Arena plan moves toward ballot
A November vote on tax hike is likely.
By Mary Lynne Vellinga and Terri Hardy -- Bee Staff Writers
Published 12:01 am PDT Wednesday, July 26, 2006
http://www.sacbee.com/content/news/s...15089912c.html
After listening to four hours of sometimes emotional testimony, the Sacramento County Board of Supervisors moved ahead Tuesday with a plan to ask voters for a quarter-cent sales tax increase to build a new Kings arena.
The $1.2-billion measure also is intended to fund community projects in the county and its cities.
The 4-1 vote in all likelihood means residents will vote on the increased sales tax in November, along with an advisory measure asking whether they support spending about half the money for the arena.
A final vote is scheduled for Aug. 2, but it is considered a formality.
"The board took a good look at what was presented to them and agreed with me that it's a good business deal," said Supervisor Roger Dickinson, who helped negotiate the deal with the Maloof family, which owns the Kings. "This is the perfect kind of issue to put on the ballot because people are paying attention, and they feel strongly."
But Supervisor Roberta MacGlashan, the sole "no" vote, said although she agrees Arco must be replaced -- and doesn't object to public financing -- she takes issue with the county's strategy of proposing a "general tax," which requires only majority approval from voters.
MacGlashan said the majority of the county's voters approved Proposition 218 in 1996, which requires a two-thirds vote on specific tax increases. "I don't think 58 percent of the voters intended for us to find creative ways to not apply that requirement," she said.
Joe and Gavin Maloof told supervisors that after several attempts to put the arena issue before voters, they were excited by this opportunity.
"It's very controversial; it's what we expected," said Joe Maloof. "I feel comfortable that we're putting a deal before voters that's fair for everyone involved."
The meeting was a raucous affair, with applause, boos and shouted comments from the audience. In one exchange, Margaret Williams of Tahoe Park, who brought her two young sons along, asked Dickinson to explain to them why "mommy should invest in an arena instead of their milk."
"I can relate to the Kings' plight because we, too, live in an aging facility that doesn't meet our needs," she said, referring to her 850-square-foot house.
At the start of the hearing, the meeting room was packed, with overflow attendees watching from chairs in the lobby.
About 60 people signed up to speak, including public officials, business leaders and activists. The number of opponents and proponents of the plan appeared to be evenly split.
Supporters argued the arena would help revitalize the dormant downtown railyard and assure the city's future as a dynamic place.
Some said losing the Kings and Arco Arena would be a major loss for the quality of life in Sacramento.
A new arena and entertainment complex would "take our region to the next level," said James Hofmann, a River Park resident. "I don't want to have to go to San Francisco to be entertained; I don't want to have to travel to Marysville to be entertained."
James Battles, 39, said the arena could serve as a catalyst for the railyard development.
"Since I was 15 years old, I've heard about the redevelopment of the railyard, but it's never come to pass," he said. "Now we have the opportunity to put something exciting down there."
Opponents said money would be better spent on more urgent community needs such as flood protection, low-income housing, law enforcement, schools and programs to keep youths from getting caught up in crime.
"The gangs on the south side, they give the kids summer jobs," said Chris Jones, a representative of California ACORN, an activist group. "The county and the city aren't giving them jobs."
Assemblyman Dave Jones, the only elected official besides MacGlashan who spoke against the proposal, said he feared it would hurt the chances for passage of the $4.15 billion statewide flood protection bond, also on the November ballot, which would provide Sacramento with badly needed funds for levee repairs.
"Putting an arena on the ballot now will seriously jeopardize our top priority, and that is flood control," he said.
If voters approve the measure in November, it will raise Sacramento's sales tax rate to 8 percent for 15 years.
A minimum of $594 million raised by the measure would go to the county and its cities for unspecified local projects. No payments would go to the communities for about seven years, until an arena construction loan is repaid.
The deal negotiated with the Maloofs has pegged the cost of the arena and a parking structure at $470 million to $542 million. Interest on a construction loan would add between $35 million and $51 million.
The public joint powers authority created to build the arena would own the facility. It would oversee the building's design and construction and be responsible for cost overruns.
The Maloofs would sign a lease to keep the Kings and Monarchs in Sacramento for 30 years and pay off -- in a lump sum -- an existing loan from the city of nearly $71 million. They would pay an average of $4 million annually in rent for 30 years and put $20 million in a capital repair reserve fund.
The Maloofs would maintain the building and keep proceeds from events, parking and concessions. They would also control lucrative naming rights for the new facility, which would anchor a planned sports and entertainment district in the downtown railyard.
Politicians in the thick of the arena discussion say the debate is likely to get much louder before November.
Assemblyman Jones pointed out that previous polling has shown a solid majority against taxpayer financing for an Arco replacement.
"Voters have common sense and recognize this is not in their interest," he said.
But three of the supervisors voting for the plan -- Dickinson, Illa Collin and Susan Peters -- said hundreds of e-mails they're receiving reflect an overwhelming majority in favor. At Tuesday's meeting, Peters slapped a stack of 130 or so e-mails on the dais in front of her chair, saying they opposed the deal. Then she flopped down 752 e-mails she said she had received in support.
Dickinson said his more than 700 e-mails were running "10 to one in favor of this thing going on the ballot."
Supervisor Don Nottoli also approved the measure.
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