City Officials Peg Planned NBA Kings Arena's Public Price At $255.53M
Sacramento city officials yesterday "pegged the planned" downtown Kings arena's public price at $255.53M, according to a front-page piece by Bizjak, Kasler & Lillis of the SACRAMENTO BEE. Documents released by the city show that figure represents 65% of the cost, compared with a 35% share from the private sector, including the Kings. The public contribution would "come mostly from a plan to wring upfront cash from the city's parking garages." The $391M arena cost is a "bump up from the previous" $387M estimate, due to "new calculations of construction-related costs." City officials today are "expected to unveil more details of the financing plan" in a 15-20 page "term sheet." The term sheet will "go to the City Council on Tuesday for approval." Although the council vote is "nonbinding, City Hall officials say it represents the critical yes-or-no council call on the deal." Other key elements of the deal to be released today include that the Kings would "sign a lease obligating the team and any potential future owners to remain" in Sacramento for 30 years; the city would "allow the Kings to refinance the team's existing" $67M city loan; a 5% surcharge would "apply to all tickets sold at the arena, for sports and non-sports events," and that money would go to the city; and the city would "receive a percentage of net profits earned by the arena operator." Associates of Mayor Kevin Johnson said that the deal is "solid for the city, and pointed to several recent arenas where teams put in less money than the Kings." The city also "expects to sell" 100 acres it owns next to the current Power Balance Pavilion in North Natomas and "possibly several smaller lots in downtown to contribute to the city share." The Kings, as lead tenant, would pay a 19% "upfront share." Some of that money is "expected to come from the sale of the Power Balance Pavilion site" (SACRAMENTO BEE, 3/1).