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.

Damian Lillard defends Blazers’ coach Terry Stotts on Instagram

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It’s far too early for panic in Portland. This is a team most outside Portland thought would finish a little above .500 and maybe grab one of the back-end playoff spots in the West, and at 9-7 they are on that pace.

But after an ugly Portland loss to Sacramento (just a few games after a loss to Brooklyn where coach Terry Stotts benched center Jusuf Nurkick for most of the fourth), Trail Blazers fans were restless and started to slam coach Stotts on the Trail Blazers’ Instagram page.

I doubt Stotts noticed, but Damian Lillard did and jumped in to defend his coach.

Lillard added this (hat tip Mike Richman at the Oregonian).

“Because people think they know more about what it takes to get things done at this level … For our team than they actually do,” he said. “We’re in this position for a reason. And coach Stotts had two 50-win seasons here and four straight years in the playoffs for a reason –because he knows what he’s doing. They mention … our record is 8-7 and we’re having breakdowns late in games. Well those breakdowns are a missed shot here, a turnover there, a defensive breakdown here, giving up extra possessions, missed free throws. It’s things that players control. If we were down 30 every game, that’s different. But we’re in position to win games. And when it’s time to win games, that’s the players’ job. “

Lillard is loyal to those around him and has had the back of teammates and his coach before.

Lillard and his teammates went out Saturday night and got some revenge on the Kings, winning 102-90.

Portland’s defense has been surprisingly good this season, second best in the NBA. It should have been better with Nurkic in the paint, but this has been a radical turnaround for a team where that end of the floor held them back in recent years. While that lofty ranking may not stick all season, the Blazers are defending.

Now the Blazers are just having trouble scoring efficiently (18th in the NBA), which is a little about a less-efficient Lillard and a rough start on that end for Nurkic.  That end of the court should come around, Lillard and C.J. McCollum are too good for it not to.

 

Teammate spoke to Lonzo Ball about walking away from “fight”

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We see these posturing/shoving matches all the time in the NBA, and they’re pointless. Late in Friday night’s Phoenix win in Los Angeles the Suns called a timeout, then Tyler Ulis and Kentavious Caldwell-Pope got in one a shoving match. As happens, players from both teams raced into the fray to protect their teammate/break it up… except for Lonzo Ball, who looked at it and kept moving along.

I have defended Ball’s actions as mature (he’s right, nothing was going to happen), while others (fans and media) have questioned his leadership for not rushing to stand by teammates, pull guys out of the pile, and having a “band of brothers” attitude.

None of that matters, the only opinions that carry any weight are the ones in the Lakers’ locker room. What did his teammates think? Lakers coach Luke Walton said a teammate did talk to Ball, quote via Ohm Youngmisuk of ESPN.

“Someone on our team talked with him,” Walton said after the Lakers’ practice Saturday, without disclosing who it was. “It’s all part of the learning process.”

If his teammates were bothered, then there’s an issue. It’s more about perception than anything, again nothing was happening in that “fight,” but perception matters. It’s a small issue, but an issue. With young players this gets discussed, and everyone moves on.

Ball’s passing and energy on the court are things teammates love. As his game matures — and he eventually finishes better around the rim and, hopefully for him, finds his jumper — and he grows as a bigger threat on the court, his teammates will forget this ever happened. As will fans. But when you play for the rabid (and not always rational) fan base of the Lakers, and when your father invites publicity and with it scrutiny, things get blown out of proportion. Welcome to Lonzo’s world.

Marc Gasol kicks away Clint Capela’s shoe, earns technical

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Midway through the first quarter, Clint Capela literally came out of his shoe trying to move up to set a pick for James Harden. Just stepped right out of it. J.R. Smith wasn’t there to untie the laces or anything.

Capela turned around to go get his shoe, and Memphis’ Marc Gasol showed his soccer skills kicking the shoe away. That earned him a technical foul. Gasol could argue he just wanted to get something he could trip over off the court, but Capela was clearly coming back for it at that point. Gasol earned this one.

Capela retied his shoes and went on to have 17 points and 13 boards in Houston’s 105-83 win over shorthanded Memphis.

Stephen Curry scores 35, Warriors rally to beat 76ers 124-116

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PHILADELPHIA (AP) — Stephen Curry scored 35 points, Kevin Durant had 27 and the defending NBA champion Golden State Warriors overcame a 22-point halftime deficit in a 124-116 victory over the Philadelphia 76ers on Saturday night.

Joel Embiid scored 21 points and Ben Simmons had 23 points and 12 assists for Philadelphia, which led 47-28 after one quarter and 74-52 at the half.

But the Warriors erased that large deficit with a furious rally in the third quarter. Curry’s 3-pointer got them within one point. He then made a pair of free throws to give Golden State a 90-89 lead.

The two-time NBA MVP hit another 3 and Draymond Green blew past a defender for a dunk to make it 99-89 going into the fourth.

A raucous, sellout crowd that chanted “Trust the Process” most of the night went silent while the Warriors put on a shooting clinic in the second half.

Even veteran David West came off the bench and made big shots in the fourth quarter to give the Warriors distance. He finished with 14 points. Klay Thompson had 16.

Embiid was coming off a career-best performance – 46 points, 15 rebounds, seven blocks, seven assists – in a 115-109 win at the Los Angeles Lakers on Wednesday.

He seemed on his way to another monster game in the first quarter. Embiid embraced the frenzied fans and slapped hands with a guy sitting courtside after a dunk.

But the Warriors showed why they’re the best by stifling Philadelphia in the second half to improve to 12-4.

The Sixers, who lost 135-114 at Golden State one week ago, fell to 8-7.

Playing his first game since receiving a lucrative contract extension, Robert Covington had 20 points for Philly.

Back home for the first time following a five-game road trip to the West Coast, the Sixers showed no jet lag in the first half.

They jumped ahead 15-4 following a 3-pointer by Embiid. Covington stripped Durant and hit a 3 to make it 37-18, electrifying the crowd.

Durant’s dunk off Green’s alley-oop pass got the Warriors within 70-51 late in the second. But Embiid finished off the half with a dunk that sent the Sixers into the locker room up 74-52.