OT Sacramento looking to finance new arena; UPD NBA rejects relocation to Seattle bid
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03-23-2013, 09:23 PM
Join Date: Sep 2004
Location: North of the Tank
Sacramento Mayor Kevin Johnson has announced the city has reached an agreement on a $448 million deal with a private investment group to build an arena at the Downtown Plaza site.
The city will put $258 million in value into the deal, mainly by bonding against its downtown parking garage future revenues, and by selling several downtown parcels to developers.
The development team will put $190 million into the deal. That team is made of up investment billionaire Ron Burkle, 24 Hour Fitness founder Mark Mastrov, and Vivek Ranadive, a Silicon Valley entrepreneur.
The preliminary term sheet, agreed upon this afternoon after weeks of negotiations, is non-binding, however.
It must be approved by the City Council, a vote that is set for Tuesday night. It is contingent as well on the Maloof family accepting a bid from the investment group to buy the Sacramento Kings.
The Maloofs have already signed a deal to sell the team to a Seattle group. Sacramento officials hope to persuade the NBA to nullify that deal, and push the Maloofs to sell to the group that plans to keep the team in Sacramento.
Includes lease/agreement to keep Kings in Sacramento for 35 years.
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