Red Bulls Settle Tax Issue with Town of Harrison



The New York Red Bull organization and the town of Harrison, New Jersey have come to an agreement to settle a long-standing dispute over taxes on Red Bull Arena.

According to The Observer Online, the dispute has resulted in nearly two years of negotiations and would have gone to the State Supreme Court had the agreement not been made. Current Mayor of Harrison, James Fife, and the Hudson County Improvement Authority (HCIA) have agreed to the following terms with the New York Red Bulls:

  1. Red Bull will transfer to the HCIA ownership of the stadium and the 12.34 acres of land on which the the stadium sits. (In 2006, the HCIA sold $40 million in bonds for the acquisition, clearing and remediation of the stadium site within the town-designated waterfront redevelopment area.)
  2. Red Bull will pay an annual rental of $1.3 million to the HCIA, with the rental to be “escalated annually” based on a “12-month average of the Consumer Price Index for all urban consumers during the preceding year.”
  3. Red Bull will continue to make the annual lease payments through 2038 and those payments “may be extended at Red Bull’s option for four additional 5-year terms” through 2058. Ownership will revert to the town “at the end of Red Bull’s lease term.”

The New York Red Bulls will also pay full taxes on the land and stadium for the year 2016. However, they will waive all rights to the $18 million in real estate property taxes paid to date for the land and stadium. The team will also maintain an escrow fund of nearly $2 million which will act as an insurance policy should the Red Bulls fail to pay their lease fees.

Red Bull Arena was the centerpiece of a large-scale redevelopment of Harrison, New Jersey. Delays in the stadium’s design and construction resulted in it not being complete until 2010. The housing market crash of 2008 further delayed development in that area.

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  • rebel fighter

    Perfect!!!! Who’s buying this franchise?

    • Soccer philosophy

      Don’t say that, red bull fans love their team and owner.You will be hunted down and stoned with soccer balls.
      By the way, I heard cosmos and nycfc are looking for a stadium. I don’t think nycfc would pay rent there but cosmos owner should look into this.

  • Coney dogs

    So who owns the stadium now? Can red bull still get naming rights?
    After reading MLS teams are worth around $150 million, then red bull with stadium should be for $300 million.
    Garber get your people on this :)

  • Jonathan

    The typical mess more of the same with this pathetic franchise. NYCFC will rule this town !!!!!! I like my chicken spicey !

  • slowleftarm

    Both this article and the article it links to provide no information about why the club agreed to this. They settled so they had to be afraid something worse would happen if they lost the case. What would have happened?

  • Will

    Stop paying over the hill foreign players and pay your taxes. If you had thought of a system from development to pro it would be a great stadium but you need to to pay over priced over the hill foreigners to get butts there.

    • slowleftarm

      Did you mean to post this on an NYCFC article? What over the hill overpriced foreigners are on this team?

  • Jonathan

    deadbeat Metrostars

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