Bee: Arena deal -- risky, elusive

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http://www.sacbee.com/content/news/story/14278700p-15087496c.html

Sacramento area leaders roll thedice as they attempt to nail down an agreement that could make or break them politically.

By Terri Hardy, Bee Staff Writer
Published 12:01 am, PDT Sunday, July 15, 2006


For politicos in Sacramento, securing a deal for a new Kings arena has grown into something akin to a labyrinthine quest for the Holy Grail, complete with twists, turns and dead ends.

Even after last week's high-drama talks in Las Vegas, the arena remains a tempting but risky goal -- nearly mythical in its attainment. And recent history suggests that accepting the challenge of forging consensus on the issue, then failing, can cripple a political career.

But what if an arena deal is brokered? The political payoff would be enormous, said Robert Waste, a professor of public policy at California State University, Sacramento.

"On a scale of one to 10," Waste said, "it's a 12."

Negotiators have only a few days left to broker an arena agreement in time to get a measure on the November ballot for public approval. As the clock ticks down, the fate of the politicians trying to hammer out a deal is also, increasingly, on the line.

Sacramento County Supervisor Roger Dickinson, a veteran board member, is the county's public persona in this latest round of arena talks. He was instrumental in brokering a deal to build Raley Field for the River Cats and has been involved in arena politics for several years -- on the periphery and mostly under the radar.

The city's main player is Vice Mayor Rob Fong, on the council less than two years but considered a rising star with strong negotiating skills. A real estate and business attorney, a few years ago Fong represented the Maloofs, owners of the Kings.

Representing the Maloofs in negotiations is former Assemblyman Darrell Steinberg, a close friend of Fong and "one of the most popular politicians in this town," said Barbara O'Connor, director of the Institute for the Study of Politics and Media at CSUS.

It is perhaps Steinberg's long shadow that has kept once-vocal opponents of a publicly subsidized arena at bay. But Warren Cushman, a member of the coalition People United, warned that may be changing.

"Dickinson, Steinberg and Fong have betrayed the trust of the public by not having a public dialogue on this issue," Cushman said. "They go around cutting deals, in secret meetings. The big three aren't going to be allowed to do it without public fallout."

Others, most notably Mayor Heather Fargo, have tried unsuccessfully over six years to snag an arena agreement. In this latest go-round, Fargo has stepped back.

"It was a strategic decision," Fargo said. "Sometimes it's helpful to change the faces. I think we have a very strong team."

Arena negotiators are in the midst of an 11th-hour attempt to finalize a deal. Three weeks ago, talks were suspended. On July 6, hoping to restart talks, Fong and Dickinson spoke with NBA officials and urged them to get involved. The Maloofs invited negotiators to Las Vegas on July 11 so brother George Maloof could participate in the talks.

After the principals huddled in a conference room for many hours, those talks ended Wednesday. Some movement reportedly was made, and conversations are continuing. It was the first time that elected officials had ever sat across from the Maloofs at the bargaining table.

Negotiators are faced with a looming deadline. Because part of the arena costs may come from a countywide quarter-cent sales tax increase, such a deal would have to win voter approval. To qualify for the November general election, county supervisors have until Aug. 2 to approve ballot language.

If supervisors miss that deadline, their next shot at a general-election ballot is 2008.

Cushman, of People United, says politicians are involved in the latest arena effort as a way "to make political hay."

Fong, Dickinson and Steinberg all dismiss the notion that their involvement is about political gain. Fong and Dickinson are reluctant to talk about their next career moves, although O'Connor and Waste say both are believed to have further political aspirations. Steinberg in June won the Democratic nomination for state Senate and is the clear favorite in November.

All acknowledge the risks involved, saying the arena's importance is worth braving political minefields.

Fong said he believes that politicians are elected to do a job -- risky or not.

"I know that any deal around trying to build a new arena is going to be controversial -- it has been and it will be," Fong said. "But to me, that doesn't mean it isn't the right thing to do. It doesn't mean you don't roll up your sleeves and take it on."

Luree Stetson, a neighborhood activist in Fong's District 4, said she's pleased with his decision to take on the arena issue. Unlike City Council members who concentrate largely on district issues, Fong has taken a citywide approach.

"He still gets things done in District 4," Stetson said. "But he doesn't have this Balkanized approach to city government like the rest of the council."

Dickinson said when he first became involved in building West Sacramento's Raley Field years ago, people wondered why he, as a Sacramento County supervisor, entered talks on the Yolo County project. His answer then was the same as it is when he's asked about the latest Kings arena effort: "To have the kind of region we want, to have the kinds of amenities we deserve, these efforts are necessary."

Dickinson said that he already experienced arena fallout in 2004 when running for the Democratic nomination for state Assembly. In that campaign, his statements that consideration should be given to fund an arena through bonds, in the same way that Raley Field was funded, were used against him.

Former City Councilman Dave Jones, who vehemently opposed using public funds for an arena, went on to win the race.

Steinberg said it would have been easier for him not to have gotten involved in the latest arena effort. Still, here he is.

"It's a big problem and a big challenge," Steinberg said. "One of the things I've prided myself on is being unafraid to get involved to help solve big issues."

The politicians also believe a successful deal would have a tremendous upside: keeping the Sacramento Kings in town. And because they've focused on placing an arena in the downtown Union Pacific railyard, they believe it would act as a catalyst to revitalize downtown.

Under one arena scenario, a sales tax increase also would be used for a host of other amenities throughout the county -- a sweetener for large countywide support.

Cushman, however, said that if voters approve one sales tax increase, they might be unwilling to support other efforts afoot to boost taxes for transportation and other purposes. The community, he said, should have been polled on what the region's priorities were before negotiations started.

Business leaders said they are happy to see Dickinson and Fong assert themselves on an arena effort that for a time had no public face. "It's the kind of civic leadership this region needs," said Matt Mahood, executive director of the Sacramento Metropolitan Chamber of Commerce.

These arena talks have progressed further than any previous effort. A key factor, O'Connor said, is the inclusion of the county as an equal partner, bringing more credibility and buy-in to the process.

Until this point, the issue had been largely city-centric, with Fargo at the fore.

Fargo used arena proposals as planks in her 2000 and 2004 mayoral campaigns. Dickinson said he approached Fargo in 2003 and urged her to include the county, but that never came to fruition.

"I think at that point the city of Sacramento and its management, as well as the political leadership, thought the issue was one they wanted to take on, something that was primarily a city-of-Sacramento issue," Dickinson said.

Fargo's efforts to build an arena in the downtown Union Pacific railyard in 2003 and at the Downtown Plaza shopping mall in 2004 both collapsed. Those failures, O'Connor said, gave Fargo the worst political hit of her career.

When private landowners unsuccessfully tried to put an arena deal together in late 2004-early 2005, some elected officials -- including Dickinson -- were part of those talks. Fargo was not included.

That fallout still may be resonating.

In the latest edition of Sacramento Magazine listing the region's most powerful 50 people, Fargo didn't make the roster.
 
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