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New Sacramento Kings Arena Could Be Bad News For Small Businesses

SACRAMENTO (CBS13) — News of a new downtown arena for the Sacramento Kings is a boon for some businesses, but could be a bust for some small-business owners.

A downtown arena is good news for the Downtown Sacramento Partnership—the group that represents property and business owners looking for quality and high-profile tenants to fill property near the proposed arena.

"During this last week, our phones have been absolutely active," said Michael Ault.

Brokers for major retailers are ready to jump in on the action and are looking for buildings.

But small-business owners like Sekaender Alemi, might be squeezed out.

"A lot of mom and pop stores like us are a little scared," he said.

His Plaza Cafe is right across the street from where the arena will be build. He said he had a conversation with his landlord on Monday saying pay your rent on time, or else.

"The owners of the buildings are really strict on the rent because they know people are coming to take our spot."

Ault says building owners are just realizing their opportunities with 10,000 parking spaces, four light-rail stops and the 100,000 employees who already work in downtown.

"What it does now is it gives you an opportunity to be choosy," he said.

As mom and pop owners brace for the city's success, property owners are poised to capitalize.

"Property owners are already reaching out to us and saying 'I've got an existing tenant in here, their lease comes up a year from now. What are some of the things I could be looking at.'"

There is no guarantee those small businesses will be pushed out, but they may want to come up with a plan B.

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