Doubts Raised Over Developer Risk For Kings Arena At Cal Expo

Majestic Realty VP Says Plan For Kings, Monarchs Arena Appears Risky

Efforts to build a new arena for the NBA Kings and WNBA Monarchs at Cal Expo in Sacramento are "at a crucial stage as officials contemplate seeking a private development partner," but an "important doubt has emerged," according to Tony Bizjak of the SACRAMENTO BEE. Majestic Realty VP John Semcken, whose company was one of four developers consulted about the viability of the plan, said, "There is not a developer I know in the country who would do it, especially in today's economy." Semcken said that the plan "appears risky," as it "calls for a developer to front money for the project." Semcken noted that he "only briefly reviewed the Sacramento project over the summer, but told Cal Expo and NBA officials that Cal Expo might consider acting as the master developer, taking on more of the financial risk itself." Bizjak noted representatives of A.G. Spanos Co. "also were consulted" on the plan, though they "have not commented publicly." Cal Expo officials had "planned this week to have the Cal Expo board review and possibly vote on publishing a formal document soliciting potential partners," but the NBA "asked them last week to hold off while the league reviews the document." Cal Expo BOD member Marko Mlikotin has "argued that the agency can't move forward with bids from developers until the NBA provides a more detailed plan that is profitable for Cal Expo" (SACRAMENTO BEE, 10/26).

STERN OPINION: NBA Commissioner David Stern Friday said there "can be no questioning of" Kings Owners the Maloofs' "commitment to Sacramento -- the way they've operated the team there, the way they've spent some significantly to explore alternative resolutions." Stern: "I know that I spent a load of resources on looking into the Cal Expo and other potential plans. And so, I'm optimistic that they will have some movement." But Stern added, "I don't think I would expect the board of governors to be eternally patient on this subject, given the fact that the NCAA apparently recently declared that it would not see Arco Arena as a place that they would have a regional tournament. I think the handwriting is on the wall for the building" (SACBEE.com, 10/23). In Sacramento, Ailene Voisin wrote, "The place known for its hostility, for passionately exploiting Arco's tight confines and withering acoustics, has morphed into just another arena" (SACRAMENTO BEE, 10/25).

REBUILDING PROJECT: In Sacramento, Sam Amick noted "attendance has dwindled," fans have "lost interest" and skepticism is "at an all-time high at Arco Arena." But Kings President of Basketball Operations Geoff Petrie said that the team, which finished with an NBA-worst record of 17-65 last season, is "worth watching again ... despite the uncertainty surrounding the organization." Petrie: "It's really hard to just turn a team around on a dime immediately without some fortuitous set of circumstances. But on the other hand, at least if you're rebuilding, to me that's different than building. … That means you were once good" (SACRAMENTO BEE, 10/25).