Founder's Letter: June
From June 2005
Community Comments
Joe and Gavin: Are You There?
It takes teamwork and leadership to win in the NBA,the same attributes necessary to get an arena deal done for Sacramento. But when the Maloofs don’t bring their best game to the negotiating table, the consequences are as severe as Mike Bibby having a bad night.
How can a winning solution be found to build a new destination arena that will anchor a downtown revitalization effort and stimulate significant other capital investment?
From what I read and hear, city and county officials are to be commended to a certain extent for their effort to forge a public/private partnership to finance the new arena. Both Mayor Fargo and Sheriff Blanas risked and spent political capital to get an arena deal. Hats off also to the group of Natomas landowners who extended a business idea that always works: Something for you and something for me.
Sacramento has an offer of 20 percent of the Natomas developers’ future profits, if a little fudging is allowed on when they can develop the land. The landowner offer is a real opportunity. These developers are to Sacramento what big banks are to Charlotte, N.C. They each pledged $100 million towards Charlotte’s future arena. Certainly the developers’ offer is an offer that can’t be refused.
My guess is that the landowner contribution could represent roughly $225 million, ($26 million more than the new arena built for the Memphis Grizzlies). Plus, the Sacramento City Council pledged $135 million for a downtown arena. Together that’s roughly $360 million; $100 million more than the cost of the new Charlotte facility. Why this is not a done deal already, shocks me.
Like Los Angeles, Dallas, Phoenix and now Charlotte, a downtown arena in Sacramento could be a catalyst for transportation innovation, infrastructure enhancement and development in sync with the dictates of smart growth.
What’s missing?
The ownership of the Kings! The brothers Maloof manage to take a leadership role in a possible NBA All-Star game invitation for Las Vegas, but act like wounded lambs in arena discussions.
Continued...
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Community Comments