Tag: sacramento city council


Sacramento City Council passes most important vote to keep Kings in town


I interviewed Carmichael Dave, the person most synonymous with Sacramento’s grassroots effort to keep their basketball team, way back on April 5, 2011. The Kings were all-but gone by most accounts, and I asked Dave what he thought the Kings’ chances of leaving were.


It turns out that he might have been a bit optimistic, as there wasn’t a soul on record, including mayor Kevin Johnson, that thought the Maloofs would keep their team in the Cowbell Kingdom.

And during the Kings’ final game last year, when the Lakers were up by 20 points in the first half and the team was honoring its lifelong season ticket holders with the future not just in doubt, but in the trash – I thought to myself, ‘This is what it’s like to watch your own funeral.’

Even the Lakers fans that had gathered that night stopped giving Kings fans the business. They knew when enough was enough. 2,000 or more people stayed after the game, refusing to leave the arena. Players, coaches, media, management, and anybody affiliated with the team all stayed back to take in the scene. Grown men, including then coach Paul Westphal and TV commentators Grant Napear and Jerry Reynolds – they cried. They weren’t the only ones.

In the background, people were working, though. Some of those people had great influence and some of them had simple tweets. Together, and with no one part being able to complete its work without the other, they were able to keep their team and by virtue of that – give their region hope for a better day.

Tonight, the Sacramento City Council voted 7-2 to approve the term sheet drawn up by all of the stakeholders of the $387-400 million Entertainment and Sports Complex. The wheels could theoretically spin off, but there are 5-of-9 votes in the council that are rock solid in favor of the arena. The other four votes range from serious opposition to only mild opposition, as evidenced by two of them crossing the line tonight. In addition, tonight’s vote will put the project in real motion, with more money being spent as the city finalizes the parking portion of its contribution.

And aside from all of that, sources from each side of the table indicate that they are a full go and the Kings are staying in Sacramento.

It was a moving scene, having interviewed many of the fans, stakeholders, city leaders, and the like for over a year. These people spent hundreds of hours not just to protect a basketball team, but to keep their region from going under. The Sacramento area, having relied on the public sector for decades, has been beset by 12 percent unemployment and big-name companies are leaving weekly.

Or maybe the word is ‘were.’

Kevin Johnson, the hero in all of this, was able to raise an additional $10 million in sponsorships before the plane hit the ground for last year’s NBA Board of Governors meeting. With some help from Jerry Buss and Donald Sterling, Johnson was able to convince David Stern and the NBA that Sacramento could be a viable place for an NBA team – and that most importantly that he could deliver on an arena.

He formed a coalition that included business leaders, fans, churches, various ethnic groups, and heavy hitters from the political world that had a vested interest in keeping Sacramento afloat.

He floated the name, ‘Burkle.’

And I don’t know when Johnson whipped the city council to determine whether or not he had their votes, but he knew that if he kept the ball moving that good things would happen.

When the motion to approve the term sheet was made last night, 500-1000 arena supporters packed two floors of the new city hall and one floor of the old, adjacent city hall. The opposition had its chance to speak first and 19 of the two million people in the Sacramento region spoke out against the arena deal. In the interests of time K.J. limited public comment in support of the arena to 45 minutes. When that time ended, he asked those that didn’t get a chance to speak to stand up.

Nearly everybody in each room stood up.

After public comment, as each councilperson spoke it became clear where each of them stood.  When two opposition votes from the last motion moved over to the pro-arena side it was clear that the Kings were going to stay. A full year’s worth of anxiety and effort started to settle, and with one more moment to go – the room looked tired and worn out. Sensing that it was time to vote, though, they sprang into action and started waving their signs.

The payoff was near.

The roll call vote meant that each councilmember would have to say their vote out loud, and when it was Johnson’s turn to give the final vote he screamed ‘YES’ into the microphone.

It was somewhat anticlimactic since we knew the results weeks ago, but it was his Braveheart moment. And Carmichael Dave had a Braveheart moment when he stood on a 12-foot ladder and told 2,000-plus fans that they had to leave the arena but not to give up hope. And each of those fans that organized en masse, made documentaries, and wouldn’t give up – they had their Braveheart moments, too.

That’s the best part about this story, aside from the happy ending. Faced with a less than 10 percent chance of success these people banded together, did something, and might have staved off long-term erosion of their economy.

And if the Kings can play some winning basketball, that will be a close second.

Sacramento City Council takes unanimous step toward key arena vote

kings purple

One vote down to bring a new arena to Sacramento, one more critical vote to go.

Tuesday, the Sacramento City Council voted unanimously to continue finalizing proposals with private parking companies, who will in turn provide $200 million or more toward a new Entertainment and Sports Complex. For that money, the winning bidder will have the right to operate the city-owned parking assets for up to 50 years. This is a critical piece of mayor Kevin Johnson’s plan to keep the Kings in Sacramento, and a ‘no’ vote last night would have sent the team packing, though as I reported earlier Tuesday it wasn’t going to come to that.

That report also included a breakdown of the situation and news that the council will have the votes to approve an arena deal before the March 1 deadline, so long as a laundry list of achievable criteria is met.

That criteria, including safeguards on the parking deal and project cost overruns, is going to be worked out over the next two weeks as the city, the private parties, the NBA, and the Maloofs will come together to create a term sheet for the council to vote on. The vote is expected to be held on February 28, but it’s possible, even likely, that the NBA will allow for an extension on their deadline so they can review the terms at a reasonable pace. That announcement could come on All Star weekend.

Tuesday’s vote wasn’t expected to be contentious, but hundreds of Kings fans still showed up to make their case to the council. They wore white T-shirts with words such as growth, economic engine, events, downtown, nightlife, etc, and did their best not to recreate the acoustics in Power Balance Pavilion.

While there were eight speakers signed up make the opposition’s case, mayor Johnson was forced to limit public comment in support of the arena due to obvious time constraints.

After about 20 arena proponents were allowed to address the council, Johnson asked those in support of the arena that didn’t get a chance to speak to stand up and be recognized. Nearly everybody in the double-decker room stood up.

For well over five years Sacramento has been seen as impotent in its ability to get an arena deal done, but even council members that are in opposition of the current deal seemed resigned to their fate. Sandy Sheedy, the most vocal opponent of the deal, put up little to no fight on the issue and the other opponents chose not to speak. Surely they could be saving their breath for when the games count, but in doing so they lost a critical chance to curry favor with the anti-arena crowd, if it even exists.

The vote in 2006 to implement a sales tax for a new Kings arena lost by an 80-to-20 margin, but what most people don’t know is that it was an extremely flawed and eventually abandoned measure that never had a chance.

Tuesday night a strong message was sent to the NBA and competing cities that an arena deal is coming.  Staring into the sea of white T-shirts, with little to no opposition to be found, it was hard to understand how it took them so long in the first place.

Sacramento City Council has votes for arena if reachable criteria is met

Inside Kings Arena

The Sacramento Kings and their fans will hold their breath on Tuesday night, as the Sacramento City Council holds the first of at least two critical votes that will determine whether or not the team leaves town.

Let me be the first to tell you that tonight’s vote will pass.  Sources close to the situation report that the council is all but certain to have the votes necessary to move the process forward.

Specifically, the vote will allow the council to finalize proposals with ten competing private parking operators that will provide upwards of $200 million toward the cost of the estimated $387 million Entertainment and Sports Complex.

This will setup a vote on February 28 that will decide the Kings’ future.  It is at this time that the council, in cooperation with mayor Kevin Johnson’s Think Big Sacramento coalition, will vote to approve a term sheet that will signal to the NBA that Sacramento can indeed fund an arena.

I’m also told by sources with knowledge of the situation that as long as a laundry list of criteria is met, the council will have at least the four votes necessary (not counting Johnson’s tie-breaking vote) to approve the term sheet.

This laundry list includes guarantees that the city’s general fund will be replenished by the approximate $9 million annual revenue stream currently provided by city-owned parking operations, a plan for some or all of the city’s employees to be transferred into the new parking company’s operation, a mechanism to cap rate hikes for parking in the future, an option for an agreement shorter than 50 years, and a mechanism to provide kickbacks to the city if parking revenues exceed certain benchmarks.

It is believed that within that framework, the city can meet or exceed their $200 million target.

The last major item on the laundry list is who will be responsible for cost overruns if the $387 million project goes over its budget.  I’m told the city will approach the developer, David Taylor, to potentially provide that guarantee.  While it is unclear whether or not Taylor would shoulder such responsibility, he will likely be given incentive to do so by an offer of development rights near the arena.

Taylor has been working on the arena deal for years and has evaluated the project for Sacramento at a significant cost to himself, and it would be surprising if he told the council that he would not be responsible for cost overruns on a project he evaluated and promoted – particularly if there is further incentive in the form of development rights.

Adding the estimated $200 million or more from parking, an estimated $30 million from local hotels, an estimated $50 million from an arena operator (AEG), and an estimated $80 million from the NBA and the Maloofs — sources tell me that the city is well in the ballpark of securing the financing necessary for the arena.

In other words, the city of Sacramento has both the will and the way to secure a ‘yes’ vote for an arena.

As far as the timing goes, while February 28 is potentially the date for a deciding vote, it is likely that the NBA will allow for an extension on the March 1 deadline so they can properly evaluate Sacramento’s findings.  That announcement could come during All Star weekend.  The NBA and the Maloofs could theoretically act on the city’s proposal quickly and provide their terms in time for a February 28 vote, but sources stress the important part is that the city will have communicated that it is ready to vote on a deal.

From there it is on David Stern and the Maloofs to pull the trigger on the estimated $80 million price tag, which amounts to about $3 million per year in rental payments for 30 years, all paid up front.

As for any talk of selling the team, The Maloofs have been consistent with their message that it’s not an option, and their sale of the Palms can be seen as either a sign that the ship is sinking or a sign that they were moving money for the purposes of an arena.  In the unlikely event they do want to sell, Think Big Sacramento executive director Jeremiah Johnson told Seattle’s King 5 News that the city has “a number of ownership groups willing to keep the Kings in Sacramento.”

It’s not going to come to that.

The Maloofs and/or the NBA could try leverage the city of Anaheim against Sacramento, who recently made improvements on their NBA-ready facility, but after Jerry Buss and Donald Sterling just agreed to revenue sharing with small market clubs it’s less likely that the NBA will place another team in their backyard.

As for Seattle, despite their clear efforts to bring an NBA team back home, they are well behind Sacramento in their pursuit of an arena.  They too would have to approve public funds for a new building, and Stern and the Maloofs will have to weigh the $80 million cost of a sure thing given a ‘yes’ vote, and a nebulous offering in Seattle that is 1-2 years away while Key Arena is a stop-gap solution at best.

With all of the support David Stern and the NBA has given Sacramento in its fight to keep the Kings – from manpower in the front office to people on the ground helping make the arena deal a reality – it just doesn’t make sense for them to pass up a viable option for two that have problems.

This is a complex situation and it is not a done deal, but the once half-court shot turned 3-pointer doesn’t even seem like a free throw at this point – it seems like a layup.  The Party of Five that voted down a public vote that would have sent the Kings packing are interested in a deal that addresses the aforementioned criteria.  That criteria reportedly can be met and still provide the project with the money that it needs to be green-lighted, assuming the private parties each put in amounts that seem reasonable, achievable, and already written in pencil.

Kings fans will probably wait until the shovels hit the dirt before they celebrate.  Let this prediction be the first bottle of Dom Perignon.

The Kings aren’t going anywhere.