NJ to spend $7M in pandemic relief on WWE event
ARP funds must be allocated this year [2024]
By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey
..... Another $7 million will be sued by the new Jersey Sports and exposition Authority for what its officials are billing as a "marquee entertainment" at MetLife Stadium.
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A resolution approved by the agency on Thursday [10/03/2024] allocated $7,125,000 to be used to assist MetLife with securing and hosting the WEE Summer Slam in East Rutherford next summer. [2025]
.....According to the resolution, the money is part of the American Rescue Plan funding the state received from the federal government during the pandemic. that money can be sued to "respond to the negative economic impacts of the public health emergency by providing aid to impacted industries such as tourism, travel and hospitality."
..... The authority expects the event to "generate over $80 million in total economic impact for the region, according to the resolution.
..... Brian Aberback, a spokesperson for the agency, said it is in the process of "finalizing its funding application" to the state's Department of Community Affairs, which is the department that handles such grants and they expect the "funds will be disbursed following the execution of an MOU [memorandum of understanding] with the NJDCA regarding the sue of the funds."
..... This isn't the first time the agency has used pandemic relief money for a so-called marquee event. it sent $3.5 million in pandemic relief funds to Prudential Center in Newark for UFC 288 last year. [2023] that money was "for sue in support of sporting events, attractions and promotions."
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The money spent by the NESEA is just a small part of the larger fund sent to New Jersey form the federal government. the state was given $6.24 billion in federal pandemic relief funding in May 2021.
..... The funds must be allocated by the end of this year [2024] and spent by the end of 2026 - and there is still money to be spent.
..... At the beginning of the summer, [2024] the state Economic Development Authority deemed the controversial satellite location for the Pompidou French arts museum project n Jersey City not viable.
..... The Jersey City Redevelopment Agency had been allocated $10 million in American Rescue Plan funds for the museum during the Joint Budget Oversight Committee, or JBCC, meeting on May 5,2023.
..... The agenda time at the time said the funding was "needed to support the constructionist and opening of an exhibition space in Jersey City" and that it would "provide cultural and educational programming for Jersey City residents."
..... "Those funds currently reside in a central account with other obligated funds and monies returned due to underspending," according to Danielle Currie, a spokesperson for Treasury.
..... It's not the same money being spent by the NJSEA, which is coming form a separate, older allocation of ARP dollars, she said.
..... The governor's office said in July [2024] that the money will be "re-purposed to the broader ARP pot" and that the money can't be sued for state operation costs. It's up to the governor or JBCC to reallocate that money, and it did not come up during the September 25 [2024] JBOC meeting.
.....State Senator Paul
Sarlo, who chairs the upper chamber's budget Committee and is also chairman of JBOC, said recently he had asked the governor's office for a full accounting of how much money was left.
..... "We've asked the governor for a redistribution of what's left. We've made the request," he said before acknowledged there is still time to allocate any reaming funds.
..... Katie Sobko covers the New Jersey Statehouse. email: sobko@northjersey.com.