Financing A New Arena..

[Nikefutbolero]

Ideally how much should a city invest into an arena? And where should this money come from? How much should the Maloofs contribute? How much have they said they would contribute?

My girlfriends mom told me the radio said the reason an Arena hasn't been built is because the Maloofs want to city to pay for it all, and I'm not too informed on the issue so I didn't know how to answer her.

Thanks.

 

[JJ22L]

Ideally how much should a city invest into an arena? And where should this money come from? How much should the Maloofs contribute? How much have they said they would contribute?

My girlfriends mom told me the radio said the reason an Arena hasn't been built is because the Maloofs want to city to pay for it all, and I'm not too informed on the issue so I didn't know how to answer her.

Thanks.

Media: 1
Reality: 0

Nike- there are many threads regarding the arena issue and there has been a substantial amount of dialogue regarding cost, where the money would come from, and how the Maloofs would contribute. If you peruse through some of the threads in this area I am sure you will find more than enough to keep you busy .

 

[Glenn]

Are you asking about the normal world or Sacramento? I don't know what is normal but the Amway Center in Orlando is owned 100% by the city financed by a bond issue. This means investors are buying bonds to finance it. ARCO is financed the same way. In Sacramento, no one wants to pay for it. They point their fingers at someone else and say "you do it."

The possiblities are endless and also involves who gets the profit from the arena, parking, signage, etc. Maloofs, I think, have offered to pay $10 mil per year as rent if someone else builds it. Some people don't want to help the Maloofs as they see it as a bailout, a nasty word in modern politics. At the same time, the city gets angry because the Maloofs aren't willing to build where the city wants it to benefit the city.

Lots of selfishness and it all seems a bit immature to me.

 

[kennadog]

Actully, ARCO was built with no financing from the city. Lukenbill and his partners bought the team, assumed the team's debt and built ARCO I and II with their own money, plus commercial debt. They wanted help from the city for the arena, but couldn't get it. If the city had helped, we we would have had a better arena and maybe one that could have been remodeled, like the Palace of Auburn Hills. It opened the same year as Arco, but cost $80 million to Arco's $40 million.

Lukenbill sold to Thomas and it was Thomas who got the loan from the city to help keep the nearly bankrupt team afloat. That loan was financed with bond mony and I believe there is a surcharge on tickets at Arco that goes toward paying off the loan.

The franchise does own Arco and the land it sits on.

 

[Glenn]

Actully, ARCO was built with no financing from the city. Lukenbill and his partners bought the team, assumed the team's debt and built ARCO I and II with their own money, plus commercial debt. They wanted help from the city for the arena, but couldn't get it. If the city had helped, we we would have had a better arena and maybe one that could have been remodeled, like the Palace of Auburn Hills. It opened the same year as Arco, but cost $80 million to Arco's $40 million.

Lukenbill sold to Thomas and it was Thomas who got the loan from the city to help keep the nearly bankrupt team afloat. That loan was financed with bond mony and I believe there is a surcharge on tickets at Arco that goes toward paying off the loan.

The franchise does own Arco and the land it sits on.

My memory returns. I stand corrected. In any case, the city has been unkind to this team from day one because when the name Luckenbill is mentioned we are talking about the first years of existence of the two facilities that have been here. Or should I say three? The Maloofs used their own money to build a practice facility, something the team had never had. I guess I see it as if the team owned it and then with the bond issue, it's like saying you own a house or car you are paying on.

Fighting this city has been a never ending challenge.

If a team almost goes bankrupt in the early years with constant sell outs, what's the point of ownership? Equity, I suppose, and pride.

 

[kennadog]

My memory returns. I stand corrected. In any case, the city has been unkind to this team from day one because when the name Luckenbill is mentioned we are talking about the first years of existence of the two facilities that have been here. Or should I say three? The Maloofs used their own money to build a practice facility, something the team had never had. I guess I see it as if the team owned it and then with the bond issue, it's like saying you own a house or car you are paying on.

Fighting this city has been a never ending challenge.

If a team almost goes bankrupt with constant sell outs, what's the point of ownership? Equity, I suppose, and pride.

Well, at the time, they were selling the tickets cheap. And the television deal the Maloofs inherited was apparently awful, the worst in the league. They were stuck with that contract all through the glory years.

This city really has no vision. They couldn't build a baseball stadium, either, so West Sac had to make something work. Sacramento's been trying to get something in the railyards for decades and they are finally getting the beginnings going. They've never been able to get K street right, although the end nearest the convention center shows signs of life, finally. Its just sad, though, when you see so many cities, no bigger than Sacramento, that have really wonderful areas of development near or in downtown. We could use some really exciting architecture in this city.

 

[bajaden]

Well, at the time, they were selling the tickets cheap. And the television deal the Maloofs inherited was apparently awful, the worst in the league. They were stuck with that contract all through the glory years.

This city really has no vision. They couldn't build a baseball stadium, either, so West Sac had to make something work. Sacramento's been trying to get something in the railyards for decades and they are finally getting the beginnings going. They've never been able to get K street right, although the end nearest the convention center shows signs of life, finally. Its just sad, though, when you see so many cities, no bigger than Sacramento, that have really wonderful areas of development near or in downtown. We could use some really exciting architecture in this city.

I think a lot of people have forgotten that Luckenbill also spent a few million putting in the infrastructure for a baseball stadium thats still sitting out there next to ARCO. Maybe you can remember better than I, but I seem to remember the Mayor and City council doing everything they could to discourage Luckenbill from bringing the team here. So instead of support from the city council, Luckenbill got quite the opposite.

Glenn, you're right in that the Maloofs offered to sign a 30 year lease for 10 million a year if a new stadium is built. I'm no math major, but I believe that adds up to 300 million. They have never said they want the city to totally fund a new arena, and that they were willing to put up some of the money. How much was never decided on, and never will be decided on until there's a feasible plan on the table.

I've been trying to find out about the TV deal the Maloofs have with comcast. I seem to remember somewhere that the Maloofs have to find all the sponsers themselves and they're not really making much money of of the deal. When you look at the deal the Lakers just got, its no wonder southern california looks inviting. If my memory serves, the Maloofs are the first Kings owners that have broadcast all the games on television. Also, last night at the game, Jerry Reynolds stated that the Maloofs have donated over 30 million dollars to the sacramento community since they've been here.

 

[twosomeca]

Don't beat yourselves up too hard. No one on the west coast is publicly financing arenas these days. I believe the last city to do that may have been Seattle with Qwest Field (Seahawks) and Safeco (Mariners). San Diego ponied up for Petco for the Padres, but after that happened, we all knew that would be the end of that. This is why the Chargers are ticked off and are sort of languishing at the Q. They can't get a new stadium in SD or the Los Angeles area.

 

[jon e]

they should set up a donation site, someone like myself would pay for a large chunk to cover the granola eaters and candle lit housed sacramentans

 

[kennadog]

they should set up a donation site, someone like myself would pay for a large chunk to cover the granola eaters and candle lit housed sacramentans

I've been meaning to send that sugestion to the mayor and others. It would have to be a secure trust account, that would refund money if no deal happened. I, too, would donate to the cause of a new arena.

 

[kupman]

http://blogs.sacbee.com/city-beat/2011/03/business-and-labor-leaders-are.html

I did not want to start a new thread and this seemed to be the most appropriate thread going for this blog post.

Seriously, where was this action 5 years ago?

 

[kennadog]

http://blogs.sacbee.com/city-beat/2011/03/business-and-labor-leaders-are.html

I did not want to start a new thread and this seemed to be the most appropriate thread going for this blog post.

Seriously, where was this action 5 years ago?

Actually, I know the Metro Chamber of Commerce has had an arena in their list of priorities for a few years now. A lot of groups have been. It's just that people, including the media, pretty much ignored them. People talking about this for years have been like people talking to the walls. If you can't hook the media at all, then its extrememly difficult to get your message out. Leave it to the media to wait until it's too late.

 

[pshn80]

http://blogs.sacbee.com/city-beat/2011/03/business-and-labor-leaders-are.html

I did not want to start a new thread and this seemed to be the most appropriate thread going for this blog post.

Seriously, where was this action 5 years ago?

What were you and I doing 5 years ago, about this issue? Doesn't make much difference now except blame game. What to do now, that's the point. Buy a brick, email a county supervisor, write the Bee. get the Roseville City Council acting, email the mayor, if you know a community leader tap him/her on the shoulder. What difference does it make whose fault it was.