seattle arenas

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.

‘It’s eating me alive:’ DeMarcus Cousins again leading Kings’ longshot playoff push

Sacramento Kings forward DeMarcus Cousins, right, drives against Memphis Grizzlies center Marc Gasol (33) during the second half of an NBA basketball game Friday, Jan. 20, 2017, in Memphis, Tenn. (AP Photo/Brandon Dill)
AP Photo/Brandon Dill
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When the Kings drafted DeMarcus Cousins, he named his rookie goals: “Get to the playoffs, go for the championship.” But the NBA humbled the young player, as Sacramento went just 24-58 and missed the postseason for the fifth straight year. Cousins emerged for his second season resolute on a more-modest goal: “Playoffs. We’ve got to make the playoffs this year. It’s not even a goal. It’s basically in our contract, I believe. So, we’ve got to make the playoffs this year.”

Five seasons later, Cousins is still chasing that elusive postseason trip.

“It’s eating me alive,” Cousins said. “Every loss or every time another team wins in battling for the eighth spot, it’s eating me alive. Our only goal is to be in the playoffs this season.”

A depressing chase for the No. 8 seed in the Western Conference, where every team in the race is at least seven games under .500, has opened the door for the 17-27 Kings. They’re 1.5 games and three teams out of playoff position – a more daunting challenge than often realized. Not only must they play better, they must hope a couple teams ahead of them don’t also heat up. 538 gives Sacramento just a 5% chance of reaching the postseason, and ESPN is even more pessimistic at 3.8%.

Beginning his career with seven straight lottery trips would be another crushing blow to Cousins, who has built a credible case as the NBA’s best center. Greg Monroe is the only current player with more win shares who hasn’t reached the playoffs:

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Nobody nears Cousins besides Monroe, and the next-closest player, Jazz center Rudy Gobert, likely makes the playoffs this year. Monroe leads in win shares, because he entered the league more polished than Cousins and built a head start (and because this stat probably inflates’ Monroe’s contributions relative to Cousins’.) Monroe has never neared Cousins’ peak, and Monroe is now a backup for the Bucks. The only thing second-team about Cousins is his two All-NBA appearances.

Kevin Love is the only other player since the NBA-ABA merger to make multiple All-NBA teams before his first playoff season. He, of course, left the Timberwolves for the Cavaliers to escape lists like these.

On the other hand, there have been indications from both sides Cousins will soon sign a veteran-designated-player contract extension projected to be worth more than $219 million over five years. Staying in Sacramento and playing for owner Vivek Ranadive seems like the surest bet to keep Cousins’ postseason drought active.

Cousins already ranks in the top 25 all-time in win shares before a player’s first playoff season (which doesn’t count this season, because playoff teams aren’t yet determined):

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Cousins has 5.2 win shares this season and counting. Missing the playoffs again would launch him into the top 10 of this dubious list – and he could keep climbing.

Not only do the Kings face daunting odds to reach the postseason this year, it’s difficult to project them into the playoffs for the foreseeable future. Years of roster mismanagement have taken a toll.

Since drafting Cousins, Sacramento has held top-10 picks every year. Those have netted on draft night: Jimmer Fredette, John Salmons, Thomas Robinson, Ben McLemore, Nik Stauskas, Willie Cauley-Stein, Georgios Papagiannis, Skal Labissiere and Bogdan Bogdanovic – who’ve combined for a measly 2.2 win shares this season. And most of those win shares come from Stauskas and Robinson, who no longer play for the Kings.

In fact, Stauskas was sent out in a disastrous trade that gives the 76ers swap rights on Sacramento’s 2017 first-rounder* and Sacramento’s unprotected 2019 first-rounder.

*The Kings’ first-round pick must fall in the top to be swap-eligible. Otherwise, it goes to the Bulls, the result of another botched trade.

Sacramento has also recently struck out on major free agents and then settled for Arron Afflalo, Kosta Koufos, Anthony Tolliver, Garrett Temple, Matt Barnes and Ty Lawson. That adds up to one mediocre supporting cast.

Meanwhile, Cousins is better than ever. He has taken a larger offensive burden, including as a distributor and suddenly dangerous 3-point shooter, while cutting down his turnover rate. Defenders are often overmatched, and they foul him more than anyone in the league. And while Cousins’ defense comes and goes, it can be quite impressive while he’s locked in.

The result is a team that plays at a 41-win pace with Cousins on the floor and a 17-win pace when he sits, continuing a disparity seen over the last few years. Hera are the Kings win paces over 82 games with Cousins on (purple) and off (black):

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Obviously, teams generally play better with their stars and starters on the court, and Cousins is a star who usually shares the court with other starters. But this gap is particularly egregious, and Cousins’ fellow starters have underwhelmed.

So, more and more falls on Cousins’ shoulders.

Playing for his sixth head coach and third general manager in seven seasons, Cousins sets the tone for the Kings, for better or worse. He plays with a unique rage, sneering resentfully at anyone who gets in his way on the court – like players trying to defend him or referees, gasp, calling a foul on him. He leads the league with 12 technical fouls and is on pace to get (at least) 16 and an automatic suspension, which he also triggered last year.

His highs are incredibly high and his lows are unnecessarily low.

That moodiness has frustrated coaches and teammates, but it also sometimes works himself and his teammates into a productive frenzy. Sacramento usually plays passionately, which is both to its credit and a sign of a talent scarcity considering the team still loses so frequently.

“I’m still confident,” Cousins said, “and I still believe we’re going to make that push for the playoffs.”

For the last few years, Cousins has looked unstoppable while the Kings have been quite easily stoppable. He’s trying to drag the franchise up with him, but optimism and desire might not be enough. At a certain point we must ask: What more can Cousins do?

Russell Westbrook keeps trying to show up Rudy Gobert

Oklahoma City Thunder guard Russell Westbrook (0) goes to the basket as Utah Jazz center Rudy Gobert (27) defends in the second quarter during a NBA basketball game Monday, Jan. 23, 2017, in Salt Lake City. (AP Photo/Rick Bowmer)
AP Photo/Rick Bowmer
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Jazz center Rudy Gobert is having an awesome season, credibly putting himself in the mix with Anthony Davis, DeMarcus Cousins and Marc Gasol as the NBA’s best big men.

But that doesn’t mean Russell Westbrook respects him.

Before the Thunder’s win over Utah yesterday, Westbrook was asked how Oklahoma City would contain Gobert. Westbrook just laughed and walked off.

Fred Katz of The Norman Transcript:

Then, in the game, Westbrook tried to jump right over the 7-foot-1 Gobert and dunk on him:

I would say Gobert proved his ability by successfully protecting the paint, but I’m just too astounded by Westbrook’s leap.

Zaza Pachulia, running up court, turns back to smack Luke Babbitt in face (video)

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Is Zaza Pachulia a dirty player?

That debate can be rekindled after the Warriors center earned this flagrant foul for smacking Heat forward Luke Babbitt.

Just don’t forget: Pachulia is more than an unskilled enforcer. He brings plenty to the table as Golden State’s fifth starter, and his ability was on display earlier in the game:

Three Hawks lose uncontested rebound out of bounds (video)

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How did Mike Scott, Mike Dunleavy and Malcolm Delaney fail to secure this rebound?

No wonder the Hawks lost to a Clippers team playing without Chris Paul and Blake Griffin.