According to KCRA Channel 3, the Sacramento-based NBC affiliate, the numbers are in on what it’s going to take to get a new sports and entertainment facility built in Sacramento:
The cost of a new sports and entertainment complex to replace the old Arco Arena will cost $370 million, several sources confirmed for KCRA3.
The Taylor/ICON group will reveal their plan to the public in a open meeting on Thursday from 1-3pm. According to the KCRA report, the plan will lay out a financing package that will include a rental car and hotel tax as well as increased usage fees for both tickets and parking. There is a huge amount of momentum currently in Sacramento to get an arena built with both the NBA and public officials pulling together with the community. The financing package is still going to be crucial to this deal, which will require both public and private funds.
The Maloof’s have publicly stated in recent weeks that they no longer want to own the arena, and instead just be tenants. This might be the break that Sacramento was looking for. The Sacramento Bee published an article on Sunday by columnist Barbara Shelly, who lived through a similar ordeal in Kansas City before the Sprint Center was built. Without an owner, Kansas City was able to work out a lucrative long term deal with AEG to run a new arena, which helped pay for some of the construction costs. Between AEG, a new long term sponsorship deal with Sprint for the naming rights, as well as a rental car and hotel tax, Kansas City got their arena without even having an anchor tenant like the Sacramento Kings. Not only did Kansas City get their stadium, it’s thriving, providing the city with an economic boom to the surrounding area as well as a surprising level of positive cash flow to the city itself.
Clearly it is time for an open mind here in Sacramento. For years, negativity has surrounded this issue, but with unemployment at nearly 12% in the region and local businesses picking up shop and moving away, this is the time for an immense work project that will not only improve the image of Sacramento, but provide countless jobs both short term and long term. With the Maloof’s looking to get out of the way and let someone else run the arena, this is an open door for the general public to get on board with a community project for the greater Sacramento area.
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