Committee To Propose Splitting Cost Of NBA Kings Arena Three Ways
A committee formed by Sacramento Mayor Kevin Johnson today "will unveil an eagerly anticipated menu of funding options that could presumably finance a $387 million arena" for the NBA Kings at the vacant downtown railyard, according to a front-page piece by Marcos Breton of the SACRAMENTO BEE. The "guiding principle of Sacramento's new plan" is a "virtual split -- this time in thirds -- among the private interests of an arena, the public and the arena's patrons." Sources said that the Kings, the NBA and a private developer "would contribute $91 million to $156 million in lease payments, upfront money, land and other revenue to pay for an arena." The city "would contribute the sale of public land, a tax on hotels and taxis, and money from items such as digital advertising and parking valued at $94 million to $123 million." The "third pot of money will be fueled by ticket surcharges, naming rights and other revenue sources that could generate $90 million to $121 million." Breton notes the plan's "major sticking points will be the size of the lease payments made by the Kings." The NBA is "leery of ticket surcharges and personal seat licenses -- but they are key components of this proposal." So are "some city control of naming rights and parking revenues." Breton: "For this plan to work, it will have to enact several complex funding mechanisms while securing an agreement with a private operator to run the arena" (SACRAMENTO BEE, 9/8).