SACRAMENTO (CBS13) – The first setback in the downtown arena deal has surfaced this week, with the Sacramento Kings owners saying they shouldn’t have to pay more the $3 million in predevelopment costs.
The Maloof family says it shouldn’t have to pay $3.26 million, a 25 percent share of the $13 million in predevelopment fees because the Kings will just be a tenant in the new railyards sports and entertainment complex that the city will own.
The term sheet the City Council approved earlier this month calls for the city to pay half the predevelopment cost, with arena operator AEG and the Kings splitting the rest.
The Maloofs agreed in principle three weeks ago to contribute $73 million “toward development and construction” of the $391 million arena, but the family says the predevelopment cost has been an outstanding issue.
George Maloof told the Sacramento Bee that it doesn’t mean the family is backing away from the deal but that it has some questions for the city and proposed arena operater AEG.
The city couldn’t be reached for immediate comment.
The city has set a fall 2015 target date for completing the arena.