City Council accepts Sonics letter of intent

[metro]

Council accepts SuperSonics’ letter of intent for consideration
Journal Record
March 19, 2008

OKLAHOMA CITY – The City Council accepted for consideration a letter of intent from the owners of the SuperSonics basketball team to relocate to Oklahoma City on Tuesday, but some council members expect details of the team’s lease will need refinement.

The letter, signed by Clay Bennett of the Professional Basketball Club LLC owners, outlines the team’s expectations for a lease with the city to operate out of a massively renovated Ford Center and a new practice facility. City residents recently passed a 15-month, 1-percent sales tax to fund about $120 million in upgrades to the downtown arena to get it up to NBA standards.

“I was assured by the consultants that this lease is a good one by comparison to other cities, and so I’m satisfied that Tom did as good a job and Jim did as good a job as we could possibly have done with regards to negotiations,” Councilman Pete White said, referring to the efforts of Special Projects Manager Tom Anderson and City Manager Jim Couch. “But for my point, I want to be on record in realizing that there are things in this that will come up later.

”For example, White said, “I don’t think anyone should be surprised if we find out that naming rights are going to be worth substantially more. … It’s going to be a very, very large number. And there may be naming rights possibilities available for the practice facility that I at first kind of discounted as not likely. But I believe now that it is likely, that one way or another … there may be value there.”

Bennett’s group has proposed that the team pay $1.64 million in annual rents to use the arena, or $40,000 per game for 41 regular-season games, and additional rent of $40,000 for each home game outside the normal season. Extra fees will be paid for game-day expenses above established benchmarks.

The team would also pay the city $409,000 annually to approximate the income expected from current arena naming rights with Ford Motor Co., but the Sonics will be allowed to capture any additional revenues from new naming rights contracts.

The team will pay an annual rent of $100,000 for the use of a new practice facility built specifically for the Sonics. “We’re really striving very hard, I think, to make this a break-even thing with regards to the city, to make it where the city doesn’t have to pay,” White said. “Each step of the way we need to know what we’re doing.”

Anderson told council members contract details will be fleshed out in the final agreement. Council members are scheduled to act on the proposal at their next meeting, March 25, the same day an executive committee from the NBA will visit the city to look at the arena and talk with officials about the potential move. The NBA’s board of governors is expected to decide the issue April 17.

[JWil]

Man, Apr. 17th will be here before we know it. Can't wait!