http://www.sacbee.com/101/story/23098.html
Maloofs quit arena talks
Disagreement surfaces over parking, project's size and amenities.
By Mary Lynne Vellinga, Terri Hardy and Jon Ortiz - Bee Staff Writers
Published 12:00 am PDT Thursday, September 14, 2006
The Maloof family has walked away from talks with the city and county of Sacramento over the terms of locating a new arena in the downtown railyard -- a heavy blow to community leaders trying to sell the arena proposal to the public.
"There are no more negotiations; we've already discussed all the issues," Joe Maloof said in a phone interview Wednesday. "They know what we need. We've told them."
The disagreement centers on parking, the size of the arena site, and on what, if any, kinds of retail or housing also would go into the sports and entertainment zone.
The pro-arena forces were left Wednesday with the very real possibility that they may be campaigning for a new sales tax on the Nov. 7 ballot to build an arena in the railyard without the owners of the NBA franchise on board -- and without their money to help pay for the campaign.
"We still consider them part of our team, but it is our arena, and we will decide where it goes, and the public has said loud and clear that the best place for the arena is in the railyard," said Assistant City Manager John Dangberg, who has represented the city in talks with the team.
Doug Elmets, spokesman for the Yes on Q & R campaign, said the campaign will move forward despite the negotiation problems and Joe Maloof's statements. He said the Maloofs haven't given any money to the campaign.
"We're focused on the railyards -- with or without the Maloofs' support," he said.
Sacramento Mayor Heather Fargo and Vice Mayor Rob Fong this week contacted a top NBA official to apprise him of the situation. Earlier this year, Fong persuaded the NBA to bring the Maloofs back to the bargaining table after another breakoff in talks.
County and city staff members had committed to producing a memorandum of understanding with detailed terms of the deal by Oct. 6. But even if that document never materializes, the ballot measure to raise the sales tax by a quarter-cent remains on the November ballot, Dangberg said.
So does a companion advisory measure asking voters if they want to spend about half the $1.2 billion in new taxes on an arena and the rest on community projects.
Elected officials who had been involved in the negotiations for months said it wasn't uncommon for the Maloofs to walk away from the table on more than one occasion. That gives them hope that they will be back.
Joe Maloof accused the city and county of backing away from terms previously agreed to, something officials vehemently deny. He said his family won't give money to the campaign until its needs for a downtown site are met.
"If they want an arena downtown, they'll stick by the agreement we have," he said.
One source familiar with the campaign said the Maloofs had pledged to donate $1.5 million to the effort.
Parking and what will surround the proposed arena are in dispute.
The Maloofs now control about 11,000 parking spaces around Arco Arena, and they want at least 8,000 -- the amount that fills up for Kings games -- at the new site, Dangberg said. They also don't want competition from other retail and restaurant businesses in the sports and entertainment zone.
The city, meanwhile, had committed to providing the team with a parking garage that could have as many as 3,000 spaces. Money from that garage would go to the team. Patrons also could park elsewhere in the railyard or downtown, or could arrive by light rail. In those cases, the team would not receive the money.
Dangberg said the Maloofs wanted to eliminate the housing, hotels and retail planned for the railyard's 20-acre sports and entertainment district and fill it with "an arena and parking garages and nothing else."
But the city is seeking to create a walkable entertainment district where people arrive by means other than cars. "We don't want to take Arco Arena and replicate it downtown," Dangberg said.
Maloof said his family supports putting an arena in the railyard, but won't locate in a place that "puts the franchise in jeopardy."
"Why would we move to a different area if it hurts our revenue," Maloof said.
"There's tremendous risk in running a sports franchise. It's not a normal business," Maloof added. "People are sweeping that under the rug."
Maloof said the city is trying to renege on a previously negotiated agreement on how much land the arena would occupy. Those involved in the negotiations said the Maloofs are seeking 8.5 acres.
"They know the size of area we need for an arena," Maloof said. "They wanted to cut it in half. If they want an arena downtown, they've got to stick with the agreement we have."
Dangberg said city negotiators don't have a set amount of land in mind, but want to first agree on what an arena would contain and then figure out how much land it would require.
"We're OK with 8.5 acres if that's what it is," he said.
The preliminary term sheet signed by both sides in August specifies neither the size of the arena site nor the number of parking spaces.
Maloof threw leaders of the campaign for measures Q and R into a tizzy last week at a pro-arena news conference when he said the arena might go someplace other than the railyard.
"We wholeheartedly support the idea of putting it downtown, but don't have a deal worked out yet," he said Wednesday. "When the voter goes into the booth, he's got to know where it's going to be."
Maloof noted other difficulties with developing the railyard. For example, he noted, developer Stan Thomas hasn't even finalized his purchase of the 240- acre yard from Union Pacific. "It's a very difficult spot to develop," he said.
But some city and county leaders leading the campaign for the arena said the downtown railyard location is something they refuse to compromise in order to get a new arena.
The term sheet with the Maloofs clearly states the arena could go elsewhere if the railyard site doesn't work out. But Sacramento's political will has coalesced around the idea of using the arena to help spur redevelopment of the long-dormant railyard.
"That's where we all want it," Fargo said Wednesday.
Sacramento County Supervisor Roger Dickinson said the railyard site is "the basis on which I've supported this effort."
Opponents of the arena Wednesday seized on the rift between the Maloofs and the ballot campaign -- saying that Joe Maloof was at least being honest with voters.
State Assemblyman Dave Jones and other opponents staged a news conference at the south gate to Arco Arena. They spun a makeshift roulette wheel in which the arrow stopped at different cities around the region.
"They mention the downtown about 30 times in their (campaign) materials, but there's nothing in either of the two measures that says anything about downtown or the railyard," Jones said.
Ron Dwyer-Voss, a member of the Natomas Unified School District Board, said it's no surprise the proponents of the new arena are arguing with the Maloofs.
"It's a bad deal, and when you have a bad deal, and you're trying to sell the product, the salesmen are going to fight."
Maloofs quit arena talks
Disagreement surfaces over parking, project's size and amenities.
By Mary Lynne Vellinga, Terri Hardy and Jon Ortiz - Bee Staff Writers
Published 12:00 am PDT Thursday, September 14, 2006
The Maloof family has walked away from talks with the city and county of Sacramento over the terms of locating a new arena in the downtown railyard -- a heavy blow to community leaders trying to sell the arena proposal to the public.
"There are no more negotiations; we've already discussed all the issues," Joe Maloof said in a phone interview Wednesday. "They know what we need. We've told them."
The disagreement centers on parking, the size of the arena site, and on what, if any, kinds of retail or housing also would go into the sports and entertainment zone.
The pro-arena forces were left Wednesday with the very real possibility that they may be campaigning for a new sales tax on the Nov. 7 ballot to build an arena in the railyard without the owners of the NBA franchise on board -- and without their money to help pay for the campaign.
"We still consider them part of our team, but it is our arena, and we will decide where it goes, and the public has said loud and clear that the best place for the arena is in the railyard," said Assistant City Manager John Dangberg, who has represented the city in talks with the team.
Doug Elmets, spokesman for the Yes on Q & R campaign, said the campaign will move forward despite the negotiation problems and Joe Maloof's statements. He said the Maloofs haven't given any money to the campaign.
"We're focused on the railyards -- with or without the Maloofs' support," he said.
Sacramento Mayor Heather Fargo and Vice Mayor Rob Fong this week contacted a top NBA official to apprise him of the situation. Earlier this year, Fong persuaded the NBA to bring the Maloofs back to the bargaining table after another breakoff in talks.
County and city staff members had committed to producing a memorandum of understanding with detailed terms of the deal by Oct. 6. But even if that document never materializes, the ballot measure to raise the sales tax by a quarter-cent remains on the November ballot, Dangberg said.
So does a companion advisory measure asking voters if they want to spend about half the $1.2 billion in new taxes on an arena and the rest on community projects.
Elected officials who had been involved in the negotiations for months said it wasn't uncommon for the Maloofs to walk away from the table on more than one occasion. That gives them hope that they will be back.
Joe Maloof accused the city and county of backing away from terms previously agreed to, something officials vehemently deny. He said his family won't give money to the campaign until its needs for a downtown site are met.
"If they want an arena downtown, they'll stick by the agreement we have," he said.
One source familiar with the campaign said the Maloofs had pledged to donate $1.5 million to the effort.
Parking and what will surround the proposed arena are in dispute.
The Maloofs now control about 11,000 parking spaces around Arco Arena, and they want at least 8,000 -- the amount that fills up for Kings games -- at the new site, Dangberg said. They also don't want competition from other retail and restaurant businesses in the sports and entertainment zone.
The city, meanwhile, had committed to providing the team with a parking garage that could have as many as 3,000 spaces. Money from that garage would go to the team. Patrons also could park elsewhere in the railyard or downtown, or could arrive by light rail. In those cases, the team would not receive the money.
Dangberg said the Maloofs wanted to eliminate the housing, hotels and retail planned for the railyard's 20-acre sports and entertainment district and fill it with "an arena and parking garages and nothing else."
But the city is seeking to create a walkable entertainment district where people arrive by means other than cars. "We don't want to take Arco Arena and replicate it downtown," Dangberg said.
Maloof said his family supports putting an arena in the railyard, but won't locate in a place that "puts the franchise in jeopardy."
"Why would we move to a different area if it hurts our revenue," Maloof said.
"There's tremendous risk in running a sports franchise. It's not a normal business," Maloof added. "People are sweeping that under the rug."
Maloof said the city is trying to renege on a previously negotiated agreement on how much land the arena would occupy. Those involved in the negotiations said the Maloofs are seeking 8.5 acres.
"They know the size of area we need for an arena," Maloof said. "They wanted to cut it in half. If they want an arena downtown, they've got to stick with the agreement we have."
Dangberg said city negotiators don't have a set amount of land in mind, but want to first agree on what an arena would contain and then figure out how much land it would require.
"We're OK with 8.5 acres if that's what it is," he said.
The preliminary term sheet signed by both sides in August specifies neither the size of the arena site nor the number of parking spaces.
Maloof threw leaders of the campaign for measures Q and R into a tizzy last week at a pro-arena news conference when he said the arena might go someplace other than the railyard.
"We wholeheartedly support the idea of putting it downtown, but don't have a deal worked out yet," he said Wednesday. "When the voter goes into the booth, he's got to know where it's going to be."
Maloof noted other difficulties with developing the railyard. For example, he noted, developer Stan Thomas hasn't even finalized his purchase of the 240- acre yard from Union Pacific. "It's a very difficult spot to develop," he said.
But some city and county leaders leading the campaign for the arena said the downtown railyard location is something they refuse to compromise in order to get a new arena.
The term sheet with the Maloofs clearly states the arena could go elsewhere if the railyard site doesn't work out. But Sacramento's political will has coalesced around the idea of using the arena to help spur redevelopment of the long-dormant railyard.
"That's where we all want it," Fargo said Wednesday.
Sacramento County Supervisor Roger Dickinson said the railyard site is "the basis on which I've supported this effort."
Opponents of the arena Wednesday seized on the rift between the Maloofs and the ballot campaign -- saying that Joe Maloof was at least being honest with voters.
State Assemblyman Dave Jones and other opponents staged a news conference at the south gate to Arco Arena. They spun a makeshift roulette wheel in which the arrow stopped at different cities around the region.
"They mention the downtown about 30 times in their (campaign) materials, but there's nothing in either of the two measures that says anything about downtown or the railyard," Jones said.
Ron Dwyer-Voss, a member of the Natomas Unified School District Board, said it's no surprise the proponents of the new arena are arguing with the Maloofs.
"It's a bad deal, and when you have a bad deal, and you're trying to sell the product, the salesmen are going to fight."
