With Sonics gone, KeyArena looks to future

ERIC D. WILLIAMS; eric.williams@thenewstribune.com
Last updated: August 18th, 2008 06:13 AM (PDT)

In that time, city officials have moved forward. Seattle Center officials have begun to fill in the 41 open dates the Sonics’ move to Oklahoma City created at KeyArena.

City officials, along with sports-related and business groups interested in keeping KeyArena afloat in a competitive market, have begun working with the state Legislature to secure $75 million to complete a $300 million remodel. The city wants to create an NBA-ready facility with the hope of securing another basketball team in the near future.

According to the settlement, the city could receive another $30 million from Bennett’s group. In order to receive the money, the Legislature would have to fund $75 million toward the KeyArena revamp by Dec. 31, 2009, and Seattle would still have to be without a team by 2013.

Unlike the prior four unsuccessful attempts by the Sonics in Olympia to secure public funding for a new basketball facility, the city is taking a more proactive approach in dealing with state lawmakers in preparation for the 2009 session.

TASK FORCE STUDIES ARENA’S FATE

The City of Seattle is working with a task force created by the Legislature, co-chaired by Rep. Ross Hunter, D-Medina, and Sen. Tracey Eide, D-Federal Way. The seven-member group is charged with evaluating the options for using King County taxes, some of which are being used to pay off debt on Safeco Field, Qwest Field and the demolished Kingdome.

Though none of the money is from state taxes, the Legislature must authorize the county or city to use the money for anything other than what was originally intended. And the Sonics aren’t the only ones in line – the University of Washington, looking for financial help on a stadium renovation of its own, along with local arts groups and organizations involved with low-income housing and Puget Sound cleanup also want their share.

The task force will meet at least two more times to listen to presentations from groups seeking money before making recommendations to state lawmakers late this year.

“What I would love to see is some kind of consensus of, here is what we should do with this,” Hunter said. “I don’t know if we’ll get there. Every person has a different interest. But my personal interest is letting people make decisions on their revenue.”

Alex Fryer, a spokesperson in Seattle Mayor Greg Nickels’ office, said Nickels is asking the Legislature to consider restoring the city’s ability to raise money through the hotel-motel tax that funds the Washington State Convention and Trade Center.

The tax rate in Seattle is 7 percent, but Fryer said about 6 percent is needed to pay off the remaining bonds. So the city is asking the Legislature to reduce the Convention Center tax to 6 percent and restore the remaining authority for the city to extend 1 percent of that tax as part of its overall finance package to remodel KeyArena.

Fryer said the tax would apply only to hotels and motels inside the Seattle city limits. That change could potentially make the proposal more politically palatable.

“We believe our chances are good next year,” Fryer said. “We hope the Legislature values professional basketball as a cultural benefit, an economic engine and a regional attraction. We have a good deal with the Professional Basketball Club and a good venue with KeyArena. We need state action, and we hope to make a strong case.”

Lawmakers last session considered several proposals for financing a $300 million KeyArena remodel, but none of them gained enough steam to merit a vote.

The task force had an information gathering meeting in July and will meet again in September.

Brian Robinson, co-founder of Save Our Sonics, a grass-roots organization that worked to keep the team in Seattle, is involved in a coalition of sports-related and business groups interested in seeing KeyArena remodeled. He said Save Our Sonics plan to hire a lobbyist to help with the city’s effort during the 2009 session of the Legislature.

“I think the city understands that having gone there four years straight with the same approach that they have to try some new things,” Robinson said. “And I think the city will change their approach, and hopefully they change it in a positive manner.”

Robinson said he’d like to see the city use some of the $45 million it received in the settlement to bring another professional basketball team back to Seattle.

“They took $45 million toward the city general fund in exchange for our team,” Robinson said. “And from the perspective of a sports fan, I don’t think it’s unrealistic that some of that money is dedicated to an effort to secure a new team.

“They have to put their money where their mouth is. They promised a strong effort toward pursuing a new team, and so far they are. But we’re going to watch them very closely.”

BALMER’S GROUP COMMITTED

The private investment group headed by Microsoft CEO Steve Ballmer still is interested in working to bring professional basketball back to Seattle, said Matt Griffin, a spokesperson for the group.

Griffin said his group has had conversations with the city to make sure it is taking the lead on the initiative to secure state funding to remodel KeyArena. The private investment group, which includes Ballmer; Griffin, a Seattle developer; wireless magnate John Stanton; and Costco CEO Jim Sinegal offered to put $150 million toward a KeyArena remodel, along with pursuing the purchase of an NBA franchise. The city has offered to pitch in $75 million, and now needs $75 million in state-authorized local taxes to complete financing for the deal.

Griffin said he became involved in the project because of his concern about what would happen to KeyArena, the cornerstone of the Seattle Center, without a prime NBA tenant. Griffin said he thinks the KeyArena remodel is a viable option for an NBA team, and doesn’t see his group getting involved in a privately financed arena.

“I personally worry about KeyArena,” Griffin said. “And we want to solve that problem at the same time.”

Griffin said he hasn’t heard anything from the NBA about the availability of a franchise

“It’s (a) hard discussion to have when you don’t have an arena for them to play in,” Griffin said. “We will go and make an effort. We are clearly committed to the process, but it still takes a willing seller of a franchise.”

OTHER EVENTS PLANNED

KeyArena has 10 to 15 replacements for the Sonics’ dates in negotiation or secured, said Robert Nellams, Seattle Center director. Those entertainment options range from sumo wrestling to X-Games activities such as BMX-biking. But those events are not expected to generate as much revenue as Sonics games.

Seattle University, which moves up to NCAA Division I this school year in men’s basketball, plans to play its home games at the Seattle Center facility.

However, KeyArena does not anticipate ever being in the red when it comes to finances because the remaining debt on the facility will be paid off with proceeds from the $45 million settlement paid by Bennett’s group, Nellams indicated.

Eric D.Williams: 253-597-8437

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Originally published: August 18th, 2008 01:24 AM (PDT)