Natomas group wants new arena at Arco site

Ryan

I like turtles
#1
Natomas group wants new arena at Arco site





http://www.sacbee.com/topstories/story/2512036.html
By Tony Bizjak
tbizjak@sacbee.com
Published: Thursday, Feb. 4, 2010 - 12:00 am | Page 1A
Why move the arena at all?

That's the question swelling in Natomas amid all the talk about erecting an arena for the Kings in Sacramento's downtown railyard as the catalyst for a new urban center.

For 20 years, Arco Arena has loomed large on the Natomas landscape – bringing in Kings fans, concertgoers and their spending dollars – and Natomas business leaders have no intention of letting that asset go without a fight.

In answer to Mayor Kevin Johnson's call for ideas for a new sports and entertainment complex to replace aging Arco, a Natomas business group has pitched an ambitious plan to reinvent the 180-acre Arco site. As envisioned, a new arena, slightly north of Arco, would be surrounded by stores, restaurants, entertainment venues, a hotel and a cinema.

"It's a location that has been tried, tested and proven to work," said Marni Leger, a magazine publisher who is leading the Natomas chamber's "Keep the Arena in Natomas" committee. "All the talk was about moving an arena somewhere else. We felt to have a voice in this discussion, the minimum we had to do was have a proposal."

The group faces an uphill battle.

Five of the seven proposals submitted in response to the mayor would put a new arena downtown. NBA officials and the Kings owners have thrown their weight behind one of those plans, a complex land swap that would put an arena downtown, move the state fairgrounds at Cal Expo to the current Arco site and turn Cal Expo over to private developers.

And while city leaders haven't taken a position on the proposals yet, they've talked for years about the possibility of kick-starting redevelopment of the vacant downtown railyard expanse by locating an arena there.

Johnson has commissioned a task force to review the proposals and bring a recommendation March 11 on where and how to build a facility to replace Arco.
The Natomas group, Natomas ESC Partners, along with architect Michael Corrick and several developers, turned in its proposal 15 minutes before Johnson's Christmas Eve deadline. NBBJ architects – designers of Los Angeles' Staples Center – did conceptual drawings for the plan.

It calls for a complete reinvention of the Arco site, part of which is owned by the city, part by the Kings. Besides the arena and retail offerings, the group proposes a "green tech" research and office park on the site and a small "car-reduced" residential community next to what may be a future light-rail station.

The old arena would stay, possibly as a green tech science center. Its roof and the downsized parking lot would be lined with solar panels. A greenbelt and wetlands would wind through the center of the site.

The goal, said Scott Hunter of NBBJ, is to use advanced technology to heat and cool the arena and other facilities. "We wanted to propose something unique to this site that you couldn't do in a downtown site," Hunter said.

Notably absent from the proposal is any detailed plan for financing for what looks to be a multibillion-dollar concept.

Natomas ESC Partners has listed possible revenue sources. But most of those involve proceeds from arena operations – revenue the Maloof family, which owns the Kings, has been unwilling to give up in past financing discussions.

Natomas group spokesman Jeff Baize of Brookhurst Development Corp. said it's impossible to come up with a financing plan until Kings officials, the city and developers sit down to negotiate.

Baize said he guesses an arena at Arco could be 30 percent less expensive to build than downtown because roads and parking already are in place.

He said his group is unhappy that the NBA tilted the playing field by announcing support for another proposal before looking through all submissions. The Natomas site remains a favorite with many Kings fans, who like the easy freeway access and ample, if costly, parking.

By comparison, Leger warned, the NBA-backed proposal from local developer Gerry Kamilos – with its multiple moving parts – appears "far-fetched."

NBA officials have said they like the Kamilos proposal in part because it comes with commitments from deep-pocketed financial backers that the other proposals lack.

City Councilman Ray Tretheway said this week he has contacted the NBA to set up a conference call about the Natomas plan.

The proposal faces other challenges.

The suburban site virtually requires arena users to arrive in cars. Sacramento transportation planners say major new developments, especially an arena, should be linked to light-rail and bus systems.

A light-rail line is planned for nearby Truxel Road with a stop six-minutes walking distance from the proposed arena. RT officials, however, do not have the money to build the line now.

If Natomas advocates hope to win a Natomas vs. downtown turf war, they also must persuade city officials the Arco site can match a downtown arena in spurring retail growth and cultural vitality.

Natomas advocate Leger contends the city can offer that boost downtown other ways, such as a theater district, that won't harm Natomas.

"There is a very real fear here of what will happen to businesses," she said, "if we end up with a hole in the ground."
 
#3
Green residential community
Green power
Green parking
Green tech center

Green uniforms?

...and, why are there football images on the banners?
 
#4
Green residential community
Green power
Green parking
Green tech center

Green uniforms?

...and, why are there football images on the banners?

I think there are some grants, tax breaks, etc. available for green projects. Probably a preview of their shaky financial package.
 
#6
You know what? This actually pisses me off. We've been trying to get a new arena for about 10+ years now. If they were remotely worried about this, where the he** have they and their ideas been? Geez.

Financing has been the bugaboo in every proposal to date. That's why the Maloofs and the NBA like the Kamilos project.
 
#7
The Natomas Chamber of Commerce got their panties in a bunch when they saw the downtown arena proposal got so much attention. A lady came on the radio with Carmichael Dave who represented the Natomas group the night of the unveilings.

She stated they would continue to push to get face time with the Maloofs and the NBA since the downtown proposal people did. She felt it made a mockery of the process, since there were timeline's established.

It's all sour grapes. For the first time Natomas realized it might actually lose the Kings. They conncerned only for the economy of the small Natomas area, and not for the development for the city that Natomas resides in, Sacramento.

That's tunnel vision in my opinion, and it makes me vehemently against this.

I WANT IT DOWNTOWN!!!
 

pdxKingsFan

So Ordinary That It's Truly Quite Extraordinary
Staff member
#9
I've always hated the location, of course Natomas has their panties in a bunch now that a downtown solution actually has some steam and a mayor excited to play ball. They really should have been at the forefront of a solution back when there were no other viable options and they were expanding everything else in town. I believe a vital downtown is key to a city's future and hope they see that plan through. I was willing to accept Cal Expo because it is still in central Sacramento and could evolve into a new downtown, but Natomas... eh. Never a fan.
 
#10
Its needs to be in downtown Sacramento!!! Sacramento needs to start building up to be a major city one where tourist will actually want to come and be recognized as the state capital because as is stands now there are a hand full of cities in california people would rather go to than here and its a shame because SAC has so much to offer....
 
#11
I've always hated the location, of course Natomas has their panties in a bunch now that a downtown solution actually has some steam and a mayor excited to play ball. They really should have been at the forefront of a solution back when there were no other viable options and they were expanding everything else in town. I believe a vital downtown is key to a city's future and hope they see that plan through. I was willing to accept Cal Expo because it is still in central Sacramento and could evolve into a new downtown, but Natomas... eh. Never a fan.

I actually like Natomas, being that I live in North Natomas. It's super convenient. However, posed with the option of downtown, I'll pick downtown every single time.
 
#12
There just isn’t a viable way to finance the construction costs for a new arena in Natomas, because there isn’t enough/anything to give a third party.

At best (may not be possible, but let’s assume so I can show you the structural defect), the moving parts would be: (1) city chips in their land and forgives the loan; and (2) the Maloofs pay a portion of the building costs … and …. well there is the problem. The city is “all in.” Carving off the existing land around Arco, equity shares in the team, property, ect … just means the Maloofs pay for more of the building.

Since that math hasn’t worked for many years, the idea evolved to enticing a third party to front the construction costs in exchange something of greater value.

* For example, the closest we got in Natomas was the proposed land swap. They city would rezone a lot of farm land and the land owners would build an arena. Deal died and expanding Natomas isn’t viable right now for many reasons – including but not limited to - political, a flood zone moratorium, and economic issues.

* Cal Expo. You get a lot of Expo, State gets a shiny new fairground with an arena.

* New plan. You get all of the Expo land. State gets new fair ground in Natomas. City gets new arena downtown.

It’s going to be a deal like that and there just aren’t enough carrots in Natomas. Let’s look at them:

* City Land – That’s where the new building goes. It keeps costs down, but it doesn’t play for construction. Thinking outside the box, you could try to sell than land to developers and kick in the cash. It wouldn’t be enough to close the gap. Moreover, the Maloofs loose 1/3 of their parking spaces during construction and ultimately competitors are selling food and merchandise adjacent to the new building. Also, you risk city council members don’t decide the right move isn’t selling the land and using it elsewhere. My head is starting to hurt. Let’s assume – at most – it’s just where the new building goes.

* City Loan – Even if forgiven, it’s great on a balance sheet but it’s not cash. It can be used to entice greater Maloof participation, but it’s not a direct source of funds.

* Maloof Money – In Q and R and the most recent plan the contribution was structured as rent. We should expect most/all of the Maloof money to be in that form. Even if they contribute some upfront money, they can’t close the gap. People need to realize the “they should pay for most/all” debate is pointless and futile.

While you might be able to grab a few dollars here or there – that’s it. That’s the list. Consequently, there aren’t enough moving parts to finance a Natomas arena … which doesn’t stop lots of people from saying “Yeah, but I like it there.” Good for you. But after 8 years, the issue is – whether Sacramento can build an arena … not where you would like a building based upon the assumption that one is coming.