The group headed by Chris Hansen to build an arena in Seattle's Sodo District "faces a struggle convincing the Seattle City Council to go with his plan" over a KeyArena retrofit, according to Geoff Baker of the SEATTLE TIMES. Hansen's group revealed financing details of its proposed project last week, though "missing from Hansen’s letter was any monetary amount" that JPMorgan Chase "might lend his group." Meanwhile, Oak View Group -- which was tapped to renovate KeyArena -- has stated that Goldman Sachs could lend $150-200M and then additional money "once teams are acquired." Baker wrote that is "hardly surprising, given OVG plans an 'on spec' build ahead of landing teams." However, the Hansen proposal is "predicated largely on getting teams first, completing the project’s financing and then starting to build." The JPMorgan Chase letter states Hansen’s plan "relies partly" on sales of PSLs and sponsorships. It is "tough to get fans and companies to buy those when it’s unclear if an NHL or NBA team is coming," meaning Hansen’s financial plan "clearly requires teams before completion." Though Hansen and supporters claim that traffic and parking at the Sodo site "trump the current KeyArena conditions, that won’t be the only aspect the city scrutinizes." Seattle Mayor Ed Murray and the council have "long questioned Hansen’s ability to attract the teams he needs to complete his funding and start construction." Hansen’s project "ordinarily would still be enticing on its own, given its arena location and similar all-private construction plan." Baker: "But it’s now competing with another venture that appears to have its financial act more together" (SEATTLE TIMES, 6/19).
