SeattlePI.com: NBA pitch is no 'slam-dunk'

Front page of the Seattle PI is the report of the City of Seattle's effort to get the State of Washington to authorize 75 million dollars in funding for stadiums and exhibition infrastructure in Seattle to have 1% of the current 7% sales tax on Seattle hotels to be redirected to the Seattle Center for either construction around Key Arena, or to other portions of Seattle Center should an NBA team not become available for Steve Ballmer to buy.

Read it here!
Have a great day,
Mr Baker
Sent from my iPhone

Added to this story, my opinion:
The reporter quoted Ross Hunter, Tim Ceis, but not Brian Robinson. The reporter noted that the fund was raided last year but did not mention the Senate Bill 6638 was passed into law to prevent that from happening again. The reporter did not mention the state task force or that there is a meeting December 1st. Other than what was missing, I thought what was included was pretty good reporting. Ross Hunter's quotes are the framework for negotiation, the city has work to do politically by selling this at a time of budget cuts and it has to have an agreement with the convention center folks in order for this to happen.
It has been and will come down to that, not a shock to you or I. I have been saying it for a few months.

"KeyArena scrambles to fill dates left by Sonics", NWCN.com

Half of the dates left open by taking the buyout from Bennett have been filled. Businesses around the arena do not think shows like "Thomas the Tank Engine" will bring as much activity. Seattle University is expected to announce a basketball game in January to be played there, and possibly more.

The claim is that these individual events can bring in more money per event. The problem is that there are half as many, and nobody can say that these activities could not have been booked to take place between NBA basketball games. It isn't as if every date was filled except the dates occupied by NBA games. Prior years had seen 140 to 160 events. This next year might see 80 to 120. It is simply a smaller scale. The claim per event is the one bright spot as long as you do not look at the overall schedule of dark nights. Fewer people going to Key Arena will likely mean fewer people going to Seattle Center.

The majority of Sonics season ticketholders traveled in from outside the Seattle City limits. Fewer people will have fewer reasons to travel into Seattle and Key Arena.
That is the bottom line, on the city's bottom line.
http://www.nwcn.com/sports/stories/NW_101708SPB_keyarena_dates_KS.122135003.html

Have a great day,
Mr Baker

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Enough! Back to the arena.

What is supposed to be coming up in September is another meeting of the state task force.

Back on August 18, Eric D. Williams posted on the Tacoma News Tribune, With Sonics gone, KeyArena looks to future (in my link list).

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.”

This is really the hard part, convincing people that should not be involved to not get in the way.

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.”

That's really where we are at with Key Arena. There is a willing buyer for an NBA team . That buyer is willing to pay $150 million dollars to remodel the parts of Key Arena that effect the NBA.
The City has committed to user the sports generated revenue t pay for its' 75 million dollar portion.
The city is working with the state to direct locally collected funds that are currently used for the Washington Convention Center in Seattle, to the Key Arena remodel in Seattle.

July 16, 2008 there was a state task force meeting:

Local Financing Options for King County, Joint Task Force* - 07/16/08 9:00 am
Full Committee

House Hearing Rm C
John L. O'Brien Building
Olympia, WA

REVISED 7/15/2008 9:56 AM

Agenda:

1. Task Force administration - selection of Chair, discussion of Task Force goals and meeting schedule.
2. Overview of stadium related revenues in King County including: history, scheduled uses of revenue, and bond repayment timing, and including the current 7%/2.8% hotel-motel tax levied within the City of Seattle / King County dedicated to the State Convention Center.
3. Review of 2008 Legislation: SB 6638 - Reallocating existing lodging taxes for heritage and arts programs in a county with a population of one million or more.

~

Let's go further back to July, 3, 2008

"Comment from Sen. Ed Murray and Rep. Ross Hunter on Sonics settlement
Posted by Niki Sullivan @ 11:56:39 am" [Tacoma News Tribune]

Here's what Sen. Ed Murray, D-Seattle, has to say about the Sonics settlement. Murray, a member of the task force to meet this summer on King County local taxes, said he hasn't read the settlement but has been briefed.

"My concern is that some of the sources we're looking at give me puase. An example would be the convention center and some of the funding that would come out of the money that we're getting out of the convention center... I think we need to look at renovating and expanding the convention center before we talk about diverting that money into KeyArena."

He said the Legislature wasn't involved in the deal-making. "That wouldn't be appropriate."

"We have time now to look at our options through this task force. Again, I think we need to be very cautious about where we get the money so that we don't hurt other needed projects or tax sources."

"I'm not saying we won't act, but I think we need to be deliberative. We have time ... using public money for the use of sports facilities is very controversial and I think we need to be very careful."

On whether the less-than-optimistic revenue forecasts have any effect on this, he said, "It's certainly something we have to take into consideration."

Update 2:37 p.m.: I just talked to Rep. Ross Hunter, who's also on the task force. Here's what he had to say after reading the settlement:

"It's very vague and it's intended to be vague," he said. "They want the state to take some action that makes $75 million available to this. Obviously we could just give them $75 million, which is unlikely – heavily unlikely. Or we could allow the city to shift funds from one account to another."

That fund-shifting is in reference to a pool of unused money from the Seattle hotel-motel tax that pays for the convention center. While Murray didn't seem hot on the idea, Hunter described it as excess money that could be used without affecting the convention center's future.

"If it's in Seattle's best interest to remodel KeyArena and attract a professional basketball tenant, that would be a reasonable basis."

He said projected budget shortfalls and decreasing revenue forecasts could have an effect on the political wrangling. "We have a number of things that are more important than dealing with this problem."

He said he's a skeptic on the idea of subsidizing sports teams. "It's just not attractive to me. I don't think that's what we're doing here."

"If the basis is, we want to spend taxpayer dollars to subsidize players' salaries, then no."

It should be noted that neither House Speaker Frank Chopp, D-Seattle, nor Senate Majority Leader Lisa Brown, D-Spokane, are willing to talk today. (Brown did issue a statement yesterday, though.)

Seattle City Council - Parks and Seattle Center Committe

Tuesday, August 12th, 2008, the Parks & Seattle Center Committee will meet at 9:30 am. On the agenda is item #4 RES. 31071 Adopting the Seattle Center Century 21 Master PlanDISCUSSION & POSSIBLE VOTE
Here is link to the Seattle Center Master Plan, caution, big pdf file. The one I have linked is from March.

SEATTLE CITY COUNCIL
PARKS and SEATTLE CENTER COMMITTEE
Tuesday, August 12, 2008
9:30 a.m.

Note: Public Comment is limited to issues on the meeting agenda
Unless otherwise noted, all meetings are held in Council Chambers on the
2nd floor of City Hall, 600 Fourth Avenue, Seattle, Washington

RECOMMENDED
ACTION

1. Chair’s Report REPORT
2. Public Comment
3. Monthly Director’s Report
Presenter: Robert Nellams, Director, Seattle Center
(20 minutes) REPORT

4. RES. 31071 Adopting the Seattle Center Century 21 Master Plan.
Presenters: Robert Nellams, Director, Seattle Center; Christa Valles and
Sara Belz, Council Central Staff
(20 minutes) DISCUSSION & POSSIBLE VOTE

5. RES. Relating to the Department of Parks and Recreation, Aquarium
Program; establishing principles to guide the development of an
agreement between The City of Seattle and the Seattle Aquarium
Society for the Society’s long-term lease, management and
operation of the Seattle Aquarium; including the possible transition
of City employees at the Seattle Aquarium to Society employment.
Presenters: John Braden, Director, Seattle Aquarium; Robert Davidson,
CEO, Seattle Aquarium Society; Kieu-Anh King, Council Central Staff
(25 minutes) DISCUSSION & POSSIBLE VOTE

6. Monthly Superintendent’s Report
Presenter: Tim Gallagher, Superintendent, Department of Parks and
Recreation
(20 minutes) REPORT

Link to Seattle City Council's Parks and Seattle Center sub-committee is here:Parks & Seattle Center Committee
They meet the 2nd and 4th Tuesday's of each month, 9:30 am.

Have a great day,
Mr Baker

Sent from my iPhone

Washington State Task Force for Funding KeyArena meets for the First Time

SEATTLE - Chris Daniels of King5.com (KING tv) reports that the task force that was set up by the State of Washington, as a result of producing funding for Key Arena last February, did meet for the first time. The task force is looking for the appropriate funding machanism (tax) for the specific purposes of funding activity like Key Arena, and University of Washington's Husky Stadium. There is a tax currently being collected from hotel/motel taxes in Seattle that is used to fund the Washington State Convension Center.
There is a possibility of diverting 1% of that tax toward resolving the 75 million dollars state obligation that state Democratic leaders promised to address. Why? Because the tax is collected locally and then would be spent locally.

For those people out there that think it is too early to do anything about effecting the outcome in a positive way, there is no such thing when it comes to state politics.
The task force will meet 3 more times, and publish its report on December 1st, after the Fall elections.
Feel free to contact Ross Hunter and give him words of encouragement.

King5.com story here.

Have a great day,
Mr Baker

Sent from my iPhone

Percy Allen Explores Seattle's Chances with NBA

SEATTLE - Percy Allen of the Seattle Times has a story published today that explores the chances of Seattle landing another NBA team to replace the one the politicians let get away. A few things of note from the story, though you should read the entire article, are these:

Save Our Sonics is working with the City of Seattle Mayor's office to help secure funding for the rebuild of Key Arena, by leveraging public support. Part of that effort will have to be keeping public interest in support going while a team is not here. In order for a city, like Seattle, to have a chance at getting an NBA team you have to have three things: committed business support (Ballmer, Griffin, SCI); an arena and public interest (see SOS not above); and the support of the NBA (see NBA statement on the settlement between Seattle and the PBC).

Other cities that are, or were, going after NBA teams have had arena deals fail, or no commitment from a potential buyer of an NBA team.
Las Vegas - no arena
San Jose - no arena
Kansas City - no owner, "settling for NHL"

Some in the story put Seattle at the top of the NBA list. Making sure we are at the front of the line depends on following through on financing of the Key Arena rebuild, and your support of it completing, while keeping the three parts together over the next 18 to 24 months.

To quote Bill Murray from the movie What About Bob, "Baby steps, I'm at elevator".

Step #1. (as always): fund Key Arena, encourage people that decide this funding to support your interests.

Percy Allen's column at Seattletimes.nwsource.com

I think that it is fair to say that Howard Schultz's lawsuit against Clay Bennett's PBC ,and now the NBA, could help make sure that Seattle is at the front of the line for the next expansion team or relocation. The case may ensure that the line that looks like one city, Seattle, stays a list of one city.
If the league did expand it would most likely be two teams to keep the Eastern and Western Conferences the same number. That is just not going to happen before an existing team is available for sale and relocation. An owner that wanted to relocate to Seattle but not sell to SCI (Ballmer, Griffin) would have to pay the 150 million dollars that SCI has committed to rebuilding Key Arena.
Have a great day,
Mr Baker

Sent from my iPhone

Return to Start, Do not pass Go, Do not collect $150m

Return to Start, do not pass Go, do not collect 150 million dollars.
As we roll the dice in this game with a monopoly I find myself back at "Go"; back to being a baby born after the World's Fair and before NBA basketball came to town. What do we do with the Seattle Center, the park, the buildings, the Coliseum?

In the late 1950's, and early 1960's, Seattle University was a basketball powerhouse. Transitioning college fans to NBA fans was likely much easier than transitioning a public building to business use. We are not completely back the Start, there are competing ideas on which of two paths to take:
Rebuild what is now Key Arena that is within a much larger public land site;
or, private business builds its own building on a much larger commercial site.

I'll start with the private business path. I am descibing it as part of a larger commercial site because I do not see an incentive for the City of Seattle, or King County, to participate in creating a venue that directly competes with the interests of public lands that have already been allicated to this type of venture. Where could a private group locate a site roughly the size of Seattle Center.

We have seen much of the Seattle Center idea, it is the most likely.
Maybe we can get a building or rebuild, for the NHL?
Now is the time to push that idea, and for enough NHL fans to contact your representitives, to encourage them allow Seattle the taxing authority to fund Seattle Center.
Private parties will wait for government to fail (again?) unless they see real competition. We need at least two competing ideas that reach for the best possible outcome.

Story also posted at SonicsCentral.com

Nellams says 18 months for arena rebuild

SEATTLE - Tuesday morning on 950 KJRam radio Tom Carr from the Seattle Center was interviewed by Mitch Levy (listen to the podcast here).
Mr. Carr stated that the settlement the city has agreed to with Clay Bennett's Oklahoma City (PBC) ownership group does not involved the case Howard Schultz has against Mr. Bennett. Mr. Carr said that if Mr. Schultz won his case that the settlement would go away, provided that the remedy of returning the team to Mr. Schultz to resell to an honest committed ownership group was granted by the judge in this case, Judge Marsha Pechman.
It is possible that the Sonics could relocate back to Seattle next year, a long shot, but it is possible. A trial date has not been set for the Schultz case.
Meanwhile the NBA has stepped in as a defendant with Mr. Bennett. They are claiming the remedy proposed by Schultz, if acted on by the judge, would not be within the NBA league rules.
Seattle Times has posted the court file: NBA's motion to intervene (PDF)
Percy Allen of the Seattle Times has written a story on the case and the filing (posted here).

Yesterday morning on 950 KJRam radio Robert Nellams from the Seattle Center was interviewed by Mitch Levy (listen to the podcast here).

Mr. Nellams is the director of the Seattle Center. He stated that there was a priority to rebuild while the team was playing in the building, now that they are gone he said the time required is 18 months. I recall that it was going to take two years to accomplish the same thing with the team in the building.
Let's do some scheduling, the money from the state of Washington, if approved, will not happen until next spring, 2009. Let's add 18 months to that: Winter of 2011, almost the season opener. they may be able to have the inside ready for basketball, I do not really know.

See the Seattle Center "Century 21" page here.

Welcome Lost Children of Sonics Fandom (that's near Greenlake)

SEATTLE - The franchise is gone, and the baton of blame has been passed around from the Mayor of Seattle, to the State of Washington, back to the mayor, and wrapped up in a settlement with Clay Bennett and David Stern and passed back to the state. That's the short story, very few details are meaningful now.

Currently, the City of Seattle is ready to collect revenue generated from Sonics activity in and around Key Arena and spend 75 million dollars toward the public portion of Key Arena in a sizable rebuild. The city will spend some money on infrastructure on the structure no matter what else happens. The major rebuild is depending on the State of Washington to authorize the City of Seattle to collect hotel and motel taxes within the city of Seattle and direct that revenue toward the Seattle Center. This would provide another 75 million dollars to the Key Arena rebuild.

There is a private contribution from a group the calls its self the Seattle Center Investors. They plan to contribute 150 million in private funds, an NBA basketball team, cost over runs.

From NBA.com

NEW YORK, July 2, 2008 -- NBA Commissioner David Stern has issued the following statement:

“We are pleased that the Sonics and the City of Seattle have settled their litigation. While the decision has been made to relocate the Sonics to Oklahoma City, the NBA continues to regard Seattle as a first-class NBA city that is capable of serving as home for another NBA team.

In order for this to occur, a state-of-the-art NBA arena must be funded and constructed in the Seattle area, a subject that has been extensively debated -- but not ultimately acted upon -- by local political and business leaders over the past four years. We are pleased that the City remains committed to addressing this fundamental requirement for the return of NBA basketball to Seattle and we hope that other elected officials critical to a solution will support the City’s efforts.

We understand that City, County, and State officials are currently discussing a plan to substantially re-build KeyArena for the sum of $300 million. If this funding were authorized, we believe KeyArena could properly be renovated into a facility that meets NBA standards relating to revenue generation, fan amenities, team facilities, and the like.

Assuming the funding can be committed, the league is willing to work with the City on the design and construction of the re-build to facilitate this result. Under these circumstances, if an opportunity arose in the future for an NBA team to be located in Seattle, we would support that team playing its home games in a re-built KeyArena, if it wished.

However, given the lead times associated with any franchise acquisition or relocation and with a construction project as complex as a KeyArena renovation, authorization of the public funding needs to occur by the end of 2009 in order for there to be any chance for the NBA to return to Seattle within the next five years.

We are pleased that Steve Ballmer has expressed the continuing willingness of his group, Seattle Center Investors, managed by Seattle developer Matt Griffin, to be a part of the solution for returning NBA basketball to Seattle. The NBA will keep SCI and the City informed if opportunities arise in the next five years for franchise sale, relocation and/or expansion. Under the circumstances outlined above, the NBA would be happy to return to the City of Seattle.”

Okay, who are the Seattle Center Investors again?
From Seattle.gov

City of Seattle
Gregory J. Nickels, Mayor

NEWS ADVISORY

SUBJECT: Statement by Mayor Nickels on the settlement of the City's lawsuit with the Seattle Sonics
FOR IMMEDIATE RELEASE:
7/2/2008 5:00:00 PM FOR MORE INFORMATION CONTACT:
Alex Fryer (206) 684-8358

Statement by Mayor Nickels on the settlement of
the City's lawsuit with the Seattle Sonics

Today, I am announcing a settlement with Mr. Bennett and the Professional Basketball Club. Our goals for the settlement were two: To protect the taxpayers’ investment in KeyArena and have a long-term future for professional basketball.

In exchange for terminating the lease two years early, Mr. Bennett has agreed to settlement package with a payment up to $75 million to the City of Seattle. Under the agreement, $45 million will be paid to the City immediately. That covers rent and loss of tax revenue, and allows us to pay off outstanding debt on KeyArena.

Our agreement calls for Mr. Bennett and his co-owners to pay an additional $30 million in 2013—if the NBA has not approved a team to play in Seattle.
The NBA was an important part of our negotiations—agreeing that a renovated KeyArena can be a competitive NBA facility. This is a crucial point for us. A KeyArena with professional basketball is a cornerstone for a vibrant Seattle Center.

The NBA has committed to helping us secure a future team—informing us of any sale, relocation or expansion opportunities.

Committed local ownership is critical—and we are grateful that Steve Ballmer and his group, represented here by Matt Griffin, are working to secure a new team.

The city is ready to do its part. Local investors have stepped up. Now, the State Legislature must act. If it fails to approve public funding next year to remodel KeyArena, we will lose our rights to that $30 million payment if we do not get a team.

I believed all along that enforcing our lease would create time for a better deal. We now have that deal.

The Sonics name and history stay in Seattle. Seattle is a natural home for professional basketball—loyal fans, and a rich, 40-year tradition.

Working together, we are now in the best position to continue that legacy in Seattle.



Visit the mayor’s web site at www.seattle.gov/mayor. Get the mayor’s inside view on efforts to promote transportation, public safety, economic opportunity and healthy communities by signing up for The Nickels Newsletter at www.seattle.gov/mayor/newsletter_signup.htm

Better yet, contact the mayor on this page HERE!

Wait, you still don't know who Seattle Center Investors (SCI) are?

From the SeattlePI.com Reporter, Greg Johns.

Seattle Post-Intelligencer

Nagging question: Fix KeyArena?

City hopes it can finally get the Legislature on board

Friday, July 4, 2008
Last updated 1:07 a.m. PT

By GREG JOHNS
P-I REPORTER

Even as the team formerly known as the Sonics begins packing for a one-way trip to Oklahoma, the story line of the NBA's long-term prospects in Seattle seems to have come full circle.

We're back to this. The region needs a new arena. Without a state-of-the-art facility, there will be no pro basketball franchise in Seattle again.

Whether it's a renovated KeyArena, which NBA Commissioner David Stern suddenly says would be just fine, or a brand-new palace, which Sonics Chairman Clay Bennett briefly pursued, no new ownership group is going to emerge without a modern building to host its team.

Microsoft Corp. Chairman Steve Ballmer and his three local partners remain interested in buying another NBA team to eventually wear the Sonics' green and gold, according to Seattle developer Matt Griffin, but won't even begin scanning the waters until a firm financing plan is in place for a KeyArena makeover.

"Without that, you're going into any negotiation with one arm tied behind your back," said Griffin, who'll continue serving as spokesman for the group that also includes Costco Chief Executive Jim Sinegal and software mogul John Stanton.

Two weeks ago, Griffin was on the witness stand in U.S. District Judge Marsha Pechman's court being grilled about his group's role in the city's plan to force Bennett to sell the Sonics. The experience wasn't pleasant, but being dragged through the mud didn't diminish the quartet's interest in pursuing a pro basketball solution in Seattle.

"The good thing about the body is it doesn't remember pain very well. It's the reason we do a lot of things the second time," Griffin said with a laugh. "We're ready to work the problem. That doesn't mean it's going to happen, but we're ready to work it."

So fire up the political debates, the battles over public vs. private money and the Citizens for More Important Things against sports fans who place tremendous value on the entertainment provided by professional athletics.

Bennett's basketball team might be gone, but questions over what comes next are just beginning.

City of Seattle leaders are still hoping to leverage a KeyArena solution out of the Legislature. If a financing plan can be committed during next year's session, Ballmer's group -- now dubbed the Seattle Center Investors -- remains willing to foot half the projected $300 million renovation costs.

Just don't expect a replacement NBA team to hurry into Seattle on the wings of Bennett's departure.

"Realistically, we're looking at a couple of years at the earliest," Deputy Mayor Tim Ceis said.

Brian Robinson, chairman of the Save Our Sonics fan group, said it's going to take some people time to even decide how much emotion they want to invest into a push for a replacement.

"The next step is for people to kind of deal with their grief and decide if they want the NBA here again," Robinson said. "I'm not thrilled with the decision to let the team go. But I do understand the logic is to increase the chances of getting a team in the next five years."

It's possible that a long-term solution might not even include KeyArena. Dave Bean, a local businessman, continues teaming with former Sonic Fred Brown on an effort to promote a privately financed arena in the region that could house both pro basketball and hockey.

Bean said their B2 firm has done further site analysis and investor searching in the past few months and hopes to step more to the fore now that the Sonics are gone.

"What this does is perhaps accelerate the process for all parties involved," Bean said. "We're going to continue to go down our private road and see what develops. We've been making progress, but we do have some concerns about the direction Mayor Nickels is talking about, going back to Olympia for public funding and refocusing on KeyArena.

"That's not our plan. I guess it's going to get down to who can deliver a suitable facility to the NBA and do it in a way that makes the most sense. We think we've got a much better approach with no tax dollars."

But Bean's ambitious project remains an admitted long shot, given the plan requires both NBA and NHL tenants to pencil out financially. Not to mention, he and Brown are swimming against the political stream, as city leaders are invested heavily in trying to salvage KeyArena.

"They've given our product zero recognition, but that's fine," Bean said. "We understand that game. We're going to keep doing our thing, and we're happy with the progress we've made over the last three months."

Bean believes Seattle's vibrant market and size make his proposal possible and that Stern will be interested once the pieces are in place.

"The NBA is very facility-driven," he said.

He'll get no arguments there from Griffin, but Ballmer's partner indicates his own focus is almost exclusively on a KeyArena solution.

"You never say never," Griffin said. "But my interest shrinks considerably when it's not Seattle Center. One of my reasons to get involved is I worry about the Center being empty."

Ultimately, it might take some interesting partnerships to get pro basketball back to the city. City Councilman Nick Licata, viewed as an obstructionist to previous KeyArena proposals, sounds willing to work toward a solution.

"The best thing right now is the NBA is willing to help Seattle get a team," Licata said. "That wouldn't have happened if we'd gone the straight court route (and not settled with Bennett).

"Quite honestly, the road may get a bit rougher as we approach the state Legislature," he said. "There may be some differences of opinion there. The devil is always in the details, but we'll see how it works. We have to present something that makes sense to the Legislature, just like it makes sense to the council and public. I think we can do that."

King County Councilman Pete von Reichbauer said the city will even need to look at Bennett as a potential ally toward getting a replacement.

Bennett will owe the city $30 million if a new team doesn't come to Seattle by 2013, assuming the Legislature also approves a tax plan for KeyArena by the end of next year.

"This region is going to need to work with him if it wants another team," said von Reichbauer, a staunch sports fan who helped broker a Seahawks solution between Ken Behring and Paul Allen in 1997 that resulted in Qwest Field's construction.

"He's one of the youngest members of the NBA Board of Governors. He's going to be there awhile."

P-I reporter Greg Johns can be reached at 206-448-8314 or gregjohns@seattlepi.com.

© 1998-2008 Seattle Post-Intelligencer

Yes, it is a lot. Yes, I pasted entire articles. No, I will not make a habit of it.

Step#1: NBA quality arena

I do not care what goes in it, who buys a team, expansion or stolen, I do not care. I may never watch another NBA basketball game, absolutely not without a team here, that was the NBA's choice, not mine. Greg Nickels caved, that's his decision, not mine. Ron Sims caved before it was fashionable, and Christine Gregoire before him, that's their decision, not mine.

What I can draw from this experience is that those people were lead by the pressure of others that passes as leadership when they are caving to your pressure.
Another lesson for me in this is that my opinion means very little. David Stern's opinion means just as much. He and I are dependent on the opinion of the people that decide all this: the franchise owners.
Steve Ballmer says a rebuilt Key Arena will work for him and will provide enough revenue for the league. He can buy a team for this
market and Stern will support his efforts.

Bennett said that a rebuilt Key Arena would not work for him and Stern supported him in his efforts.
Howard Schultz said a rebuilt Key Arena would work for him and Stern supported him in his efforts.

For those of you thinking that Stern is being inconsistent, you are looking at this backward. He has, and will, support the team owners. He is consistent in that regard, that is what the owners pay him to do.

The fact of the matter is that if you want to have a say in the franchise part of this then you are going to have to buy one. May the force be with you.

My concern is a bit more civic. As long as the City of Seattle insists on being involved in real estate, then they will compete with long shots, like B2, for revenue generating tenants. B2 has been dependent on free to them public land, that isn't free in any sense of the word. If they can figure out a way to get a large plot of land, a basketball team and a hockey team, while creating a competing venue to Key Arena, and do it without public land or money, more power to you.

The reality is that most NBA teams are not worthy of a new arena, not a 500 million dollar palace. But, if you can provide a an arena that performs at least at average of other arenas at the cost of 300 million, then you are getting closer to reality. When I say "you" provide, I mean Steve Ballmer. He is providing 150 million of that rebuild. He is buying a team, he is the one with the opinion that causes others to cave, or switch positions on Key Arena's viability. He says, though Mr. Griffin, through the caving of every Washington State politician, the flip-flop of David Stern, that a the public portion of the Key Arena rebuild will be covered by. . . the public.
The public has involved too many people that had power, but were not effected. When the State and County "leadership" failed, again, last February the mayor of Seattle was asked in the context of a larger conversation about city generated revenue and the flexibility to retain that money, the mayor indicated that he would prefer to just keep the money generated in Seattle. . . in Seattle.

It should be no surprised that the mayor will be proposing that the hotel and motel tax collected in Seattle, that is generating more revenue than projected, that the money beyond the projection get directed to Seattle Center. I have said here many times that it would be an easier sell to the state to point to something other than Key Arena for promoting to the state, and for the city to divert the money they would be spending on other parts of the Seattle Center site to Key Arena. Yes, they are proposing taking a dollar out of one pocket and put it into another, whatever it takes to keep Seattle tax revenue that is generated here in Seattle, I am for it.

The bottom line: citizens of Seattle, like me, will get a 300 million dollar rebuild to Key Arena at the cost of 150 million in tax money generated from hotel/motel taxes going into one pocket and drawn out from another, and revenue in and around Key Arena from NBA related activity.
Also, there would be a revenue stream turned toward the rest of Seattle Center.
Nickels is going to attempt to limit who gets to say what the money is used for by limiting where the revenue is generated at.

But House Finance Chairman Ross Hunter said the city is working on a new funding proposal that he thinks will be more palatable to lawmakers. The new plan relies on taxes collected entirely within the city, said Hunter, D-Medina.

Under past proposals, the city and Sonics were seeking legislative approval to tap King County taxes on car rentals and restaurants — money now being used to pay off the debt on Safeco Field.

After shooting down the latest proposal this year, Gregoire and legislative leaders agreed to set up a task force to examine a broader package of King County taxes that could pay for projects for the arts, education, youth sports, low-income housing, Puget Sound cleanup and a renovation of Husky Stadium — along with KeyArena.

That task force will hold its first meeting this month.

But Hunter, who has been briefed by Seattle officials, said the city is now eyeing a different pot of money.

For years the state has collected a hotel and motel tax to help pay off the debt on the Washington State Convention & Trade Center. Those collections exceed what is needed for the convention-center debt, Hunter said.

Hunter said the city's plan is to shift a tiny portion of that money to Seattle Center for improvements not related to KeyArena. That presumably would free up other money for the arena renovation.

Such a shift would require legislative approval.

Alex Fryer, spokesman for the city, confirmed the city wants to tap the hotel and motel taxes.

Hunter, who has not supported previous proposals, said he thinks the new plan has a better chance in Olympia because it's not just a "taxpayer subsidy for professional basketball."

He said he thinks lawmakers will be more open to helping the city tackle an obvious financial problem — "an empty building that bleeds money." - Seattle Times, 7/4/2008

At this point I don't care if Steve Ballmer fills it with ice dancing 41 nights a year, I am looking for doubling my available dollars for rebuilding Key Arena.

I am also a newly big proponent of keeping the money generated in Seattle spent in Seattle.

reprinted at SonicsCentral.com

welcome, check back on 7/15/2008 for a steady flow of blogging on the arena effort in Seattle Center

7/15/2008, that is my start date, right now I am researching material.

City takes a Dive, Bennett bleeds Money, Seattle Fans still get nothing

SEATTLE - The City of Seattle took the cash today, rather than enforce the lease for the next two years.

Statement by Mayor Nickels on the settlement of the City's lawsuit with the Seattle Sonics
Today, I [Mayor Nickels] am announcing a settlement with Mr. Bennett and the Professional Basketball Club. Our goals for the settlement were two: To protect the taxpayers’ investment in KeyArena and have a long-term future for professional basketball.

In exchange for terminating the lease two years early, Mr. Bennett has agreed to settlement package with a payment up to $75 million to the City of Seattle. Under the agreement, $45 million will be paid to the City immediately. That covers rent and loss of tax revenue, and allows us to pay off outstanding debt on KeyArena.

Our agreement calls for Mr. Bennett and his co-owners to pay an additional $30 million in 2013—if the NBA has not approved a team to play in Seattle.
The NBA was an important part of our negotiations—agreeing that a renovated KeyArena can be a competitive NBA facility. This is a crucial point for us. A KeyArena with professional basketball is a cornerstone for a vibrant Seattle Center.

The NBA has committed to helping us secure a future team—informing us of any sale, relocation or expansion opportunities.

Committed local ownership is critical—and we are grateful that Steve Ballmer and his group, represented here by Matt Griffin, are working to secure a new team.

The city is ready to do its part. Local investors have stepped up. Now, the State Legislature must act. If it fails to approve public funding next year to remodel KeyArena, we will lose our rights to that $30 million payment if we do not get a team.

I believed all along that enforcing our lease would create time for a better deal. We now have that deal.

The Sonics name and history stay in Seattle. Seattle is a natural home for professional basketball—loyal fans, and a rich, 40-year tradition.

Working together, we are now in the best position to continue that legacy in Seattle.

No team for the fans, cash for the city, an IOU from Clay Bennett if we cash the IOU from the State of Washington, nothing for the fans.

We were screwed. That offer was not going to get worse with time, and with a court win, they took money from somebody that has money, but the mayor, Mayor Nickels, said it wasn't about the money in his testimony; it was about enforcing the lease, and retaining NBA basketball in Seattle; neither happened.

Thanks for almost rising to the challenge Mayor Nickels.

I hate Clay Bennett, I watched him lie, and now I watched Mayor Nickels let him get away with it.
Thanks to Brian, Steve, Xteve, Grif, everybody that fueled SaveOurSonics.org

I have maintained that it has not, and is not, because of the fans that any of this is happening. The owners, the politicians, and especially the NBA, all have failed you.

Shame on them.

reprinted at http://sonicscentral.com/blog/