Lawsuits in Seattle give Sacramento head start in race to approve an arena

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The question of which city, Sacramento or Seattle, is ahead in the race to bring the NBA a brand new arena attached to a shiny new public subsidy is unclear at this time, but sources with intimate knowledge of the situation tell PBT that so long as Sacramento Mayor Kevin Johnson delivers on his promises that Sacramento will be ahead in that process.

A lot of that comes down where each city is legally within that process, and how that process is conducted in both Washington and California.

While some early media reports might have led folks to believe that Chris Hansen’s arena deal (and offer to buy the team) were a slam dunk, the documents laying out the framework of his arena proposal are under siege.

Specifically, the Memorandum of Understanding (MOU) and Interlocal Agreement (IA) he entered into with the city of Seattle and King County have been under intense scrutiny locally, as they are currently the target of two lawsuits.  The first of those lawsuits is potentially being decided today at 1:30 PT.

The first suit brought by the International Longshoreman’s Workers Union challenges the site selection process within Washington’s Environment Impact Review (EIR) process, saying that Hansen and the local government conducted a “sham” site review process that did not provide reasonable, actionable alternatives other than Hansen’s hand-picked site.

That site, located in Seattle’s SODO district, has been the battleground of competing arguments regarding traffic and how it might impact Port of Seattle’s operations, and otherwise cause gentrification, loss of business in the area, and impact a large number of family-wage jobs in exchange for temporary construction jobs and a smaller number of low-paying arena jobs.

Arena proponents point out that most of the events at the proposed SODO site would occur after the Port’s business hours. Arena opponents say that the cumulative impact of creating a third large-scale sports and entertainment facility within their maritime industrial area, with an L.A. Live-like experience of retail outlets and restaurants, will necessarily bring more traffic to the region regardless of hour and disrupt Port operations.

These kinds of lawsuits are standard fare in any large-scale development project nationally right now, but they can have impacts on developments. In this case, opponents of the current MOU and EIR process point out that it could take “hundreds of millions of dollars” to mitigate the traffic issues a new arena would face, according to head lawyer for the ILWU suit Peter Goldman.

Hansen has offered $40 million to address traffic mitigation concerns, but in reality the question of who pays what for additional mitigation has yet to be solved because the EIR has yet to address the issue. Should Hansen have to pay for additional mitigation, it could further strap him and his group as it relates to their overall offer for the Kings, but the fear for locals is that the money would have to come from the public coffers.

The ILWU’s suit alleges a number of concerns relating to the site selection process, and asks the court to force Hansen and the local government to declare the MOU and IA “null and void” because they are in violation of the State Environmental Policy Act (SEPA).

It is unclear whether or not this would impact Hansen and the local government’s warranties to the NBA about its current arena situation.

(UPDATE: The judge ruled in favor of Hansen, Seattle, and King county and dismissed the lawsuit.  Hansen and governmental officials argued they did not have an arena agreement in place and that they would look at other locations.)

Goldman said that this suit was “preliminary,” and cited the broad swath of industry that is opposing the arena proposal in its current form. He pointed out that there will be more times for lawsuits to be filed down the road, but that he and his client were concerned that the site selection process wasn’t being conducted according to current state laws.

The second lawsuit relates to Seattle’s in-force Initiative 91 and the contention by its co-author Mark Baerwaldt that the current MOU does not meet the law’s criteria.

Baerwaldt is careful to point out that the courts would decide the matter. His complaints focus on the financing mechanisms that Hansen and the local government are using to meet the statute’s definition of turning a profit on public subsidies for sports arenas. This lawsuit is awaiting response from Hansen, Seattle, and King County.

I-91’s other co-author, Chris Van Dyk, has also been at the center of this discussion, being cited by many Seattle media outlets as being supportive of Hansen and Seattle’s MOU. He addressed those reports exclusively with PBT, saying he “never said it was compliant” and that “if he’s the best cheerleader (Hansen and Seattle) can come up with then they’re in trouble.”

Van Dyk also offered that “he’s looking forward to hearing the expert testimony,” because he didn’t think “I-91 anticipated meeting the type of funding mechanism that Hansen has presented.”

Whether or not the Longshoreman’s suit goes in favor of the plaintiff or Hansen and Seattle, Goldman says to expect more legal resistance down the road.  If they win, Hansen and Seattle has to start over with their MOU and come to the table with alternative sites that they may not like.  Then the city would have to choose between the site that Hansen wants, and a potential site that presents better alternatives in terms of environmental concerns and traffic.

If they lose today, he says that there is a “significant appetite” not just by his clients but a broad swath of industry including the Port of Seattle to appeal the decision and fight the EIR process at every stage. All of the potential delays and injunctions were reflected when David Stern told Jonathan Feigen of the Houston Chronicle that the NBA had “no approved plan for an arena in Seattle.”

Therein lies the rub for the Seattle group. While they seek to convince the BOG that they have an actionable arena plan, they are arguing in court that their MOU and IA just lay out a process for reviewing and financing an arena proposal and do not constitute an ‘action’ under state EIR laws. Therefore, they contend that the Longshoreman’s suit is not “ripe” and are asking for it to be thrown out.

Sources with intimate knowledge of the situation tell PBT that this is a tightrope that the Seattle group can walk, and Scott Howard Cooper of NBA.com illustrated that point by saying the league isn’t overly concerned with legal issues in either Seattle or Sacramento, but the question goes back to points made by TNT’s David Aldridge about which city can get an arena deal done first.

Aldridge, who had previously reported Seattle had a “clear path” to obtaining the Kings, said on Saturday “there are questions about whether or not the Seattle deal is as airtight as they say it is.”

After Stern’s press conference on Saturday Aldridge elaborated, “We have very equal bids here. What it comes down to is the feel the owners have on ownership groups, and which arena can be built the fastest.”

The EIR process in Seattle is underway, but with two lawsuits pending and only the judges in both suits being capable of delivering an up-or-down answer to the litany of issues presented, the uncertainty over what type of delays Seattle could face and what type of mitigation will be needed to preserve other parties’ rights are huge question marks.

On the other side, it’s Johnson’s track record of delivering on promises to the NBA that has insiders optimistic about Sacramento’s chances of delivering that ‘fair and competitive’ offer that will include a significant public subsidy and downtown arena.

That effort has been underway for a while now, as the NBA negotiated the current arena deal that the Maloofs backed out of, a deal that Johnson and Sacramento have maintained is still on the table.

Additionally, proposed arena locations in Sacramento aren’t likely to have the same types of blowback being faced in Seattle, where their sizable maritime industrial economy feels threatened by Hansen’s proposal.

One source with intimate knowledge of the situation speaking to PBT under conditions of anonymity spoke about Sacramento’s pair of proposed locations:

“Both potential Sacramento sites are complimentary to the existing downtown commercial uses, and unlike the fight in Seattle the downtown proposals are being welcomed as a revitalization project. Both are efficient reuses of developed property, and both sites qualify under the expedited state AB 900 CEQA process, which limits the delay from any potential lawsuits. Having already approved a deal structure a year ago with no lawsuits filed, Sacramento has a big advantage to deliver a timely arena facility.”

That AB 900 CEQA process is an interesting wrinkle to Sacramento’s effort to keep their team, as the bill creating that process was recently signed into law and co-authored by Think Big Sacramento supporter and California Senate President pro Tem Dan Steinberg. According to law firm Stoel and Rives:

“The (bill provides) an incentive for applicants to move forward with their projects because any challenge to a leadership project Environmental Impact Report (“EIR”) under the California Environmental Quality Act (“CEQA”) will be venued immediately in the Court of Appeal. The court will then have a maximum of 175 days to issue its decision on the challenged EIR”

Incidentally, the bill was passed in part to help facilitate the potential Farmer’s Field deal to bring NFL football back to L.A. The company driving that proposal is AEG, who is supporting Sacramento’s bid and being pursued for purchase by Ron Burkle, who is one of the ‘whales’ that reportedly stands behind Sacramento’s offer.

“It’s time for big thinking and big projects that put Californians back to work,” said California Governor Brown. “Projects like Farmers Field can create thousands of jobs during a tough economic time, so it is imperative for the state to cut the red tape that could delay projects like this for years. These bills strike the right balance between protecting our environment and kick-starting jobs and investment in California.”

Sources say NBA owners will be weighing the totality of the arena timelines for both sides, and in Seattle’s case how many years a potential Sonics team will have to play at Key Arena, a facility deemed by the NBA to not meet its standards when the Sonics left for Oklahoma City in 2008.

Hansen’s current plan calls for a potential Sonics team to play in Key Arena (with modest improvements) for as little as two years, while arena opponents believe that timeframe could be extended to as many as four years if lawsuits hold up the process. While Sacramento could face similar lawsuits, they didn’t face any during the 2011 arena deal, and the expedited review process and potential for less environmental concerns at the city’s proposed sites have sources pointing at the issue as a point in favor of Kevin Johnson’s expected proposal.

While Seattle’s lawsuits aren’t likely to be the defining factor in this saga – Sacramento’s production of an actionable offer will be that factor –the fact that the Emerald City can’t say with certainly how long they’ll be locked up at Key Arena could be the starting point for their bid to take the Kings to unravel.

Magic Johnson shrugs off concern about Lonzo Ball realty series

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Lonzo Ball has yet to play in one NBA game, yet he has his own signature shoe line, and he — along with his father LaVar Ball and the rest of his family — have their own reality show on FaceBook. Lonzo told me he doesn’t foresee this show, nor his bombastic father, being a problem with his teammates or on the court.

Magic Johnson agrees with that. At least for now.

The head of Lakers’ basketball operations said as training camp opened that he’s not worried about the show Ball in the Family being a distraction. If it is, he’ll step in, he told Ohm Youngmisuk of ESPN.

“Only time I am going to concern myself with what [Lonzo] does off the court is if it is affecting his play on the court,” Johnson said at the Lakers’ media day when asked about Ball’s reality Facebook series, “Ball in the Family.”

“Right now, I think it is awesome,” Johnson said. “His family is great. They came out Saturday, we had a big Laker picnic. … His dad is wonderful with me, and I am cool with him. … I think [Lonzo] is tired of all this [hype]. He is just like me; I just want to play and I think he wants to play, and then Saturday night [for the Lakers’ preseason opener], sold out, in Anaheim, wow!”

It’s Magic’s job to put a positive spin on things.

That said, he’s right. The Lakers (and every NBA team) have dealt with overinvolved parents before and know how to create some space for the player to focus on the game. Locker rooms have a way of sorting themselves out in these kinds of situations. Plus, the Lakers have been down the reality show road before (when Lamar Odom married Khloe Kardashian), and while that had an ugly ending, it wasn’t for lack of Lakers’ players and others in the organization trying to step in and help. (Odom just wasn’t yet in a place to accept help.)

Soon LaVar will be focused on his other sons and Lonzo, who appears practiced at tuning his father out and focusing on what is in front of him, will have the grind of the NBA schedule to worry about.

Former NBA player Chuck Person named in college basketball bribery scandal

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The recruitment of major college athletes — and then the steering of the handful that get to go pro to shoe companies and agents — is a sleazy business. It makes HBO’s “The Duece” look like Disneyland. It’s something sports fans know but largely turn a blind eye to until it forces its way into the headlines.

It turned up in the headlines Tuesday when four college assistant coaches from major universities were charged by federal prosecutors in a bribery scandal along with a representative of Adidas and others to steer players to specific agents or a financial handler.

Former NBA Rookie of the Year Chuck Person, now an assistant coach at Auburn, was among those named in the scandal.

Person is making headlines because he’s the biggest name in the scandal. He is charged with accepting approximately $91,500 from a business manager, who has flipped and is working with prosecutors. This “business manager, offered bribes to Person to steer players toward his services, as well as another person charged in the scandal.

Person told prosecutors he gave $18,500 of the money he took to two players’ families, according to the filings.

Person was the No. 4 pick in the 1986 NBA draft and went on to win Rookie of the Year, followed by a 13-year NBA career. He made $22.9 million over the course of his career.

PBT Podcast: Cavaliers, Bucks, Central Division Preview with Dan Feldman

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LeBron James and the Cleveland Cavaliers remain the team to beat in the East — I’m not picking against his team to win the Eastern Conference until someone beats them. This year’s Cavaliers may be deeper than previous years.

However, much of the Central Division is intriguing this season. Milwaukee is a team that, on paper, should take a step forward, but never seem to do that two years in a row. Still, they have Giannis Antetokounmpo and that makes them must watch. Detroit has one of the best centers in the game in Andre Drummond, and they have Marcus Smart on the roster now, but can Reggie Jackson bounce back? Then there are the Bulls and Pacers, both of whom are rebuilding.

Kurt Helin and Detroit-based Dan Feldman of NBC Sports break down the Central Division in this latest PBT Podcast.

As always, you can check out the podcast below, or listen and subscribe via iTunes (just click the button under the podcast), subscribe via the fantastic Stitcher app, check us out on Google play, or check out our new PBT podcast homepage and archive at Audioboom.com.

Reports: Dwyane Wade “leaning heavily” toward joining Cavaliers

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This race may have been decided before it ever started.

While Miami has the draw of home, and Paul George and Russell Westbrook have come hard at him, it seems Dwyane Wade always knew where he wanted to be after Chicago — reunited with LeBron James. Just now in Cleveland. From Joe Vardon of the Cleveland Plain Dealer.

Dwyane Wade is leaning heavily toward the Cavaliers as his new team once he clears waivers and may have already decided on a reunion with LeBron James, league sources with knowledge of Wade’s thinking told cleveland.com…

Wade has given no indication publicly what he will do, and at least three teams — the Oklahoma City Thunder, San Antonio Spurs, and his old team the Miami Heat — are interested in him. His agent is taking calls from those teams and others, and Wade told the Associated Press he would do his due diligence as well.

Adrian Wojnarowski of ESPN confirmed this.

This is not a shock.

What does Wade want in a destination? A chance to make another run at a ring, minutes, and a comfort level with the organization. Cleveland provides all of those, plus easy access to the Gravy Fries at Greenhouse Tavern (which may not be on Wade’s in-season approved list by his nutritionist).

Even without Kyrie Irving, the Cavaliers are and should be the favorite to come out of the East, then take their swings at the Warriors (or whoever comes out of the West, I feel obligated to write just to be nice to the folks in Houston and Oklahoma City). The Cavaliers are smack in the middle of the NBA’s second tier. Wade averaged an efficient 18.3 points per game for the Bulls last season, and he can for stretches still dial-up his vintage self and dominate games.

Wade would probably start at the two over J.R. Smith, and even if he came off the bench he could get just about all the minutes his aging knees will handle. That said, I’m not sure the Cavs can play Wade and Derrick Rose together, particularly during the playoffs, due to spacing and defensive issues. And obviously, with his good friend LeBron there, Wade has comfort with the organization (just don’t expect him to sign more than a one-year deal).

This was always the most likely outcome, Wade and LeBron together again for one more run.