SEAT-TAX AT FOREFRONT OF PEPSI CENTER TALKS

     Negotiations between Denver officials and Ascent
Entertainment over the proposed Pepsi Center are focusing on the
willingness or legal ability of the city to forego any seat-tax
revenues that are now collected at McNichols Arena, according to
Lynn Bartels of the ROCKY MOUNTAIN NEWS. The city may be legally
obligated to continue collecting the $3.7M-a-year tax to repay
bonds issued in '85 for a "variety of city projects."  In their
latest proposal, Ascent, owners of the Avalanche and Nuggets,
will not compensate the city for any seat-tax revenue.  City
Councilman Ted Hackworth said without the seat tax money, the
city will have to take funds from other city programs.  The city
would be prohibited from imposing the seat tax because Ascent,
under their proposal, would own the Pepsi Center.  Ascent also
proposes that the city-owned McNichols Arena be torn down once
the Pepsi Center opens (ROCKY MOUNTAIN NEWS, 8/13).