SACRAMENTO (CBS13) – There’s no new downtown arena in the works and now there’s been an $18 million downgrade to Power Balance Pavilion.
That’s how much the value of that property in Natomas, home to the Sacramento Kings, has dropped in the past year alone, according to Sacramento County.
It’s a whole different kind of loss at home. This time the Sacramento County assessor is keeping score
Records show in the last year Power Balance Pavilion has lost $18 million dollars to the current value of $29 million for the parcel the arena sits on. Last year the county assessor listed its value at $47 million before the Maloofs appealed and the county settled on $38 million.
Opened in 1988, it hasn’t been renovated once. Its disrepair over time is widely documented. The roof has had leak problems. Some of the seats sit on wooden risers.
Kings co-owner George Maloof brought up the idea of a remodel instead of putting money into any new arena deal.
“Maybe if this can’t work, why not look at redoing Power Balance arena, the existing facility?” he suggested during the NBA Board Of Governors meeting in New York a few weeks ago, when the Maloofs revealed they weren’t planning on going through with the downtown arena project. “A lot of our customers, most of out customers, enjoy going to Power Balance.”
But City Councilmember Angelique Ashby, who represents Natomas, says a remodel won’t even be legal because of federal flood zone regulations, let alone finding the money to pay for it. Mayor Kevin Johnson said the city has no intention of using public funds on a Power Balance renovation project..
“Here’s the rule. If the value of the renovation is greater than 50 percent of the value of the total property, then you cannot get that restoration permit,” Ashby explained.
Rebuilding the arena would require new suites, a new loading dock, a new kitchen and other upgrades.
“Any combination of that would most assuredly cost us more than 50 percent of the value of the property at this point,” she said. “So they would be barred under the current moratorium from the city of Sacramento.”
After $18 million in value lost in a single year, the cost appears too steep for a sudden comeback.