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Legislature Approves Seattle Arena Tax Deferrals

KeyArena renovation Oak View Group

In a legislative victory for project officials, Washington lawmakers have approved a tax deferral for ongoing KeyArena construction and related projects.

Construction began late last year at KeyArena, part of an initiative led and financed by Oak View Group. Through the project, the venue’s distinguished roof line is being left intact as construction crews dig down 15 feet to create more interior space and modern facilities.

Earlier this year, officials requested that state lawmakers approve a three-year sales tax deferral of $80-$90 million for a series of construction projects, including work at KeyArena and a separate training facility at Northgate in Seattle. Washington lawmakers approved the request over the weekend. More from King 5:

The Oak View Group (OVG), which is building the new $930 million Arena at Seattle Center, had been seeking the sales tax relief in Olympia since January. There is a significant precedent for the state to give deferrals for new construction.

The measure initially passed the state House in March. It was approved by the Senate on Saturday and then concurred by the House as well. It now goes to Governor Jay Inslee for approval.

As part of this plan, Oak View Group will pay the back the deferral with interest between 2022 and 2030. When construction at KeyArena concludes in 2021, the venue will be home to the WNBA’s Seattle Storm, and a Seattle NHL expansion franchise slated to begin play in the 2021-22 season. It will also be designed to accommodate a potential NBA team.

Rendering courtesy Oak View Group.

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