Last night the Sacramento city council voted 7-2 to approve a financial plan for a sports arena in the downtown railyards keeping the Sacramento Kings in Sacramento. The Sac Bee with the story:
"In a historic vote, the Sacramento City Council approved the financing plan Tuesday night for a $391 million sports arena in the downtown railyard.Many people are confused as how the city is going to pay for this project. First thing everyone needs to know is that taxes won't be raised to pay for this project. The Sac Bee once again can better explain where the funds for the new project will come from:
By a 7-2 vote, the council accepted a nonbinding "term sheet" agreed to by city officials, the Sacramento Kings, arena operator AEG and the development firm slated to build the project."
"The Kings and AEG are scheduled to pay for half of the pre-development agreement. Another $5 million is coming out of an account set aside from the city's sale of the downtown Sheraton to developer David Taylor. The rest is coming from the city's parking fund.It will be interesting to see what idea the city decides to use to generate revenue from parking. I would personally lease the parking assets but that's just me.
At the same time, the Kings and AEG will begin work on a memorandum of understanding on revenue sharing and arena expenses. That agreement is scheduled to be completed by April 15.
In the meantime, the city will begin considering two options for generating as much as $230 million out of its downtown parking garages, spaces and enforcement to contribute to the arena.
For months, the city has looked at leasing parking assets to a private firm in exchange for an upfront payment that would go toward the arena. A formal request for bids from 11 firms interested in that arrangement is being released.
In recent weeks, city officials have floated another idea: to create a municipal finance authority that would allow the city to maintain control of its parking operations. Under that plan, the city would issue bonds to fund the arena project and pay that debt back through parking revenue.
For detractors of this plan need to realize a few things. First and most important this plan will keep the Kings in Sacramento. They'll have a tenant for the building at least 41 days of the year. Also this is important because other events will occupy the time in the building. For example a couple of years ago the NCAA refused to come back to Sacramento unless there was a new building. Now with a new building the NCAA tournament can return with 1st round games. Also more concerts will be held in the new building because the acoustics should be better than Arco. (The acoustics in Arco are horrendous and a reason why a lot of bands refuse to perform there.)
Lastly the city needed to do something with the vacant railyards. The railyards are an eye sore right in the middle of Sacramento in clear view of anyone driving on I-5. This new building will revitalize that area of Sacramento much like how AT&T Park revitalized the China Basin in San Francisco.
Big credit to the passionate group named Here We Stay for pushing and prodding to keep the Kings in Sacramento. Their work is a huge reason why the city council voted 7-2 in favor.
Also a lot of credit goes to Mayor Kevin Johnson. KJ was one of the best point guards in NBA history and he just completed the greatest comeback in history. The Kings didn't just have one foot out the door in Sacramento, they had the suit cases packed in the car and were kissing everyone goodbye. KJ passionately made his plea to have one last meeting with the league to keep the Kings and then came up with a last minute plan for a new building. Just an incredible comeback.
HERE WE STAYED
That video gives me chills.
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