The Sacramento City Council approved a financing plan on March 6 by a 7-2 vote for a new venue for the NBA Sacramento Kings to be built in the downtown railyard.
With the vote, the council accepted a nonbinding term sheet agreed to by city officials, the Kings, arena operator AEG and the development company scheduled to build the project.
This proved to be not just any City Council meeting either as an overflow crowd began gathering at City Hall more than three hours before the meeting began. The crowd estimated at 500 erupted with joy as the final vote was tallied.
Sacramento Mayor Kevin Johnson, a former NBA player and all-star with the Phoenix Suns, celebrated with fans following the announcement.
Proponents addressed the need to keep the team in the city and that by doing so a message is sent about Sacramento’s vision and hopes for the city and region. Critics, meanwhile, argued that the plan was not good for a city that has laid off police officers and slashed parks maintenance among numerous budget deficits.
Plans call for the new arena to open for the 2015-16 NBA season. The team and AEG are scheduled to pay for half of the pre-development agreement, while another $5 million is coming out of an account set aside from the city’s sale of the downtown Sheraton to developer David Taylor. The remainder will come from the city’s parking fund.
The Kings will be the venue’s primary tenant and will contribute $73.25 million to the project on a 30-year lease. AEG will contribute $58.75 million.