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.