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Sacramento still looking for way to pay for new arena

Jul 28, 2011, 10:30 PM EDT

sacramento arena

While the lockout has stopped Sacramento Kings Jimmermania marketing efforts — they can’t even talk about the guy, let alone show him off all over town — it has not stopped the drive to get a new arena built.

It can’t, the deadline has not changed. If by next March the NBA owners are not impressed with progress toward a new arena in Sacramento — including how to pay for it — they will give the Maloof brothers permission to move the Kings to Anaheim or whatever other city they so choose.

How to pay for it will be the sticking point, and a financing plan is supposed to be presented by Sept. 8. Mayor Kevin Johnson and his task force are trying to figure that part out, and the Sacramento Bee updates us on the effort.

Aides to Mayor Kevin Johnson say they’re focused on user fees such as ticket surcharges for people who attend arena events. That revenue could be coupled with event-night parking fees at downtown garages, new corporate sponsorships, and up-front money from private companies that could build and operate the arena for the city.

Another idea: The city could sell up to a dozen parcels that it owns to developers, raising $30 million to $60 million, according to a financing update that will be discussed today at a meeting of Johnson’s 70-person regional arena committee. The report does not indicate which parcels those are.

The ultimate price tag for the building is expected to be $387 million (which frankly is pretty inexpensive, the Barclay Center in Brooklyn will cost $1 billion).

Corporate sponsorships, leasing out space to put cell towers and just about every other option is being considered as well.

Sacramento needs to come up with creative financing because the voters are not going to approve a self-tax. They shot that idea down five years ago, back when the economy was strong. It’s not about to happen now.

  1. involvement82 - Jul 29, 2011 at 1:03 AM

    Sacramento don’t need a new arena, they need a whole new team roster :)

  2. dogsweat1 - Jul 29, 2011 at 1:23 AM

    Kansas City………….

  3. natomasarena - Jul 29, 2011 at 1:49 PM

    There WILL BE a new arena in the Sacramento region and it will be built in Natomas, site of the current Power Balanace arena – a new arena WILL NOT be built at the downtown railyards as mayor Kevin Johnson and his deveopers wamt. An ill-advised, underfunded, infill project.

    ALERT!

    Coming soon and quietly waiting on the sideline is a new nonprofit arena group who will announce a fully funded Natomas arena project – without taxpayer monies or taxes and supported by their own nonprofit Operating Authority. [ Think Green Bay Packer / Lambeau Field nonprofit business model]

    Better yet, the day this new nonprofit arena opens, it will be debt free and return millions and millions of dollars yearly, back into the region.

    Best yet, look for the Maloofs to endorse this plan and accept a mutually rewarding, long-term revenue-sharing agreement with this nonprofit group.

    In the end, Sacramento Mayor Kevin Johnson and his 70 person Think Big Committee will be a non-factor in keeping the Sacramento Kings in Sacramento.

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