More details on plan backed by NBA (split)

[DocHolliday]

Not sure if it's been posted yet, but this article from the Bee clears up some details.

During the 30 year lease @ 10 mill a year the developers would own the arena. It does not say who gets event revenues, but it does say the developers will own the arena.

http://www.sacbee.com/kings/story/2463462.html

 

[VF21]

Note: I split this off since the previous thread was already long and undoubtedly going to get longer. Since this is the most interesting thing to come along about the future of a sports/entertainment complex in Sacramento in a very long time, I thought we might just as well create a new thread when a major article is released...and an article that covers most of the front page of the Bee and the back seems fairly major.

 

[Emma]

Ah, I was wrong about the nature of the Maloof's contribution. Noted, and corrected.

 

[JB_kings]

I'm shocked that none of this leaked out before yesterday. I'm excited about this one because it seems like the money is there and a lot of the key parties are on board. It will be interesting to see how all the details iron out.

But we have been through a lot of these before and watched them fall apart. I hope this one is the dog that hunts!

 

[DocHolliday]

Ah, I was wrong about the nature of the Maloof's contribution. Noted, and corrected.

I misunderstood it to, but that's because the details weren't clear yesterday. So, it sounds like the developers and investors will be footing the entire bill 600 mill, was the rough number put out there. The Maloofs contribution is through the lease.

 

[kennadog]

I would have to think the $10 million a year lease would likely mean the Maloofs would bear the operating costs, but would get the revenues. Much better for the developers to have a guaranteed payment of $10 million a year, then to go with the revenues less operating costs. The cash flow could go up and down year to year and coukld even be in the red some years.

If the developer wants private investors for the $600,000, the guaranteed $10 million a year will be far more attractive to investors. They will know exactly what the revenue stream will be for 30 years. Also, a 30-year lease has a value that can be used as part of the collateral for the loan, along with the land and improvements (structures and everything in them).

The only thing is, I don't know how they will handle capital needs costs. Normally that would be an owner cost, but maybe they share those with their lessee. The lease would have to specify.

 

[JB_kings]

I misunderstood it to, but that's because the details weren't clear yesterday. So, it sounds like the developers and investors will be footing the entire bill 600 mill, was the rough number put out there. The Maloofs contribution is through the lease.

See this is what really cracks me up. The opponents of a publicly funded arena cried that they didn't want to pay for it and it should be privately funded. So some very sharp people come up with a complex idea to do just that. Now you see the same people on the Bee and KXTV comments saying this isn't good enough and the Maloofs must pay 100% or leave town.

 

[kennadog]

See this is what really cracks me up. The opponents of a publicly funded arena cried that they didn't want to pay for it and it should be privately funded. So some very sharp people come up with a complex idea to do just that. Now you see the same people on the Bee and KXTV comments saying this isn't good enough and the Maloofs must pay 100% or leave town.

Well, since no public financing is involved and development is already approved for the railyard site that includes commercial uses, they won't have much say except over approval of the land swap. And if it doesn't cost the taxpayers anything and also puts Cal Expo on a better site (better transportation access there, too), what real argument do they have.

The City Council and Cal Expo Board will vote on the land swap and development approvals. There will be no ballot box vote.

 

[Emma]

I'm doing a lot of posting over at the Bee; trying to maintain a visual representation for those in support of this proposal. A lot of those "people" are the same person with different screen names. Many of them bring up issues that they are completely ignorant towards. It's hard, but I think that in the most recent posts I have helped some sanity seep through over there. I will most likely abandon that place in a couple of days though.

Some people are just ignorant. They shoot off their uninformed, irrational mouths without thinking.


I need more info about this initial phase of development. I want to see how this will get off of the ground.

 

[Trueblood]

See this is what really cracks me up. The opponents of a publicly funded arena cried that they didn't want to pay for it and it should be privately funded. So some very sharp people come up with a complex idea to do just that. Now you see the same people on the Bee and KXTV comments saying this isn't good enough and the Maloofs must pay 100% or leave town.

I know. It's amazing. Why should they care if the money isn't coming out of their precious pockets? The Maloofs committing to $300 million is a heckuva lot more than they have ever committed to. The Australian bank is committing more than Barclays is to the Nets and that's in NYC where the potential clientele list is much greater. They should be doing cartwheels.

They would be best off just shutting up. When they contradict themselves like that, it's easy to make the conclusion that it was possibly never about taxes or any of that in the first place. They hate basketball period. That's the root of it and they hide behind the tax argument to cover up their true agenda.

 

[DocHolliday]

I know. It's amazing. Why should they care if the money isn't coming out of their precious pockets? The Maloofs committing to $300 million is a heckuva lot more than they have ever committed to. The Australian bank is committing more than Barclays is to the Nets and that's in NYC where the potential clientele list is much greater. They should be doing cartwheels.

They would be best off just shutting up. When they contradict themselves like that, it's easy to make the conclusion that it was possibly never about taxes or any of that in the first place. They hate basketball period. That's the root of it and they hide behind the tax argument to cover up their true agenda.

Correction, it is about, has been about, and ALWAYS will be about hating the Maloofs. Why you ask?? Because, some media outlets have done a good job as painting them as rich, entitled, playboys who just want a new toy. They also just hate them, because they are rich. There are many people who are petty and jealous. They don't like to see someone do well for themselves, so they get bitter, because they don't have the money. So, if they aren't enjoying anything, neither should anyone else.

 

[DocHolliday]

Oh and I forgot that some people would prefer to turn back the clock about 30 years in this area, and keep it that way.

 

[Kingsguy881]

I'm doing a lot of posting over at the Bee; trying to maintain a visual representation for those in support of this proposal. A lot of those "people" are the same person with different screen names. Many of them bring up issues that they are completely ignorant towards. It's hard, but I think that in the most recent posts I have helped some sanity seep through over there. I will most likely abandon that place in a couple of days though.

Some people are just ignorant. They shoot off their uninformed, irrational mouths without thinking.


I need more info about this initial phase of development. I want to see how this will get off of the ground.

Dude don't even waste your breath. The simple fact of the matter is nothing is going to change about us Sacramentans life except we will have more revenue being generated for the city with a nice fancy new arena. However, the people of Sacto are so simple minded and close minded they will never open themselves up to understand this. All they think is the rich get richer and they stay the same.

 

[kennadog]

Actually I need to step in and clarify something. The capital investment company/developer from Australia has said they are pretty sure they can get a loan(s) for the $600 million from a lender(s) and/or investors. There is no "for sure" guarantee they can, although I would assume they presented the rough proposal for the arena to some potential lenders, if they feel failrly confident thay can get the money.

 

[Emma]

Actually I need to step in and clarify something. The capital investment company/developer from Australia has said they are pretty sure they can get a loan(s) for the $600 million from a lender(s) and/or investors. There is no "for sure" guarantee they can, although I would assume they presented the rough proposal for the arena to some potential lenders, if they feel failrly confident thay can get the money.

Where do you see this?

Edit: Kingsguy881: My breath is one of the few sane breaths in that storm of irrationality over there. It's literally exhausting, injecting reasoned counterpoints to off the cuff stupidity.

 

[kennadog]

Where do you see this?

I believe that's what I heard on the news reports last night.

Edit: Okay here is an important quote from the link above:

Nicholas Hann of Macquarie Capital said his company is willing to take the risk with cash up front as well as selling bonds and obtaining loans to construct an arena because of the significance of the project and the money-making possibilities of the Sacramento market.

It's sort of like someone putting up a downpayment to buy a house and then borrowing the rest of the money. Some percentage of the funds will be in the form of loans. That's the part that is not guaranteed yet. The development group apparently feels that they can get those loan commitments.

So there will be loan payment to make. Lenders will take the arena, land and 30-year lease as collateral, in case of default.

 

[DocHolliday]

By the way, in the closed thread about the arena...whoever suggested celebrating Australia every year in Sacramento if this goes through, has a great idea.

Maybe an australian food, beer, wine, culture day. In an area near the new arena such as old sac.

As far as Australian bands, don't forget...

 

[NoBonus]

I have been reading this whole land-swap thing and it took me a minute to understand, but here is what I take away from it:

-Kings and City of Sac swap Natomas land with the State for Cal Expo's current location. Cal Expo would move to Natomas and use Arco as an Expo hall.
-Private investors owning Railyards would swap it for Old Cal Expo site. Old Cal Expo site would be subdivided, sold, and developed by private investors.
-Railyard would be owned by City of Sacramento and private investors and developed with funds from Kings lease over 30 years ($300 Million) and the sale of Cal Expo site.
-New Arena would be owned by investor group for 30 years, then owned by the City of Sac.
-NBA/Kings would be forced to remain in Sacramento for the next 30 years.

Did I get it?

 

[kennadog]

Maybe Slamson will be replaced by a koala or kangaroo.

 

[slugking50]

Dude don't even waste your breath. The simple fact of the matter is nothing is going to change about us Sacramentans life except we will have more revenue being generated for the city with a nice fancy new arena. However, the people of Sacto are so simple minded and close minded they will never open themselves up to understand this. All they think is the rich get richer and they stay the same.

Its the C.A.V.E people. Citizens against Virtually Everything.

 

[kennadog]

Its the C.A.V.E people. Citizens against Virtually Everything.

I like that, Slug.

 

[Löwenherz]

Its the C.A.V.E people. Citizens against Virtually Everything.

[yt=C.A.V.E. Meeting Commences]DtMV44yoXZ0[/yt]

 

[VF21]

Where do you see this?

Edit: Kingsguy881: My breath is one of the few sane breaths in that storm of irrationality over there. It's literally exhausting, injecting reasoned counterpoints to off the cuff stupidity.

I agree with Kingsguy881. You aren't the first to try and inject some rationality into the conversation and you won't be the last. The problem is that they don't want sane, rational comments. It's pretty clear by now they much prefer the off-the-wall blatherings.

So, for that reason (and because I think your comments ARE valued here), I definitely agree with Kingsguy. Save your breath for people who aren't busy throwing their feces at each other.

 

[Emma]

I agree with Kingsguy881. You aren't the first to try and inject some rationality into the conversation and you won't be the last. The problem is that they don't want sane, rational comments. It's pretty clear by now they much prefer the off-the-wall blatherings.

So, for that reason (and because I think your comments ARE valued here), I definitely agree with Kingsguy. Save your breath for people who aren't busy throwing their feces at each other.

Gracias, I was actually driven to drink by dealing with their antics. I think I may leave them alone.

 

[Trueblood]

Correction, it is about, has been about, and ALWAYS will be about hating the Maloofs. Why you ask?? Because, some media outlets have done a good job as painting them as rich, entitled, playboys who just want a new toy. They also just hate them, because they are rich. There are many people who are petty and jealous. They don't like to see someone do well for themselves, so they get bitter, because they don't have the money. So, if they aren't enjoying anything, neither should anyone else.

I can go for that. While I'm sure there is still the occasional basketball hater, that guy who keeps calling it the bouncing ball association comes to mind, the majority of them are probably just what you are saying. They hate rich people and probably live in their parent's basement.

But at the end of the day, the tax argument has and always will be a cover up and now that they have nowhere to hide, they are shifting the blame. The agenda is clear.

 

[Trueblood]

I believe that's what I heard on the news reports last night.

Edit: Okay here is an important quote from the link above:



It's sort of like someone putting up a downpayment to buy a house and then borrowing the rest of the money. Some percentage of the funds will be in the form of loans. That's the part that is not guaranteed yet. The development group apparently feels that they can get those loan commitments.

So there will be loan payment to make. Lenders will take the arena, land and 30-year lease as collateral, in case of default.

Wow, those aussies are pretty ballsy. Putting that type of money on the line in this economy is showing some serious nad. They must be pretty confident about things bouncing back soon.

By the way, has anyone heard if that 2015 opening date is legit? I know that infrastructure still needs to be put in place but I was hoping that if this does come to fruition, shovels would hit the dirt earlier.

 

[Circa_1985_Fan]

By the way, in the closed thread about the arena...whoever suggested celebrating Australia every year in Sacramento if this goes through, has a great idea.

Maybe an australian food, beer, wine, culture day. In an area near the new arena such as old sac.

As far as Australian bands, don't forget...

I would have included them but they aren't the same without their original lead singer...with all do respect to the rest of the band.

 

[JB_kings]

Would not shock me at all if Bob Graswich was behind many of the negative posts. He can't resist taking shots at the Kings. Last I heard he works as a staffer for the mayor's office. I would love to see the size of the muzzle KJ is having to use on him about this arena thing.

 

[slugking50]

I like that, Slug.

Evidently it came from Indianapolis. Ive seen it om the SacBee chats for a few years now. I use the term everyday now

 

[Emma]

And here are the politicians who run our city, saying the politically correct things to say about all of this:

Kevin Johnson: "There's been talk about whether any particular proposal rises above the others," he wrote. "Let me make this statement totally clear: The review process will determine which proposal or proposals best puts Sacramento First."

http://www.sacbee.com/topstories/story/2466263.html

Sorry guys, money talks. A cursory glance reveals the NBA's plan as option A.1. If they wait until March the iron will probably have cooled. Get it done!!!