Seattle City Council backs deal to build NBA arena

[stick47]

Seattle City Council backs deal to build NBA arena
By GENE JOHNSON (Associated Press) | The Associated Press – 54 minutes ago
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SEATTLE (AP) -- Efforts to bring the NBA back to Seattle took a giant step forward in a revised arena deal announced Tuesday, with investor Chris Hansen agreeing to kick in more money for transportation improvements near a proposed new arena, personally guaranteeing the city's debt - and offering to buy everyone a beer.
The plan for the $490 million arena, which could also host an NHL team, represents the best shot at bringing the NBA back to Seattle. The SuperSonics ended their 41-year run here in 2008 and skipped town for Oklahoma City, where they became the Thunder.
Though formal votes are still required, Tuesday's announcement effectively gave Hansen, a San Francisco hedge-fund manager, and his fellow investors, including Microsoft CEO Steve Ballmer and Peter and Erik Nordstrom, of the department store clan, the green light to begin shopping for an NBA team.
The deal calls for $200 million in public financing to be paid back by arena-related taxes and rent. Under new terms announced by the City Council, Hansen would double to $30 million the reserves required to be kept on hand in case the arena's finances don't perform as expected.
Should the reserve run dry, Hansen would cover the balance himself. He agreed to be independently audited to assure that he's worth at least $300 million.
And at the end of the 30-year use agreement for the new arena, the city could force Hansen to buy it back for $200 million or make him pay to have it torn down should the team move on.
The three City Council members who announced the deal said the new terms mark a significant improvement for taxpayers over the original deal reached between Hansen and Mayor Mike McGinn in May. A council committee is expected to vote on the agreement Thursday, and the full council could vote as early as Monday. The King County Council already approved the earlier deal but would have to approve the changes as well.
''This agreement could fundamentally change the model of how public-private partnerships involving sports franchises are structured,'' said Councilman Tim Burgess.
Hansen, a Seattle native, early Facebook investor and big Sonics fan, said the talks were difficult, but that he was happy to be able to find common ground with the council. He thanked the fans who supported him through the process, and - though not actually part of the deal - he offered to buy a celebratory beer for anyone who shows up on Thursday evening at FX McRory's, a bar near the planned site of the arena.
The initial plan for the deal drew objections from the Port of Seattle, which expressed fears that putting a third sports facility in the neighborhood south of downtown - next to the Seahawks and Mariners stadiums - would choke crucial transportation corridors that support 30,000 jobs in the region and generate $3 billion in annual revenue.
The new agreement calls for $40 million to be put into an account to improve the mobility of freight in the area, an amount state Rep. Judy Clibborn described as a down payment that could be used to recruit further investments from the port and other organizations.
The port issued a statement Tuesday saying it would review the deal. The statement said the Port of Seattle Commission appreciates the council's efforts to revise the original proposal to respond to concerns.
The deal also includes $7 million in new money for KeyArena, where the Sonics used to play. The city would have sole discretion over spending that money.
Kris Brannon, a fan better known as ''Sonics Guy,'' attended the news conference decked out entirely in Sonics yellow and green.
''I'm just overjoyed,'' he said. ''Chris Hansen is just like us. He's a fan, and he wants to bring basketball back to Seattle.''

[MonkeesFan]

Seattle City Council backs deal to build NBA arena
By GENE JOHNSON (Associated Press) | The Associated Press – 54 minutes ago
Email

SEATTLE (AP) -- Efforts to bring the NBA back to Seattle took a giant step forward in a revised arena deal announced Tuesday, with investor Chris Hansen agreeing to kick in more money for transportation improvements near a proposed new arena, personally guaranteeing the city's debt - and offering to buy everyone a beer.
The plan for the $490 million arena, which could also host an NHL team, represents the best shot at bringing the NBA back to Seattle. The SuperSonics ended their 41-year run here in 2008 and skipped town for Oklahoma City, where they became the Thunder.
Though formal votes are still required, Tuesday's announcement effectively gave Hansen, a San Francisco hedge-fund manager, and his fellow investors, including Microsoft CEO Steve Ballmer and Peter and Erik Nordstrom, of the department store clan, the green light to begin shopping for an NBA team.
The deal calls for $200 million in public financing to be paid back by arena-related taxes and rent. Under new terms announced by the City Council, Hansen would double to $30 million the reserves required to be kept on hand in case the arena's finances don't perform as expected.
Should the reserve run dry, Hansen would cover the balance himself. He agreed to be independently audited to assure that he's worth at least $300 million.
And at the end of the 30-year use agreement for the new arena, the city could force Hansen to buy it back for $200 million or make him pay to have it torn down should the team move on.
The three City Council members who announced the deal said the new terms mark a significant improvement for taxpayers over the original deal reached between Hansen and Mayor Mike McGinn in May. A council committee is expected to vote on the agreement Thursday, and the full council could vote as early as Monday. The King County Council already approved the earlier deal but would have to approve the changes as well.
''This agreement could fundamentally change the model of how public-private partnerships involving sports franchises are structured,'' said Councilman Tim Burgess.
Hansen, a Seattle native, early Facebook investor and big Sonics fan, said the talks were difficult, but that he was happy to be able to find common ground with the council. He thanked the fans who supported him through the process, and - though not actually part of the deal - he offered to buy a celebratory beer for anyone who shows up on Thursday evening at FX McRory's, a bar near the planned site of the arena.
The initial plan for the deal drew objections from the Port of Seattle, which expressed fears that putting a third sports facility in the neighborhood south of downtown - next to the Seahawks and Mariners stadiums - would choke crucial transportation corridors that support 30,000 jobs in the region and generate $3 billion in annual revenue.
The new agreement calls for $40 million to be put into an account to improve the mobility of freight in the area, an amount state Rep. Judy Clibborn described as a down payment that could be used to recruit further investments from the port and other organizations.
The port issued a statement Tuesday saying it would review the deal. The statement said the Port of Seattle Commission appreciates the council's efforts to revise the original proposal to respond to concerns.
The deal also includes $7 million in new money for KeyArena, where the Sonics used to play. The city would have sole discretion over spending that money.
Kris Brannon, a fan better known as ''Sonics Guy,'' attended the news conference decked out entirely in Sonics yellow and green.
''I'm just overjoyed,'' he said. ''Chris Hansen is just like us. He's a fan, and he wants to bring basketball back to Seattle.''

Good news for Seattle but will it be a expansion team or will the Kings move to Seattle?

[betts]

It is good news for Seattle. I don't think much of the city council though. Chris Hansen had already promised them more than I think he should have. They clearly only want sports teams on their terms, and I'm surprised anyone cares enough to give them one. Seattle is a nice sized market, but it's not massive. Their last television contract was smaller than the Salt Lake City NBA contract. I wish them well, but I think there's an attitude of entitlement that isn't deserved.

[adaniel]

It is good news for Seattle. I don't think much of the city council though. Chris Hansen had already promised them more than I think he should have. They clearly only want sports teams on their terms, and I'm surprised anyone cares enough to give them one. Seattle is a nice sized market, but it's not massive. Their last television contract was smaller than the Salt Lake City NBA contract. I wish them well, but I think there's an attitude of entitlement that isn't deserved.

I agree. Chris Hansen just got ripped off by the city of Seattle. He may want to skip on buying folks beers because he'll probably need another $300-400 million just to purchase the team. Of course, that's assuming the always unpredictable Maloofs even sell the Kings to him.

[Snowman]

Good news for Seattle but will it be a expansion team or will the Kings move to Seattle?

By most accounts the league is not expanding, though the Kings are certainly the most likely it is no way sure, they have made statements they will be buying a team so it depends on who they can buy and move at a cost they are willing to pay.

[Laramie]

Don't look for Seattle to be getting an expansion or relocation team anytime soon. Sacramento Kings would go great with Seattle's King County. If the Sacramento fanchise were to relocate it wouldn't move very far. Larry Ellison in San Jose would be the next person in line for a Kings relocation; then, there's Anaheim. The Maloofs would sell to Ellison; he has the money and an arena already in San Jose. There are not too many state capitals with NBA franchises: Atlanta, Denver, Indianapolis, Oklahoma City, Phoenix and Sacramento. Let's keep the Kings in Sacramento.

[Bellaboo]

It is good news for Seattle. I don't think much of the city council though. Chris Hansen had already promised them more than I think he should have. They clearly only want sports teams on their terms, and I'm surprised anyone cares enough to give them one. Seattle is a nice sized market, but it's not massive. Their last television contract was smaller than the Salt Lake City NBA contract. I wish them well, but I think there's an attitude of entitlement that isn't deserved.

The entitlement attitude is exactly what they have, I went out to ESPN and read this story earlier today, and the people from Seattle are the most obnoxious there is. They hate us with a passion, claiming KD wants to come back if they get a team, etc and on and on....a bunch of crap. They think there is about 5 teams out there that would break there backs to move to Seattle.....and by the way Seattle, Nick Collison sold his house in Seattle this summer, he has left the area.

Reading those comments will make you mad.

[dankrutka]

Most people in Seattle don't care nearly enough to hate OKC. It's a vocal few. I love the city of Seattle and the people have always been great. Let's move on...

[kevinpate]

Most people in Seattle don't care nearly enough to hate OKC. It's a vocal few. I love the city of Seattle and the people have always been great. Let's move on...

Probably every bit as true as noting that you can't judge the pulse of most Oklahomans based on the comments you will daily find over at newsok.com
(and might I add, THANK GOODNESS!)

[MikeLucky]

I was in Seattle right after the move of the Sonics to OKC was announced... During my 5 days there I encountered ONE person that said ANYTHING about the team moving. And, I was there for an OU football game so it was pretty obvious I was from Oklahoma the whole time I was there.

From what I've seen there is a small vocal minority that is upset the Sonics are gone. They are VERY vocal and VERY upset so it seems to make it a larger sentiment than it really is.

[dankrutka]

I was in Seattle for the OU game also and never heard a word about it from anyone.

[dcsooner]

most people in seattle don't care nearly enough to hate okc. It's a vocal few. I love the city of seattle and the people have always been great. Let's move on...

agree!

[Laramie]

Your take on Seattle is correct! It's definitely a 'vocal few' who can't seem to get over the fact that the Thunder have left Seattle and that the team is doing quite well in Oklahoma City.

Seattle like most major metropolitan areas will rebound when they build something (venue) capable of supporting and sustaining an indoor major professional franchise (NBA, NHL).

We wish them well!

[Roadhawg]

I was in Seattle right after the move of the Sonics to OKC was announced... During my 5 days there I encountered ONE person that said ANYTHING about the team moving. And, I was there for an OU football game so it was pretty obvious I was from Oklahoma the whole time I was there.

From what I've seen there is a small vocal minority that is upset the Sonics are gone. They are VERY vocal and VERY upset so it seems to make it a larger sentiment than it really is.

Wonder if that was the small minority that actually went to the games and supported the team.

[Bellaboo]

Wonder if that was the small minority that actually went to the games and supported the team.

I've read that Key Arena was only 14,000 capacity and in the last few years, they had very few sellouts due to the team not being very good.

[ljbab728]

I've read that Key Arena was only 14,000 capacity and in the last few years, they had very few sellouts due to the team not being very good.

You've read wrong. The basketball capacity was just over 17,000. Attendance was weak though.