[wburg]

Indeed--the original parking contract was based on the added revenue from arena parking, which is why the parking contract never would have worked with the term sheet. But no, jsf8278, the Maloofs (their predecessors actually) don't owe that money to the city--they owe it to Goldman Sachs, who bought the bonds. If they fail to pay off the bond, the city of Sacramento has to pay off that $60 million--and in return they would get the arena property and a $25 million share of the Kings (and, currently, the arena property is worth less than $60 million.

There are some potential positives--like the idea of forming a downtown parking authority to divert parking revenue to reinvestment projects, especially the sort that bring private reinvestment.