King Me: NBA, Cal Expo Reach Preliminary Deal For Kings Arena
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NBA, Cal Expo Moving Forward On
Plan To Build New Arena For Kings |
NBA and Cal Expo negotiators have "agreed to move forward jointly on a plan to build a Kings arena in the state fairgrounds," according to Mary Lynne Vellinga of the SACRAMENTO BEE. The letter of understanding, which still "must be approved by the Cal Expo [BOD]," indicates that the two sides will spend the next 180 days "working on a development plan that would accommodate both an arena and a revamped fairgrounds." The two sides plan to ask developers to "submit proposals for turning the 360-acre fairgrounds into a mixed-use and entertainment development." The goal is to "attract a developer that can take the existing space at Cal Expo, revamp the fairgrounds, add a 17,000- to 20,000-seat arena and squeeze in enough new commercial or residential development to pay for it all." The price tag for a new arena and fairgrounds upgrade "could easily top $650[M]." NBA Commissioner David Stern Friday said that Kings Owners the Maloofs, while not involved in the talks, have "paid for expenses incurred by the NBA for consultants and studies, and will continue to do so." The Cal Expo BOD plans to consider the letter at its May 21 meeting, which Stern and Cal Expo lead negotiator and former California Gov. Pete Wilson plan to attend. While Friday's agreement is "not legally binding," NBA and Cal Expo reps said that it "represents a significant step forward." Stern: "We wouldn't be doing it if we didn't think there was a more than fair chance it could be done, but recognizing that it's not a slam dunk." But Wilson acknowledged that "this isn't the best time to press forward with a major development, and [he] doesn't know what impact the economy and credit crunch could have." Wilson: "The subprime debacle has stunned even the most sophisticated analysts, and it has created problems of liquidity that have affected even large commercial developers" (SACRAMENTO BEE, 5/10).
CONCERNS EXIST: State Assemblyman Dave Jones, who serves on the Cal Expo BOG, said that he has had "reservations about the site and would like to see Cal Expo consider other non-arena developments as well." California State Fair GM & CEO Norbert Bartosik: "It's a massive project and it's going to take quite a bit of time to work through all that" (KCRA.com, 5/9). In Sacramento, Todd Milbourn wrote there has "been talk that a new arena might mean the demise of [horse] racing at Cal Expo." Cal Expo Deputy GM Brian May said that the racetrack has "become a financial drain on Cal Expo's $30[M] budget, as the industry has faced a slide nationwide" (SACRAMENTO BEE, 5/11).
REAX: Also in Sacramento, Marcos Breton wrote, "What matters now is that Sacramento is the opposite of Seattle, where city leaders practically dared the local NBA team to leave." Stern: "We met with the mayor (of Sacramento), she said she'd love to be helpful. We met with the county, they said they'd love to be helpful. We met with the governor, he said he'd love to be helpful" (SACRAMENTO BEE, 5/11).
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