be considered a default under the lease agreement. The lease allows an additional 30-day period for NEC’s leasehold lender, Nassau Coliseum Funding 100, LLC, to step in to the tenant’s shoes and bring rent payments current before the county could terminate the lease.

“We cannot drag our feet on a strategy for the future of this hallmark Nassau County arena nor risk the unprecedented progress we’ve made to transform the Hub site,” said County Executive Laura Curran. “We did not take today’s action lightly, and believe it is the best way to bring all parties to the table. I am committed to swiftly reviewing any proposals to get a plan for the building and the redevelopment back on track for the benefit of all our residents – including our devoted Islanders fans – who were looking forward to a final season at the Barn.”

The Coliseum was set to be the temporary home of the Islanders this season while the team works on building its new arena at Belmont. The Islanders last played at the Coliseum March 7, and then the NHL suspended the season March 12 due to the coronavirus.

Shuttering the Coliseum not only affects the Islanders, but also leaves the LI Nets basketball team without a home arena. It also led to 1,419 people losing jobs.

"We are engaged in a productive conversation with all the stakeholders," Onexim said in a statement to Patch. "We have consistently initiated communications with the county and have been responsive to their communications. We are hopeful that we will soon be able to announce a resolution that will satisfy the needs of the community while taking into account the new realities that we are all facing in light of the pandemic."