Feb 22, 2013, 4:08 PM EST
The question of which city, Sacramento or Seattle, is ahead in the race to bring the NBA a brand new arena attached to a shiny new public subsidy is unclear at this time, but sources with intimate knowledge of the situation tell PBT that so long as Sacramento Mayor Kevin Johnson delivers on his promises that Sacramento will be ahead in that process.
A lot of that comes down where each city is legally within that process, and how that process is conducted in both Washington and California.
While some early media reports might have led folks to believe that Chris Hansen’s arena deal (and offer to buy the team) were a slam dunk, the documents laying out the framework of his arena proposal are under siege.
Specifically, the Memorandum of Understanding (MOU) and Interlocal Agreement (IA) he entered into with the city of Seattle and King County have been under intense scrutiny locally, as they are currently the target of two lawsuits. The first of those lawsuits is potentially being decided today at 1:30 PT.
The first suit brought by the International Longshoreman’s Workers Union challenges the site selection process within Washington’s Environment Impact Review (EIR) process, saying that Hansen and the local government conducted a “sham” site review process that did not provide reasonable, actionable alternatives other than Hansen’s hand-picked site.
That site, located in Seattle’s SODO district, has been the battleground of competing arguments regarding traffic and how it might impact Port of Seattle’s operations, and otherwise cause gentrification, loss of business in the area, and impact a large number of family-wage jobs in exchange for temporary construction jobs and a smaller number of low-paying arena jobs.
Arena proponents point out that most of the events at the proposed SODO site would occur after the Port’s business hours. Arena opponents say that the cumulative impact of creating a third large-scale sports and entertainment facility within their maritime industrial area, with an L.A. Live-like experience of retail outlets and restaurants, will necessarily bring more traffic to the region regardless of hour and disrupt Port operations.
These kinds of lawsuits are standard fare in any large-scale development project nationally right now, but they can have impacts on developments. In this case, opponents of the current MOU and EIR process point out that it could take “hundreds of millions of dollars” to mitigate the traffic issues a new arena would face, according to head lawyer for the ILWU suit Peter Goldman.
Hansen has offered $40 million to address traffic mitigation concerns, but in reality the question of who pays what for additional mitigation has yet to be solved because the EIR has yet to address the issue. Should Hansen have to pay for additional mitigation, it could further strap him and his group as it relates to their overall offer for the Kings, but the fear for locals is that the money would have to come from the public coffers.
The ILWU’s suit alleges a number of concerns relating to the site selection process, and asks the court to force Hansen and the local government to declare the MOU and IA “null and void” because they are in violation of the State Environmental Policy Act (SEPA).
It is unclear whether or not this would impact Hansen and the local government’s warranties to the NBA about its current arena situation.
(UPDATE: The judge ruled in favor of Hansen, Seattle, and King county and dismissed the lawsuit. Hansen and governmental officials argued they did not have an arena agreement in place and that they would look at other locations.)
Goldman said that this suit was “preliminary,” and cited the broad swath of industry that is opposing the arena proposal in its current form. He pointed out that there will be more times for lawsuits to be filed down the road, but that he and his client were concerned that the site selection process wasn’t being conducted according to current state laws.
The second lawsuit relates to Seattle’s in-force Initiative 91 and the contention by its co-author Mark Baerwaldt that the current MOU does not meet the law’s criteria.
Baerwaldt is careful to point out that the courts would decide the matter. His complaints focus on the financing mechanisms that Hansen and the local government are using to meet the statute’s definition of turning a profit on public subsidies for sports arenas. This lawsuit is awaiting response from Hansen, Seattle, and King County.
I-91’s other co-author, Chris Van Dyk, has also been at the center of this discussion, being cited by many Seattle media outlets as being supportive of Hansen and Seattle’s MOU. He addressed those reports exclusively with PBT, saying he “never said it was compliant” and that “if he’s the best cheerleader (Hansen and Seattle) can come up with then they’re in trouble.”
Van Dyk also offered that “he’s looking forward to hearing the expert testimony,” because he didn’t think “I-91 anticipated meeting the type of funding mechanism that Hansen has presented.”
Whether or not the Longshoreman’s suit goes in favor of the plaintiff or Hansen and Seattle, Goldman says to expect more legal resistance down the road. If they win, Hansen and Seattle has to start over with their MOU and come to the table with alternative sites that they may not like. Then the city would have to choose between the site that Hansen wants, and a potential site that presents better alternatives in terms of environmental concerns and traffic.
If they lose today, he says that there is a “significant appetite” not just by his clients but a broad swath of industry including the Port of Seattle to appeal the decision and fight the EIR process at every stage. All of the potential delays and injunctions were reflected when David Stern told Jonathan Feigen of the Houston Chronicle that the NBA had “no approved plan for an arena in Seattle.”
Therein lies the rub for the Seattle group. While they seek to convince the BOG that they have an actionable arena plan, they are arguing in court that their MOU and IA just lay out a process for reviewing and financing an arena proposal and do not constitute an ‘action’ under state EIR laws. Therefore, they contend that the Longshoreman’s suit is not “ripe” and are asking for it to be thrown out.
Sources with intimate knowledge of the situation tell PBT that this is a tightrope that the Seattle group can walk, and Scott Howard Cooper of NBA.com illustrated that point by saying the league isn’t overly concerned with legal issues in either Seattle or Sacramento, but the question goes back to points made by TNT’s David Aldridge about which city can get an arena deal done first.
Aldridge, who had previously reported Seattle had a “clear path” to obtaining the Kings, said on Saturday “there are questions about whether or not the Seattle deal is as airtight as they say it is.”
After Stern’s press conference on Saturday Aldridge elaborated, “We have very equal bids here. What it comes down to is the feel the owners have on ownership groups, and which arena can be built the fastest.”
The EIR process in Seattle is underway, but with two lawsuits pending and only the judges in both suits being capable of delivering an up-or-down answer to the litany of issues presented, the uncertainty over what type of delays Seattle could face and what type of mitigation will be needed to preserve other parties’ rights are huge question marks.
On the other side, it’s Johnson’s track record of delivering on promises to the NBA that has insiders optimistic about Sacramento’s chances of delivering that ‘fair and competitive’ offer that will include a significant public subsidy and downtown arena.
That effort has been underway for a while now, as the NBA negotiated the current arena deal that the Maloofs backed out of, a deal that Johnson and Sacramento have maintained is still on the table.
Additionally, proposed arena locations in Sacramento aren’t likely to have the same types of blowback being faced in Seattle, where their sizable maritime industrial economy feels threatened by Hansen’s proposal.
One source with intimate knowledge of the situation speaking to PBT under conditions of anonymity spoke about Sacramento’s pair of proposed locations:
“Both potential Sacramento sites are complimentary to the existing downtown commercial uses, and unlike the fight in Seattle the downtown proposals are being welcomed as a revitalization project. Both are efficient reuses of developed property, and both sites qualify under the expedited state AB 900 CEQA process, which limits the delay from any potential lawsuits. Having already approved a deal structure a year ago with no lawsuits filed, Sacramento has a big advantage to deliver a timely arena facility.”
That AB 900 CEQA process is an interesting wrinkle to Sacramento’s effort to keep their team, as the bill creating that process was recently signed into law and co-authored by Think Big Sacramento supporter and California Senate President pro Tem Dan Steinberg. According to law firm Stoel and Rives:
“The (bill provides) an incentive for applicants to move forward with their projects because any challenge to a leadership project Environmental Impact Report (“EIR”) under the California Environmental Quality Act (“CEQA”) will be venued immediately in the Court of Appeal. The court will then have a maximum of 175 days to issue its decision on the challenged EIR”
Incidentally, the bill was passed in part to help facilitate the potential Farmer’s Field deal to bring NFL football back to L.A. The company driving that proposal is AEG, who is supporting Sacramento’s bid and being pursued for purchase by Ron Burkle, who is one of the ‘whales’ that reportedly stands behind Sacramento’s offer.
“It’s time for big thinking and big projects that put Californians back to work,” said California Governor Brown. “Projects like Farmers Field can create thousands of jobs during a tough economic time, so it is imperative for the state to cut the red tape that could delay projects like this for years. These bills strike the right balance between protecting our environment and kick-starting jobs and investment in California.”
Sources say NBA owners will be weighing the totality of the arena timelines for both sides, and in Seattle’s case how many years a potential Sonics team will have to play at Key Arena, a facility deemed by the NBA to not meet its standards when the Sonics left for Oklahoma City in 2008.
Hansen’s current plan calls for a potential Sonics team to play in Key Arena (with modest improvements) for as little as two years, while arena opponents believe that timeframe could be extended to as many as four years if lawsuits hold up the process. While Sacramento could face similar lawsuits, they didn’t face any during the 2011 arena deal, and the expedited review process and potential for less environmental concerns at the city’s proposed sites have sources pointing at the issue as a point in favor of Kevin Johnson’s expected proposal.
While Seattle’s lawsuits aren’t likely to be the defining factor in this saga – Sacramento’s production of an actionable offer will be that factor –the fact that the Emerald City can’t say with certainly how long they’ll be locked up at Key Arena could be the starting point for their bid to take the Kings to unravel.
Dec 9, 2013, 12:29 AM EST
Kobe Bryant returned, Rudy Gay was traded, and the Knicks were crushed. Grading a busy Sunday of NBA action: Toronto Raptors: What the Toronto Raptors have not had in recent years is a GM with a plan and financial flexibility. With this and previous trades you get a sense that GM Masai Ujiri has a plan. First, get the…
Dec 8, 2013, 10:40 PM EST
It’s hard to explain to people outside Los Angeles the buzz in the city around Kobe Bryant and his return to the Lakers. The Lakers radio home in the city ran promos that just used pronouns —”You’ve been waiting for HIM” and “HE is back” — and everyone just knew what that meant. So what…
Dec 8, 2013, 9:10 PM EST
LOS ANGELES — Kobe Bryant is back — he was walking around the Lakers’ locker room pregame in uniform ready to go — and he is going to try to score. It’s what he does. But don’t be surprised if on his return Sunday night against Toronto you see a lot of the dishing, facilitating…
Dec 8, 2013, 7:42 PM EST
The Toronto Raptors are trading Rudy Gay to the Sacramento Kings in exchange for multiple players, according to a report from Adrian Wojnarowski of Yahoo Sports. Toronto began the season with the goal of making the playoffs, but it’s become clear after 18 games that even in the dismal Eastern Conference, that’s not going to…
Dec 8, 2013, 6:30 PM EST
The Nets have had their season derailed by injuries thus far, and while having a first-year head coach in Jason Kidd probably isn’t helping given the situation, the fact is that without the team’s full complement of players, it’s impossible to know just how much fault can be placed there. But the clock will be…
Dec 8, 2013, 5:00 PM EST
Kobe Bryant will make his return Sunday night at home against the Raptors, his first on-court appearance since suffering a torn Achilles near the end of last season. While we don’t expect the same kind of heroics Bryant displayed in last season’s epic victory over Toronto, it’ll simply be good to see one of the…
Dec 8, 2013, 3:30 PM EST
The Knicks snapped their nine-game losing streak on Thursday with a 30-point win over the Nets, and followed it up with a 38-point victory over the Magic at home the very next night. Any belief that the Knicks problems were on the verge of being solved, however, was delusional at worst, and short-lived at best.…
Dec 8, 2013, 2:00 PM EST
The NBA changed the way they categorize players for All-Star voting purposes last season, eliminating the center position (and all others) from the ballot entirely and replacing those with either a frontcourt or backcourt player distinction. While it won’t affect superstar big men like Roy Hibbert making the All-Star roster, it will change the way…
Dec 8, 2013, 12:30 PM EST
When Ray Allen chose to leave Boston as a free agent and join Eastern Conference rival Miami following the 2012 season, it didn’t sit well at all with two of the Celtics’ biggest stars. Paul Pierce and Kevin Garnett were upset by Allen’s decision, even though he wasn’t guaranteed a thing in Boston and was…
Dec 8, 2013, 11:00 AM EST
The reports surrounding the status of Rockets big man Omer Asik will continue their steady stream until the inevitable trade happens. Houston wanted to make it work with Asik playing alongside Dwight Howard, but that experiment failed and with Asik being disgruntled in his situation and constantly requesting to be traded, the Rockets seem determined…
Dec 8, 2013, 9:30 AM EST
Coming into Saturday night’s game against Dallas, the Blazers had used the top-ranked offense in the league to get out to a 17-3 start to the season, best in the Western Conference. Portland’s defense is ranked just 20th, however, and playing against a Mavericks team whose offense is ranked fourth and can score almost as…
Dec 8, 2013, 8:00 AM EST
The Nets are going through an especially rough time right now, and even mentioning as much seems like a gross understatement of the facts. Brooklyn has lost several of its key players due to injury, including Deron Williams, Paul Pierce, Andrei Kirilenko, and Jason Terry. Head coach Jason Kidd parted ways with assistant Lawrence Frank…
Dec 7, 2013, 11:00 PM EST
LeBron James and Dwyane Wade are simply devastating together when the Heat get out in transition, and this highlight from Miami’s easy win over a Timberwolves team playing without Kevin Love is a perfect example. Now of course, a two-on-none fast break will always result in points. But LeBron and Wade often make a spectacle…
Dec 7, 2013, 9:30 PM EST
Remember last season when an idiot fan in Cleveland ran into the court during live game action? Apparently, there are plenty more like him in that lovely city. During the second quarter of Saturday’s contest between the Cavaliers and the Clippers, we once again had a fan walk onto the court while the game was…
Dec 7, 2013, 8:00 PM EST
Luol Deng missed Saturday night’s game against the Pistons with a sore left Achilles, head coach Tom Thibodeau confirmed before tip-off. Deng’s status is listed as day-to-day, and it’s not believed to be anything serious. After averaging 48.5 minutes per game over the last two contests thanks to logging 56 minutes in a triple-overtime loss…
Dec 7, 2013, 6:30 PM EST
So, I had this whole thing written and ready about how Sixers coach Brett Brown doesn’t believe that Michael Carter-Williams is injury-prone, despite the fact that after sitting out Saturday, the rookie will have missed six of his team’s first 21 games. But then the news broke that Carter-Williams had been hospitalized with a bacterial…
Dec 7, 2013, 5:00 PM EST
Kobe Bryant will take the court on Sunday against the Raptors, seeing his first action of the season since suffering a torn Achilles injury this past April. The buzz surrounding Bryant’s long-awaited debut continued at the Lakers practice facility on Saturday, when Mike D’Antoni answered questions about how much Bryant will play, at what level,…
Dec 7, 2013, 3:31 PM EST
It’s all on Jason Kidd now. Lawrence Frank is gone as a scapegoat, Kidd is in charge of the ship — a 5-14 ship with the worst defense in the NBA. You can see how bad the defense is by looking at the stats, where you see the Nets give up a league-worst 108.6 points…
Dec 7, 2013, 2:00 PM EST
Kyrie Irving has been far from the dominating, game-changing point guard he showed capable of last season, and people around the league are beginning to take notice. He’s had games where he’s put up some decent numbers, but has done so inefficiently in recent weeks. After an 0-9 performance in Cleveland’s blowout loss to the…
Dec 7, 2013, 12:30 PM EST
If you’ve only been paying cursory attention to the NBA in its early stages this season, you may not have noticed the rise of the Portland Trail Blazers. But following Friday night’s 130-98 pasting of the Utah Jazz, Portland now has a record of 17-3 — the best in a very deep Western Conference. Guys…
- Sunday night NBA Grades: Rudy Gay traded to Kings, Kobe returns for Lakers 0
- Expect to see facilitator Kobe in his return to Lakers 5
- Raptors trade Rudy Gay to Sacramento for multiple players 23
- Knicks lose by 41 points at home to Celtics 24
- LeBron James likely to start at center for Eastern Conference All-Stars 10
- LeBron says Wade is “getting that Kobe deal” in next contract. Should he? (65)
- Dwight Howard frustrated with Rockets’ effort in recent losses (52)
- Kobe Bryant dunks, looks good in Lakers practice; Friday return possible (47)
- Michael Beasley finding a role, groove in Miami (44)
- The Extra Pass: Our awards at the quarter pole, plus Monday recaps (43)