Sacramento Approves NBA’s Kings Arena Plans
By Community | May 21, 2014
Sacramento’s city council has approved a financing plan for the Kings NBA franchise, clearing the way for construction on a $477 million downtown arena.
Under the 35-year deal, the city would be responsible for a $223 million subsidy, much of it financed through a parking revenue bond. The city would pay an estimated $21.9 million a year in debt service that would be paid through lease payments from the Kings and a projected increase in parking revenue.
In return, the Kings will contribute $254 million to construct the arena and develop surrounding land with a hotel, office tower and shopping.
“We had our backs against the wall, but we defied the odds. We made a comeback for the ages, and in doing so, I feel like we unleashed the very best that Sacramento has to offer,” said Mayor Kevin Johnson, a former three-time NBA All-Star who maintains strong connections to the league.
The NBA had told the city that it must open the arena by 2017 or risk losing the Kings.