Mayor Johnson Calls Arena Squabble With Maloofs ‘Very Disappointing’

April 3, 2012 5:01 PM

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SACRAMENTO (CBS13) – The celebratory tone Sacramento Mayor Kevin Johnson expressed over the new downtown arena deal about a month ago has drastically changed after the Kings’ owners say they have no intention on paying anything toward predevelopment costs.

Johnson appeared on “Good Day Sacramento” Tuesday morning, and while he said he expects the City Council to approve moving forward with the arena when it votes at its meeting later in the day, he said he was “very disappointed” in the turn of events.

The Maloofs say as tenants in the new railyards arena that the city would own, they shouldn’t be expected to pay the $3.26 million requested of them in the term sheet for predevelopment fees. Arena operator AEG would kick in another $3.26 million and the city’s share is $6.5 for consultant work prior to the actual construction of the sports and entertainment complex. That work is scheduled to start Wednesday pending a yes vote by the City Council on Tuesday.

“I would say this is slightly abnormal,” Johnson said in an interview with Koula Gianulias on the Good Day set Tuesday morning. “Normally, when you have a partnership and an agreement, everyone is celebrating, working together to get to the finish line. When you come out of Orlando (when the sides met during All-Star Weekend to negotiate a deal), the NBA is on board, the city is on board, AEG is on board. For some reason, the Maloofs are not on board. Very disappointing.”

A Los Angeles-based attorney representing the Maloofs issued a statement Monday night explaining the family’s position.

“The Kings saw the term sheet one week before the deadline and the Kings made it very clear to all parties that we are not going to pay predevelopment fees,” Eric W. Rose said. “That is one reason why we have never signed the term sheet.”

At his press conference Tuesday, Johnson called the Maloof’s disingenuous for saying that predevelopment costs were not part of the agreement.

Johnson was asked if it was time for the city to consider its Plan B, a new ownership group. Billionaire Ron Burkle’s name continues to come up, but the Maloofs have repeatedly said they’re not selling the team. The Maloofs have been asked to contribute $73 million toward the arena, but the NBA had to step in to commit to the first $200,000 in predevelopment money after the family refused to pay it.

“I will make a promise that Sacramento will not be caught flat-footed,” Johnson said on “Good Day.” “That’s what we’ve learned. We thought that all the heavy hurdles were behind us and that we were moving forward. The things that they’re saying publicly is one thing; what they’re doing privately is another, and I think Sacramento deserves much better.

He later added at his press conference that “We as a city won’t be jerked around.”

Kings attorney Rose issued another statement after Johnson’s comments on Tuesday, saying in part: “We do not understand Mayor Johnson’s frustration and instead of projecting, we hope that the mayor and city leaders will address the various issues that we have brought to their attention. We need the city to demonstrate to us that they can meet their own timeline of having a new arena built in time for the 2015 basketball season.”

A Maloof attorney sent the city a letter questioning whether the environmental impact review could be completed in time for the 2015 target date. State Senator Darrell Steinberg issued a statement Tuesday saying that such a process is feasible under AB 900, a bill he authored to help speed up the downtown arena construction.

“The Maloofs seem to be looking for every reason not to proceed as opposed to looking for ways to make it work,” he said in his statement. “With the proper mix of mass transit, energy efficiency, and other objectives there is no reason to believe this project couldn’t meet AB 900 requirements.”

George Maloof said last week that the family was still committed to Sacramento but had several unresolved issues with the arena term sheet. CBS13 tried to talk to Joe Maloof at the Kings’ game Monday night but he walked away from our camera.

Johnson said the sides have two weeks to resolve things and expects some decisions to come out of the NBA owners meetings in New York April 12-13.

“By April 17 we have to pay city dollars,” he said. “We’re not going to spend a city dollar until the predevelopment and everything else is resolved. The finish line keeps moving and that’s what’s disappointing to me.”

Mayor Johnson Calls Arena Squabble With Maloofs Very Disappointing

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I find Mayor Johnson’s crooked teeth very disappointing
Uncle Bob

Another example of the MaGoof brothers being the MaGoof brothers …

Can we get Stern to force the MaGoofs to sell the Kings like MLB forced McCourt to sell the Dodgers?

elliott the Cat

The Ma-goof chumps still owe 30 million fron yester years !

Mayor Johnson should ( Think Big ) About the Sacramento Citizens !

Save the cities tax money, make the Ma-goofs pay Sac back and develop jobs jobs jobs !

AJ

I think they actually owe upwards of 70 million from an old debt to the city.

Phil

This has been an all around circle jerk, and Sacramento and it’s fans are the ones being jerked. Wake up, let’s get rid of the Ma Loof’s and all they stand for.

Yes

So true………………

swim

Can we please finally get rid of these leaches? The King’s lose far more games than win consistently. Why? The Maloof’s sell any player worth their pay for a quick buck. Now they are winging over having to pay 3 million to get themselves a quarter billion dollar arena. They haven’t even signed a promise to keep the Kings here, so you can bet if a better cash cow comes along they are so out of here.
Plain Facts

The “Ma Criminals” have been sticking it to the Sac area and fans for years…why are you surprised when they don’t pony up?? Had the Sac area fans “woke up” and no one bought their season tickets and boycotts these guys, we would be rid of these dead beats and they would be bankrupt!! Stop lining their pockets.
ZenMan

Apparently someone is not receptive to pay any part of a $6,500,000.00 Pre-Development fee to find out whether this Arena Plan will actually work.
I wonder why.
jkarnofsky

I want to see the Maloofs pay Sacramento the money they ALREADY owe before they make any new commitments that they may try to weasel out of..

From what I understand, MLB is not forcing the sale of the Dodgers; it is being imposed by the divorce/bankruptcy courts as the team package is highly leveraged by the soon to be former McCourts. MLB still has ultimate say so to approve the buyers; who are at this point being led by Magic Johnson in a HUGE deal. ($2B+).

The 2 situations are nothing alike; and as far as I am concerned; the Kings and Maloofs can take a long walk off a short pier if the city has to pay anything to keep them here.
rmcsticks

Keven : Pony up and tell the people what’s really in it for you ? Any good major would have sent them packing already !

Jim Moore

Damn right.

WisenCynical

Maloofs need to stay in Vegas.. What happens in Vegas should STAY in Vegas.
Cal

The Maloof’s committed to spending $73M for the new project?…Dont they already owe US $70+ Million? So basically they will owe us over $140M in total….I personally don’t think they have that kind of money.

With that said….If I was just a TENANT of a building (no matter on what scale), I wouldn’t pay a dime for the building to be built either!
Sally

LOSERS and COWARDS get your ugly self out of Sacramento and take your loser drug infested boozers and drug user players with you You all suck
stan atkinson

That money would cut into the Maloof’s cocaine money.
ihatethenannystate

don’t we have more important things to worry about. why would the city council even think about spending money the city DOESN’T have for this garbage!!!

Matt

The city does have it…mostly from profits when they sold the Sheraton.

Mike

The Maloof’s do not care about keeping the team in Sacramento, and if you are one of the fan’s that do then you are just as stupid as them. They want this all to happen only if they get what they want for FREE!

JT

More like AEG is paying more for the arena so it shouldn’t even call the kings arena or Maloofs the Maloofs needs to leave or something if they can’t pay anymore still they still owe money to the City Of Sac so they shouldn’t even say we don’t have to pay the $3.26 million, but i guess AEG is going to pay the 3.26 million dollars.

Tom

Sell this team to Anaheim alreadfy, the MaCrooks have stuck the city with every possible cost and still owe millions, the tax payer is giving them millions so they can become even richer, how’d you like a 3 million $ to help your business? We are doing WITHOUT basics like park maintenance, police officers, firemen and an adequate sewer system. But we have a blank check for Billioniares??? Why is this even being discussed? Vote KJ and the crooked City council OUT!!! They got $ from these crooks, not the voters.
MR BRUTHAMAN

PEOPLE ARE STARVING, HOMELESS, CITY PARKS ARE CLOSED, SCHOOLS ARE IN POOR CONTITION; WHY ARE WE DISCUSSING GOING INTO MORE DEBT. THIS WHOLE IDEA SUCKS, AND MOYOR JOHNSON NEED TO STEP DOWN THAT CAUSE WHERER HE HIE LEADIND US
MR BRUTHAMAN

PLEASE EXCUES MY TYPOS, IM SO ANGRY
K. Johnston

My fellow citizens. I realize a lot of this doesn’t make sense, But s.c.r.e.w you and your Families, I’m here for the ching ching!!
impeach johnson

The taxpayers vote down a proposal to not build an arena TWICE. Kevin Johson decides to sell City owned property to help fiance the Arena and now the city will have to eat over 3 million dollars. Tell me how this is any different than raising our taxes? Kevin Johnson should be finished as mayor after this!
fact check

hey naysayers, did you know the arena deal will bring in outside business, tax revenue and jobs? true story
JT

If the Maloof can’t pay that 3.26 million then why even pay the 73 million to build the arena if they can’t even pay the 3.26 million as it was on the sheet. Okay the Maloof should think that without AEG, NBA, & with City help a little they couldn’t even build the arena, but because of all this teams up thats why plan 1 pass but also without AEG help to put up more money in to it it wouldn’t pass.
Whitey

JT, the Maloofs probably could pay it… I think it’s that they don’t want to pay it. Now go back to school because you can’t write anything well enough to even read.

And so you know… the Maloofs aren’t paying for the arena because it’s not just for the Kings. It’s an entertainment complex for the community. So my advice to you is, SHUT UP until you find out what this is all about.

JT

I already know what it’s all about I’m not stupid. It depend on how they’re going to make this work for some reasons cause lots of people will be losing their jobs at the arena in Natomas, also supposed to create more jobs in to the area, change Sac. future businesses & its economy to a better future. The downtown arena is the only hope right now for Sac. that will start the big change in downtown to keep making more people to come back here to keep businesses from dying out. The arena is one of the key to move ahead in the railyard.

Whitey

Hey, IMPEACH, this is primarily funded with private money… it’s not coming from your $15,000/year salary… so chill.

Fortunately for us there are city leaders that recognize you have to spend some money to make more. Or are you happy with the eyesore railyard? Did you have plans to build something else there?

joe schweddy

actually its coming from parking lots that the city owns…it s just not coming from the general fund…theres an initiative floating around recently trying to put this use of city parking funds to a vote …the maloofs are citing this also…essentially ending the arena dealio…

Scott

How come the people in favor of this project know how to spell and form complete sentences… while the naysayers comments look like they’ve come after a full day of drinking Budweiser in the sunshine?

What does that tell you, sheep?
joe schweddy

does anybody not think now that the maloofs goal is to move the team….?? it cant get any more obvious…..the maloof family has some business to handle amongst themselves…..