Sacramento Reportedly Looking For $80 Million Up Front From Kings, NBA
by Tom Ziller on Feb 8, 2012 1:20 PM PST
in Arena
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PrintOur 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.
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Just so I understand (because these financial things make my head spin)
The NBA fronts the $80 million and the Kings ownership pays 2.67 million per year over 30 years back to the NBA as tenants?
Sacramento Kings - helping feed NBA fans across the country since 2011
That would be my understanding of it
HERE WE STAY
THIS IS OUR TEAM
by kangsfan on Feb 8, 2012 1:38 PM PST via mobile up reply actions
GIT ER DUN!!!
Sacramento Kings, Oakland Raiders. Best teams everrrrrrr
by Robby1987 on Feb 8, 2012 1:30 PM PST via Android app reply actions
Is there someone who has followed this closer who can tell me how likely the NBA is do to this?
Is this good news? Bad news? A start to negotiations that end with a lower amount?
They've been in contact throughout and I'm pretty sure this is why KJ is meeting
with Stern. Get him to sign the term sheet. I’m thinking it’s doable.
by Kfan in Korea on Feb 8, 2012 1:37 PM PST up reply actions 2 recs
"Paging Mr. Wagon, paging Mr. Wallace Wagon"
Sacramento Kings - helping feed NBA fans across the country since 2011
by otis29 on Feb 8, 2012 1:37 PM PST up reply actions 1 recs
I'm reading fucker! :)
give me a few minutes
by wallywagon11 on Feb 8, 2012 1:39 PM PST up reply actions 2 recs
Quit wasting time on your fantasy basketball team, this is important!
Sacramento Kings - helping feed NBA fans across the country since 2011
by otis29 on Feb 8, 2012 1:40 PM PST up reply actions 7 recs
Yeah!
(But only because his team is playing mine this week.)
Director of Cracked.com's After Hours and other stuff.
Follow me at... actually, don't... I'm not very insightful.
Yeah!
(Because I’m in 2nd place in the division he is in)
by LightningStrike5 on Feb 8, 2012 5:11 PM PST up reply actions
(finally just realized how much fun it is to respond to stuff with Boogie pics)
by wallywagon11 on Feb 8, 2012 5:24 PM PST up reply actions 3 recs
I feel sorry for ASSN
He caught me in a week where my players all have had monster performances, Howard, Ellis, Parker, Harden, and Chandler have had just phenomenal games.
Author of NBA Mashups. Follow me on Twitter here.
Palo Alto, born and raised
He might look good in purple one day.
I miss Big Mike and his Arco Thunder monologue.
Also, you will note that he has gone 1-10 from three during this 3-game span
Which speaks to his ridiculous offensive efficiency inside the arc. He is shooting something close to 75% on 2 pointers.
I miss Big Mike and his Arco Thunder monologue.
That could almost be taken as sarcasm, except that we are Kings fans.
I miss Big Mike and his Arco Thunder monologue.
Lin is probably going to score 70 on us when we play the Knicks next week.
Author of NBA Mashups. Follow me on Twitter here.
As long as we hold the Knicks under 95, that's fine with me.
I miss Big Mike and his Arco Thunder monologue.
Lin is probably going to score 70 on us when we play the Knicks next week.
just foul him hard till he stops driving. He can’t hit the outside shots
Mirror on the wall
Here we are again.
by Skeptic con Urquell on Feb 8, 2012 11:30 PM PST up reply actions
Am I nuts, or is thing all but done?
Everyone knows I run pessimistic, but is there an invisible sword of Damocles hanging out there where I can’t see it? I’m never one to count my chickens, and I don’t believe anything is done until it’s done, but is my read fairly close?
I like your Jimmer very much. I do not like your JimmerJihadis™. - Ghandi Sims
Rocks are free, and slingshots easily stolen. And for a limited time, every third person who follows me on Twitter (andy_sims) gets a free ice cream cone.
Which I will eat.
We're getting there
Last night’s 5-4 split was a bit worrying.
BUT if the City does vote to lease parking and that goes through as planned, I think this is pretty much done one way or another. Same goes if they vote against leasing parking; That effectively kills the arena plan in its tracks, considering its the largest funding source and there’s no Plan B.
Author of NBA Mashups. Follow me on Twitter here.
Yep. Still too close for comfort
HERE WE STAY
THIS IS OUR TEAM
by kangsfan on Feb 8, 2012 1:41 PM PST via mobile up reply actions
There better not be a way to force a vote after this 5-4 vote by city council!
How likely is it that Sandy Sheedy and her cohorts will sue to overturn this 5-4 decision? Is that even possible? Please please please God say it isnt!
It isn't
"Victory goes to the player who makes the next-to-last mistake."
- Chessmaster Savielly Grigorievitch Tartakower
by lietothegirls on Feb 9, 2012 9:43 AM PST up reply actions
It seems close
But I don’t think it can be considered a done deal until it is actually done. There is still plenty of opposition, and details yet to be finalized.
Never forget, I'm a complete idiot.
Follow me on Twitter
Author of Inside-Out Game
It means the NBA is going to play a big part in the funding
Author of NBA Mashups. Follow me on Twitter here.
That's only
13,333 $6,000 burgers. No problem, right? RIGHT?
by Carl on Feb 8, 2012 1:38 PM PST reply actions 6 recs
Is that Barry Lamar on the right??
Sacramento Kings - helping feed NBA fans across the country since 2011
Several dopes, actually.
I like your Jimmer very much. I do not like your JimmerJihadis™. - Ghandi Sims
Rocks are free, and slingshots easily stolen. And for a limited time, every third person who follows me on Twitter (andy_sims) gets a free ice cream cone.
Which I will eat.
by andy sims on Feb 8, 2012 2:17 PM PST up reply actions 12 recs
That 50 million gap must be accounted for somewhere
Or I’d guess KJ would’ve requested 130 million from the league
HERE WE STAY
THIS IS OUR TEAM
by kangsfan on Feb 8, 2012 1:43 PM PST via mobile reply actions
Yes please
Could the city get some money from the sale of the land underneath ARCO? Obviously it wouldn’t be up front, but if the Maloofs sold that land or forfeited it in the deal, the city should get back their 70 million.
HERE WE STAY
THIS IS OUR TEAM
Looks to me right now we got around a $76 million gap as of right now.
Just for arguement sake I am assuming we get $200 million for the parking and don’t have to worry about the bonds or anything like that. Just $200 million straight up for the arena. And then assuming $50 million from AEG.
406 – 200 – 50 = $156 million left
I know that Rob McAllister talks about the hotels giving $30 million at best but he adds that up like it’s $30 million of the $406 million to build the arena and that is horribly incorrect unless he is saying the hotels plan on giving $30 million now which there has been no indication that’s what is happening in the slightest.
Now we have this nugget
Although exact figures are yet to be established, a source has shared with Cowbell Kingdom that the city is looking for roughly $80 million from the league and team.
Not over time, but in advance.
$156 – 80 = $76 million
by wallywagon11 on Feb 8, 2012 1:44 PM PST reply actions 1 recs
Yeah, hard to fathom the local hotels fronting those dollars
Sacramento Kings - helping feed NBA fans across the country since 2011
isn't the value of the land in the rail yard site part of the cost of the Arena
Whatever that was estimated to cost (would look it up if I was on my computer) I assume you can subtract that because the city would pitch it in.
@dampania | Section 103 Row V
by dampania on Feb 8, 2012 1:47 PM PST via iPhone app up reply actions
I agree
and the intermodal $ for infrastructure
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
I don't remember if that was built in as part of the estimate on the arena presentation from Taylor ICON
But I’m pretty sure the land value was.
@dampania | Section 103 Row V
by dampania on Feb 8, 2012 1:53 PM PST via iPhone app up reply actions
Tried looking for it but no longer at Thingbig
either way though likely doesn’t matter because they would likely be required to rebate Measure A anyway
I still have the PDF - found it
Here was the estimated budget, before they added the extra $20 million preferred parking structure:
100. START-UP EXPENSES $ 2,500,000
200. SALES & MARKETING $ 850,000
300. LAND ACQUISITION & SITE DEVELOPMENT $ 18,150,000
400. DESIGN/PROFESSIONAL SERVICES $ 17,825,959
500. LEGAL & GOVERNMENTAL SERVICES $ 1,100,000
600. PROJECT ADMINISTRATION $ 14,094,973
700. CONSTRUCTION $ 257,836,846
750. SYSTEMS & EQUIPMENT $ 30,200,000
800. PERMITS, TESTING,FEES, TAXES & SPECIAL ASSESSMENTS $ 16,135,980
900. INSURANCE, FINANCING & TRANSACTION COSTS $ 9,500,000
Owner Contingency (Recommend 5%) $ 18,409,688
TOTAL PROJECT BUDGET $ 386,603,445
Now I’m not sure if that land acquisition/site development item is actually the price of the land or not. I do see in the PDF that the site analysis/onsite infrastructure looks to be part of the construction costs.
@dampania | Section 103 Row V
by dampania on Feb 8, 2012 2:11 PM PST up reply actions 2 recs
Here we go, from the city's technical review
The property acquired by the City for the Intermodal Facilities project was paid for with Measure A Transportation Sales Tax funds. The value of the portion of the property that is utilized for the ESC will have to be reimbursed back to the Sacramento Transportation Authority. It is expected to be returned to the City for the Intermodal project. This amount is
estimated to be $15-20 million. The City could opt to use some of the Measure A monies for the Intermodal to purchase Lot 40.
by wallywagon11 on Feb 8, 2012 2:17 PM PST up reply actions 1 recs
So for old folks
you just said 18.1 million of the 386 could come from intermodal measure A $, right?
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
I know cost went up from $386
but do you think the parking winner would be required to build and pay for the additional parking that made the cost rise?
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
nope, highly doubt it
in fact would think the parking winner doesn’t win that lot and it’s a revenue stream for the arena operator
ah! that would make sense
35 and 31. I'm calling it now. Reke and Cousins 1-2 in most improved award both All-stars. Jimmer leads rookies in scoring, passing and Ole's. Make 2nd round of playoffs and Salmons is not here by seasons end.
I believe the cost is aroun $406 million now
but yeah between $15 and $20 million will have to go to reimbursing the purchase of the land which was done with Measure A money
What?? Up to $406 mil? Pretty soon it's gonna cost over a $1 Billion
Wait, sorry….thought this was the SacBee thread for a sec :P
"First we get jobs, then we get the khakis, then we get the chicks."
Don't take my word for it
but I believe the land sales are still on the table ad should account for an extra 20-30 million. Still a gap there, but getting closer
"Children want what they want when they want it." ... Andy Sims
Whatever happened to CWebb and the investors that he was trying to work with?
Does anyone know if they’re still involved?
shit forgot
if the loan to the Maloofs is something they require to be dealt with here that would jump it to around a $143 million gap
So basically between $76 million and $143 million without taking into account selling property. The green cards were only talked about as a type of bridge loan (okay absolutely not a bridge loan in the technical sense but I mean to just cover building the sucker while we try to get the property city sold).
Not only did KJ tell the NBA that the Kings can't leave.
But he is also telling them to give him $80 mil so they can stay.
Like a Boss!
by The Guy on the Couch on Feb 8, 2012 2:14 PM PST reply actions
I really hope this arena gets built.
It would be a major let down if we let this slip through our fingers.
pretty sure it's around $67 million now but it's owed really to Goldman Sachs
could be wrong though. I had it on my computer and had to delete it but you can find the documents on the city’s website showing how much in principal they have to pay each year on their loan.
We also know that they had previously maxed out their line of credit with the league when it was set at $75 million and it is rumored they possible maxed out the league’s new line of credit of $125 million (it’s rumored that most of the 19 teams that have used their credit have maxed it out).
Question for someone who really knows their stuff:
Given that the Jibboom Junkyard was a Superfund site directly adjacent to the railyards, and even though since cleanup was completed, it has since been deleted from the National Priorities List by the EPA, couldn’t there be some federal redevelopment grants available for reclaiming a former toxic moonscape?
From the EPA study I looked at, it seems like given that the old junkyard extended slightly east of where I-5 would eventually be (as seen from a 1957 aerial shot)…
The initial Five Year Review was done in 2007, so it would figure that another should be due by the end of the year, and possibly sooner.
I just don’t know a hell of a lot about procedure, and I’d figure someone would have looked into it, but I don’t recall ever reading about it. You’d think between EPA, HUD, and ARRA, there’s got to be some infill development cash, particularly where infrastructure investment is concerned.
I like your Jimmer very much. I do not like your JimmerJihadis™. - Ghandi Sims
Rocks are free, and slingshots easily stolen. And for a limited time, every third person who follows me on Twitter (andy_sims) gets a free ice cream cone.
Which I will eat.
Not really sure where to post this
Wally, thanks for being informed about all the ESC stuff- I can’t make heads or tails of it and really lean on you and a few others to explain it. Props!
Instead of the brick idea...
They could just ask for donations of say $20 minimum. Then when the new ESC is built, just put in a huge plaque with everyone’s name on it that donated right inside the main entrance and call it a “Fan Wall”
Or you could have people buy a small space on this “Fan Wall” and let the fans design whatever they want to put in their square. The more you donate, the bigger the square you get.
"First we get jobs, then we get the khakis, then we get the chicks."
They should do as the SF Giants did.
Outside AT&T, they had bricks put into the cement AND you got a replica for display at your home. I think that’s what I saw at one game there last season. They were pushing hard to sell them, kept a limit as far as how many.
by Scott Section 213 on Feb 8, 2012 4:25 PM PST up reply actions
If people haven't been already, Peaches is having a pretty good show talking about the arena right now.
From what I’ve heard from listeners they’re all pro so far. I think the haters are afraid to call
Yes...and...no.
It is an issue for Sacramento Kings fans. :)
by Scott Section 213 on Feb 8, 2012 4:23 PM PST up reply actions
It definitely is!
But I do think that it’s very important to try and reach those that aren’t Kings fans to get on board, because if people continually see it as a Kings issue, it’ll be harder to get the support needed.
Grant is talking like it’s a done deal though, which I don’t appreciate. Not over yet Grant!
Im crossing my fingers from Hungary guys
Bought a Lottery ticket this week, if i win it, im gonna spend at least half of it for the arena. :)
Yeah i know. Lottery and the Kings in the same sentence. Its not gonna happen.
Testing, testing
Whew!
I read the new Timeout thread and couldn’t post a comment!
I thought I had become the first casualty, which would have been quite the accomplishment considering I haven’t been on in a few days!
The endless pounding.
A hole, blacker than despair.
John Salmons is back.
by twasserm on Jun 23, 2011
I'd never seen that before so I was worried! lol!
All I was gonna say, was that I was excited to see our new Small Forward, because if its nearly half as good as that take, then we will be looking at an All Star Hall of Famer!
The endless pounding.
A hole, blacker than despair.
John Salmons is back.
by twasserm on Jun 23, 2011
Our first test on the new Small Forward did well in terms of skill.
Unfortunately the computer took the word “Small” too literally, and he came out only a foot tall.
Author of NBA Mashups. Follow me on Twitter here.
by Aykis16 on Feb 8, 2012 6:28 PM PST up reply actions 1 recs
No worries, he will probably perform better than the current model.
Asked if the Kings had any intention of trading Cousins, basketball president Geoff Petrie said, "No."
Never forget, I'm a complete idiot.
Follow me on Twitter
Author of Inside-Out Game
by Exhibit G on Feb 8, 2012 9:02 PM PST up reply actions 7 recs
How much capital is actually needed up front to get this started?
Obviously I don’t know much about how public works projects are structured time and money wise, and I’m well aware that they’re not going to just start a project and hope there’s money later to fill in the rest, but we shouldn’t need all of the $406 million up front, right?
Also I imagine naming rights would be a good source of whatever gap money we need to fill, but I don’t know if those are yearly payments or up front. I know the Power Balance sponsorship was cheap, because of the short term nature of the deal, but a longer deal from a more reputable sponsor should probably net us more than we were getting before. And that’s city money this time, and not Maloof money.
We'd need the $406 million up front
don’t know about naming rights because that requires participation with AEG and the Maloofs because they want their split too. Plus, it’s an annual payment not up front (I guess the first year can go to it though).
I have no idea how they usually split up the air rights on these things or if it is even done with most other arenas but would have to think that would have to be figured out too with AEG and the NBA and basically the same.
Either way though, the amount PowerBalance doesn’t mean shit here. They were paying for naming rights of an arena that had the same name for over 20 years (how many people are really going to call it something else after that point) and they knew the Maloofs were in a precarious spot. Nobody was going to pay for those naming rights. Granted it is completely up in the air how much they’ll make on a new arena but the whole PowerBalance thing should in no way be an indicator on it.
there's been a huge change in corporate America about how they decide to do sponsorship deals so it is a bit up in the air
but even the minimum should really be much more money than the PowerBalance one
Is this worded right?
The hotel association has committed to some level of investment via a room fee
I know the Hotel Occupency Tax money was likely pouring into this but this statements reads like $30 some odd million from the hotel association. It’s coming from a room fee?
They are voluntarily putting a surcharge on themselves to provide funding to the ESC, because the know with events that come into this area, they are going to making some decent profits..
Founder of Isaiah as Mogwai..
that's what I thought
but when I read “room fee” it sounded like it was passed on to the customer. That would surprise me a little if that were the case.
I always thought a "fee" was self-assessed and an increase on the tax was directly paid by the consumer
But let’s be real – the fee would most likely be paid by the consumer as well.
Sacramento Kings - helping feed NBA fans across the country since 2011
yeah when I see "room fee" I start wondering "Wait is that the hotels in the area chip in by # of rooms" or "Wait is that an itemized part of the bill for people staying overnight."
would think it would be a little more tricky if it was the second one
Sorry for the unclear wording
Trying to simplify the language from “transient occupancy tax”, which makes eyes glaze over.
sorry for bugging you again
but did you mean to basically write “The hotel assocation has committed to some level of investment via a hotel occupancy tax.” Because pretty sure the whole room occupancy tax thing is very much a separate funding mechanism than what the hotel association is talking about doing.
by wallywagon11 on Feb 9, 2012 10:46 AM PST up reply actions
(as a sidenote)
I fee like we need a damn flowchart
by wallywagon11 on Feb 9, 2012 10:47 AM PST up reply actions
This is true,
but getting these reports out that most (if not all) of the money needed for this ESC is going to be accounted for before the city council votes on the parking lease project may make it easier for the council members to approve it.
Well, theoretically at least.
"First we get jobs, then we get the khakis, then we get the chicks."
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