A proposal for a new half-billion-dollar NBA and NHL arena in Sodo would include $200 million in city and county financing, but no new taxes.
By Lynn Thompson, Steve Miletich and Emily Heffter, Seattle Times
Article continued at: http://seattletimes.nwsource.com/htm..._arena17m.html
By Lynn Thompson, Steve Miletich and Emily Heffter, Seattle Times
Calling it a historic day, a beaming Seattle Mayor Mike McGinn and King County Executive Dow Constantine on Thursday unveiled what they described as a risk-free proposal to build a half-billion-dollar arena that could bring NBA basketball back to Seattle and attract its first National Hockey League team.
Both officials said the arena could be built just south of Safeco Field with $290 million provided by private investors and $200 million in taxes generated by the arena, but that construction would not begin until the investors, led by San Francisco hedge-fund manager Chris Hansen, are able to secure both NBA and NHL teams.
"He's not going to put his money in until he's got a team, and we're not going to put our money in until he's put his money in," Constantine said at a news conference that took on the air of a pep rally.
The packed City Hall room included hundreds of cheering sports fans, some dressed in the green and gold of the Seattle Sonics, who were moved to Oklahoma City in 2008.
McGinn and Constantine outlined an investment proposal that calls for no new taxes and, they said, shields the public from risk by requiring investors to make up any revenue shortfall. The deal also would put the teams on the hook for the public share if one of them left before 30 years.
"We got a really good prenup," said Dwight Dively, King County budget director.
Constantine said the 18,000-seat arena in the Sodo neighborhood would have the third-highest private investment in a professional sports arena anywhere in the country.
"This proposal we've received is worthy of serious consideration," he said, alluding to the close scrutiny — already voiced by Seattle City Council members — that will now be given to one of the most ambitious projects launched in recent history in Seattle.
Hansen, a 44-year-old Seattle native who lives in San Francisco, has agreed, along with partners he has not identified, to put forward at least $290 million to build the arena on land he has acquired south of the Safeco Field parking garage. He also would buy a professional basketball team, and recruit a hockey team.
The NBA has said it will not expand, making relocation the only means to acquire a franchise. Sacramento, Calif., is facing the loss of the Kings if it doesn't produce a viable arena deal by March 1, and the fate of the financially troubled and league-owned New Orleans Hornets remains in question.
The NHL's Phoenix Coyotes, which were taken over by the league, have been identified as the team most likely to relocate.
Both leagues have said they consider Seattle a desirable location.
Concerning overall prospects for his proposal, Hansen wrote in letter to the city, dated Wednesday, that he was "confident" his proposal would be "looked on favorably" by the NBA and NHL.
Hansen's effort already has included discussions with both leagues, producing encouraging signs, according to a source close to the talks.
In an interview with The Seattle Times on Wednesday, Hansen cautioned that the overall proposal is complex and could still be derailed.
McGinn said Thursday he believes there is a pathway to attracting teams, but did not elaborate.
"On first look, this is an exciting proposal, and it could mean big things for our community," said McGinn. "It could mean that the Seattle SuperSonics play once again in our city."
Both officials said the arena could be built just south of Safeco Field with $290 million provided by private investors and $200 million in taxes generated by the arena, but that construction would not begin until the investors, led by San Francisco hedge-fund manager Chris Hansen, are able to secure both NBA and NHL teams.
"He's not going to put his money in until he's got a team, and we're not going to put our money in until he's put his money in," Constantine said at a news conference that took on the air of a pep rally.
The packed City Hall room included hundreds of cheering sports fans, some dressed in the green and gold of the Seattle Sonics, who were moved to Oklahoma City in 2008.
McGinn and Constantine outlined an investment proposal that calls for no new taxes and, they said, shields the public from risk by requiring investors to make up any revenue shortfall. The deal also would put the teams on the hook for the public share if one of them left before 30 years.
"We got a really good prenup," said Dwight Dively, King County budget director.
Constantine said the 18,000-seat arena in the Sodo neighborhood would have the third-highest private investment in a professional sports arena anywhere in the country.
"This proposal we've received is worthy of serious consideration," he said, alluding to the close scrutiny — already voiced by Seattle City Council members — that will now be given to one of the most ambitious projects launched in recent history in Seattle.
Hansen, a 44-year-old Seattle native who lives in San Francisco, has agreed, along with partners he has not identified, to put forward at least $290 million to build the arena on land he has acquired south of the Safeco Field parking garage. He also would buy a professional basketball team, and recruit a hockey team.
The NBA has said it will not expand, making relocation the only means to acquire a franchise. Sacramento, Calif., is facing the loss of the Kings if it doesn't produce a viable arena deal by March 1, and the fate of the financially troubled and league-owned New Orleans Hornets remains in question.
The NHL's Phoenix Coyotes, which were taken over by the league, have been identified as the team most likely to relocate.
Both leagues have said they consider Seattle a desirable location.
Concerning overall prospects for his proposal, Hansen wrote in letter to the city, dated Wednesday, that he was "confident" his proposal would be "looked on favorably" by the NBA and NHL.
Hansen's effort already has included discussions with both leagues, producing encouraging signs, according to a source close to the talks.
In an interview with The Seattle Times on Wednesday, Hansen cautioned that the overall proposal is complex and could still be derailed.
McGinn said Thursday he believes there is a pathway to attracting teams, but did not elaborate.
"On first look, this is an exciting proposal, and it could mean big things for our community," said McGinn. "It could mean that the Seattle SuperSonics play once again in our city."
The public's investment would be capped at $200 million, likely in bonds, and would be repaid through rent paid by the teams and existing tax streams, including sales, property, admissions and business-and-occupation taxes generated by the arena. The city and county would own the arena and land and lease it back to the investors.
Team owners would collect revenue from ticket sales, luxury suites and concessions, and possibly from a cable-television network that would broadcast games.
Team owners would collect revenue from ticket sales, luxury suites and concessions, and possibly from a cable-television network that would broadcast games.
McGinn and Constantine insisted that the project would be "self-funding" because it would be paid for with city and county tax money that would not be generated if the arena were never built.
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