Arena backers celebrate deal to replace Arco
Sacramento Business Journal - 12:55 PM PDT Fridayby Kelly JohnsonStaff writer
In a pep rally-type atmosphere in the sweltering heat Friday, the owners of the Sacramento Kings, local elected leaders and others with a stake in a new sports and entertainment complex celebrated an agreement to replace Arco Arena.
At the dusty downtown railyard, the speakers said the agreement for a public-private partnership to build a new arena on the site -- if voters support a quarter-cent sales-tax increase in November -- would allow for further investment in Sacramento's urban revitalization and the region as a whole.
Among the crowd were supporters holding "We (heart) the Kings" and similar signs, and wearing Kings T-shirts.
County Supervisor Roger Dickinson, who helped negotiate the new arena agreement, spoke with passion akin to a preacher. Surrounding him were elected leaders from other communities in Sacramento County, and the railyard development representative, Suheil Totah of Thomas Enterprises Inc.
City and county elected officials announced Thursday that they and the Maloof family, owners of the Sacramento Kings, the Monarchs and Arco Arena, had agreed to terms for funding a new 18,000-seat arena, preferably in the railyard.
The Maloofs were not in town for that news conference, so the Friday event provided an opportunity for them and additional stakeholders to comment on the new deal.
"I think we came up with a rendering and a solution to all of our problems," said Joe Maloof, whose family owns Maloof Sports & Entertainment.
With the dilapidated railyard buildings behind him, brother Gavin Maloof said this was his first time at the railyard.
Of Sacramento, he said, "We want to be here forever. We love Sacramento. We love the fans. The greatest years of my life have been here in Sacramento."
"There's no doubt in my mind we will win this election," he added.
Dickinson said he knows the arena's public-private partnership is controversial. "We welcome the public discussion," he said. The community is asking Sacramentans to make a difference. Other communities, he said, have energized and revitalized their urban centers with sports centers, and Sacramento has the same opportunity.
"There are 240 acres here just begging for attention," Mayor Heather Fargo said.
"We all share a vision and we are going to bring that vision to reality," Dickinson said. "The hard work is just beginning."
In an interview, former Assembly member Darrell Steinberg, who has negotiating on behalf of the Maloofs, said he has no Plan B if voters reject the quarter-cent sales tax increase, if the county Board of Supervisors decides next week to put the question on the November ballot.
The deal calls for a 15-year sales tax that would help pay for a $470-million-plus arena. The Maloofs committed to a 30-year lease and payments totaling hundreds of millions of dollars. The quarter-cent sales tax, if approved by a majority of voters, would expire after 15 years and raise an estimated $1.2 billion over that span.
Dickinson said the average consumer in the county would pay less than $5 per month.
At least half that money would be made available to the cities and county governments for public projects and improvements such as transportation projects or libraries. The remainder would go toward the arena, which has an estimated cost of $470 million to $540 million.
If voters approve, construction of a new arena could begin in summer 2008 and open by fall 2010.
The Maloof-owned Arco Arena would be demolished, and the property sold and redeveloped.
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