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Deal Details: Sacramento Contributing $255 Million Toward Arena

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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.

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