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.

DeMarcus Cousins on re-signing with Pelicans: ‘I’m very open to that’

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New Orleans Pelicans big man DeMarcus Cousins is still nursing a torn Achilles injury, the one that kept him from being part of his team’s sweep of the Portland Trail Blazers in the first round of the playoffs this year. But he’s getting better, and this summer should be a big one for the 27-year-old. It’s the first time Cousins will be a true free agent, having signed an extension with the Sacramento Kings back in 2013.

There have been rumblings that the Pelicans might not want or need Cousins back. They played incredible small ball against the Blazers, although they fell apart while matched up against the Golden State Warriors in the second round. Cousins, meanwhile, is one of the best centers in the NBA and should demand a sizable salary. Signing Cousins would put the Pelicans deep into the luxury tax without other moves to cut money from the books.

Then there’s the question of whether Cousins wants to be back in New Orleans. He’s said all the right things, but Cousins recently unfollowed the Pelicans on Instagram and it caused folks around the NBA to shift their biases every so slightly on his re-signing in Louisiana.

Still, Cousins says he would gladly return to New Orleans. Speaking to The Undefeated, Cousins maintained that he was going to look out for himself but that he did not hold any grudges, and he would be happy to be a Pelican.

Via The Undefeated:

Are you open to re-signing with New Orleans if the deal is right?

Oh yeah, for sure. This is my first time in free agency, but I’ve been around this business long enough. I know how things work. I’m not out here trying to hold a grudge or anything like that. I’m going to make the best decision for me, and I believe teams are going to do the same thing.

What’s your mindset, your view of how to approach free agency? Do you feel like you owe it to yourself to do your due diligence and hear what everybody has to say?

Yeah, like I said I don’t plan on rushing through this process. I’m going to make the absolute best decision for DeMarcus Cousins. We’ll see what that is. As of right now, I don’t really know. I can’t answer that. Would I like to go back to New Orleans? I’m very open to that. I love what we created. I love what was created after I went down. I would love to be part of it. But I’m going to do what’s best for me, and I feel they’ll do the same.

These are basically the things you expect to hear from a pending free agent, but the NBA is a business and obviously Cousins made reference to that several times.

The “grudge” part is the most interesting part to me. Why would Cousins hold a grudge against the Pelicans? Or is this a reference to the fact the Kings have significant cap space this summer?

I’m mostly kidding about that, but the NBA is crazy. Where Cousins ends up is anyone’s guess, and it’s hard to get true free agents to sign there, even with Anthony Davis on board. The Pelicans are in a position like many other teams in the NBA, where the harsh reality is you need to pursue the best talent you have available to you.

This summer is going to be wild, man.

Could Kansas City be potential expansion city for NBA?

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Most talk around expansion or team movement revolves around one city: Seattle. Obviously, the league hurts from not having the Sonics among its ranks, and the move of the team during the last decade was one of the messier business storylines of that era.

As a resident of Seattle, it always strikes me how odd it is a metro area of this size — one that’s still focused on basketball — doesn’t have an NBA team. It just feels weird, even considering the context of Howard Schultz, Clay Bennett, and Key Arena. “Soon but not that soon” is the general feeling about getting an NBA team here in Washington.

Then again, some other cities may be in the mix, too.

According to a rumor from SEC Network’s Jarrett Sutton, at least one NBA executive thinks that Kansas City is another potential spot for expansion.

Via Twitter:

Kansas City does have the advantage of already being a sports town, a top 33 TV market, and it has an NBA-sized arena in the Sprint Center. KC is also the host city for the Big 12 tournament.

Still, the city hasn’t had an NBA team since the Kings left in 1985, and Adam Silver has said that expansion isn’t really on the docket for the league in the near future.

The question is also whether the NBA needs more teams or fewer. Some folks have started to take the stance that they would actually prefer contraction away from markets that never seem to compete. I’m not sure if that’s realistic, but re-arrangement by teams moving also seems less likely in this day and age, too, especially after the last-ditch effort to keep the Kings in Sacramento in 2013.

When will Seattle get an NBA team? Will Kansas City get a team? Will it be in tandem? This is fun speculation at this point, but we won’t get our answer for some time.

Warriors eager to get back on the court, respond from loss

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OAKLAND, Calif. (AP) One good beating per series is plenty for Draymond Green and Golden State.

The Warriors got it in Game 2 at Houston, and now the defending champions plan to do what they seem to do best: bounce back with brilliance.

As the Western Conference finals showdown shifts to Oracle Arena for Sunday’s Game 3, tied at one game apiece, the Warriors have spent the past few days discussing their Game 2 troubles and what they’re striving to do in order not to be dominated again.

It’s time to play.

“I think we’re at our best when we feel threatened,” Green said Saturday. “Game 1 we felt threatened, we came out with a sense of urgency. Game 2 we maybe didn’t feel as threatened and the sense of urgency wasn’t there. I think you’re allowed one of those a series. We’ve had our one, now it’s time to lock in for the remainder of the series.”

And for the Warriors that starts on the defensive end against Chris Paul, James Harden and Co., because when they get stops it allows Golden State to get going in transition and find open looks from 3-point range that weren’t there during a 127-105 Game 2 defeat Wednesday night at Houston. That was largely because the Rockets had ample time to set their defense following made baskets.

Houston is making sure not to get too high from its impressive result. The Rockets lost Game 1, 119-106.

“Feels like Game 2 was a week ago now. That’s how it is in the playoffs,” Paul said. “I heard somebody say when you lose a game in the playoffs, you feel like you’re never going to win again, and when you win, you feel like you’re never going to lose again. We’ve done a great job all year staying even-keeled.”

The task gets tougher for the Rockets at one of the league’s most imposing venues.

Golden State has won an NBA record-tying 15 straight postseason home games, matching the Chicago Bulls’ mark from April 27, 1990-May 21, 1991.

“The Warriors at Oracle are a different story for sure,” Stephen Curry said.

Coach Steve Kerr spoke last week to former Warriors coach Mark Jackson about Golden State’s resiliency over years now.

Just as they did in losing once in each of the first two rounds, the Warriors hardly looked strong in Game 2. Kerr insists that rebounding from a bad loss is hardly about coaching, patting his chest to note that his players take it upon themselves based on their passion to respond from defeat.

“It’s a series. We’re not going to knock them out in one game,” Kevin Durant said. “Bad games happen throughout playoff series, throughout a season, throughout a career. So just move on, keep getting better and see what happens next game.”

And the Warriors aren’t worried about Curry rediscovering his shooting rhythm after making only two 3-pointers – one in each game – so far this series.

It might just take one to fall for the two-time MVP to start feeling it again. Or not even one.

“I only need one, that’s all I need,” Curry said. “Actually I might not need any because hopefully that first one that I shoot in Game 3 goes in, so I don’t really need any.”

Golden State, which realized it wouldn’t go a record 16-1 like last postseason’s remarkable run to a second title in three years, responded from defeats in the first round to San Antonio and then against the Pelicans in the Western Conference semifinals.

“It’s not just this year it’s the last four years,” Kerr said. “It shows you the resilience of our team. I was talking to Mark Jackson last week and I said, `When I knew how tough this team was, I think it was 2013 when Mark was coaching and they lost at the buzzer to Denver on the road in Game 1, Andre Miller hit a shot. The Warriors came back and won Game 2. They lost a heartbreaker in the next round to San Antonio at San Antonio, they had an 18-point lead with about five minutes left. A devastating loss, came back and won Game 2 on the road. I remember as a broadcaster watching those two games that showed what kind of guts these guys have. Mark agreed. We’ve both been blessed to coach the group. It’s not something that you coach, it’s just something that’s in them. Steph, Draymond, Andre (Iguodala) and Klay (Thompson), those are guys who have been here for a while, so then you add KD to that, a guy who’s seen everything in the playoffs. We’ve got a pretty resilient group.”

Mike D’Antoni knows what his Rockets are up against now that the series shifts to the Warriors’ imposing home court.

“We always talk about having a short memory, especially in bad times, but you have to have a short memory also in good times. Play with the same desperation. Play with the same force that we played offensively and defensively, knowing that they’ll have more of a force on their side,” D’Antoni said. “But we have to control what we can control, and make sure we’re aggressive.”

More AP NBA: https://apnews.com/tag/NBAbasketball

Scottie Pippen on LeBron James, Michael Jordan: “It’s not a fair comparison”

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The battle has, stupidly, raged on between supporters of Michael Jordan and LeBron James. Both sides seem to believe their preference is irrefutably the choice for the best player in NBA history.

And because they did not play in the same era, the question will never be answered. No doubt in 50 years they will write columns about Jordan vs. LeBron, just like their fathers, and their father’s fathers before them.

James has certainly seemed to take a bit of a leap in the eyes of the NBA community this season, likely because of his wonderful performance at age 33. He’s also single-handedly won two playoff series this year. It’s been incredible.

But LeBron rising above Jordan has also brought out some more reasonable takes. Former Chicago Bulls legend and Jordan running mate Scottie Pippen spoke up recently about the debate, giving a measured analysis that I think is pretty strong.

In short, Pippen basically said you can’t compare the two because of the eras, the style, and the fact they just don’t play the same position (if LeBron even has a position, that is).

Via Twitter:

That sounds right to me.