A new Sacramento arena plan was approved by the City Council, clearing the way for the Sacramento Kings (NBA) to remain in town.
The plan, approved by a 7-2 margin, call for a new $477-million downtown arena, with the cost roughly split between the Kinds and the city. The city’s contribution will be bonds backed by revenues generated by parking facilities. This isn’t a new revenue stream; rather, an existing city revenue stream will be diverted to the arena. The Kings are signing a 35-year lease as part of the deal.
The new arena is expected to open in September 2016.
The $477 million arena will replace a mostly vacant Downtown Plaza that has languished for years. City officials say they’re hopeful the facility will spark development throughout the central city. The Kings are planning to build a hotel, office space, restaurants and apartments adjacent to the arena, although no time frame has been provided for that work.
The arena’s financing plan includes a city contribution of $255 million and $222 million from the Kings. The city will issue revenue bonds that it will repay over 36 years, backed mostly by annual lease payments from the Kings and money from city-owned parking facilities.
This is not a done deal: Opponents of the measure have vowed to collect enough signatures to force a public referendum on the plan.