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.

Mike Brown still waiting on Tyronn Lue to pay up overdue bet

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OAKLAND, Calif. (AP) — Mike Brown is ready for Tyronn Lue to pay up on a nearly two-decade-old bet. Yep, Lue owes him $100 and Brown plans to accept it at long last – perhaps even during the NBA Finals when they see each other.

All this time Brown never wanted the money he earned by beating Lue in a shooting contest when the Cavaliers coach was an NBA newcomer, yet Golden State’s acting coach – who spent two stints leading Cleveland – joked how Lue can surely afford it these days.

“I’m glad he finally admitted that he owes me money because for many years he wouldn’t admit that he owed me money. He does owe me $100 and since he got his new deal hopefully he can afford to pay me now,” Brown said Saturday post-practice. “I asked him many time for it but he’s denied it. He’s denied that the game ever took place.”

Lue insists he has tried to pay up – time and time again, to no avail.

“Mike, I owe him $100 from when I was a rookie. That’s all I ever know about Mike,” Lue said Saturday. “I tried to pay him and he wouldn’t take the money so he says I always owe him. He’s always been a great guy.”

The 40-year-old Lue was rewarded with a contract extension after the Cavs’ championship run last June for the city’s first major sports title in 52 years. Cleveland overcame a 3-1 Finals deficit to the Warriors, and now the teams are preparing to face off for a third straight year.

“I think what it has to do with, it has to do with the fact he’s got a nice, long, fat contract with the Cavs and he realizes that he can finally afford to pay me the money that he owes me for the shooting game back in 2000 or whenever it was,” Brown said with a grin.

Brown acknowledged he cannot recall any other details such as how many shots each man made, saying: “I don’t even remember, that was back when I was in shape and a good shooter. He’d kill me now”

“Yeah, he was with the Spurs and I was with the Lakers and we had a little shooting contest and I lost,” Lue said. “He wouldn’t take the money so from now on 19 years in a row always says, `You owe me $100.’ He won’t take the money. Always been close to Mike and I like Mike a lot, respect him a lot.”

 

Bob Myers’ care for people goes long way as Warriors GM

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OAKLAND, Calif. (AP) — When Bob Myers hosts a dinner party, he is the guy who once it’s all over has a pretty good read on the entire evening: who had a great time, who held something back, which couples are getting along, who might be dealing with a life challenge but chose to keep it private.

“All those things go through my mind, without me trying to. Some people, none of that goes through their mind,” Myers said. “They ate, and did what they did. I don’t know why those things are. I don’t know how you are. … We all have different intuitions and skills.”

Usually, he is spot on. And his instincts also carry over to the workplace.

The Golden State Warriors’ general manager has that same kind of feel for his entire operation – from those staffers behind the scenes, to the coaches, the MVPs and the role players, helping to forge a tight-knit team in its third straight NBA Finals.

“There’s a lot of things I have no clue on and then you bring people in to your blind spots and say, `Look, I’m not good at this, can you help me in this area?”‘ he said. “That’s also being self-aware. What does it mean? It just means we’re attentive to people. Everybody wants to feel appreciated. Everybody wants to know that they matter. We all matter in our own unique ways. So, does that help our team? I don’t know. It helps that we have really good players.”

Myers has found a balance being involved just enough in the day-to-day. Hands-on when needed while knowing when to back off.

One day, Myers stands in the middle of the center practice court meeting with Steve Kerr. He might be speaking to Andre Iguodala or Draymond Green. Another time, he leans against a back wall checking in with Mike Brown, who has been coaching the team during Kerr’s absence following a procedure to repair a spinal fluid leak stemming from complications after two back surgeries in 2015.

Myers does sit-ups on a stability ball while chatting up Stephen Curry, antsy for practice to wrap up so the GM can get to hooping himself.

That genuine care for the person and not just the basketball player that Myers shows in all he does went a long way in Kevin Durant leaving Oklahoma City last July to join the Warriors. Sure, a star-studded roster didn’t hurt either.

“He doesn’t walk around like he’s the leader. We know he makes the big decisions but we work together, all of us, him and Steve especially. If you see Bob walking with a group of Warriors employees, you wouldn’t know he’s Bob Myers, the president of the team. He just fits in with everybody,” Durant said. “We talk so much about great leaders being just ahead of the pack most of the time but sometimes that doesn’t have to be your personality. It could be encouraging, working with others, learning and listening. All those traits he has, and I think that’s why he’s ahead of the pack.

“That’s what drew me here.”

In a pre-playoff practice, the 42-year-old ex-sports agent and former player at UCLA stood holding a basketball while wearing sweats and no shoes – his typical, understated NBA executive style. He pulled on some bright blue high-tops and started stretching out his quadriceps for one of those regular staff pickup games he so enjoys because it allows him a break from being “leashed” to his smartphone.

Myers picks his moments, or, in some cases, Kerr assists. After Golden State fell behind 2-1 at Memphis in the second round of the 2015 playoffs, the coach called Myers over afterward and sought his input, a gesture the GM appreciates to this day.

He respects his role and the specific jobs of everyone who works with him. He doesn’t look at it as if he is above the rest.

“The best thing we can do is be who we are, whatever that is,” Myers said. “We’re all drawn to authenticity. We like people who are real. Sometimes real people are flawed, we’re all flawed. I think we connect with people who are open, exposed, willing to admit things they’re good at, things they’re not good at, try to be humble, try to be collaborative.”

Golden State wound up coming back to beat the Grizzlies on the way to winning it all in `15 for the franchise’s first championship in 40 years. The Warriors squandered a 3-1 Finals lead last year to Cleveland to miss a repeat title. Then, Myers – with help from Curry, Green, Iguodala, Klay Thompson and Kerr – lured Durant away from the Thunder to make another deep run. An acquisition accomplished as a team, in Myers’ mind.

“He’s a listener and an observer and that’s what I love about him,” Kerr said. “He’s really, really bright and he understands people. The reason he understands people is because he watches and observes and doesn’t have to dominate the conversation.”

Myers might spend extra time watching the backups, who often stay late for extra scrimmaging to keep sharp.

He doesn’t interfere, yet they know he’s there.

“He’s got a really special quality of being here and then staying in the background at the same time,” Kerr said. “He gets it. I think that’s the way he approaches his life. He’s very modest and yet he’s very confident. He’s very knowledgeable and yet he listens. He’s never the know-it-all guy who has to show he’s the smartest in the room but he actually is the smartest in the room.”

When Myers moves about team headquarters in downtown Oakland he also blends right in with any group. That’s how easy he is to have around – and much like the scene at one of his dinner parties, he has a gauge on the vibe.

“He understands how important it is for him to be aware of everything that’s going on, how everybody’s feeling,” Curry said. “It’s a tough job, for sure, to have to balance, manage, all these different personalities and the ups and downs of the season. He’s bridged the gap between upstairs and downstairs. All that responsibility, it all pays out when we all succeed, and a lot of that goes to what Bob does on a day-to-day basis. … He finds a way to be personable, to be connected to every single person in our organization. And it’s very genuine. That goes a long way.”

 

Report: Warriors, Jerry West nearing deal to keep him with franchise

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The Warriors decision-making process as a franchise is one of inclusion: A lot of voices in the room, a lot of discussion from different points of view, all ultimately synthesized by GM Bob Myers.

One of the most trusted voices in that room belongs to NBA legend — as a player and a front office mind — Jerry West. He was one of the strong voices against trading Klay Thompson for Kevin Love a few years back (in hindsight a move that was central to the kind of team the Warriors became). His deal as a consultant to ownership in Golden State is up after this season, and there were some rumors he could be leaving that role.

Doesn’t sound like it. Warriors’ co-owner Joe Lacob spoke to Tim Kawakami of the San Jose Mercury News and made it sound like West will be around for a while.

There is a growing sense that West and the Warriors are headed toward agreeing to extend his relationship with the franchise–Lacob confirmed he and West have spoken about a new contract and have now paused the discussions until after the Finals–but nothing has been finalized….

His contract is up, as you know. We have met; we have discussed the future. And it’s really something that I’m sure at the end of the season we will return to and figure out what Jerry wants to do.

We want him back. We love him. He’s been a great contributor to the organization, someone I consider a personal friend as well. We would love him back (beyond this season), and we’ve made that known.

There had been some buzz about West returning to the Lakers, but with Magic Johnson and Rob Pelinka now firmly in charge there West’s return to the team where is jersey is in the rafters seems highly unlikely.

Sometime this summer, expect a quiet announcement from the Warriors that the deal got done and West is sticking around. For their management style, he is a great voice to have in the room.

Watch Michael Jordan’s best highlight from each of his playoff runs (video)

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I’ve become a sucker for this highlight format.