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.

Comments

One Comment

  1. kingsfan says:

    outstanding, win win for everyone involved. congratulations sacramento!

    1. Yes says:

      Bend over “kingsfan” and take it like a man……….

  2. KINGS FANS ARE LOSERS says:

    SERIOUSLY, DO WE REALLY NEED THIS NEW ARENA SO WE CAN MAKE A BUNCH OF REDNECK, LOW IQ SPORTS FANS HAPPY? THIS ARENA WILL N OT BENEFIT THE ENTIRE COMMUNITY. JUST ASK THE COPS AND FIRE FIGHTERS WHO PUT THEIR OWN LIVES AT RISK TO SERVE YOU AS THEY ARE ABOUT TO GET LAID OFF BECAUSE OF THE LOSS OF PARKING REVENUE FOR 50 YEARS. I HOPE THE CITY COUNCIL WILL PUT THE NEEDS OF THE CITY BEFORE A NEW AREANA. IF YOU WANT JOBS, THEN ATTRACT CORPORATIONS THAT ARE WILLING TO RELOCATE HERE WITH NEAR ZERO TAXES AND VERY LITTLE REGULATION. THAT’S HOW SAC CAN BECOME A WORLD CLASS CITY.

    1. Jeremy A Kings fan since 99 says:

      To the person who commented on the top with such ignorance; this arena will help keep our major sports team, a place for families and people to have fun and that is positive so they stay out of trouble. I would bet money crime rates would go up if the Kings left this city, and that would make it even tougher for your fire fighters and police. My mother works for the police dept. and my uncle is a chief fire fighter, they both support this arena. You know why? Because they are educated about it and how it will provide economic growth in our city.

    2. Jeremy A Kings fan since 99 says:

      You absolute moron have you even researched any of this deal?

      There is a surcharge on tickets and anything sold at the arena to take place of the parking revenue. Get your information straight before you make ignorant comments about OUR team. Get lost.

  3. Whitey says:

    Kingsfansarelosers… why are you such an uneducated D-bag? New corporations would have come by now if there was reason to, you moron, but it hasn’t happened. This new arena brings more than basketball… but you can’t see that, can you? By the way, the police and fire endorse this arena deal so why don’t you just go away?

    1. Jeremy A Kings fan since 99 says:

      You go Whitney, here is somebody that gets it.

  4. Denise says:

    RE: Ammo tranportation.
    Are these people new to our area, naive,living in a bubble or all of the above? How do they think munitions have always moved? Would you rather have trucks on our roads?

  5. Suzi Johnston says:

    My question is this: Are the Maloofs contributing $73 million on top of the money they STILL OWE Sacramento? If not, there’s something wrong here. Sure, I’d like to have professional sports here for the Greater Sacramento Valley, but at what cost to us? I can’t afford to go to Kings games. Once the Maloofs pay back the money they borrowed how many years ago, I might feel more excited about this. However, I don’t think a “world class city” is built because they have one professional sports team. Just my two cents.

    1. Jeremy A Kings fan since 99 says:

      Yes the Maloof’s are contributing 73 million plus the other 75 million they owe the city, so all together about 150 million. And to all of those against the arena, you really need to open your eyes and realize that after 10 years this arena deal will help build are city back to where it needs to be. To the person who commented on the top with such ignorance; this arena will help keep our major sports team, a place for families and people to have fun and that is positive so they stay out of trouble. I would bet money crime rates would go up if the Kings left this city, and that would make it even tougher for your fire fighters and police. My mother works for the police dept. and my uncle is a chief fire fighter, they both support this arena. You know why? Because they are educated about it and how it will provide economic growth in our city.

      1. Yes says:

        Jeremy A Kings fan since 99, that’s a long time being a loser…….

  6. Rollin says:

    Wrong the MaLoofs are not contributing any money, they are being financed by the city. There share will come just like the 75 million they already owe the city.

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