Seattle Mayor Ed Murray yesterday "officially announced Oak View Group as his administration's preferred choice to renovate KeyArena" and introduced film and TV producer Jerry Bruckheimer and TPG Capital co-Founder David Bonderman as "partners in the project," according to a front-page piece by Baker & Beekman of the SEATTLE TIMES. Murray and OVG CEO Tim Leiweke "agreed to negotiate a memorandum of understanding -- and dealt a blow to a rival arena project pitched for the Sodo District by entrepreneur Chris Hansen." The deal with OVG "would go to the Seattle City Council for approval." Murray said that his goal is to "complete the KeyArena deal before he leaves office at the end of the year." OVG's $564M proposal "includes a partnership with major concert company Live Nation and would involve building 'an entirely new arena' under the venue’s existing roof, which is expected to be given historical landmark status." Murray said that OVG's bid was "preferable to a bid" by AEG-led Seattle Partners because it had the "best design." Murray: "I chose the proposal that had the best financial plan. The plan is privately financed and does not require any of the city's bonding authority." Baker & Beekman report OVG is "seeking a minimum" of $40M in city taxes and revenues from the renovated arena. OVG said that it "intends to pursue an NHL team in the short term and an NBA team down the road" for the venue. However, Murray and Leiweke were "careful to downplay the possibility of men's pro basketball returning to Seattle anytime soon," as the NBA "isn't close to adding teams" (SEATTLE TIMES, 6/8). Murray did say that he is "confident" the plan proposed by OVG will return the NBA to the city. Murray: "I believe it is a proposal that will bring the Sonics back to Seattle eventually." Meanwhile, Leiweke said that Hansen should "get behind the OVG plan now." Leiweke: "Chris, if you want an NBA team, this is where it's going to happen" (SEATTLEPI.com, 6/7).
MORE ROOM FOR ACTIVITIES: In Seattle, Marc Stiles notes OVG's proposal will "dramatically increase" the size of KeyArena "by digging out the arena bowl, lowering the floor by 15 feet." This will "create a venue with 17,100 seats for pro hockey, 18,350 for hoops and 19,100 for concerts." OVG in April said that they would "lease KeyArena for 35 years with five 10-year extension options." The group also said that it would "operate the arena and pay a base rent" of $1M (BIZJOURNALS.com, 6/7).
NOT THEIR FIRST RODEO: The TIMES' Baker & Bonderman report Bonderman has been a minority Owner of the Celtics "for more than a decade," and Bruckheimer is a "close acquaintance of NHL Commissioner Gary Bettman and has long expressed a desire to become a franchise owner." Bonderman in '07 was an "equal partner" in a bid group formed by Bruckheimer and former MGM Studios Chair Harry Evans Sloan that "looked into bringing an NHL expansion franchise to Las Vegas." The group "bowed out" in '10. Bonderman would have to "divest his Celtics shares were he to become an NBA owner at KeyArena" (SEATTLE TIMES, 6/8).
LACE UP THOSE SKATES: In Seattle, Matt Calkins writes if there was a "primary sports takeaway from the hour-plus-long news conference it was this: It's time to focus on hockey." Canucks Chair Francesco Aquilini attended the announcement and sang the "praises of Seattle as a potential hockey town to reporters." He also "likes the idea of a Pacific Northwest rivalry." Aquilini described the NHL's desire to have a team in Seattle as "very strong." He added, "I don't think there is anybody opposed to it." Calkins writes when Leiweke's NHL connections are taken into consideration along with the presence of Bonderman and Bruckheimer, landing a hockey team "seems not only feasible but probable" (SEATTLE TIMES, 6/8). The AP's Tim Booth noted while concerts and entertainment will be a "significant part of the calendar for the proposed venue, and the NBA is a dream for the future, it was clear the NHL is the immediate target." The NHL has "not hidden its interest in Seattle, the No. 14 media market in the country and the only market in the Top 25 nationally that does not have an NBA or NHL team" (AP, 6/7).
