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.

Kevin Durant says Nike didn’t influence his free-agency decision

OAKLAND, CA - SEPTEMBER 26:  Kevin Durant #35 of the Golden State Warriors poses for NBA team photographer Noah Graham during the Golden State Warriors Media Day at the Warriors Practice Facility on September 26, 2016 in Oakland, California.  (Photo by Ezra Shaw/Getty Images)
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Many different factors went into Kevin Durant‘s decision this summer to leave the Oklahoma City Thunder for the Golden State Warriors — basketball fit, location, his friendships with Andre Iguodala and Draymond Green, and more. But one thing he wants to make sure you know didn’t influence him is Nike. Durant told reporters this week that the shoe company, which he endorses, didn’t steer him one way or another in free agency, and they didn’t even know his plans beforehand.

It’s a little hard to believe that Nike had zero advance knowledge of Durant’s plans — if not a hard answer, at least a strong indication of which way he was leaning. Durant was one of the most popular players in the league in Oklahoma City, so Nike would have been fine either way. But his presence in Golden State, a much bigger market and the dominant story in the NBA this season, will only help them. It doesn’t hurt, either, that they now have one of their biggest athletes in the same market as Stephen Curry, who had been taking advantage of all the attention on the Warriors to raise Under Armour’s profile. Now, Nike can get some of that spotlight back in the Bay Area.

Barnes, Bogut highlight latest round of changes for Mavs

CLEVELAND, OH - JUNE 08:  Harrison Barnes #40 of the Golden State Warriors reacts in Game 3 of the 2016 NBA Finals against the Cleveland Cavaliers at Quicken Loans Arena on June 8, 2016 in Cleveland, Ohio. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Ronald Martinez/Getty Images)
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DALLAS (AP) Harrison Barnes and Andrew Bogut are in, Chandler Parsons and Zaza Pachulia are out and Dallas coach Rick Carlisle has a retooled roster for the sixth consecutive time since winning a championship.

“Well, we love it,” Carlisle said at media day this week as someone chuckled. “What’s more exciting than getting seven new guys? New blood. It’s fresh every year.

“Really, that wasn’t meant to be a joke,” he added. “If you view it as a negative, there’s a pretty good chance it’s going to be a negative. I don’t look at it that way.”

The Mavericks have made the playoffs all but one season since the constant turnover started after owner Mark Cuban chose salary cap flexibility over keeping a few key players when a new labor agreement was reached six months after his team won the title in 2011.

But Dallas still hasn’t won a postseason series since beating Miami in six games in those NBA Finals.

Repeated efforts to land big names in free agency failed, which this year led to the additions of Barnes and Bogut from 2015 champion Golden State after the Warriors lured Kevin Durant from Oklahoma City and had to unload both starters to make cap room for the four-time NBA scoring champion.

Barnes headlines the group of newcomers because he’ll be a top option on offense after signing a four-year, $94 million max contract. Over his four seasons with the Warriors, he was always a role player behind Stephen Curry and Klay Thompson.

“It’s going to be bigger expectations and I’m going to have a larger role on this team,” Barnes said. “I feel like we have a lot of pieces this year, either coming back off injury, guys who are motivated, have a lot to prove. So hopefully we can all come together and do something special.”

There’s actually some stability in the starting five because point guard Deron Williams is back for a second season with his hometown team.

Nowitzki, going into his 19th season at age 38, says Williams was the best player on the team at times last season, and the Mavericks missed him in their five-game loss to Oklahoma City. He was limited by a sports hernia injury that required offseason surgery.

Parsons signed a max deal with Memphis, and Pachulia went to the Warriors after the trade that landed Dallas the 7-footer Bogut, who should be a much stronger shot-blocking presence than his predecessor.

The changes fit the formula of at least two new starters each season going back to the title year.

“There are similarities to other years,” Carlisle said. “The ability to add Bogut and Barnes was huge for us. We caught some good luck on that.”

The other notable newcomer is Curry’s younger brother, Seth Curry, who is on his fifth team in his fourth season but finally had a more prominent role last season in Sacramento. Former Baylor standout Quincy Acy is in Dallas after bouncing around his first four years.

The Mavericks are deep at guard with holders J.J. Barea and Devin Harris behind Williams and Wes Matthews, in his second season as the shooting guard and now more than a year removed from tearing an Achilles tendon his final season in Portland.

Also returning are athletic young forwards Justin Anderson and Dwight Powell along with 7-2 Tunisian center Salah Mejri, a surprising shot-blocking presence last season as a 30-year-old rookie.

“They’re definitely athletes and we should be able to have a great defensive lineup once I’m out,” said Nowitzki, poking fun at his defensive skills. “I think we have a (backup) lineup out there that could be really, really good, and obviously youth and athleticism is a big part.”

Barnes wanted to be a part of it even though the Mavericks appear further from championship contention than other Western Conference teams.

“I think when you look at what this franchise has done year in, year out, stable on their ship,” Barnes said. “And be able to learn from a guy named Dirk who’s done it year in, year out. He’s pretty much built this place through his work ethic.”

And now Nowitzki is getting used to another new collection of teammates.

Follow Schuyler Dixon on Twitter at https://twitter.com/apschuyler

Jazz’s Dante Exum says his knee is completely healed from 2015 ACL tear

MIAMI, FL - DECEMBER 17:  Dante Exum #11 of the Utah Jazz drives to the lane during a game against the Miami Heat at American Airlines Arena on December 17, 2014 in Miami, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory copyright notice:  (Photo by Mike Ehrmann/Getty Images)
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After a promising rookie season, Dante Exum missed all of 2015-16 rehabbing a torn left ACL he suffered during an exhibition game with the Australian national team in summer 2015. As the Jazz kick off training camp, Exum says he’s fully recovered after his year off and he’s ready to go.

Via Jody Gennessy of the Deseret News:

“I was just excited to get back out there,” Exum said after the first of two practices Tuesday. “I was feeling good. … I was just ready to come out there, talk when I can and run between every drill.”

Both his attitude and his body were at 100 percent as he returned from a yearlong rehab that followed his September 2015 surgery on his left knee that had been injured in a friendly international game with the Australian team.

With the Jazz’s trade for George Hill over the summer, Exum won’t have to be the starting point guard, which will take some pressure off of him to get back to full strength right away. A torn ACL is something that usually takes time to return from, and having guard depth to ease his workload will help with the transition. If the Jazz get good production out of Exum, it will be a bonus for what looks to be one of the most exciting young teams in the Western Conference.

Improving Hornets G Walker has sights set on All-Star season

CHARLOTTE, NC - NOVEMBER 26:  Kemba Walker #15 of the Charlotte Hornets points to the bench during their game against the Portland Trail Blazers at Time Warner Cable Arena on November 26, 2014 in Charlotte, North Carolina.  NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Streeter Lecka/Getty Images)
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CHARLOTTE, N.C. (AP) Kemba Walker wants to be an NBA All-Star.

But the Hornets’ steadily improving 6-foot point guard knows he has to get healthy first, which means resting his surgically repaired knee a little longer. Walker was limited to non-contract drills as the Hornets opened training camp on Tuesday at their downtown arena.

“I hate it. … You know how much of a competitor I am. But it’s the smart thing to do at this time (because) I don’t want to have any setbacks,” said Walker, adding that he hopes to be 100 percent for the start of the regular season.

The 26-year-old Walker is coming off the best season of his five-year NBA career, averaging a 20.9 points, 5.2 assists and 4.4 rebounds per game in 2015-16 while shooting a career-best 42.7 percent from the field.

But the stat that pops out the most is his improved 3-point shooting. Walker made 37.1 percent from beyond the arc last season after making less than 33 percent his first four years in the league.

Walker finished second in the voting for Most Improved Player, battling through knee pain near the end of the season and leading the Hornets to a 48-win season that culminated in a Game 7 loss to the Miami Heat in the first round of the Eastern Conference playoffs.

Teammate Marvin Williams said Walker could have easily “shut it down” due to a torn meniscus in his left knee, but elected to keep on playing.

Walker has surgery in May to repair the problem.

“I feel like he was (an All-Star) last year,” teammate Marvin Williams said. “And that’s not taking anything away from any of the guys that made it in the East. They are very, very good. The guards are big time. But I feel like Kemba was right there. He was beat up and he continued to fight through it every night. If he is healthy and has a year like he did last year I think he will definitely be there in February.”

It’s that kind of dedication to the team that has made Walker a favorite in the locker room.

Nicolas Batum, the team’s highest-paid player, said he’s made it his personal goal to help get Walker into the All-Star game this season.

“He’s special. He’s really special,” Batum said. “People don’t understand how good he is. He had a breakout season last year. He’s a franchise guard.”

Walker is dramatically more confident in his shooting than this time a year ago when he working with shooting coach Bruce Kreutzer to tweak his mechanics, according to coach Steve Clifford.

There were times Walker contemplated scrapping the changes, but he stuck with it and the results followed. Now he doesn’t even think about the altered shooting motion anymore.

“If you go back to the last 21 games of the year, his 3-point shooting put him in a different place,” Clifford said.

Clifford said with Walker’s improved shooting and range it makes it more difficult for teams to defend him.

“His range takes away the under in the pick-and-roll,” Clifford said. “And he’s such a good pick-and-roll player anyway. I think he is really maturing as a player.”

Perhaps enough to be an All-Star.

“I was pretty close last year,” Walker said. “I’m getting the hang of things in this league and playing really well. I want to continue to play well and win. But in order for me to be an All-Star we have to win. That’s what it is going to take.”

NOTES: Along with Walker, Cody Zeller (shoulder) and Perry Ellis (sports hernia) weren’t able participate in contact drills during practice.