If the return of the SuperSonics to Seattle and the NBA is a primary goal of the arena project, as stated by the city, then the city council should grant the Occidental Avenue street vacation for the SoDo arena project.
On Thursday, our friend Art Thiel of Sportspress NW called for the city to give investor Chris Hansen and his SoDo team a shot at pursuing potential NBA expansion by granting the one-block vacation. I echo this call, as do many fans.
This comes in the wake of NBA commissioner Adam Silver's subtle but noticeable softening of language regarding the possibilities of expansion while talking with the Portland Trail Blazers' C.J. McCollum for The Players’ Tribune.
In a fun confluence and coincidence of words, the city should hedge its bets by betting on the hedge fund manager from San Francisco who grew up in our fair city.
Yes, that term "hedge fund manager" has been disturbingly thrown around like a vile epithet, but it speaks to someone who understands risk and reward and has success as evidence. Hansen has six years in on this project and the methodical approvals to show for it.
That's not to take away from the success and record of Oak VIew Group and its team. The group's leadership arguably has a better shot at acquiring clubs for both the NBA and the NHL given their relationships with both leagues, as well as with the pool of ownership investors that regularly float around these opportunities.
And here is where I disagree with Thiel's interpretation of Tim Leiweke's up-to-now dour viewpoint on the NBA. Thiel writes:
Leiweke likely will say that Silver’s remarks conform to what he’s been saying: The NBA will expand, and the remodeled Key, with $564 million in renovations from his company’s funds, will be ready when it does.
But what that contention fails to describe is Silver’s motivation. His job is drive up the price of scarce objects, expansion franchises, that are provided only by the NBA’s monopoly operations. As part of the strategy, Silver tells an audience what he thinks it most wants to hear, not to fit a Leiweke strategy.
It's well documented that Lewieke keeps in regular contact with the league offices and various owners. He was recently brought on by New York Knicks owner James Dolan to advise the team as they transition and search for a new president of basketball operations following the firing of Phil Jackson.
His comments on expansion or relocation not being imminent perfectly mirrored exactly what the NBA has publicly been saying for years. The league couldn’t have scripted a better message.
Some would argue he was undermining Hansen's comments on team availability. Others would argue he was trying to set fair expectations of the process. Leiweke called it not getting ahead of commissioners. This approach isn’t in a vacuum or coming from nowhere.
The NBA's company line has only publicly shifted in the last couple of weeks. We have yet to hear from Leiweke on it since Silver's comments.
A strong argument could be made that OVG positions itself better by holding the NBA up as a distant prospect that the SoDo project is too reliant upon. Yet, I would not be surprised to see Leiweke’s position soften as well. It’s quite possible we might even see movement on identifying a basketball ownership group to complement the Bonderman-Bruckheimer NHL joint.
Still, even with a solid, demonstrable timeline, OVG has a significant amount of political and governmental process to get through. Just within the last few days, the landmark process evaluating KeyArena and other buildings in the proposed redevelopment site threw a potential shot block in project designs.
The best laid plans of mice and men often go awry, the adage says. As we've seen with SoDo, this should be an expectation rather than mere concern.
Speaking of concerns, as we've mentioned numerous times, the street vacation process has backstops built into it to preserve this lowly strip of asphalt for the city for as long as necessary.
The SoDo group has agreed not to build the arena until a team is acquired. If they can't do this within five years, the conditional vacation approval evaporates and the street remains with the city. Fans burnishing this point like a torch shouldn't obscure the fact that it's true.
If Hansen’s group needs the vacation to attract the necessary investors for both an NHL ownership group and a majority NBA ownership group, then lets take the reins as chicken and see if Hansen can produce the egg. If he can’t, what’s lost?
As Thiel puts well:
But Sodo needs to be considered on a parallel track, free of mythology.
A hearing on the Hansen bid, free of its earlier request for public bonds, is in the city’s best interests.
Why have we yet to hear from the Seattle Department of Transportation on the renewed SoDo street vacation request? What is the hold-up on providing a recommendation and report on the vacation to the city council?
Last time through, the Seattle Design Commission unanimously approved the urban merit of the SoDo project in May 2015, then unanimously approved the public benefits pacakge in exchange for the vacation in September 2015. By the end of November 2015, Mayor Murray and SDOT submitted their positive recommendation and report to the council.
This past April, the SDC again approved both the urban merit and revised public benefits package in a single meeting, having used the work done previously to effectively expedite the process. Other projects to review and all, SDOT could lean on its past work to expedite as well, but they appear to be taking their sweet time here.
Let's get this into the hands of the council, introduce legislation, and get a public hearing and a vote on the books.
The fact of the matter is we have two strong and capable proposals and would be best served by unhindering both to allow them to accomplish our goal as Seattle of getting the Sonics back. Each of us at Sonics Rising has different opinions and preferences on the two projects, but as a whole our ultimate goals have been an arena and our team on the court.
Grant the vacation and let both play out the way they should and will.
Comments
Thank you
I really can’t say how much I appreciate that you are taking this step. A tip of the hat to you and SonicsRising.
I absolutely believe that approving the street vacation enhances our chance for the return of the Sonics. It also provides the SCC some necessary leverage in their negotiations with OVG. I also believe that denying the street vacation impacts our chances negatively, and leaving us with no Plan B, whether that is ultimately OVG or Sodo.
When we can set the two proposals alongside each other and compare them as viable projects, I think the City of Seattle, and the region, will have the best opportunity to benefit in a way that is good for all of the stakeholders, and best for most of them.
I sincerely hope that Chris Hansen and the Sodo group will begin a visible effort to promote their proposal.
By cortone on 08.05.17 1:30pm
People tend to forget that
Key Arena can be a plan B too, as well as a potential consolation prize for the city as a nice concert venue.
By Seattle_Fan1980 on 08.05.17 3:43pm
There is
An unacceptable gap in time, that is a potential lost opportunity, if the city says no to a conditional street vacation. Could be two, maybe 3, (nobody want to think about the worse case). Doing that is a giant step back 4 years. The rerun might only take 3 this time, but the result could be the same.
Not being able to say yes for 3 to 4 more years, or missed opportunity during that time, … think about it.
Anybody predict that the Houston Rockets would be for sale right now? Anybody? No? How about the next team nobody except that owner can predict. If a team is a money loser at this point then they could move. I have no idea when they get to that point, but that’s their path (if anonymous owners quoted on NBA.com can be believed. It’s not like they are competing arena developers.). I think, maybe we were just told. http://manywordsforrain.blogspot.com/2017/07/nbacom-david-aldridge-column-on-seattle.html?m=1
By Mike Baker on 08.05.17 2:34pm
Its not just if the Sonics are the goal
Its if we want a legitimate good deal from OVG on Key Arena, vacation needs to be approved.
By Seattle_Fan1980 on 08.05.17 2:39pm
My first thought, and it was not a kind one,
is that I really don’t care what happens to Key Arena if there are no Sonics, selfish or not.
My second thought, is that even without the Sonics, I want the Seattle Center preserved as a great city park, suitable for the arts, entertainment and social events just like it is now. Turning over naming rights and ancillary development opportunities to a third party would reduce its value to the millions of visitors who come each year, and will continue to come. That’s bigger than basketball and hockey.
By cortone on 08.05.17 3:59pm
Yes, I've pointed that out many times
It becomes more important as they push things out to a later agreement so they can make Ed happy.
When they pass their agreement to the council, shortly, we can see how developed the MOU could be.
I don’t know the timing of too many things, but putting the street vacation through after they get a look at OVG’s offer, seems likely to me. The kind of pressure that applies to both to put their best foot forward is a good thing imo.
By Mike Baker on 08.05.17 3:59pm
Why should the street vacation be approved after the OVG offer?
That kinda defeats the purpose of using it as leverage
By Seattle_Fan1980 on 08.05.17 5:04pm
SODO still
Formally has to show their plan to go private.
Knowing what the competition proposed allows SoDo to tweak their offer if needed.
It looks like we will see OVG’s offer to the council before the street vacation.
By Mike Baker on 08.05.17 8:23pm
Logically, they should approve a vacation, buuuuut
We’ve got people in city government and some candidates for office trafficking crap about how risky it is to give up the street, how an arena would risk gentrifying SODO and putting industrial jobs in jeopardy. We’ve also got further combinations of people who are bought and paid for by the Port, and just plain ole political cowardice.
Other than that, a street vacation in the eyes of the council is pretty rational.
By NWEastcoaster on 08.05.17 7:42pm
I dont think they realize that
The only way for Seattle to grow is south. It only makes sense to build up commercial/residential around the stadium district to make it an area where people spend the day/evening spending money in the city. There is plenty of land south of the stadium district that should remain industrial.
By Seattle_Fan1980 on 08.05.17 8:02pm
Everybody realizes that,
that’s why they are looking at other ways like allowing LQA to go up. Growth is going south, but that doesn’t mean it isn’t important to try and preserve the small industrial space Seattle has left. Seattle has a rich industrial history and the council should be commended for recognizing that.
The issue with the logic behind preserving Terminal 46 is that all the data in the FEIS suggests that the arena can coexist with it. That and the fact that the Port is already looking at alternative uses for Terminal 46 (cruise terminal and headquarters off the top of my head), I believe due to the automation of Terminal 5 and the depth limitations at that location, so denying the street vacation in the name of preservation is pointless.
By itsanospreybich on 08.07.17 4:56pm
Is that seriously a thing?
As much as we have basically gentrified the entire city they are worried about a stadium gentrifying it more?? A stadium that would be built in a current stadium district? That makes zero sense to me. To the politicians, Stop the building of high rise overpriced housing in poor urban areas and get back to me with this gentrification nonesense. Maybe I need more context, but if this is seriously the route these candidates wanna go down they are fooling themselves and the voters. Worry about rent control, renter rights, etc.. not a stadium being built that would bring in jobs and revenue to the city…. smdh
By TheBruxist on 08.07.17 12:38pm
If Sonics are the goal, city should grant SoDo street vacation
What will it say about the city and their goal should it deny SoDo street vacation?
By Mr. Shea on 08.07.17 8:42am
It'll say that they suck, but we knew that already.
No fancy political editorial, no flowery discourse. Simply, they suck.
By sofa-king on 08.07.17 8:58am
At least it didn't take them long to clear it up for us.
By Mr. Shea on 08.14.17 7:31pm
If I remember correctly
Rob Johnson was in favor of this and had already proposed it to other council members and was denied because it would be unfair to the Key Arena developer. Of course, that was during the RFP process so things have changed.
By Knottsrus on 08.07.17 4:20pm
Almost
Rob Johnson brought it up, Geoff Baker cried about it like a baby on twitter.
By Mike Baker on 08.07.17 8:41pm
Geoff Baker did contradict himself a little on this.
He says OVG isn’t requesting any exclusivity from the City yet he also said that allowing the street vacation adds risk and could scare OVG away. So which is it?
It doesn’t sound like OVG is concerned with the competition of the SoDo arena unless they are saying something else to the City behind closed doors, which sounds like borderline collusion…
By itsanospreybich on 08.07.17 8:52pm
This was a known possibility.
They chose to proceed.
By Mike Baker on 08.07.17 9:08pm
I don't think OVG is scared of the street vacation
because of some of the factors I mentioned, e.g., politics, city asset protection, gentrification (as ridiculous as it sounds from them), etc.
By NWEastcoaster on 08.08.17 5:21am
I meant more that
they don’t seem opposed to allowing the street vacation.
By itsanospreybich on 08.08.17 8:32am
As a non-local
It’s hard for me to fully comprehend why there’s such a massive fight here. Why there’s such a push back on space when such a massive amount of money is being offered from a private investor who just needs one. whole. street.
By Eternal Blue on 08.07.17 6:16pm
You can join a lot of locals having the same difficulties.
Other groups want to develop the land under and around where they would build the new arena. And Key Arena needs an update. Queue the political hard ball.
And it’s not even a whole street. It’s a short section that is barely more than an alley, two blocks from where the same street will be vacated anyway. Just to add to the illogic.
By cortone on 08.07.17 6:25pm
This non local has been scratching his head, too.
It’s been so long now I have a nice bald spot.
By Zeppe on 08.07.17 8:10pm
Nostalgia
Asset utilization with unrealistic constraints that make anything done with it expensive, constrained, and less profitable than offering it up as a teardown.
By Mike Baker on 08.07.17 8:45pm