The Anaheim City Council yesterday "approved the issuance of $75 million in bonds, a move that lays the groundwork for the Sacramento Kings basketball team to move to Anaheim's Honda Center next season," according to Eric Carpenter of the ORANGE COUNTY REGISTER. The council "voted unanimously for the bonds: $25 million for upgrades to the city-owned Honda Center, and $50 million in working capital, money that could help pay for the Kings' relocation fees." Yesterday's agenda "made no specific mention of the Kings," referring only to an "NBA team." But it has become "increasingly clear in recent weeks that the Kings are on the verge of filing for relocation to Anaheim." None of the bond money comes from the city's general fund or from taxpayers. The bonds are "to be purchased entirely by private investment firms," headed by Ducks Owner Henry Samueli, and "paid back during a 10-year-period." The bond funding "would become effective within 180 days and the entire deal is contingent upon the Kings being granted relocation" by the NBA BOG. The Kings "have until April 18 to file for relocation." Honda Center officials yesterday "set up a priority waiting list for ticket information at waitlist@hondacenter.com," and interested fans are "asked to email their names and phone numbers." Under the deal approved yesterday, the contract with Anaheim Arena Management was "extended until 2033." The contract also "spells out that an NBA team would use the privately owned American Sports Center, near the I-5 freeway and Anaheim Boulevard, as a temporary practice facility" (ORANGE COUNTY REGISTER, 3/30). Anaheim Mayor Tom Tait said during the City Council meeting, "It's a Samueli entity lending money to a Samueli company; the city has no liability and is a conduit (as the arena's owner). I wanted to drive that point home: There's no risk." Tait said that the Kings "would 'fill the stands of the Honda Center,' by drawing upon 3 million people in Orange County" (L.A. TIMES, 3/30).
SACRAMENTO LOSING HOPE: In Sacramento, Tony Bizjak reports city officials yesterday "all but conceded the team is gone." While the city "had hinted a day earlier that it would sue Anaheim," Sacramento Mayor Kevin Johnson yesterday said that he is "fine with the Kings' departure as long as the team owners, the Maloofs, repay a $77 million debt to the city." Bizjak notes if the Kings "leave without paying the debt, they would forfeit Power Balance Pavilion and a $25 million stake in the team," but the city "would have to pay the $77 million debt to bondholders who financed the loan -- and the assets left by the Maloofs might not be enough to cover that debt." Sacramento City Treasurer Russ Fehr said that the Maloofs' assurances Monday that they "would replay the debt were 'encouraging,' but city officials want something more definite." Bizjak reports "minutes after the vote in Anaheim, the Sacramento City Council voted to set aside funds to hire a law firm to make sure" the $77M is repaid. Johnson said he was "very disappointed, not surprised" by yesterday's Anaheim City Council vote. But he added that Sacramento "will continue to press ahead with a feasibility study on a new sports and entertainment arena" (SACRAMENTO BEE, 3/30). Johnson: "I think the mindset of the city is to make sure that they fulfill their obligation. And if they do that, then I don't want a messy divorce, I don't want to be a poor sport about it, it's their decision. And quite frankly, if they don't want to be here, then I'm going to be OK with (them moving) and I think our community will be OK with that" (SACBEE.com, 3/29).
PAY YOUR DEBTS: California State Senate President Pro Tem Darrell Steinberg is "considering a request" by Sacramento officials to "carry a bill barring Anaheim from moving forward on the bond unless Sacramento is guaranteed the Kings will pay off" the $77M (SACBEE.com, 3/29). In Sacramento, Marcos Breton writes there "isn't a single piece of paper that says how the Maloofs will pay off the $77 million they owe Sacramento." Johnson yesterday said that he "wants that payoff plan in writing, and it appears the Maloofs are angry because of that." They "seem to think Sacramento should simply take their word for it." Breton: "Who does business that way? ... The loan from Sacramento to the Kings was not a terrifying prospect for Sacramento so long as the Kings were here. But if the team goes, that $77 million comes due in one fell swoop. Sacramento taxpayers would rightly demand the scalps of their representatives if all they had to enforce the loan was someone's word" (SACRAMENTO BEE, 3/30). A SACRAMENTO BEE editorial is written under the header, "City Is Right To Press Kings On Loan Repayment." The Maloofs "insist they are making a business decision whether to move to Anaheim." The editorial: "This being all about business, city officials are completely justified to focus on the bottom line, too." The Maloofs "can't expect the city to sit idly by and not get in the game to protect its taxpayers." With both sides "playing hardball, this will not be an amicable breakup; the chances for reconciliation appear to dwindle by the day" (SACRAMENTO BEE, 3/30).
