Seattle Partners, the joint venture between arena developer and operator AEG and real estate investment company Hudson Pacific Properties, announced they are officially withdrawing their proposal for renovation of KeyArena from consideration on Sunday.
In a letter to Seattle mayor Ed Murray and the city council, SP expressed what they felt was a flawed proposal process that ultimately led to their decision.
The text of the letter is as follows:
June 4, 2025
The Honorable Edward B. Murray
Mayor of Seattle
600 4th Avenue, 7th Floor
PO Box 94749
Seattle, WA 98104Seattle City Council
600 4th Avenue, 2nd Floor
PO Box 34025
Seattle, WA 98104Dear Mayor Murray and Seattle City Council:
We are writing to inform you that Seattle Partners must regretfully withdraw our bid to redesign and renovate KeyArena.
We remain firm in the belief that our proposal best serves the people of Seattle, but, unfortunately, significant factors through the bidding process have eroded our confidence in the ultimate execution of this project, no matter which group is selected. We fear the City is driving toward an unrealistic financing structure, and we believe the City has failed to conduct a sufficiently thorough, objective and transparent process to properly evaluate the respective strengths and weaknesses of the two proposals and, most significantly, to identify the proposal best positioned to deliver a project consistent with the community’s interests.
The people of Seattle deserve a world-class sports and entertainment venue capable of bringing back NBA and NHL teams. We have engaged earnestly in a process that we had hoped would be relentless in its pursuit of that objective, and we put forward a proposal we believed most certain to deliver a successful completed project that would attract professional basketball and hockey teams.
Notwithstanding our confidence in the merits of our proposal, over the past two months, Seattle Partners has actively sought feedback from community leaders, City staff and members of the City’s Community Advisory Council, and, in response, we have explored improvements to our proposal. However, consistent with a general lack of active engagement through this evaluation process, the City declined to seek improved terms, refusing requests from us and others to call for a “best and final” offer from both bidders. We have seen little indication of the collaborative and iterative process we were told to expect and is typical of such requests for proposals.
In addition, the City’s decision to withhold critical financial portions of Oak View Group’s proposal from the public, while releasing the financial details of our proposal with our full support, raises serious questions about the integrity of the decision-making process and the ability of the public to make a fair and equitable comparison.
Despite the lack of transparency, we are generally familiar with Oak View Group’s proposal, including changes to it that have been conveyed via media accounts and otherwise. Based on our experience, we have strong reservations about whether that proposal can be successfully achieved consistent with the City’s best interests. If the City elects to proceed with that remaining proposal, to protect the public interests of Seattle, it is imperative that you closely and diligently monitor the process to ensure that Oak View Group is held accountable for all elements of what it has very publicly promised to the citizens of Seattle.
Seattle Partners remains deeply committed to this great city, and we thank the countless civic leaders who offered helpful input and partnership on our proposal. We wish the City the best of luck in its pursuit of an arena project that can provide what the region’s passionate sports fans deserve – to see the Sonics and professional hockey return to the Emerald City.
Sincerely,
Bob Newman
President, AEG FacilitiesAlex Vouvalides
Chief Investment Officer, Hudson Pacific Properties
Comments
They must've seen the writing on the wall.
By UprootedTexan on 06.04.17 3:00pm
You can't fire me, I quit!
By OlyBrandon21 on 06.04.17 4:14pm
It feels like a murder suicide
By Styles McFly on 06.04.17 5:22pm
This saga has more drama than a Shakespeare tragedy. Geezus.
By JetCityWoman2 on 06.04.17 5:26pm
I am very shocked to see this.
I think there was a strong understanding on almost everybody’s part that the public bonding proposed by AEG was a non-starter and for that reason the attention shifted to OVG as a likely winner. I’m very stunned to see this strong language on the way out. The fued between these two companies is deep.
By Brian Robinson on 06.04.17 3:13pm
It smells kind of collusion-y.
Not that it is, but it kind of has that whiff to it.
By UprootedTexan on 06.04.17 3:14pm
I don't understand how
redirecting millions in taxes towards rent and operating costs is any better than using city bonds for construction. I honestly don’t get it. It’s all public money going to the developers.
By itsanospreybich on 06.04.17 3:57pm
I agree.. . . it is nothing but a shell game. Some are just more palatable to the public who don't look under the hood.
Politicians are good at shell games. Corporations are really good at tiny fine print that consumers never read.
By kinsesu on 06.04.17 4:02pm
No Kidding...
Of course we were going to throw OVG under the bus as we bowed out…
… but how about we throw the entire city council under the bus with them as we do so…
By MartinHughes on 06.05.17 11:49pm
Or maybe there is truth to their claims?
It wouldnt be hard to imagine
By Seattle_Fan1980 on 06.06.17 3:21pm
This sounds a lot more like they smelled a stench of corruption from the City than some kind of feud with OVG.
I preferred OVG over AEG’s proposal anyway, so my feelings don’t change much here, but it sure does make Murray & co look slimy. And if this letter shines a light on all the backhanded dealings with the City, the Port, and god knows who else, then more power to them.
By Drunk Viking on 06.04.17 3:19pm
"smelled a stench of corruption from the City" ? No. . . the pillar of integrity in politics ? Seattle ? Never.
I’m happier than pig in shit with this news for all sorts of reasons … but, calling out the City for it’s lack of transparency and shenanigans is PRICELESS !! Laughing my ass off !!
By kinsesu on 06.04.17 3:35pm
OVG and Murray
Didn’t one of their guys host an election fundraiser for Murray at their house?
By john_s on 06.04.17 3:22pm
No, it was Roger Nyhus, who was part of the Seattle Partners group w/ AEG and Hudson Pacific Properties.
By Sixth Man on 06.04.17 3:29pm
That was actually someone with Seattle Partners
Roger Nyhus, head of Nyhus Communications.
By Matt Tucker on 06.04.17 3:29pm
Thank you!
NT
By john_s on 06.04.17 3:33pm
Yes
AEG is the company that is in thick with Murray.
By Brian Robinson on 06.04.17 3:35pm
WOW - - - Damn, I gotta say... .I admire how big corporate entities have the ability to throw shade at others with pretty words.
Make no mistake. . . . that was nasty and finger pointing.
Who’da thunk ? Well, we now know it’s OVG vs Sodo.
Is it too much to hope that OVG pulls out, too ? Well, I can dream !!
Hang in there Chris. . . . .this fan is pulling for ya. Perhaps it’s time for a rally ?? The weather’s gettin’ nice !!
By kinsesu on 06.04.17 3:22pm
Wow. Just...wow.
This is big. And them’s some fighitin’ words. That’s not a shot across the bow but rather a torpedo toward the propeller.
By Chris Meirose on 06.04.17 3:24pm
Now if only that torpedo would blow up the Key Arena and end all this....
By Drunk Viking on 06.04.17 3:25pm
Drunk's statement could break the record for rec's on SR. I'd rec it 1000 times if I could.
But, Mods won’t let me.
By kinsesu on 06.04.17 3:27pm
The system won't let you
Has nothing to do with us.
By Matt Tucker on 06.04.17 3:31pm
Lighten up, Matt. I was JOKING !!
It’s a good day !! The sun is out – - and this news should shorten the process. At least I hope so.
By kinsesu on 06.04.17 3:37pm
True
if nothing else, the mayor can drop any pretense and recommend OVG immediately.
By Paul Rogers on 06.04.17 3:38pm
Ah, hell. . . . let's just make this simple and just vote "Yay" on street vacation. Let the Leagues decide.
Who knows. . . . maybe OVG pulls out too. I can dream. Perhaps the local boys are the only ones who have pati
By kinsesu on 06.04.17 3:40pm