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Kings arena price tag: $387 million

1:23 PM, May 26, 2011   |    comments
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  • Proposed arena in downtown Sacramento is circular area with Interstate 5 on the west and relocated railroad tracks on the north
    

SACRAMENTO, CA - The Sacramento Kings' new home could be an arena surrounded by a glass-encased raised concourse sitting at the current downtown railyards.

PICTURES: Drawings of arena

That is if the ICON-Taylor Group feasibility study becomes reality for the city of Sacramento.

Arena study presentation PDF (large file)

The new sports and entertainment complex would cost $387 million and have 1,300 additional seats (Power Balance Pavilion has 17,317 seats), 44 more luxury suites (PBP has 30 suites) and 1,368 additional premium and club seats (PBP - 412 seats).

A source close to the Sacramento Mayor Kevin Johnson's office told several media outlets the developer group looked at both the downtown railyards site and the Natomas area.

Although building a new arena and tearing down the old Power Balance Pavilion would cost 1.3 percent less, the developers decided the railyards provided the greatest positive economic impact.

But when the group officially presents their Entertainment and Sports Complex feasibility study to the Sacramento City Council Thursday at 1 p.m., the presentation will not include how they will fund the new arena.

The developers want to avoid using only public financing, and they are studying five recently-built arenas that used a mix of private and public money, including the Sprint Center (Kansas City), Amway Center (Orlando), FedEx Forum (Memphis), AT&T Center (San Antonio) and a proposed arena in Edmonton.

The public funds could include hotel and rental car taxes, but how much will depend on whether the Maloof family, who owns the Kings, wants to be a tenant/operator of the facility or only a tenant who leases the building.

"We'll look and see what happens," Joe Maloof said. "There's two or three different approaches that we could take and (we) really haven't sat down and evaluated those but we'll look at it and see what happens."

When asked what his preference was, he said, "Doesn't matter. Whatever works. We're here to make it work and make it happen and that's all that we care about."

The $387 million pricetag for a new arena is generating some concern.

"This city is not big on philanthropy. And we don't have the private sector capital or the private sector corporations to come up with that kind of money yet," said Dr. Sanjay Varshney, Dean of the Sacramento State University College of Business Administration.

The ICON-Taylor Group, along with city leaders, will begin developing a funding plan, which will include a regional coalition 100 days after Thursday's presentation.

The goal is to secure funding before the March 1, 2012, NBA relocation deadline, and build and complete the new arena by May, 2015.

By Ryan Yamamoto, ryamamoto@news10.net

Twitter @RYamamotoNews10 

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