Seattle City Council skeptical of arena as public investment

[butteredbiscuit]

City Council skeptical of arena as public investment
Several Seattle City Council members say they aren't convinced the proposed Sodo arena would meet the requirements of Initiative 91.

By Lynn Thompson
Seattle Times staff reporter

What is Initiative 91?
In 2006, three-fourths of Seattle voters approved I-91, which requires the city to receive cash profit in exchange for granting subsidies to benefit a professional sports franchise, such as tax money for a new arena. It requires the city to receive a return "at or above fair market value," defined as "no less than the rate of return on a 30-year U.S. Treasury Bond."

Seattle Mayor Mike McGinn has repeatedly said the proposal to build a new Sodo sports arena with $200 million in public financing meets the requirements of Initiative 91, which demands a financial return on any investment of public money.

But several Seattle City Council members aren't convinced an agreement with San Francisco hedge-fund manager Chris Hansen to build a $490 million arena and return professional basketball and hockey to the city would in fact provide such a return...

rest of story

Lynn Thompson: 206-464-8305 or lthompson@seattletimes.com. On Twitter @lthompsontimes.

 

[PurpleHaze]

Proposed Seattle arena hits another big snag in effort to get NBA back.

http://blogs.sacbee.com/city-beat/2012/07/seattles-nba-arena-deal-hits-a-snag.html

 

[butteredbiscuit]

Proposed Seattle arena hits another big snag in effort to get NBA back.

http://blogs.sacbee.com/city-beat/2012/07/seattles-nba-arena-deal-hits-a-snag.html

That is not all either. I was reading that Hansen and Ballmer want the arena in Seattle because they can't use Seattle Supersonics if they are some place else. City of Seattle owns the naming rights. Also Bellevue WA which is about 10-15 minutes across the Lake Washington (East) there want the arena there but they don't want any tax payer money to put out toward it.

I know last week some man named Don Levin talked about building an arena in Bellevue. He ripped Chris Hansen saying that he doesn't know what he is doing.

Date: Fri July 27, 2012
Show: Kevin Calabro Show
Chicago Businessman Don Levin wants to build an NHL/NBA arena in Bellevue. He thinks his proposal is better than the one Chris Hansen is bringing to Seattle and says he will build the arena before any team is in place. Callers give their reaction.

http://mynorthwest.com/category/pod_player_sports/?a=9944458&p=1013&n=Kevin Calabro Show

Talking about it live right now

http://mynorthwest.com/streams/streampop_espn.php

Actually they are talking live on the air there about it because looks like there is a vote happening about 8pm Sacramento time. It starts at 5pm. I know they are televising it and so I will find it and post the City of Seattle link.

Found it ( will heat up later)
http://www.seattle.gov/councillive/

 

[butteredbiscuit]

Council approves arena agreement 6-3

 

[Trueblood]

Council approves arena agreement 6-3

Now comes the hard part. The city council will be a tougher nut to crack although they are negotiating changes to the MOU that may basically guarantee Hansen gets it passed.

The question then becomes just how drastic are the changes going to be? They want some of the taxes being redistributed. Right now, the arena gets $200 million up front through bonds and it gets paid back from taxes generated by arena sales, whether it be ticket surcharges or concessions. If they aren't careful, they're going to drive Hansen away from the bargaining table and then you most likely get the council voting no.