Ryan Lillis, Tony Bizjak and Dale Kasler of the Sacramento Bee have released some of the details of the proposed term sheet that the city will make public tomorrow. The city is set to pay $255,530,000 of $391 million. The Kings will pay $73.25 million and AEG will pay $58.75 million.
Other key details include:
- The Kings will sign a lease obligating the team and any potential future owners to remain in Sacramento for 30 years.
- The city will allow the Kings to refinance their existing $67 million city loan.
- A five percent surcharge will be applied on all tickets sold at the arena, for sports and non-sports events. That money will go to the city.
- The city receives a percentage of net profits earned by the arena operator.
- The anticipated prep and construction cost estimate for the arena has nudged up from a previous $387 million to $391 million.
-Another $3 million of the $391 million is slated to come from a public campaign, led by the mayor and Councilman Steve Cohn, where residents can purchase engraved bricks and plaques to be included at the facility site.
The city expects to raise its share of the arena cost through the leasing of downtown garages as well as the sale of city-owned land in Natomas and dowtown.
Rob McAllister of KFBK reports that the five percent surcharge on all tickets as well as shared revenue with AEG will be the main contributors to filling the $9 million in annual revenue the city currently recieves from parking. He also mentions that there will be an additional $1 surcharge on each ticket that will be set aside to cover future repairs/improvements on the arena so that burden isn't on the owner (the city) or the operator (AEG). McAllister also reiterated yesterday's report that David Taylor's development group would take on any cost overruns.
Please read the entire excellent reports compiled by the Bee and KFBK for the full details, more of which will emerge tomorrow with the public release of the term sheet.
The Sacramento City Council is set to vote on this Term Sheet next Tuesday on March 6th. You can voice your support by showing up to the meeting, as well as signing your name to this petition, which will e-mail the city council.