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.
MIDNIGHT UPDATE
- 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.
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Comments
I like it.
By Shaneskladany on 06.05.17 9:10pm
And what is it that you like ? You wanna break that down for us ?
By kinsesu on 06.05.17 10:19pm
ArenaCo naming
is just a slap in the face if I ever saw one.
By Seattle_Fan1980 on 06.05.17 9:13pm
Probably just a generic placeholder name, I'd think
By Thane of Cascadia on 06.06.17 8:26am
So..
There is $50 million available as a tax credit to renovate that area and keep the roof line. Lots you could do with $50 million…
By blykmyk44 on 06.05.17 9:14pm
Exactly what stood out to me
I know nothing about historic designation tax credits. What triggers such an option to pursue a $50 million grant? When we see proposals and costs for alternative Key Arena projects, should we contemplate there’d be a $50 million contribution towards any?
By Mr. Shea on 06.05.17 9:17pm
I don't see why not
if opportunity arises.
By Paul Rogers on 06.05.17 9:18pm
Me too
I also know nothing, but why would the federal government pay $50 million to keep an ugly roof? I think the feds would look at this and laugh, laugh, laugh. I wonder who is on the hook if the grant doesn’t come through and would be willing to bet dollars to donuts that it is the city.
By Ultrasonics on 06.05.17 9:33pm
I'm gonna try to shut up until I hear a full explanation of how that $50m works
Right now, my brain’s cranking out ideas of what could be done with or started at Key for $50m plus tax revenue generated by SODO arena.
By Mr. Shea on 06.05.17 9:37pm
You could probably renovate the loading dock area, which would make it easier and more attractive for touring shows
Might also be able to do something to improve the acoustics. Then the city would have a pretty good 14,000 seat music venue, and an arena with access to transportation hubs for the NBA and/or NHL. And if the city got an NHL franchise that needed somewhere to play while the SODO arena was being built, then the city could collect rent which could be spent on, I don’t know, further upgrades to the Key or to Seattle Center.
By TheTrialist on 06.05.17 9:46pm
It just seems weird
That you could get a federal grant to preserve a roof and then change the roof line.
By Ultrasonics on 06.05.17 9:46pm
Isn't changing of anything that is deemed historic subject to approval by the landmark board?
By gstommylee on 06.05.17 9:48pm
Again I don't know
But that seems totally reasonable.
By Ultrasonics on 06.05.17 9:50pm
Raises questions
They’re counting on $50M in federal grants? With government in its current state not sure I’d count on that. I imagine AEG will use their local connections to pick this apart.
By DJDawg77 on 06.05.17 9:14pm
Not sure AEG really could if they tried
after they threw the city under the bus like that.
By gstommylee on 06.05.17 9:30pm
Well, It Didn't Stop The Port, Did It?
That playbook is exactly what the Port used on the vacation vote, and it worked on Sawant, even after she labelled them a cesspool of corruption.
What makes you think that AEG can’t just hire a bunch of lobbyists and start the same backdoor whispering campaign, even after a letter bomb? It certainly already got Harrell and Burgess sitting up and paying attention…
By MartinHughes on 06.06.17 12:44am
Yeah, I'm having a hard time seeing the Federal government giving us $50 million . . .
As the old saying goes, hope is not a plan. The idea that the Feds will cough up $50 million, or that they city will collect taxes from Seattle Center only to pay that money back to OVG, seems fanciful.
Honest question: isn’t the Key currently generating a profit for the city? If so, why would we give that up, on top of having to forego $40 million in tax revenue, with no guarantee that the Sonics will return? I don’t get it.
By TheTrialist on 06.05.17 9:33pm
Its only generating a profit cause the city hasn't made much needed arena upgrades
By gstommylee on 06.05.17 9:38pm
Just what are the "much needed arena upgrades" ? I really have no idea.
By kinsesu on 06.05.17 9:39pm
probably standard stuff
lightining TVs etc. They probably not done anything since approving the 95 renovations.
By gstommylee on 06.05.17 9:42pm
See above. They only have one loading area. They need more. Touring shows hate loading in there.
By TheTrialist on 06.05.17 9:47pm
Right
Definitely need to add a couple more loading bays but its going to cost more than 50m that they can’t depend on actually getting.
By gstommylee on 06.05.17 9:49pm
they need a minimum of 6 more to hit the very minimum for big shows
Eight more to be world class and keep the big shows from thinking twice, plus the ramp in is an even bigger consideration.
By cortone on 06.05.17 9:52pm
The entire loading area
needs to be redesigned. Not just building 6 new loading docks. The street with access cant handle 6 trucks at a time
By Payton's Rules on 06.05.17 10:11pm
Yep, that's the ramp in
More than anything, the loading area limits what Key Arena can handle in terms of big shows.
By cortone on 06.06.17 7:06am