Supervisors push arena plan forward
Issue is one step away from a November vote
By Terri Hardy and Mary Lynne Vellinga -- Bee Staff Writers
Published 3:40 pm PDT Tuesday, July 25, 2006
http://www.sacbee.com/content/news/story/14281656p-15089754c.html
A plan to increase sales tax by a quarter-cent to fund a new Kings arena passed a crucial hurdle Tuesday when Sacramento County supervisors agreed to move forward with placing the issue on the November ballot.
After listening to hours of emotional testimony, supervisors agreed 4-1 to introduce an ordinance that would place two arena measures before voters.
Another finalizing vote, required by law, is scheduled for Aug. 2, but is considered a formality since the board's vote is likely to be identical.
Supervisor Roger Dickinson, who was part of the arena negotiating team and supports the funding plan, said the question about an arena and community priorities is an important one to debate.
"If there was ever a question that it was right to let voters decide, it is this one," Dickinson said, noting the passion of advocates and opponents. "Beyond the opportunity to let people speak to exercise democracy, the ultimate question is if whether we choose to invest to make ours a first class community. My answer is yes; I believe we are worth it."
Voting no was Supervisor Roberta MacGlashan. While she said she believes Arco Arena is obsolete and a new facility would benefit the county, she doesn't agree with the county's strategy of seeking only a majority of voters to approve the measure. She said the majority of the county's voters approved Proposition 218, which requires a two-thirds vote on specific tax increases.
"I don't think 58 percent of the voters intended for us to find creative ways to not apply that requirement - I'm concerned that's what we're doing here," MacGlashan said.
Joe and Gavin Maloof, the owners of the Kings, stood before the supervisors and said that after several unsuccessful attempts to put the issue before voters, they are excited at this opportunity.
"We'll respect whatever decision they make, but after six years, it's time to let (voters) decide," Joe Maloof said.
Added Gavin Maloof: "There's no doubt in my mind we'll have a yes vote."
Tuesday's meeting was a raucous affair, with applause, booing and shouts exchanged between members of the public and the supervisors. In one exchange, Margaret Williams, a mother holding her two young sons, asked Dickinson to explain to her children why "mommy should invest in an arena instead of their milk."
At the beginning of the hearing, the meeting room was packed, with overflow attendees watching on chairs in the foyer of the County Administration Building. About 60 people signed up to speak, including a host of public officials, business leaders and community activists. Opponents and proponents of a publicly subsidized arena plan appeared to be evenly split.
If approved next week, the ballot measure will be in two parts. First, residents will be asked to approve the sales tax increase, which is expected to raise at least $1.2 billion over 15 years. The current sales tax rate in Sacramento County is 7 3/4 percent.
A second, non-binding question will ask voters if they would agree to spend the increased tax revenue on an arena and other community amenities.
Under the arena funding plan, the tax revenue would pay for the bulk of the facility to be built at the downtown Union Pacific railyard, estimated at between $470 million and $542 million. A short-term construction loan would add between $35 million to more than $51 million to the cost.
Also, a minimum of $594 million would go to the county and its cities for unspecified local projects. No payments would go to the communities for about seven years, until the construction loan is repaid.
The Maloofs would agree to keep the Kings and Monarchs in Sacramento for 30 years and pay off an existing loan from the city of nearly $71 million in a lump sum. Then, they would pay $4 million annually in rent for 30 years and put $20 million in a capital repair reserve fund. A public joint powers authority would own the building, and the Maloofs would pay to maintain it. All proceeds from all events, parking and concessions would go to the Maloofs.
Critics said the measure is welfare for rich team owners; that the sales tax would impact mostly the poor and middle-class; and that public funds would be better spent on a host of other community needs, including flood control, affordable housing and law enforcement.
"Polls tell us voters do not support public funding for a sports area," said Assemblyman Dave Jones, D-Sacramento, the most prominent official opposing a publicly funded arena. "Voters have common sense and recognize this is not in their interest. It's important we focus on public benefit, not private gain."
Jones also said the Maloof's contribution, as outlined by the arena funding plan, is greatly exaggerated. Jones said he believes their contribution is "at best" 12 percent.
Others who have analyzed the proposal say the Maloofs will contribute from 12 percent to 15 percent of the arena's cost -- once the money that they plan to pay in the future is evaluated at its worth today.
Paul Hahn, the county's economic development director and a member of the arena negotiating team, told supervisors he stands by calculations that the Maloof's will contribute between 26 and 30 percent. Hahn has said the contribution can be calculated in different ways, but said in whatever fashion it is presented, it compares favorably to arrangements in similar markets such as Memphis, Indianapolis and Charlotte, N.C.
Joe Sullivan, president of the Sacramento County Taxpayers League, said his organization hasn't taken a position on the new arena plan. However, he said his group opposes the "transparent" attempt to characterize the proposed arena tax as a general tax requiring only a majority vote.
"This tax started with one purpose, to build an arena for the Kings," Sullivan said. "To seek an end-run around (the law) in unconsionable."
County Counsel Bob Ryan said his legal research found that a tax question and a non-binding advisory question was upheld by the courts. He did have a word of caution for the supervisors, however.
"The more this general tax is tied to any specific purposes, in campaign literature, the chancier, the dicier it gets," Ryan said.
Supporters for the arena plan testified Tuesday that they believed a new sports facility would keep the Kings and Monarchs, vital community assets; revitalize downtown and improve the quality of life in the region; and deliver millions to needed community projects.
Sacramento Vice Mayor Rob Fong, a member of the arena deal negotiating team, called Tuesday an exciting day.
"It's not everyday you can say we're at a defining moment in our history, but today is definitely one of those days," Fong said. "This campaign will be about the future of the city, county and region of Sacramento."
Issue is one step away from a November vote
By Terri Hardy and Mary Lynne Vellinga -- Bee Staff Writers
Published 3:40 pm PDT Tuesday, July 25, 2006
http://www.sacbee.com/content/news/story/14281656p-15089754c.html
A plan to increase sales tax by a quarter-cent to fund a new Kings arena passed a crucial hurdle Tuesday when Sacramento County supervisors agreed to move forward with placing the issue on the November ballot.
After listening to hours of emotional testimony, supervisors agreed 4-1 to introduce an ordinance that would place two arena measures before voters.
Another finalizing vote, required by law, is scheduled for Aug. 2, but is considered a formality since the board's vote is likely to be identical.
Supervisor Roger Dickinson, who was part of the arena negotiating team and supports the funding plan, said the question about an arena and community priorities is an important one to debate.
"If there was ever a question that it was right to let voters decide, it is this one," Dickinson said, noting the passion of advocates and opponents. "Beyond the opportunity to let people speak to exercise democracy, the ultimate question is if whether we choose to invest to make ours a first class community. My answer is yes; I believe we are worth it."
Voting no was Supervisor Roberta MacGlashan. While she said she believes Arco Arena is obsolete and a new facility would benefit the county, she doesn't agree with the county's strategy of seeking only a majority of voters to approve the measure. She said the majority of the county's voters approved Proposition 218, which requires a two-thirds vote on specific tax increases.
"I don't think 58 percent of the voters intended for us to find creative ways to not apply that requirement - I'm concerned that's what we're doing here," MacGlashan said.
Joe and Gavin Maloof, the owners of the Kings, stood before the supervisors and said that after several unsuccessful attempts to put the issue before voters, they are excited at this opportunity.
"We'll respect whatever decision they make, but after six years, it's time to let (voters) decide," Joe Maloof said.
Added Gavin Maloof: "There's no doubt in my mind we'll have a yes vote."
Tuesday's meeting was a raucous affair, with applause, booing and shouts exchanged between members of the public and the supervisors. In one exchange, Margaret Williams, a mother holding her two young sons, asked Dickinson to explain to her children why "mommy should invest in an arena instead of their milk."
At the beginning of the hearing, the meeting room was packed, with overflow attendees watching on chairs in the foyer of the County Administration Building. About 60 people signed up to speak, including a host of public officials, business leaders and community activists. Opponents and proponents of a publicly subsidized arena plan appeared to be evenly split.
If approved next week, the ballot measure will be in two parts. First, residents will be asked to approve the sales tax increase, which is expected to raise at least $1.2 billion over 15 years. The current sales tax rate in Sacramento County is 7 3/4 percent.
A second, non-binding question will ask voters if they would agree to spend the increased tax revenue on an arena and other community amenities.
Under the arena funding plan, the tax revenue would pay for the bulk of the facility to be built at the downtown Union Pacific railyard, estimated at between $470 million and $542 million. A short-term construction loan would add between $35 million to more than $51 million to the cost.
Also, a minimum of $594 million would go to the county and its cities for unspecified local projects. No payments would go to the communities for about seven years, until the construction loan is repaid.
The Maloofs would agree to keep the Kings and Monarchs in Sacramento for 30 years and pay off an existing loan from the city of nearly $71 million in a lump sum. Then, they would pay $4 million annually in rent for 30 years and put $20 million in a capital repair reserve fund. A public joint powers authority would own the building, and the Maloofs would pay to maintain it. All proceeds from all events, parking and concessions would go to the Maloofs.
Critics said the measure is welfare for rich team owners; that the sales tax would impact mostly the poor and middle-class; and that public funds would be better spent on a host of other community needs, including flood control, affordable housing and law enforcement.
"Polls tell us voters do not support public funding for a sports area," said Assemblyman Dave Jones, D-Sacramento, the most prominent official opposing a publicly funded arena. "Voters have common sense and recognize this is not in their interest. It's important we focus on public benefit, not private gain."
Jones also said the Maloof's contribution, as outlined by the arena funding plan, is greatly exaggerated. Jones said he believes their contribution is "at best" 12 percent.
Others who have analyzed the proposal say the Maloofs will contribute from 12 percent to 15 percent of the arena's cost -- once the money that they plan to pay in the future is evaluated at its worth today.
Paul Hahn, the county's economic development director and a member of the arena negotiating team, told supervisors he stands by calculations that the Maloof's will contribute between 26 and 30 percent. Hahn has said the contribution can be calculated in different ways, but said in whatever fashion it is presented, it compares favorably to arrangements in similar markets such as Memphis, Indianapolis and Charlotte, N.C.
Joe Sullivan, president of the Sacramento County Taxpayers League, said his organization hasn't taken a position on the new arena plan. However, he said his group opposes the "transparent" attempt to characterize the proposed arena tax as a general tax requiring only a majority vote.
"This tax started with one purpose, to build an arena for the Kings," Sullivan said. "To seek an end-run around (the law) in unconsionable."
County Counsel Bob Ryan said his legal research found that a tax question and a non-binding advisory question was upheld by the courts. He did have a word of caution for the supervisors, however.
"The more this general tax is tied to any specific purposes, in campaign literature, the chancier, the dicier it gets," Ryan said.
Supporters for the arena plan testified Tuesday that they believed a new sports facility would keep the Kings and Monarchs, vital community assets; revitalize downtown and improve the quality of life in the region; and deliver millions to needed community projects.
Sacramento Vice Mayor Rob Fong, a member of the arena deal negotiating team, called Tuesday an exciting day.
"It's not everyday you can say we're at a defining moment in our history, but today is definitely one of those days," Fong said. "This campaign will be about the future of the city, county and region of Sacramento."
