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NBA to assist Maloofs with pre-development payment

6:38 PM, Mar 29, 2012   |    comments
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Kings Co-Owners Gavin and Joe Maloof, and Sacramento Mayor Kevin Johnson acknowledge the crowd at Power Balance Pavilion.

SACRAMENTO, CA - The deal to build a new arena is hitting a snag over a $3.26 million payment for pre-development cost that the Kings owners believe they do not have to pay.

"As long as the Maloofs are a tenant and not the owner of the arena, the family doesn't believe they should be responsible for pre-development costs. This has been their stance for quite some time," Maloof family spokesperson Eric Rose said.

The $13 million pre-development cost will begin to pay for the development of a site plan for the Entertainment Sports Complex and preparation for an environmental impact report.

According to the Sacramento City Council agenda for Tuesday, the city would pay for 50 percent of the pre-development costs, and the Kings and AEG will each pay for 25 percent.

"The success of the new entertainment and sports complex depends on the complete trust and partnership among all parties," said Mayor Kevin Johnson in a released statement. "It was with that spirit that we all agreed to a deal in Orlando, including the Maloof family, who looked an entire room in the eye and promised their commitment to Sacramento. In light of the Maloofs' promise, we fully expect all parties to live up to their commitments." 

To keep the arena deal moving forward, the NBA is now looking to assist the Maloofs with the pre-development payment. 

"Following the agreement in principle that was reached on February 27 among the City of Sacramento, AEG and the Kings for a new arena, the parties have been attempting to reach agreement on funding the pre-development expenses that must be incurred in order for the project to move forward in a timely fashion," said NBA Commissioner David Stern. "Those discussions have stalled but I have advised Mayor Johnson that the NBA will advance pre-development expenses on behalf of the Kings pending our report to the NBA Board of Governors at its meeting on April 12-13."

Rose said the Maloofs will continue to negotiate with the city of Sacramento, with their number one goal is to keep the team in the Capitol City and open a new arena in 2015.

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