Major builders invited to review Cal Expo arena plan
By Tony Bizjak
tbizjak@sacbee.com
Tuesday, Jun. 23, 2009
Sacramento Bee
http://www.sacbee.com/ourregion/story/1968520.html
Saying they want outside advice on whether their arena plan at Cal Expo makes sense, Expo officials on Monday mailed letters to 14 developers around the country, inviting them to Sacramento next month to look the site over and offer an opinion.
"We're saying, 'Let's find out from the real world if this project is feasible,' " Cal Expo's Brian May said. "Are we on the right track?"
Nearly two years into discussions, Cal Expo and the National Basketball Association have put together a concept for revamping the state-owned site with a new, modern fairground and a new arena for the Sacramento Kings.
The tentative strategy envisions teaming with a private developer who would finance and build the new fairground and arena.
In exchange, that developer would be allowed to lease a large part of the existing Cal Expo site to build a mixed-use community, likely with housing, offices, hotels, restaurants and stores.
But consultants hired by Cal Expo and the NBA disagree over whether the plan is financially feasible for a developer, and Expo officials haven't figured out if it would be a money-maker or money-loser for the state.
Amid that uncertainty – and a sour economy – Cal Expo and NBA representatives said it is time to get some expert opinions before they commit to moving forward.
Letters were mailed Monday to seven California development firms, including Sacramento-based Fulcrum Property.
Also on the list was the A.G. Spanos Co. of Stockton, as well as major developers in Los Angeles, Dallas, New York, Chicago and Minneapolis.
NBA representative John Moag described the invitees as heavy hitters.
"The purpose is to go to people who have had experience doing big projects, who can relate to what we are talking about," Moag said. "What do they think of the design? The economics?"
Sacramento Kings officials have underwritten part of the effort, and team co-owner Joe Maloof recently said team officials are very interested in seeing how it works out.
He declined to say whether the team would consider leaving town if the Cal Expo deal fails.
The NBA's Moag, however, said he believes the effort needs to make significant progress by next spring.
"It's no secret this team is financially challenged in a very big way right now, and the bleeding has to stop sooner than later," Moag said. "(Team owners) have said they need to see by March 2010 that there is light at the end of the tunnel."
March is the annual NBA deadline for teams to request permission to move to a new city that year.
Moag said he wants by next spring "to have a developer in hand that is willing to pay an amount sufficient to subsidize an arena."
Cal Expo officials said Monday they are hoping at least four invitees will visit Sacramento in mid-July, at private expense, to meet with a local panel about the plan.
That panel includes representatives from the state, the NBA, and the city and county of Sacramento.
Expo board member Marko Mlikotin has challenged the issuance of the letters, saying the board hasn't formally decided yet how it wants the site redeveloped, or whether an arena should even be part of the plan.
By Tony Bizjak
tbizjak@sacbee.com
Tuesday, Jun. 23, 2009
Sacramento Bee
http://www.sacbee.com/ourregion/story/1968520.html
Saying they want outside advice on whether their arena plan at Cal Expo makes sense, Expo officials on Monday mailed letters to 14 developers around the country, inviting them to Sacramento next month to look the site over and offer an opinion.
"We're saying, 'Let's find out from the real world if this project is feasible,' " Cal Expo's Brian May said. "Are we on the right track?"
Nearly two years into discussions, Cal Expo and the National Basketball Association have put together a concept for revamping the state-owned site with a new, modern fairground and a new arena for the Sacramento Kings.
The tentative strategy envisions teaming with a private developer who would finance and build the new fairground and arena.
In exchange, that developer would be allowed to lease a large part of the existing Cal Expo site to build a mixed-use community, likely with housing, offices, hotels, restaurants and stores.
But consultants hired by Cal Expo and the NBA disagree over whether the plan is financially feasible for a developer, and Expo officials haven't figured out if it would be a money-maker or money-loser for the state.
Amid that uncertainty – and a sour economy – Cal Expo and NBA representatives said it is time to get some expert opinions before they commit to moving forward.
Letters were mailed Monday to seven California development firms, including Sacramento-based Fulcrum Property.
Also on the list was the A.G. Spanos Co. of Stockton, as well as major developers in Los Angeles, Dallas, New York, Chicago and Minneapolis.
NBA representative John Moag described the invitees as heavy hitters.
"The purpose is to go to people who have had experience doing big projects, who can relate to what we are talking about," Moag said. "What do they think of the design? The economics?"
Sacramento Kings officials have underwritten part of the effort, and team co-owner Joe Maloof recently said team officials are very interested in seeing how it works out.
He declined to say whether the team would consider leaving town if the Cal Expo deal fails.
The NBA's Moag, however, said he believes the effort needs to make significant progress by next spring.
"It's no secret this team is financially challenged in a very big way right now, and the bleeding has to stop sooner than later," Moag said. "(Team owners) have said they need to see by March 2010 that there is light at the end of the tunnel."
March is the annual NBA deadline for teams to request permission to move to a new city that year.
Moag said he wants by next spring "to have a developer in hand that is willing to pay an amount sufficient to subsidize an arena."
Cal Expo officials said Monday they are hoping at least four invitees will visit Sacramento in mid-July, at private expense, to meet with a local panel about the plan.
That panel includes representatives from the state, the NBA, and the city and county of Sacramento.
Expo board member Marko Mlikotin has challenged the issuance of the letters, saying the board hasn't formally decided yet how it wants the site redeveloped, or whether an arena should even be part of the plan.
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