http://www.sacbee.com/101/story/42235.html
Maloofs return to the table
No key arena issues resolved, but parties express optimism.
By Mary Lynne Vellinga - Bee Staff Writer
Last Updated 12:11 am PDT Thursday, October 19, 2006
After refusing for six weeks to talk about how to get a new arena built in Sacramento, Kings owners Joe, Gavin and George Maloof returned to the negotiating table Wednesday to try to hammer out a deal with the city and county before Election Day.
The seven-hour session, which also included downtown railyard developer Stan Thomas, produced no agreement on thorny issues such as parking. But Sacramento County Supervisor Roger Dickinson, who participated in the meeting, said he considered it a major breakthrough that the parties were physically in the same place.
The Maloofs angrily broke off negotiations with the city and county in early September. Since then, communication had come from them only through lawyers.
Dickinson said Wednesday's meeting ended on a positive note. "Everyone left agreeing to continue trying to work toward an agreement," he said.
Sacramento City Councilman Rob Fong called the session "very productive" and said it was helpful to have the Maloofs talk directly to Thomas, the railyard developer.
"It was encouraging that (we) were having constructive, good conversations about the railyard and the potential for the arena there," Fong said.
The meeting, which was held at the downtown offices of law firm Orrick Herrington & Sutcliffe, came after NBA official Harvey Benjamin contacted Dan Barrett, an arena consultant for the city and county, and said the Maloofs were ready to meet, said officials involved in the talks.
Atlanta developer Thomas, who is negotiating to buy the downtown railyard from Union Pacific, skipped a major opening of a project in San Antonio and instead flew to Sacramento for his first face-to-face meeting with the Maloofs, said Suheil Totah, vice president of development for Thomas Enterprises.
City and county officials hope to build a new arena for the Kings in the railyard if voters approve a quarter-cent sales tax increase on the Nov. 7 ballot.
"Nothing was resolved, but it was a very productive set of meetings," Totah said. "With Stan here, we showed our commitment to get this done and resolve all the outstanding issues."
Besides Dickinson and Fong, the city and county were represented by Assistant City Manager John Dangberg and county economic development chief Paul Hahn. Lawyers and consultants for both sides also were in attendance, as was John Thomas, president of Maloof Sports and Entertainment.
All told, at least 15 people convened in separate conference rooms in the Wells Fargo building downtown, with consultants and lawyers shuttling between them throughout the day.
Dickinson and Fong said the parties did not resolve the sticking points that caused the Maloofs to break off talks in early September. These include the brothers' insistence that they receive the revenue from 8,000 parking spots around a new arena and that they have veto power over potentially competing businesses that would locate nearby.
Dickinson said there were no specific plans for another meeting, but added, "There will be continuing conversations based on what came out of today."
The Maloof brothers could not be reached for comment Wednesday. But Joe Maloof said Tuesday that his family still hopes a deal can be finalized before Election Day, when Sacramento County voters are being asked to approve Measures Q and R, which would enact a quarter-cent sales tax, with up to $600 million of the revenue going toward an arena.
The measures are far behind in the polls. Opponents have continually cited the lack of a specific deal with the Kings as one reason voters should reject Q and R.
"We're certainly mindful that the Election Day is looming," Fong said. "It's certainly been a big disappointment to everyone that we haven't been able to get a deal done up until this point."
The grim mood of arena backers during the past month followed a much more upbeat announcement in late July, when they said that they had reached an agreement with the Maloofs under which the team owners would pay $20 million upfront and an average of $4 million a year in rent for 30 years to help fund a publicly owned arena expected to cost anywhere from $470 million and $542 million.
That deal fell apart when the parties got together to nail down specific terms of the arena's construction in a signed memorandum of understanding.
After the Maloofs broke off talks in September, city and county officials regrouped with Thomas' representatives to come up with a new plan that the Kings' owners could accept.
That proposal, which the city and county have refused to make public, was sent to the team nearly three weeks ago. The Maloofs sent a response on Friday.
About the writer: The Bee's Mary Lynne Vellinga can be reached at (916) 321-1094 or mlvellinga@sacbee.com.
Maloofs return to the table
No key arena issues resolved, but parties express optimism.
By Mary Lynne Vellinga - Bee Staff Writer
Last Updated 12:11 am PDT Thursday, October 19, 2006
After refusing for six weeks to talk about how to get a new arena built in Sacramento, Kings owners Joe, Gavin and George Maloof returned to the negotiating table Wednesday to try to hammer out a deal with the city and county before Election Day.
The seven-hour session, which also included downtown railyard developer Stan Thomas, produced no agreement on thorny issues such as parking. But Sacramento County Supervisor Roger Dickinson, who participated in the meeting, said he considered it a major breakthrough that the parties were physically in the same place.
The Maloofs angrily broke off negotiations with the city and county in early September. Since then, communication had come from them only through lawyers.
Dickinson said Wednesday's meeting ended on a positive note. "Everyone left agreeing to continue trying to work toward an agreement," he said.
Sacramento City Councilman Rob Fong called the session "very productive" and said it was helpful to have the Maloofs talk directly to Thomas, the railyard developer.
"It was encouraging that (we) were having constructive, good conversations about the railyard and the potential for the arena there," Fong said.
The meeting, which was held at the downtown offices of law firm Orrick Herrington & Sutcliffe, came after NBA official Harvey Benjamin contacted Dan Barrett, an arena consultant for the city and county, and said the Maloofs were ready to meet, said officials involved in the talks.
Atlanta developer Thomas, who is negotiating to buy the downtown railyard from Union Pacific, skipped a major opening of a project in San Antonio and instead flew to Sacramento for his first face-to-face meeting with the Maloofs, said Suheil Totah, vice president of development for Thomas Enterprises.
City and county officials hope to build a new arena for the Kings in the railyard if voters approve a quarter-cent sales tax increase on the Nov. 7 ballot.
"Nothing was resolved, but it was a very productive set of meetings," Totah said. "With Stan here, we showed our commitment to get this done and resolve all the outstanding issues."
Besides Dickinson and Fong, the city and county were represented by Assistant City Manager John Dangberg and county economic development chief Paul Hahn. Lawyers and consultants for both sides also were in attendance, as was John Thomas, president of Maloof Sports and Entertainment.
All told, at least 15 people convened in separate conference rooms in the Wells Fargo building downtown, with consultants and lawyers shuttling between them throughout the day.
Dickinson and Fong said the parties did not resolve the sticking points that caused the Maloofs to break off talks in early September. These include the brothers' insistence that they receive the revenue from 8,000 parking spots around a new arena and that they have veto power over potentially competing businesses that would locate nearby.
Dickinson said there were no specific plans for another meeting, but added, "There will be continuing conversations based on what came out of today."
The Maloof brothers could not be reached for comment Wednesday. But Joe Maloof said Tuesday that his family still hopes a deal can be finalized before Election Day, when Sacramento County voters are being asked to approve Measures Q and R, which would enact a quarter-cent sales tax, with up to $600 million of the revenue going toward an arena.
The measures are far behind in the polls. Opponents have continually cited the lack of a specific deal with the Kings as one reason voters should reject Q and R.
"We're certainly mindful that the Election Day is looming," Fong said. "It's certainly been a big disappointment to everyone that we haven't been able to get a deal done up until this point."
The grim mood of arena backers during the past month followed a much more upbeat announcement in late July, when they said that they had reached an agreement with the Maloofs under which the team owners would pay $20 million upfront and an average of $4 million a year in rent for 30 years to help fund a publicly owned arena expected to cost anywhere from $470 million and $542 million.
That deal fell apart when the parties got together to nail down specific terms of the arena's construction in a signed memorandum of understanding.
After the Maloofs broke off talks in September, city and county officials regrouped with Thomas' representatives to come up with a new plan that the Kings' owners could accept.
That proposal, which the city and county have refused to make public, was sent to the team nearly three weeks ago. The Maloofs sent a response on Friday.
About the writer: The Bee's Mary Lynne Vellinga can be reached at (916) 321-1094 or mlvellinga@sacbee.com.
