The Harris County-Houston Sports Authority today "is
expected to pass a nearly completed" letter of agreement
with the Rockets to build a $175M downtown arena subsidized
with public money, according to Eric Berger in a front-page
report in the HOUSTON CHRONICLE. Authority Chair Billy
Burge said that the "main components" of the agreement are
"wrapped up," but finishing the letter "is largely a matter
of attorneys hammering out the language." Berger adds that
the Rockets "will not approve the new deal until getting
assurances that it will not be opposed by foes" of the
proposal defeated by voters last November. Sources said
that the deal is "similar to that used to fund construction"
of Enron Field. There will "be no private financing" for
the project, outside of Rockets Owner Les Alexander's
contribution. Also, the city "will be expected" to buy the
land for the "nearly all privately owned" four-block site,
which, excluding a parking garage, is "still expected to
cost at least" $12-15M. The Sports Authority has committed
to new costs, including contributing to the arena's
operating expenses. The Rockets have also agreed to spend
$2M in arena design costs "between when a deal is signed and
the expected" November 7 referendum (HOUSTON CHRONICLE,
6/29). In Houston, Dale Robertson writes after seeing the
deal, Houston voters should, "Vote 'yes' in November, or say
goodbye to the Rockets and the Comets. We build, or they
leave. Have I made myself perfectly clear here? This is
our only second chance, people." Robertson: "Given the
leverage he appears to possess in Kentucky, Alexander is
being surprisingly reasonable, not exactly one of his
trademark qualities" (HOUSTON CHRONICLE, 6/29).
LOUISVILLE'S OFFER: In Louisville, McDonough & Poynter
report that Mayor Dave Armstrong wrote the Rockets a
proposal for a $220M downtown arena and parking garage, "but
his offer isn't supported" by Jefferson County (KY) Judge-
Exec Rebecca Jackson. Under the proposal, the team would
pay $42.7M up front toward the arena's original cost and
"any costs in excess" of $220M "would be the responsibility
of the Rockets." At a news conference last night, Armstrong
said that he "will continue to seek the county's backing,
but he was willing to send the letter after receiving
assurance" KY Gov. Paul Patton "will continue to play a key
role" in the city's efforts to attract the team. Armstrong
said the proposal "is not a formal commitment of dollars on
behalf of the city, state or county. It is a framework for
how we proceed" (Louisville COURIER-JOURNAL, 6/29).
