Sacramento Kings Arena Hits Snag over Pre-Development Costs
On March 6th, the city of Sacramento and the Sacramento Kings came to an agreement on a term sheet that would outline the financial parameters for a new sports and entertainment facility.
Getting a new arena approved and built in Sacramento was something that many were doubting would ever come to fruition. Mayor Kevin Johnson called it "a historic day."
Now, a little over three weeks after the agreement was announced, it seems as if the city of Sacramento and the Maloofs (the owners of the Kings) hit a snag in the project.
The Kings released a statement through team spokesman Kevin Rose in which they contend that, "The team should not be responsible for the predevelopment expenses. That has been the position of the Kings from the start."
Meanwhile, the city of Sacramento feels that the Kings owners agreed in principle to pay $73.25 million "toward development and construction of the (arena)," according to the term sheet. The document states, "such amount shall include pre-development expenses paid by the Kings ..."
The city and the Kings have yet to resolve their disagreement. But in the meantime, the NBA has agreed to advance the city roughly $200,000 for pre-development costs, in order to keep the arena project moving in the right direction.
A statement released by NBA commissioner David Stern states that, "Those discussions have stalled, but I have advised Mayor Johnson that the NBA will advance pre-development expenses on behalf of the Kings pending our report to the NBA Board of Governors at its meeting on April 12-13."
Stern's decision to front the city the money couldn't have come at a better time for the project. That's because Sacramento officials are postponing any expenditure of city money until the issue is resolved.
The money fronted by the NBA should last the city until April 17th, giving the NBA Board of Governors enough time to review the issue at the aforementioned meeting on April 12-13.
"We need some assurance that we really have a deal before we spend the city's money," said Councilman Steve Cohn, a major backer of the arena project.
But Cohn was comfortable with the contingency plan. "If we're only spending the NBA's money, that's fine," he said.
We'll have to wait and see what happens at the NBA Board of Governors meeting, but it's hard to believe the deal would collapse over a disagreement on $3.26 million when the total cost of the project is expected to be $391 million.
After all, the Kings are, "100 percent focused on Sacramento and getting a deal done in Sacramento," according to George Maloof. "No one's trying to kill the deal—it's part of the negotiations."
Read more here: http://www.sacbee.com/2012/03/31/4380419/amid-impasse-sacramento-puts-off.html#storylink=cpy
Read more here: http://www.sacbee.com/2012/03/29/4376882/new-arena-troubles.html#storylink=cpy
Read more here: http://www.sacbee.com/2012/03/29/4376882/new-arena-troubles.html#storylink=cpy
Read more here: http://www.sacbee.com/2012/03/29/4376882/new-arena-troubles.html#storylink=cpy
.jpg?w=600 "Colts Release Kenny Moore")
