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Downtown Arena Could Limit City's Ability to Participate



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(Sacramento, CA)
Thursday, February 14, 2013
The group led by Ron Burkle and Mark Mastrov is the frontrunner to make a bid to keep the Sacramento Kings from moving to Seattle.  People close to the negotiations believe the group favors the Plaza site.
 
 
City Manager John Shirey says it's too early to know how many spaces might be lost, "If any of them are taken out, it does reduce the amount of money we can leverage. On the other hand those are now going to be prime spots for the arena use.  So, in a way it makes those more valuable."
 
Shirey says the issue is one of many that's "up in the air" and "driven more by the ownership of the Plaza as well as what agreement they work out with the team. " 
 
The city is counting on leasing out those spaces and 9,000 others to help fund an arena.
 
According to research commissioned by the city in 2011, leasing out its parking operations is worth a minimum of $170 million and as much as $240 million.  That was based on the assumption the  arena would be built at the Railyards site. 
 
That revenue would have been a critical part of the $255.5 million the City pledged to the project.  Arena operator AEG pledged $58.75 million. $390 million needed to build an arena. 
 
The Kings's majority owners, the Maloof family agreed to pay $73.25 million during talks at the NBA All Star game a year ago in Orlando.  But the Maloofs then backed out of the deal. 
 
The City has hired Walker Parking Consultants to review the value of privatizing parking operations.
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