Our friends James Ham and Rob McAllister of Cowbell Kingdom have a double dose of sourced entertainment and sports complex news. McAllister reported this week that the NBA is expected to bridge any feasible funding gap to get a plan for a new downtown facility approved; Ham reports that the city is looking for $80 million of that to come in the from of an up-front lease payment from the Kings and the NBA. The lease would be for 30 years, breaking it down to $2.67 million per year.
The other $50 million in private capital would come from AEG, the arena megalith that would operate the facility year-round. The city is hoping to receive City Council approval this month on a deal to lease the operation of downtown parking structures for $200 million in up-front payments -- the lease could be for 30-50 years. That leaves another $50 million. The hotel association has committed to some level of investment via a room fee, but not at that level, and not necessarily with advance capital.