In a post to sonicsarena.com this morning, Chris Hansen's investment group posted a recap of their Memorandum of Understanding (MOU) with the city of Seattle. You can read the whole thing here, but here some bullet points:
- There will be no new taxes or fees required to build the arena. All public finances will be repaid by the arena's revenues. Without the arena, there would be no way to pay back the public portion, which also would not exist without the arena. This isn't money that would otherwise go to schools or arts, this is money solely for the arena, paid back by the arena.
- All cost overruns during construction of the arena would be paid back by Hansen's group.
- The city will own the arena and the land.
- The MOU establishes a separate fund to finance maintenance, repair, and future upgrades to the arena.
- ArenaCo (Hansen's group) will maintain Labor Peace Agreements with unions representing workers in King County.
- The MOU creates a $40 million transportation fund for the SoDo area.
- The arena will create 3,570 jobs and $289 million in wage earnings.
- Gross regional economic activity of the arena would total an estimated $313 million.
- There will be a Community Benefit Agreement between ArenaCo and neighboring areas, including Pioneer Square and the International District.
- The Supersonics will be required to make at least 1,500 tickets available to middle and low income families ($20 or less).
Some of this we already knew, some of it was new (to me, at least). Overall, it sounds like a great deal for the city, with no new taxes, money going into traffic improvements and neighboring areas, and a lot of jobs and economic activity for the SoDo neighborhood.