Discussions between the NBA and the Cal Expo Board regarding a new Sacramento Kings arena have been extended four months.
Don’t expect a quick decision about the future of the Sacramento Kings, as discussions between the NBA and the Cal Expo Board regarding a new arena have been extended four months, giving the Board time to do an in-depth financial analysis of the latest proposal.
"The previous failed arena proposals have taught us that we must be thorough in our research, and transparent in our communication to the public, but we cannot and should not be hasty," said Norb Bartosik, Cal Expo chief executive officer and general manager, in a news release. "We plan to do what is best for Cal Expo, the state of California and the community at large."
The current proposal calls for a private developer to work with the Cal Expo Board on a revamping of the fairgrounds that would yield upgraded fair facilities, residential and office development, and a new arena for the Kings. The Board would float the bonds for the development, but the developer — and not the team — would be responsible for paying off the bonds.
The extension gives the Board time to run these numbers and loos at the pluses and minuses: the Board would need to give up control of the facility but be on the hook for bond repayment; the developer would be on the hook for bond repayment in the wake of a poor economy. And the Kings will need to give up a level of control of the facility — they’ve enjoyed total autonomy as owners of Arco Arena — in order to give the developer enough revenue to succeed.