Found this letter by Chris Lehane today from Jim Crandell's facebook:
http://www.facebook.com/pages/Jim-Crandell/138449902896009
April 17, 2012
To Mr. George Maloof:
There is an old saying: “There are lies, damned lies, and statistics”. The commentary by your arena consultant, Mr. Christopher Thornberg of the Los Angeles firm Beacon Economics, published in today’s Sacramento Bee, makes good use of the first two elements without bothering with the third.
Mr. Thornberg’s arguments hinge on the premise that neither you nor the people of Sacramento can afford a new Entertainment and Sports Complex. He might be half-right.
But where you are dead wrong is the assessment of the people of Sacramento. The leaders who work full time to stimulate and protect the economic engines of the City -- the Mayor, City Council and City Manager -- believe wholeheartedly in our community. So do AEG and the NBA, who spoke loud and clear about their belief in the people of Sacramento by committing $132M in private investment to our community.
More fundamentally, today’s commentary is riddled with basic errors. A few particularly egregious examples (and there are more):
1. The claim that “there are no contingencies in place for cost overruns” is false. Turner Construction will provide cost overrun protection on the project as detailed in the term sheet codified in the Orlando deal approved by the City Council on March 6th.
2. The claim that general fund backfill assumptions will require “more than twice” the current attendance numbers at PowerBalance is false. Estimates were based on just under 1.5 million annual visitors, which is very comparable to current numbers.
3. The claim revenue projections are too high is dubious. Attendance at Power Balance Pavilion has declined due to six straight losing seasons, uncertainty surrounding your commitment to keep the team in Sacramento, and an outdated arena. Sacramento is home to two of the longest sellout streaks in the history of the NBA and is widely known as one of the most loyal fan bases in the league. The revenue projections prepared by the NBA were based on historical Kings’ data and performance of other NBA teams after moving to comparable state-of-the-art arenas. No entity in the world has better data and capabilities to forecast these numbers than the NBA, and they stand 100% behind their projections with a $73M commitment.
4. Finally, and most incredulously, is the laughable claim that your concerns are motivated by the potential risk to the taxpayers of Sacramento. Forgive us if this rhetoric falls on deaf ears when we read about your simultaneous refusal to provide the City adequate collateral on the Kings loan; share in at-risk predevelopment expenses; pay for police, fire and other municipal services on game nights; and pay all applicable arena taxes.
The deal that was agreed upon in Orlando protects the people of Sacramento while ensuring jobs and economic development – and by your own admission was a “fair” deal.
As for term limits, many in our community agree they are necessary. Not so much for the Mayor and Council (there are none in Sacramento – perhaps Mr. Thornberg confused us with Anaheim?), but for team owners seeking to divert attention from their lack of financial wherewithal to pay their fair share.
The people of Sacramento make no apologies for wanting to invest in themselves to create jobs, economic development and a vibrant downtown through a world-class entertainment and sports complex. Rest assured, that self-confidence will not waver no matter how many flawed claims emanate from your team of Southern California consultants.
Sincerely,
Chris Lehane
http://www.facebook.com/pages/Jim-Crandell/138449902896009
April 17, 2012
To Mr. George Maloof:
There is an old saying: “There are lies, damned lies, and statistics”. The commentary by your arena consultant, Mr. Christopher Thornberg of the Los Angeles firm Beacon Economics, published in today’s Sacramento Bee, makes good use of the first two elements without bothering with the third.
Mr. Thornberg’s arguments hinge on the premise that neither you nor the people of Sacramento can afford a new Entertainment and Sports Complex. He might be half-right.
But where you are dead wrong is the assessment of the people of Sacramento. The leaders who work full time to stimulate and protect the economic engines of the City -- the Mayor, City Council and City Manager -- believe wholeheartedly in our community. So do AEG and the NBA, who spoke loud and clear about their belief in the people of Sacramento by committing $132M in private investment to our community.
More fundamentally, today’s commentary is riddled with basic errors. A few particularly egregious examples (and there are more):
1. The claim that “there are no contingencies in place for cost overruns” is false. Turner Construction will provide cost overrun protection on the project as detailed in the term sheet codified in the Orlando deal approved by the City Council on March 6th.
2. The claim that general fund backfill assumptions will require “more than twice” the current attendance numbers at PowerBalance is false. Estimates were based on just under 1.5 million annual visitors, which is very comparable to current numbers.
3. The claim revenue projections are too high is dubious. Attendance at Power Balance Pavilion has declined due to six straight losing seasons, uncertainty surrounding your commitment to keep the team in Sacramento, and an outdated arena. Sacramento is home to two of the longest sellout streaks in the history of the NBA and is widely known as one of the most loyal fan bases in the league. The revenue projections prepared by the NBA were based on historical Kings’ data and performance of other NBA teams after moving to comparable state-of-the-art arenas. No entity in the world has better data and capabilities to forecast these numbers than the NBA, and they stand 100% behind their projections with a $73M commitment.
4. Finally, and most incredulously, is the laughable claim that your concerns are motivated by the potential risk to the taxpayers of Sacramento. Forgive us if this rhetoric falls on deaf ears when we read about your simultaneous refusal to provide the City adequate collateral on the Kings loan; share in at-risk predevelopment expenses; pay for police, fire and other municipal services on game nights; and pay all applicable arena taxes.
The deal that was agreed upon in Orlando protects the people of Sacramento while ensuring jobs and economic development – and by your own admission was a “fair” deal.
As for term limits, many in our community agree they are necessary. Not so much for the Mayor and Council (there are none in Sacramento – perhaps Mr. Thornberg confused us with Anaheim?), but for team owners seeking to divert attention from their lack of financial wherewithal to pay their fair share.
The people of Sacramento make no apologies for wanting to invest in themselves to create jobs, economic development and a vibrant downtown through a world-class entertainment and sports complex. Rest assured, that self-confidence will not waver no matter how many flawed claims emanate from your team of Southern California consultants.
Sincerely,
Chris Lehane
