Maragos: Nassau lawmakers must approve ownership change of Coliseum redevelopment company

Nassau Comptroller George Maragos took to Twitter recently to spread his view that the county legislature must approve a change in ownership of the firm handling Nassau Coliseum's redevelopment.

In an interview Wednesday, Maragos said he's sticking with that position -- although it counters that of County Executive Edward Mangano, who contends that transfer of majority ownership to Brooklyn Nets owner Mikhail Prokhorov needs no approval.

"The transfer that has been reported is a change in control," said Maragos, noting that Prokhorov last month assumed 85 percent ownership of Nassau Events Center, the entity created by Brooklyn developer Bruce Ratner to handle redevelopment and run the arena.

Because Prokhorov now has "controlling interest in NEC, it has to have Nassau approval," Maragos said. "That's how the leasing agreement reads."

The assignment and subletting section of the 124-page lease states that a loss of control of the company would be "deemed an assignment of this lease" -- which would make such a change, as in all county-owned land dealings, subject to legislative review.

As comptroller, Maragos, a Republican, acknowledged he has no authority to require lawmakers to act. However, he said he's reached out to Norma Gonsalves (R-East Meadow), the legislature's presiding officer, who could not be reached for comment Wednesday.

Brian Nevin, a spokesman for Mangano, also a Republican, challenged Maragos' view. "The comptroller is mistaken in his understanding of the lease," Nevin said Wednesday.

Legal advisers to Mangano contend lawmakers agreed to allow a change in controlling ownership in 2013, when they voted unanimously to approve the lease.

The administration says the lease permits the transfer because NEC -- even under new majority ownership by Prokhorov's Onexim Sports and Entertainment, which is based in Moscow -- continues as the tenant. The administration also cites the fact that Forest City Enterprises -- and Bruce Ratner, executive chairman of Forest City Ratner Cos. in Brooklyn -- will continue to manage day-to-day business during the renovation, and for five years afterward.

Still, lawmakers should be clamoring to delve into the deal.

In 1989, in his dissection of the scandal surrounding county land in Mitchel Field -- which was leased to political insiders at below-market rates -- then-Nassau District Attorney Denis Dillon urged that lawmakers review all leases. He also said such leases should provide the county with the right of first refusal or consent in any reassignment. "Such provisions eliminate the potential for speculation on the increased value of publicly-owned property by private parties," Dillon wrote.

Maragos said he believed that legislative review would not stop, or stall the Coliseum redevelopment. "It means too much for the county," he said.

However, the project "needs the public behind it," Maragos said, and legislative review is important, "because we don't want anybody to think this is all happening behind some closed doors."