Task Force Releases Plan For New Downtown Arena


SACRAMENTO (CBS13) — A task force established by Sacramento Mayor Kevin Johnson is recommending a three-tiered plan to raise nearly $400 million to build a downtown arena, a key step in the city’s efforts to keep the NBA’s Kings.

The plan, called the Nexus Report, announced Thursday by Think Big Sacramento at the Sacramento Press Club, calls on contributions from the private sector (Kings owners and developers), the public (city of Sacramento) and the fans who visit the arena.

The plan gives a menu of financing options to build an entertainment and sports complex at the abandoned railyard near downtown, with the NBA franchise as the primary tenant.

“They said they prefer to be a tenant, so once we heard they want to be a tenant, we have to build a financial model that takes that into consideration,” Johnson said of the Kings.

The group plan proposes combining user fees with public money and private investments to generate $387 million without broad tax increases. A 2006 ballot measure for a new arena relying on a sales tax increase failed miserably at the polls.

“We put taxpayers first,” Johnson said. “We heard what they said.”

Johnson also said the plan could generate more than 4,000 jobs.

The plan calls on funding from such things as ticket and concession surcharges, land and parking space sales by the city of Sacramento, naming rights and other sources.

Private costs for the arena were pegged at $91 to $156 million, the public contribution $94 to $123 million and arena use fees at $90 to $121 million.

The Kings would be expected to pay to lease the new arena, although how much specifically wasn’t clear.

No one from the Maloof ownership group attended the meeting but they posted a statement to the Kings’ website stating:

“The Kings organization views the Nexus Report as a very positive step toward the goal of a new entertainment and sports complex that will bring substantial economic benefits to the entire region and we hope will enable the team to continue playing in Sacramento. We were pleased with the report’s conclusion that funding for the project can be achieved using various revenue sources, none of which involve any broad-based tax.

“We look forward to continuing to work with all interested parties to bring the project to completion.”

The NBA declined to comment, referring to the Kings’ statement instead.

The NBA has given Sacramento until March to come up with an arena financing plan or it will consider allowing the Kings to relocate. The Maloof ownership group flirted with a move to Anaheim after last season, but the NBA owners never voted on the relocation after NBA Commissioner David Stern stepped in and said Sacramento should be given the chance to keep the team.

Johnson’s presentation at the NBA Board of Governors meeting was key to giving Sacramento more time to come up with an arena plan.

The plan will be presented to the City Council next week.

(The Associated Press contributed to this report.)

Comments

One Comment

  1. DC says:

    Downtown has been a dump for so long now that it might as well be declared a disaster area.

  2. Heather says:

    So now KJ is going to call the TAXES FEES….It’s still the same thing, in disguise…..The Kings’ owners and the NBA should pay for it ALL! NOT US!

    1. MR916 says:

      thats where u are WRONG!! this has NOTHING to do with the Kings, and everything to do with the city!!!! The sacramento Kings will ONLY USE THE ARENA 42 days out of a 365 day year!!!! meaning that there is 323 more days the arena will be used for something else!!!!!!!! its not a “Kings Arena” it is a “Entertainment Arena” for the city!!! without it, ppl like myself will have NOWHERE to take there kids to see circuses, or concerts, or anything to that matter!! People like you need to understand that, and stop thinking its all about the kings!!!!

      1. Matt says:

        MR916 is correct! I must add Heather is an Idiot!

    2. Joe says:

      borrow 400 dollars for 42 years at 5% interest. Pay back the loan at 30 dollars and you pay 1,200 dollars. Your loan plus interst would be about 900 dollars, so you are to the good for 300 dollars.

      Translate the 400 into millions and if a million Sac area people just drive by and marvel at a beautiful iconic building in their area and are willing to pay 30 dollars each for 42 years.

      You can have the pride in sharing to own a new entertainment facility for the Sac area.

  3. JoeB says:

    “We put taxpayers first,” Johnson said. “We heard what they said.”…(so we’ll call the new taxes ticket and concession surcharges…the public’s stupid and will never notice… )

    1. MR916 says:

      Ummmmm HELLO…………… u pay surcharges ANYTIME u go visit other cities, and rent hotel rooms, cars, buy tickets, ANYTHING!! so whats wrong with u paying that in your own city??? and its NOT LIKE you will be paying those sur charges anyway, its not like u are Renting cars, and hotels IN A CITY U LIVE IN!!! duh!!! smh!

    2. Matt says:

      Aren’t user surcharges the fairest way to go? You go to an event you contribute to the arena. What could be better than that?

  4. Beth says:

    Last time I checked we are in a recession. We don’t have money to build the Maloofs a new arena. Sacramento is a government cowtown. It’s what we are and will always be. Stop with we need tax dollars/fees to build it. It’s just a ploy to bring money to city to be used on social programs for lifes losers. Let the Kings go to Anaheim.

    1. Matt says:

      No, recession is over. Let the good times roll!!! Build the arena!

  5. Whitey says:

    Thanks, Heather… there’s nothing more productive than an uneducated opinion. And Joe, you must be married to Heather.

    Beth, do us a favor and get some understanding before you comment. Did you even read the article? It’s not a new arena for the Maloof family. It’s a venue that will generate revenue by several ways and means. Not just basketball. Spend $10 to make $100.

    Instead of peering out your mini blinds, afraid to see anything beyond today, try opening the door and actually walking outside. It’s the 21st Century here.

  6. Chris Webber Jr. says:

    Either way Kings Suck !

    Raiders Suck !

    Niners Suck

    Giants Suck

    A’s Suck

    Golden State Sucks !

    1. Matt says:

      Who’s your team(s)???

  7. Jerry says:

    Heather, you obviously don’t know what your talking about. They are planning to mainly tax hotels and raise fees for people who actually go to the game. Don’t post anything if you don’t know what your talking about.

  8. Jerry says:

    Ohh and by the way, this doesn’t concern the people who don’t want an arena built; go do yourselves a favor and really educate yourself on the whole issue because even for the people who don’t care about basketball, you won’t be affected by this. THAT GOES FOR HEATHER AND BETH

    1. done with sac idots says:

      When the arena is built, I better not see Heather and Beth there for anything. Including graduation ceremonies, concerts, conferences, circuses, etc. What a bunch of self centered idiots there are in this town. Don’t forget about the number of jobs this will bring to building the arena. I better not see their better halves out there with the construction of the new arena….

  9. DU1-jhd says:

    I agree with Jerry. The public funding measure has no impact on individuals who do not attend any events that uses the arena as venue. And i think most major cities has been charging surcharge on tickets, hotels, etc. If you go to disneyland and book a hotel within the vicinity, do you ever complain about the hotel surcharge on your bill? If you rent a car at the airport, do you throw a fit if you see an airport surcharge? I don’t think so. People, open your minds and get real. This project will do nothing but revitalize the region and give the regional economy jolt that it badly need.

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