In less than two weeks, the city council will conduct its final vote on the deal that will place an arena downtown and guarantee that the Kings will be in Sacramento for at least three decades.
On Tuesday, May 20 the council will be voting on a wide range of subjects, from the arena design, to the master lease for billboards, to the environmental impact report.
Here is one of the main resolutions outlined in the city's Report Summary:
"This resolution includes agreements that establish the legally binding terms and conditions for the design, development, operation, management, maintenance, and funding for the new arena. It also includes a 35-year non-relocation agreement for the Sacramento Kings, the transfer of City-owned property, including the 100-acre Natomas site, three parcels in the Downtown area, and several parcels in and adjacent to Downtown Plaza. Two of the agreements address the management and operation of the Downtown Plaza garages."
The final vote was originally slated for May 13. So what was the short delay about? According to The Sacramento Bee, there were some negotiations to be had between the city and the Kings over safeguarding certain aspects of the deal.
The city will be giving the Kings an initial loan to be paid back in a few months. Here is the Bee.
"One new wrinkle that's emerged in recent weeks: The city will loan the Kings around $12 million from its risk management fund to cover permits and fees that the team has to pay before construction begins. The Kings will repay the loan this fall, Dangberg said."
The city's Report Summary also spells this out:
"The loan covers the costs associated with building permit application fees and development impact fees that are due to the City and outside governmental agencies such as the fees to the school district, Sacramento Area Flood Control Agency, etc. As set forth in the Arena Finance, Escrow and Disbursement Agreement (AFEDA), the loan will be repaid in full by SBH [Sacramento Basketball Holdings LLC] once its financing is in place shortly after the guaranteed maximum price (GMP) contract in the fall of 2014."
The arena is slated to cost $477 million with the city contributing $255 million and the Kings contributing $222 million. The team also spent $36 million to purchase Downtown Plaza. As we discussed last month, the Kings also will be making $6.5 million annual lease payments (which is more than the original term sheet called for) toward the city for the first five years of the arena's life, and that will increase to nearly $18 million a year by the arena's 35th birthday.
"Today marks another important milestone in our partnership with the city of Sacramento," said Kings President Chris Granger in a team statement. "We thank them for their efforts and look forward to presenting final details of this extraordinary project to the Mayor, Council and public on May 20th."
The demolition process of Downtown Plaza could begin as early as May 21. The demolition will take place over an extended period of time and include taking down approximately 857,943 square feet of existing retail/commercial and office space. The new arena will be 779,000 square feet with a seating capacity of 17,500. In addition, there will be 82,000-square-feet for the practice facility and team operations, as well as 1.5 million square feet of retail/commercial, office, hotel and residential space.
The May 20 vote at City Hall (915 I Street) is going to be one for the ages. This project, this city and this fan base went through so many ups and downs over the last three to four years. Undoubtedly, it will be a spirited and emotional night as the council members discuss the deal with the public and then decide on whether to put the final stamp of approval on the project. Will you be there?
It's so close y'all.
(Coincidentally, May 20 also is Draft Lottery Day!)
To view all of the arena documents leading up to the meeting, click here.