Sacramento Kings Say They’ll Cover Additional $30 Million Of Arena Project
SACRAMENTO (CBS13) — The price tag for a new Sacramento Kings arena has gone up $30 million, but the team’s owner says he’ll cover those costs.
After months of negotiations, the price tag for the arena is now up to $477 million, but owner Vivek Ranadive says the team will take on the additional costs.
“We are going to be investing an additional $30 million into a practice facility, team office space, and into the plaza itself downtown,” said team president Chris Granger.
While the team invests more in the arena, the value of several city-owned properties the Kings will get as part of the deal has dropped.
“There have been a handful of property changes mainly to the city’s benefit,” Granger said. “The appraised property value the Kings are receiving is about $6 million less than it was in the term sheet a year ago.”
Also in the term sheet was a ticket surcharge, but that is gone now. Now the Kings will just pay a flat fee every year to lease out the arena. The total is a guaranteed $391 million.
“The ticket surcharge was somewhat speculative,” said Assistant City Manager John Dangberg. “If attendance was high we’d do well but if low we wouldn’t do well.”
The city is expected to finalize the arena deal during the May 13 City Council meeting, with a projected opening date in fall 2016.