Well then. Here we are. First, let me show you an image that I think sums up this situation very well:
This is via Think Big Sacramento's Twitter.
Well, let's check in at the funding sources for the "supposed" 387 million dollar arena.
200 million from the leasing of the parking garages. Some monetary piece from the County of Sacramento using 3 parking lots nearby the city owned parking garages. 70 million from the Maloof family. 50 million or so from AEG is the number typically bandied about.
That's 320 million if those numbers are anywhere near accurate. And I think 320 million dollars gets the arena built for right now. Fully paid for? Obviously not. But you get the thing started and it's only semantics from there.
Plus their are ticket surcharges, brick selling (likely only a million or two dollars at most), a hotel tax that will likely be very little annually as well.
I believe this is a great day, I'm not sure what I can tell you that others can't. I will say that Seattle will always be lurking, and so will Anaheim.
A Bee story that suggests the Maloofs will put up 75 million up front and 75 million over the life of an arena. That's not insignificant no matter how you view the Maloofs.
As Rob McAllister notes on KFBK (who has been in Orlando following this story), the next key part is to get an "term sheet" together so that the City Council (of Sacramento) has time to review and vote for the use of parking garages on March 6th.
McAllister did a podcast with the Cowbell Kingdom crew (Jon Santiago and James Ham) this morning before the news broke. Please listen, as always.
Good news today on a lot of fronts. Whatever the case is going on, there is more news coming out and while I don't think I can get all of it, there is the reality that this is a great 1st step to getting a new arena. This is a tough step to hurdle, and possibly the toughest step of all.
But, we aren't finished, and don't forget that. Don't exhale until building of the construction starts. For now, here is my reaction: #HEREWESTAYEDBITCHES!!!!!!
UPDATE 1: The AEG share is now upped to 60 million dollars, there is a 3-5 percent surcharge on tickets, The Maloofs share is now 75 million according to the Bee, and the possible parking share from the City/County of Sacramento is now anywhere from 200-250 million dollars.
If you are talking 406 million dollars ( a term I've heard bandied about), this makes the deal very doable. If you are talking about 387 milllion dollars, this arena is nearly paid for assuming the City is able to fetch 250 million towards the arena (remember that it also has to pay off the debt on these parking garages as well).
The issue of the bonds from 1997 is now being agreed to being paid off with a new loan replacing it. The arena and Kings related revenue will be used as collateral.
Additionally, the general fund (a major sticking point in all of this) will be backfilled from the garage revenue with arena revenue instead. 3-5% of arena revenue is what will backfill the Sacramento City general fund, and whether or not this revenue is an increase or decrease over the current 9 million dollars will be the interesting story to track in all of this. NOTE: I mistakingly understood the terms of how the projections work out long term for the city of Sacramento here. The belief is that 75 million over 30 years (which works out to about 2.5 million annually) would be the reasonable expectation from this. Sorry for the mistakes.
This is all part of the Bee story I linked to earlier in the piece. And will link again here.
According to Mike Tavares (a prominent supporter of the arena effort--he's come up with the idea's to showcase during City Council meetings--including an important meeting Dec13th--that has illustrated that the arena is more than just "basketball"), Kevin Johnson and Think Big Sacramento will arrive at the airport around midnight in case you care to greet them. (I obviously cannot.)
Carmichael Dave discusses with CBS13 the impact of the announcement.
Last but not least, for now anyway, #HEREWESTAYEDBITCHES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
UPDATE 2: John Karalis of Crossover Chronicles (and more famously Reds Army), Bloguin's general NBA blog, has written his take over this whole thing.
UPDATE 5: Ryan Lillis of the Bee on Grant Napear's show discussing the vote. Also, there is a live chat from the Bee discussing the Arena situation. It's mainly Marcos Breton and Dale Kasler answering the questions.
UPDATE 6: Bryan Rosa of A Royal Pain just came up with a brilliant photo shop I must put on the front page here. (It's also my new Twitter avatar not that you care.)
Well done Bryan. Well done sir.
UPDATE 7: Here is the audio from Grant Napear and Gavin Maloof earlier on 1140 the Fan. H/T to Jodi Bacon for tweeting all these links earlier.