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.

WNBA rescinds fines regarding protest shirts

FILE - In this Wednesday, July 13, 2016 file photo, members of the New York Liberty basketball team await the start of a game against the Atlanta Dream in New York. The WNBA is withdrawing its fines for teams and players that showed support of citizens and police involved in recent shootings by wearing black warmup shirts before and during games. WNBA President Lisa Borders said in a statement Saturday, July 23, the league was rescinding penalties given to the Indiana Fever, New York Liberty, Phoenix Mercury and their players for wearing the shirts–which was a uniform violation. The players started wearing them to show solidarity after shootings in Minnesota and Baton Rouge, La. (AP Photo/Mark Lennihan, File)
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LeBron James, Kyrie Irving, and a number of Cavaliers and Brooklyn Nets players wore “I can’t breathe” T-shirts in warmups after the death of Eric Garner in New York. LeBron and his then Heat teammates wore hoodies for a photo shoot after the Travon Martin shooting. NBA players have made other protest fashion statements, with no repercussions from the league.

But when WNBA players wore black warmup shirts in support of Black Lives Matter and other anti-violence protests, the WNBA came down with fines for the Indiana Fever, New York Liberty and Phoenix Mercury ($5,000) and players involved ($500) for uniform violations. That led to a lot of backlash — including among WNBA players. Some refused to answer basketball questions with the media after recent games.

Saturday, the WNBA rescinded the fines. As they should have.

The women’s players’ union supported the move, via a statement from the director of operations Terri Jackson.

“We are pleased that the WNBA has made the decision to rescind the fines the league handed down to the players on the Fever, Liberty, and Mercury. We look forward to engaging in constructive dialogue with the league to ensure that the players’ desire to express themselves will continue to be supported.”

I want a league — for men or women — where player’s individuality and statements can be made — I don’t want the NBA to be the button-down, cookie cutter NFL. Let the players be themselves. And if players want to weigh in on the biggest social issue of our time, they should. Without fear of repercussion.

Good on the WNBA for coming around to that.

Meyers Leonard says he hopes to be ready by start of Blazers’ season

CLEVELAND, OH - DECEMBER 8: Meyers Leonard #11 of the Portland Trail Blazers takes credit for a foul call during the first half against the Cleveland Cavaliers at Quicken Loans Arena on December 8, 2015 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)
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Meyers Leonard could be poised for a big season in Portland. His minutes jumped last season because he provided spacing. With Portland adding Evan Turner on the wing to go with Damian Lillard and C.J. McCollum, any big who can stretch the floor is going to get run, and Leonard has turned himself into a stretch four.

Leonard just hopes he can show what he can do at the start of the season — he’s still recovering from shoulder surgery. Here is what he told the Associated Press.

“My hope is to be ready right around the start of the season,” he said. “It’s a progression, first introducing rebounding, grabbing stuff overhead, then one-on-one, three-on-three, extending to the full court. We’ll see. You just never know.”

Leonard had surgery to repair a torn labrum in his left shoulder in April (they could have used him in the playoffs), and the timeline then was to have him back around the start of the season. Before he was shut down, he proved enough to get a four-year, $41 million contract extension with the Trail Blazers this summer.

The Trail Blazers will start Al-Farouq Aminu at the four, and Moe Harkless can certainly play there too (I’m far less sold on the future of Noah Vonleh). Leonard wants to get back before someone starts to steal any of his minutes.

Pelicans sign Jones for 1 year, Frazier for 2 years

HOUSTON, TX - DECEMBER 21:  Terrence Jones #6 of the Houston Rockets reacts to a play as Cody Zeller #40 of the Charlotte Hornets looks on during their game at Toyota Center on December 21, 2015 in Houston, Texas. 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 Scott Halleran/Getty Images)
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NEW ORLEANS (AP) The New Orleans Pelicans say they have signed free-agent forward Terrence Jones and re-signed guard Tim Frazier.

A person familiar with the negotiations says Jones, a four-year veteran, signed a one-year deal Friday for the NBA minimum of about $1.14 million, while Frazier has signed a two-year deal worth about $4.1 million. The person spoke to The Associated Press on condition of anonymity because the Pelicans have not released contract terms.

The 6-foot-9 Jones, who was Anthony Davis‘ teammates on Kentucky’s 2012 national championship team, has spent his first four NBA seasons with Houston, posting career averages of 10.4 points and 5.8 rebounds.

Frazier played in 16 games for New Orleans late last season, averaging 13.1 points, 7.5 assists, 4.4 rebounds and 1.4 steals in 29.3 minutes per game.

Deron Williams says he is recovering well from sports hernia, will be ready to go at camp

DALLAS, TX - MARCH 01:  Deron Williams #8 of the Dallas Mavericks during the first half at American Airlines Center on March 1, 2016 in Dallas, Texas.   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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Deron Williams will be back with the Dallas Mavericks next season — and be ready to go by the start of the season.

He’d like to say he’d be back for the next few seasons, but coming off a Sports Hernia injury his options were a little limited. However, his recovery is going well he told NBC Dallas in an interview from American Century Championships celebrity golf tournament in Lake Tahoe (which you can watch this weekend on NBC).

“Feeling really good. It’s healing pretty well, I’m doing a lot of work on and off the court. I haven’t got the full-go clearance yet, but that’s coming soon. I’ll be ready to go definitely by the time training camp rolls around.

“I’m running, I’m jumping a little bit. I’m just not going crazy. I kind of have to wait for August 1 for that, to go see the doc and get the go ahead. But it’s not much restriction right now.”

Williams averaged 14.1 points and 5.8 assists per game for the Mavericks last season and was solid at 32. His efficiency slipped a little (to be expected as he is on the wrong side of 30 and has plenty of miles) but he played well for Dallas.

Dallas signed him to a one-year, $10 million deal. Williams was hoping for a little more security.

“I was happy to come back. Would have liked a little longer deal but I’m back for one year and hopefully can build on last year and improve. I think there’s room for a lot of improvement. Hopefully I can stay healthy. I think that’s the biggest key but I’m excited about this year and this team.”

The one-year deal is more about Dallas than Williams — they could see a significant shift in plans when Dirk Nowitzki steps away (he inked a two-year deal but the second year is only $5 million guaranteed, so he could be in his final run if he wants).

Dallas added Harrison Barnes and Andrew Bogut from the Warriors to a starting five that also includes Nowitzki, Williams, and Wesley Matthews. If they can stay healthy — no little thing with that group — it’s a quality starting five that coach Rick Carlisle is going to love.