(01/24/06) NEWARK ? City officials in Newark and the New Jersey Devils struck an agreement Tuesday that will allow the construction of a new hockey arena to move forward.

Both sides reached an impasse over the Devils? financial commitment to the project. Representatives of the city feared the team would not formally make a commitment to funding for the project. However, the Devils signed a letter of credit guaranteeing they will contribute their original financial promise of $100 million.

The projected cost of the 18,000-seat arena is $300 million. Those interested in watching a live camera of the construction can click here.

Related stories: Financial fight threatens to shut down Newark arena project Cheers and jeers from Devils fans over 2007 move to Newark Arena Groundbreaking held for multi-million dollar Newark Arena