KING5 news has reported that the City of Seattle has released more financial details of the Oakview Group’s bid to renovate KeyArena. This comes the day after Seattle Partners withdrew from the competition with a scathing letter decrying the city’s handling of the RFP process - in particular the redacting of OVG’s financial details.
Here are some key points of the release.
- The name of the organization that would build the arena would be ArenaCo, in much the same way that the organization that would construct Chris Hansen’s arena would be called ArenaCo.
- They would seek $40 million in tax revenue from Seattle Center to reinvest into the project.
- They would contribute $25 million to the construction of a parking garage, though it is unclear if that number has changed since the announcement that the garage would be smaller than originally planned.
- They would seek a $50 million federal grant for the expected landmark status of KeyArena’s roof line.
- They expect to begin construction in December of 2018, though it is unclear how that is possible with the recently scheduled NCAA basketball tournament tournament in March of 2019.
- They anticipate naming rights revenue north of $20 million in the first five years.
- Goldman Sachs will finance up to $200 million if no teams arise, and an unspecified higher amount if teams are acquired.
- Geoff Baker reports that MSG is providing up to a $1 billion backstop to OVG’s proposal. It could be used in the event that the $50 million federal grant doesn’t materialize or that the $40 million in tax revenue from Seattle Center is denied.
We will publish more details as they become available.