Voisin: Arena plan has legs

VF21

Super Moderator Emeritus
SME
http://www.sacbee.com/kings/story/961351.html

Ailene Voisin: Arena plan has legs, right from the tipoff

Published 12:00 am PDT Friday, May 23, 2008
Story appeared in SPORTS section, Page C5


This arena process already has been like giving birth to quadruplets without the benefit of an epidural. Natomas. Downtown Plaza. The railyard. There are probably other potential sites that have been discussed and discarded, without inflicting further pain on the public.

But now comes the plan for a final push, for the transformation of Cal Expo from 360 acres of rural wasteland into urban utopia.

If the developers are interested, the numbers are reasonably crunched and the traffic issue is resolved – three mighty ifs – the makeover will result in a sports and entertainment district that furthers the State Fair experience, includes bike paths and green patches to promote healthy living, and, of course, provides a permanent home for the Kings and Monarchs.

And who knows? Maybe this will even doom the racetrack and save a few horses.

An undertaking of this magnitude is a living, breathing organism, and in contrast to the previous arena incarnations – all of which failed for different reasons – this one has legs. It has legs and brains and boldness and braggadocio, all necessarily tempered by pragmatic concerns and a healthy dose of skepticism. (We aren't talking pennies here. Assemblyman Dave Jones should continue to bring his calculator, and continue to leave his haughtiness at home.)

Notably, at the Cal Expo board meeting Wednesday, the atmosphere was occasionally tense and tedious, but it remained respectful, at times even collaborative.

For the first time since a new arena concept was floated, the parties appeared genuinely committed to resolving two of the region's most problematic issues: solving the financial dilemma at Cal Expo and replacing creaky Arco Arena, all without approaching voters about a new tax.

"It took six months of going through a catharsis with everybody to get to this point," laughed John Moag, the expert hired by the league to facilitate a possible agreement, "and without question, when you have elected officials who are fans, who understand what the Kings mean to the area, it makes a huge difference. It's a strong reason I believe we can get this done."

The critical question, of course, is whether Moag can attract the high-end developers needed for a joint public-private venture of this size. Pressed on the issue, the Baltimore-based adviser sounded like someone with a shovel and pick already up his sleeve.

"We're committed to making this work," added a visibly exhausted David Stern, after taking a red-eye flight to Sacramento to attend Wednesday's meeting.

The longtime NBA commissioner, who is contending with other serious matters that include an ongoing referee scandal and an upcoming legal hearing over the Seattle SuperSonics' relocation to Oklahoma City, didn't come to town because he needed the frequent flier miles.

He insinuated himself into the situation because the Maloofs solicited his help 18 months ago, because his league (and his legacy) can only withstand so much hopscotching around the map, and most recently, because Moag quietly has convinced him that the stars and the political forces are aligning. Suddenly, it seems, everyone wants to deal.

"We'll learn the scope of the challenge within the 180 days," said Marko Mlikotin, chairman of the Cal Expo board, "but I will say, the future of Cal Expo is dependent upon a public-private partnership. We have enough money to survive, but not to maintain the place. Those bills are stifling. That's what eventually would put us under. I could not imagine a more ambitious (venture) than this, with the NBA and a world-class basketball team on the grounds. But the only other thing we have is the water park."

All together now …

Small steps.

Massive project.

Finally, a start.
 
So wait, is this where I should post the depressing "When are the Kings moving to Anaheim" message?

Or is it the "Maloofs don't want to be in Sacramento" post? I forget which order they are supposed to spring up in these threads....

:rolleyes:

The sides are talking and working on a solution. That is enough for me for now. Good to hear everyone is commited to making this work.
 
An interesting question here that strays into politics but could be relevant -- let's say no bailout package is passed, and credit freezes up as many think it will (indeed it has already begun to do so). Could that sink what is otherwise finally looking like a plan?

On the flipside, with the housing market a complete catastrophe, could this deal maybe get done cheaper than expected because of developers desperate for the business and willing to bid down?
 
An interesting question here that strays into politics but could be relevant -- let's say no bailout package is passed, and credit freezes up as many think it will (indeed it has already begun to do so). Could that sink what is otherwise finally looking like a plan?

On the flipside, with the housing market a complete catastrophe, could this deal maybe get done cheaper than expected because of developers desperate for the business and willing to bid down?
Well, bonds will be significant part of the financing. Presumably there will still be investor interest in public bonds. Maybe more.

Secondly, if you have significant bond money investment, that reduces the amount of private financing needed. So lenders looking for safer loans to make will be enticed by the fact that their risk is reduced by the bond financing (better loan-to-value ratio). The risk isn't gone, of course, but it's reduced.

Banks at some point are still going to loan money to borrowers, they will just be a lot pickier (and should be) with their underwriting. In other words, any developer looking for a private money loan will need to have very strong credit, supported by financial statements, strong experience with successful, similar type/size projects and financial leverage (like the bond money). That is all to the good. We want a really strong developer.

Also, this will likely be a multi-phase, many year build out. That breaks things down into smaller discrete projects, financed as they come up. That should help.

Finally, I take this as GOOD NEWS! :)
 
This it definitely encouraging and is the first real indication to the public that the task is moving forward within CalExpo. The fact the board meeting was contentious is encouraging as well as it means they are getting down to serious discussions. The task is bigger than enormous for Sacramento with far reaching implications beyond the anchor tenant, the Kings and Monarchs.

I was flattered that Norb Bartosik, the CEO of Cal Expo took the time to respond to my email of encouragement on behalf of kings fans in general. If others want to show their support and encouragement to Cal Expo, I'm sure he and the other board members would appreciate your input. Keep it short and to the point so they can know KingsFans are behind their work. His email is:
NBartosik@calexpo.com

Thanks for posting Alene's update for us.
 
Update Wednesday, 22 October. The Bee this morning finally provided updated information from the NBA and Cal Expo on their progress and efforts. Even tho' a 90-day extension is requested that appears to be in everyone's best interests given the current economic climate. Higher density housing to be included was especially of interest.

Full story in Kings News Links. http://www.kingsfans.com/forums/showthread.php?t=29104
 
I think this is very good news. Development isn't going to stop in this country. It just means that projects have to be considered financially solid to get backing. That's good news.

If this actually moves forward, it will be because some great financial minds have put together what they consider a sound, financially feasible project that has a very high possibility of passing the now more serious, careful scrutiny of lenders/investors.

I'm feeling (cautiously) good about this.
 
Back
Top