The city-commissioned group that will present a feasibility study on a new arena that would keep the Kings in Sacramento long-term will present its findings on Thursday. But KCRA 3 reports a few days early the pricetag on a new entertainment and sports complex: $370 million.
That is far, far lower than previous estimates. The arena at the Railyards to be funded by failed ballot measures in 2006 had a pricetag in excess of $500 million, and despite the regional economic crash (and global economic crisis), the price wasn't expected to fall this much. A figure less than $400 million is easily at the lower bounds of plausible expectations going into this.
In 2009, the Maloofs committed to paying $10 million per year for 30 years to lease the arena as an operator under the NBA's Convergence plan. If that funding level is still possible -- and there's no reason to think it wouldn't be -- that makes up the major chunk of financing for the complex. However, the Maloofs may no longer want to operate a new arena; should Kings ownership prefer to lease the gym for 50 dates a year, their contribution could be significantly less.
It's unclear whether the $370 million pricetag includes needed infrastructure upgrades; there's also the matter of the gap over the Maloofs' expected contribution, and the process for financing upfront construction given the long-term nature of the lease.
There's also the matter of the current Power Balance Pavilion, the land it sits on and the Kings' outstanding $70 million loan from the city. But this is a promising start.
We're asking Kings fans to join Here We Stay at the Taylor/ICON presentation on Thursday from 1-3 p.m. Remaining unified and vocal throughout the arena process is key.