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View Full Version : Hansen, Seattle Council reach deal on financing new sports arena



NYKnicksAllDay
09-11-2012, 01:16 AM
SEATTLE – Multiple Sources confirmed Monday that a deal has been reached between the Seattle City Council and the investor group led by Chris Hansen on the financial terms that would put a new sports arena near Safeco Field.

A key, multi-million dollar concession by Hansen that could see his investor group spend more out of pocket to build the arena appears to have brought reluctant councilmembers onboard with the project. City Council members are expected to make an official announcement outlining the terms of the agreement on Tuesday.

Transportation lies at the heart of the revised agreement. In the Memorandum of Understanding entered into earlier this year with Seattle Mayor Mike McGinn and King County Executive Dow Constantine, Hansen pledged $290 million of private money to build the NBA/NHL facility in SODO. That original plan envisioned the city and county

issuing $200 million in bonds to finance the remaining costs of the project (a one-team scenario would have involved only a $120 million investment by the city and county). Hansen pledged that arena revenue would be sufficient to pay off the bond debt, thus resulting in no risk to taxpayers.

But to get that deal through the city council, sources said Hansen agreed to establish a $40 million transportation fund, which would come out of the publicly financed pool of money. He has also agreed to spend $7 million on Key Arena, aided by revenue from an NBA or NHL team that would use the facility while the SODO arena is being built. The money, which would also support planning for Key Arena's future, would also come out of the publicly financed portion.

Sources said the Council will commit to financing up to $145 million in bonded debt –- rather than $120 million -– in a one-team scenario. Council leaders are said to believe that the transportation portion of the deal will help secure matching funds from the state, federal government or the Port of Seattle.

Sources said they believe those two issues were important to bring the deal into compliance with Initiative 91 and to win over the Port of Seattle and other maritime interests that have criticized the transportation impacts of the proposed arena site.

Critics have claimed that the original proposal violated I-91 -- the 2006 initiative that effectively forbids the city from using taxpayer funds for a new sports arena unless the city is guaranteed to profit from it at the rate equal to or higher than the yield on U.S. Treasuries.

No specific freight or transportation projects have been identified for funding.

Hansen has remained relatively silent on the negotiations ever since the King County Council approved an amended MOU back on July 30. The Seattle City Council’s approval was considered the last major stumbling block.

Sources with inside knowledge of the negotiations said they believe the plan has the needed five votes for majority approval. Councilmembers Bruce Harrell and Sally Bagshaw, an initial arena critic, have signaled their support, sources said. Chief negotiators Tim Burgess and Mike O’Brien are also on board, and late Monday Council President Sally Clark signed on as well.

After full council approval, sources said the deal will allow Hansen to tell the NBA that Seattle is ready to host a franchise.

Those same sources said there are also several other important changes to the original MOU:

- The amended MOU also calls for the city to strengthen the line between the Stadium Transition area and the Industrial Area.

- The Environmental Review process, which is a requirement in the MOU currently, will be amended to require that alternative sites be considered, including a specific

reference to Seattle Center. Also, according to sources, the Council will make it clear that no further action be taken on the financing until the environmental review process is complete and necessary mitigation addressed.

- Hansen will be required to double his security reserves if Arena revenue does not perform as expected. His ArenaCo holding company must also keep a minimum of three months operating and maintenance cash on hand at all times.

- City will have enforcement power over schedules and require the owners of all three sports venues in SODO to coordinate schedules to avoid conflicts.

- Principal investors must also supply further financial portfolio details.

- City/County can require ArenaCo to purchase the land and the Arena in 30 years for $200 million.

- ArenaCo can replace the facility in the future for the amount of the land purchased by the City, plus inflation, but for no less than $200 million. The current MOU calls for the 5.5 acres to be transferred to the City/County upon groundbreaking. The amendment would require ArenaCo to rebuild the arena if it executes that clause.

Councilmember Burgess’s Government Performance and Finance Committee is expected to discuss and vote on the changes on Thursday. The full Council would, in theory, then vote to approve the deal on Sept. 17.

The King County Council would then also have to approve the revised deal.

http://www.king5.com/news/arena/Hansen-Seattle-Council-reach-deal-on-financing-new-sports-arena-169272086.html

ccg34
09-11-2012, 01:24 AM
I will be the first one here to say it. The Supersonics will be back for the 2013-2014 season!!!!!

RipCity32
09-11-2012, 01:31 AM
I will be the first one here to say it. The Supersonics will be back for the 2013-2014 season!!!!!

That seems a little soon but alright.

NYKnicksAllDay
09-11-2012, 01:33 AM
That seems a little soon but alright.

It's not out of the question though. They said if they get a team they would play in Key Arena until the new one is completed.

ChrisCooked
09-11-2012, 01:38 AM
Would love to see Seattle get basketball back to that city. It's a shame they had to lose the Sonics when there were teams in other markets that wouldn't have been a shame to see them go. Charlotte in particular and Sacremento probably as well. I'll even throw in Milwaukee.

NYKnicksAllDay
09-11-2012, 01:40 AM
I hate to see another team have to be moved for Seattle to get a team back. But if a team is going to be moved they should go to Seattle.

Wes_Craven
09-11-2012, 01:44 AM
Hypothetically, which team is most likely to be moved? Hornets?

NYKnicksAllDay
09-11-2012, 01:48 AM
Hypothetically, which team is most likely to be moved? Hornets?

No. The Hornets were just bought by the Saints' owner. Hornets aren't going anywhere. I'd say most likely would be the Kings. I'd say maybe the Hawks but they can't move for another 7 years unless the new owner wants to pay a $75 million fee. Bobcats I think might end up being contracted or moved eventually.

Gritz
09-11-2012, 01:52 AM
So do Seattle converted Thunder fans go back to cheering for the Supersonics or do they continue cheering for the Thunder? And none of that "They will be my 1st favorite team and the Thunder my 2nd" and vice versa

dsonLAL24
09-11-2012, 01:53 AM
I will be the first one here to say it. The Supersonics will be back for the 2013-2014 season!!!!!

Hope so.

Baller1
09-11-2012, 02:09 AM
Just bring our own team back to Seattle, OKC can have someone else's team.

znick21
09-11-2012, 02:12 AM
Just bring our own team back to Seattle, OKC can have someone else's team.

this.

Boozerguy47
09-11-2012, 02:27 AM
So do Seattle converted Thunder fans go back to cheering for the Supersonics or do they continue cheering for the Thunder? And none of that "They will be my 1st favorite team and the Thunder my 2nd" and vice versa

Honestly, I don't think I could name one friend of mine that is a fan of the Thunder. The fact that we traded Allen and let Rashard Lewis walk killed part of my connection to the team...

Regardless, here is another link about the agreement.

http://mynorthwest.com/11/735316/Tentative-deal-reached-on-new-sports-arena-in-Seattle

NYKnicksAllDay
09-11-2012, 02:29 AM
I hope Seattle fans don't kill me, but if/when the Sonics come back I am officially adopting them as my second team.

Punk
09-11-2012, 02:31 AM
Hypothetically, which team is most likely to be moved? Hornets?

The Kings unfortunately.

Boozerguy47
09-11-2012, 02:34 AM
I hope Seattle fans don't kill me, but if/when the Sonics come back I am officially adopting them as my second team.

Doesn't bother me.

JLynn943
09-11-2012, 02:37 AM
That's good for Seattle if they get a team, but I really don't want to be a Sonics fan - I'm a Sacramento Kings fan. Realistically though, I'm sure the Maloofs are just biding time so they sell more tickets/merch before announcing the move...

JNoel
09-11-2012, 07:31 AM
I like Seattle, I hope they get their getting a team back. I like the idea of possibly adding 2 teams like the NFL like Seattle and Virgnia Beach.

uprightciti
09-11-2012, 08:32 AM
well that solves it

the kings are moving to seattle

Vinylman
09-11-2012, 10:49 AM
I am really confused... you have new investors but they are gonna bring an existing team in? Didn't know the Maloofs had put the team up for sale...

no way the NBA expands in the next 3-4 years...

Is there other teams up for sale?

Manimal
09-11-2012, 10:52 AM
Yup bring back the green an gold.

And for the guy who asked. Seattle fans hate OKC. It's more likely to be full on rivalry rather than a sister franchise.

Vinylman
09-11-2012, 10:54 AM
Yup bring back the green an gold.

And for the guy who asked. Seattle fans hate OKC. It's more likely to be full on rivalry rather than a sister franchise.

:facepalm:

if seattle gets a team in the next 3-4 years they won't be relevant until the durant era is over...

I Rock Shaqs
09-11-2012, 11:02 AM
:facepalm:

if seattle gets a team in the next 3-4 years they won't be relevant until the durant era is over...

Think your really doubting the potential of the Kings... I did say potential though so you could be right.

Vinylman
09-11-2012, 11:12 AM
Think your really doubting the potential of the Kings... I did say potential though so you could be right.

are the kings for sale? Hadn't seen that anywhere.... i know the maloofs want a better arena but unless they sell how do the kings get to seattle?

Again, building an arena don't mean much if there is no one to play in it.

JLynn943
09-11-2012, 11:36 AM
are the kings for sale? Hadn't seen that anywhere.... i know the maloofs want a better arena but unless they sell how do the kings get to seattle?

Again, building an arena don't mean much if there is no one to play in it.

The Maloofs say they want to stay in Sacramento, but they say lots of things (like "Yes, we'll accept that arena deal") that they never actually mean. I'm definitely a pessimist, but the realist in me also thinks the Maloofs were just waiting for this to happen so they can move.

Vinylman
09-11-2012, 11:42 AM
The Maloofs say they want to stay in Sacramento, but they say lots of things (like "Yes, we'll accept that arena deal") that they never actually mean. I'm definitely a pessimist, but the realist in me also thinks the Maloofs were just waiting for this to happen so they can move.

again, didn't a NEW group committ to the money which means the Maloofs CAN'T move the team but would rather have to sell it to them in order for the Kings to get to Seattle?

Short of expansion or a sale of an existing team how does Seattle get a team?

It isn't as easy as everyone is making it sound especially if you believe there will be no expansion in the near term.

NateyB24
09-11-2012, 12:55 PM
I don't know what team it will be but i don't think Chris Hansen would invest this much without knowing something on the inside.

PleaseBeNice
09-11-2012, 01:30 PM
The Kings unfortunately.

No.

topdog
09-11-2012, 01:53 PM
again, didn't a NEW group committ to the money which means the Maloofs CAN'T move the team but would rather have to sell it to them in order for the Kings to get to Seattle?

Short of expansion or a sale of an existing team how does Seattle get a team?

It isn't as easy as everyone is making it sound especially if you believe there will be no expansion in the near term.

I have a feeling that there are some teams available to move and it may not be the ones we always talk about. I remember an article awhile back about the Board of Governors looking into relocating some underpeforming teams and getting them into the right market.

Plus, wouldn't David Stern love to improve his legacy by getting a team back into Seattle before he retires?

GoferKing_
09-11-2012, 01:57 PM
I hope that Stern will force Magoofs to sell the Kings and move them (if there is no arena in Sacramento) to Seattle to become the SuperSonics.

zB_#85
09-11-2012, 02:48 PM
Just bring our own team back to Seattle, OKC can have someone else's team.

lol jealousy and bitterness aside, you have to acknowledge that OKC fully deserves that team. They have been great fans from day 1.

Vinylman
09-11-2012, 02:55 PM
I have a feeling that there are some teams available to move and it may not be the ones we always talk about. I remember an article awhile back about the Board of Governors looking into relocating some underpeforming teams and getting them into the right market.

Plus, wouldn't David Stern love to improve his legacy by getting a team back into Seattle before he retires?

so basically, nothing is imminent...

I am sure that hansens group is active but that doesn't mean anything is gonna happen...

I was just wondering if there was a specific team beside the Kings who i don't see happening unless the Maloofs get a KINGS ransom for the team

mgsports
09-11-2012, 03:09 PM
KC,st.Louis or Tampa Bay should get one before Seattle. Anahiem is where the Kings would go.

NateyB24
09-11-2012, 03:42 PM
KC,st.Louis or Tampa Bay should get one before Seattle. Anahiem is where the Kings would go.

Why? Seattle is bigger then all those markets only one bigger is Anahiem.


so basically, nothing is imminent...

I am sure that hansens group is active but that doesn't mean anything is gonna happen...

I was just wondering if there was a specific team beside the Kings who i don't see happening unless the Maloofs get a KINGS ransom for the team

Balmer and Nordstrom is in Chris Hansen's group you realize that Balmer is richer then Paul Allen right? Think he is worth something like 16Bil.

Vinylman
09-11-2012, 03:44 PM
Balmer and Nordstrom is in Chris Hansen's group you realize that Balmer is richer then Paul Allen right? Think he is worth something like 16Bil.

I could care less how much he is worth... there has to be a team for sale...

NateyB24
09-11-2012, 03:48 PM
I could care less how much he is worth... there has to be a team for sale...

I agree that's the hardest part but what i am saying is if Hansen and his group are going to pay to have to pay through the roof i bet they will.

NYKnicksAllDay
09-11-2012, 03:50 PM
KC,st.Louis or Tampa Bay should get one before Seattle. Anahiem is where the Kings would go.

Tampa? Seriously? Florida can't support another basketball team. Tampa can barely support the Rays how are they gonna support a basketball team?

Munkeysuit
09-11-2012, 04:04 PM
Move the Cavaliers to Seattle...jussayn

Boozerguy47
09-11-2012, 04:43 PM
:facepalm:

if seattle gets a team in the next 3-4 years they won't be relevant until the durant era is over...

He was correct. Essentially every one I've come across here despises OKC.

Boozerguy47
09-11-2012, 04:46 PM
lol jealousy and bitterness aside, you have to acknowledge that OKC fully deserves that team. They have been great fans from day 1.

True. However you have to acknowledge the situation and why they immediately recieved more support than they got in Seattle.

First off, the Thunder is OKC's only professional sports team.

Secondly, from the beginning the Thunder have been a young, explosive group.

Obviously if a team is playing great the fans will support them. Can anyone think of a situation where a team moved and was almost instantly one of the best in the NBA? Sorry, but I will enjoy the day when OKC is on the decline.

zB_#85
09-11-2012, 07:03 PM
True. However you have to acknowledge the situation and why they immediately recieved more support than they got in Seattle.

First off, the Thunder is OKC's only professional sports team.

Secondly, from the beginning the Thunder have been a young, explosive group.

Obviously if a team is playing great the fans will support them. Can anyone think of a situation where a team moved and was almost instantly one of the best in the NBA? Sorry, but I will enjoy the day when OKC is on the decline.

Bolded is exactly why I don't think OKC will ever be bandwagon fans. That's all they have. They supported the Hornets like crazy the year they were displaced b/c of Katrina and they weren't that great. I'm not saying that I personally think OKC is a better city or deserves a team more than Seattle, I just don't understand why some Seattle folks have such bitterness toward them. Can you blame them for getting the team? No. Have they more than supported them since they moved there? Yes.

Be mad at the ownership group or the NBA, or even the city for not giving them a new arena. Don't be mad at OKC, they did nothing.

NateyB24
09-11-2012, 07:41 PM
Bolded is exactly why I don't think OKC will ever be bandwagon fans. That's all they have. They supported the Hornets like crazy the year they were displaced b/c of Katrina and they weren't that great. I'm not saying that I personally think OKC is a better city or deserves a team more than Seattle, I just don't understand why some Seattle folks have such bitterness toward them. Can you blame them for getting the team? No. Have they more than supported them since they moved there? Yes.

Be mad at the ownership group or the NBA, or even the city for not giving them a new arena. Don't be mad at OKC, they did nothing.

I will never root for OKC i will root for anybody but them i don't want Klay ever to win a Championship could careless about the fans.

ink
09-11-2012, 07:49 PM
Just bring our own team back to Seattle, OKC can have someone else's team.

:clap:

todu82
09-11-2012, 08:13 PM
This could be great news for Seattle, that city deserves a NBA team back.

TeamSeattle
09-11-2012, 11:54 PM
I hope Seattle fans don't kill me, but if/when the Sonics come back I am officially adopting them as my second team.

Knicks & Sonics will be our two favorite teams. I gotta give respect to my hometown, I'm f**king stoked. Season tickets here I come. Are they really building it next to Safeco, like there isn't enough traffic down on 1st street already. It would be better served in upper Renton or Bellevue but thats just me.

AWC713
09-12-2012, 12:14 AM
seattle may get a new team but it wont be the supersonics.

they sold the rights to that name, their championship when OKC got the team...

Baller1
09-12-2012, 01:39 AM
seattle may get a new team but it wont be the supersonics.

they sold the rights to that name, their championship when OKC got the team...

Wrong.

mgsports
09-12-2012, 11:01 AM
The Lighting,Storm,Bucs are doing good and at least Rays in the Playoff hunt every year recently.
If team moves to those other Cities don't need to wait for a new Arena to be built.

Former SuperSonic Lenny Wilkens believes Seattle could land a team as early as next season, according to Percy Allen of the Seattle Times. Allen says that the Bucks, Bobcats, and Timberwolves are all realistic candidates for relocation, though the Kings remain the odds-on favorite to move.
The cost of relocating an NBA franchise means Sacramento should still have a reasonable chance at keeping the Kings, writes Tom Ziller of SBNation.com.

JeffG20
09-12-2012, 07:37 PM
KC,st.Louis or Tampa Bay should get one before Seattle. Anahiem is where the Kings would go.

Tampa has a hard time with the teams they got. Bucs games are still getting blacked out and the Rays are a winning team struggling to fill the seats

StarvingKnick22
09-12-2012, 09:11 PM
Kings will go to Virginia I thought. Hornets are most likely to move to Seattle.

Losoway
09-12-2012, 09:38 PM
what team is getting moved to seattle?

JeffG20
09-12-2012, 10:34 PM
Kings will go to Virginia I thought. Hornets are most likely to move to Seattle.

does anyone not follow what happens other then there own team, they were just bought

ChicagoFan4Eva
09-13-2012, 12:50 AM
I hope they get their team back too.. and i don't even like the sonics but yeah. maybe just create a new team in seattle don't take anyone else's

NateyB24
09-13-2012, 01:54 AM
seattle may get a new team but it wont be the supersonics.

they sold the rights to that name, their championship when OKC got the team...

I think we will be forced to share the history now unless Klay makes a deal with Hansen and decides to let us just have it.

The one thing our former scum bag Mayor did was at least keep the name though so if we get a team we can call them the SuperSonics again.


Kings will go to Virginia I thought. Hornets are most likely to move to Seattle.

Nah they are owned by the Saint's owner the Hornet's will be staying in NO.


Tampa has a hard time with the teams they got. Bucs games are still getting blacked out and the Rays are a winning team struggling to fill the seats

Longoria was even calling the fans out for not showing up to games while they have been competitive.

Plus those other places being mentioned aren't as large as Seattle we right now are the largest media market with no NBA team. (Besides Anaheim.)