Deal Details: Sacramento Contributing $255 Million Toward Arena

SACRAMENTO (CBS13) – The mayor’s office on Wednesday gave CBS13 a first look at a summary of the term sheet that will be released Thursday detailing financing agreements for the new downtown arena.

Among the details: the price tag for the facility in the railyards is now projected at $391 million, up from $383 million.

Also, the city’s contribution, expected to come from leasing out its parking garages, is pegged at $255 million.

The Maloofs, owners of the Sacramento Kings, have agreed to contribute $73 million, and AEG, which will operate the new arena, is contributing $59 million.

Other terms of the agreement include:

  • Developer ICON-Taylor provides cost overrun protection
  • The facility is to be completed by September 2015
  • AEG and Kings sign 30-year leases

AEG, which operates dozens of arenas across the country and worldwide, would share revenue with the city based on:

  • 15 percent of the first $10 million
  • 30 percent of next $5 million
  • 50 percent of any subsequent profits

Mayor Kevin Johnson has stressed the economic impact in pushing for a deal, a framework of which was agreed upon on Monday in Orlando. According to the term summary, building the new arena will:

  • Save 800-1200 Sac Kings jobs
  • Create 3,700 construction jobs
  • Add 400 permanent new jobs

The City Council will review all aspects of the term sheet before voting on the deal during its meeting March 6.


More From CBS Sacramento

Tickets to aftershock now on sale
Follow Us On Facebook
The Taz Show

Listen Live