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MailTribune.com
  • Sacramento approves $477M for Kings new arena

  • SACRAMENTO, Calif. — Sacramento's City Council on Tuesday approved a financing plan for the Kings NBA franchise, clearing the way for construction on a $477 million downtown arena.
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  • SACRAMENTO, Calif. — Sacramento's City Council on Tuesday approved a financing plan for the Kings NBA franchise, clearing the way for construction on a $477 million downtown arena.
    The council voted 7-2 on the package during a meeting that caps off the city's lengthy struggle to keep the team from moving to Seattle a year ago. Mayor Kevin Johnson declared "Long live the Kings" after the final vote, and the chamber erupted in cheers along with team owners.
    "We had our backs against the wall, but we defied the odds. We made a comeback for the ages and in doing so, I feel like we unleashed the very best that Sacramento has to offer," said Johnson, a former three-time NBA All-Star who maintains strong connections to the league.
    Under the 35-year deal, the city would be responsible for a $223 million subsidy, much of it financed through a parking revenue bond. The city would pay an estimated $21.9 million a year in debt service that would be paid through lease payments from the Kings and a projected increase in parking revenue.
    The city also is transferring $32 million worth of land and allowing the team to operate six digital billboards.
    In return, the Kings would contribute $254 million to construct the arena and develop surrounding land with a hotel, office tower and shopping.
    Construction on the crown-shaped sports facility will break ground this summer and open in time for the 2016-17 season.
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