USAToday.com Unknowingly gives fans hope

In the February 12th USAToday.com story No buzz about NBA returning to Seattle AP Reporter Tim Booth unknowingly passes along the missing piece in the arena puzzle to KeyArena rebuild hopefuls like me.
Booth says, "[Washington State] House Finance Committee Chairman Ross Hunter, D-Madina, said Thursday, he was working with House Speaker Frank Chopp, D-Seattle, on a plan for stadium funding that everetbody can live with, but wasn't willing to disclose any details."

Mr. Booth, that is the buzz. At no point in the past 3 years could you find the name Frank Chopp in connection with a stadium unless it was in reference to opposition. I had heard rumors that somebody had something drafted, but none of it had a connection to Hunter actually working on anything, and nobody has mentioned that Mr. Hunter was working with Mr. Chopp, until your report.

Hope springs eternal in the human breast;

Have a great day,
Mr Baker
Sent from my iPhone

Seattle Times: County May Gain Control Over Locally Generated Tax

Okay, the story had a different title, we all see what we want to see. Buried in the story Huskies May Play 2010 Season in Qwest Field is a meaningful part for KeyArena.

There is a major push, partly through the efforts of the University of Washington's lobbying efforts for a major remodel of Huskie Stadium, to give the authority to the local government to decide the priority for spending the locally collected tax revenue. In this case the Seattle Times story is talking about King County, and the taxing authority going to the King County Council and not have it reside in the state legislature. These funds can only be spent on youth athletic facilities, arts, cultural centers, stadiums, just infrastructure, not for operating expenditures. They have to build with it, in this case, possibly Huskie Stadium.

This is not just some other general fund budget item that could just as well get spent on anything state-wide. This tax is not collected generally and should not get raided to be spent generally.

Do the people on the other side of the state really think I want to pay 2.8% more for french fries so they can take that tax money for a state general obligation in their town? They should tax their own businesses if they want those funds, or not ask for them. If I am dumb enough to tax myself in order to build this stuff I really, really do want the revenue from those taxes to actually build and pay for it, really.

I really thought the Huskie Stadium effort would be the fall guy in trying to get the funds, but still prevent them form being raided and spread all over the state. But they have proved to be a very, very useful entity in promoting a message that increases the understanding within the Washington State legislature, and possibly the general public. King County business carry a greater burdon and that same locality should benefit and control the fund the tax produces.

Why this matters to KeyArena and Sonics fans:
Seattle is in King County. It has a similar tax as the county does drawn from city hotels. It is also requesting local use of locally generated tax revenues. If Huskie supporters are successful in this argument there is a very good chance that what is fair for the county is fair for the city, and KeyArena.
At the very least we have a more popular, powerful, and funded lobby educating people and influencing the legislature to make an effort to understand the position from the tax burdon/benefit position, rather than the very unpopular and dumb argumant about somebody that does not contribute to the tax fund deciding if the county or city deserve a remodeled stadium, or arena, or youth athletic fields.

Even if the argument for Huskie Stadium is not successful, the the question of tax fairness being advanced helps the KeyArena cause, at the same time somebody other than Sonics fans take the hits for asking the state to follow its own law, and not raid the fund, screwing Seattle and King County in the process.

Go Huskies!

Have a great day,
Mr Baker
Sent from my iPhone

Seattle Times' Steve Kelley: Clock is ticking for city's NBA hopes

Way to kick out the jams Steve Kelley.
Today Kelley beat the trash can lids to the rhythm of truth and sang the song of the KeyArena blues.
It's beat, it's aging, and mostly empty.

Where are the business leaders Kelley wants to know. And, "Where is the civic pride?"

Great questions, unanswered for the most part, ignored by too many that insist on calling themselves business, or civic leaders.
I have wondered this as well. As much as Seattle is similar to other towns, in that we have our share of bandwagon fans, and general gloryhounds, there are more then our fair share of good and well-to-do citizens that prize themselves as leaders. Somebody has to step up to show public leadership, we have enough back room power brokers in this, but that is rarely enough to make something this big and complex happen.

At some point I was expecting the major sports writers to kick off the conversation with the general public. I thought it would have happened sooner, but those thoughts were rolling around in my head, and some comments here, back before the economy flipped on its head. We are, like it or not, bound to the schedule of the Washington State Legislature.

Thank you Steve Kelley for attending college basketball games in what was a pro basketball arena, and should be again.
Read Steve Kelley's column in the Seattle Times, here:
Clock is Ticking!
Have a great day,
Mr Baker
Sent from my iPhone

TheNewsTribune.com : KeyArena redo faces uphill battle for funds

Eric Williams of the Tacoma News Tribune has a story today on the "shaky ground" the proposal is on heading into the current state legislative session.
Reprehensive Ross Hunter (D - Medina) said in an interview after the December 1st meeting of the Joint Task Force Local Financing Options for King County that is supposed to prioritize spending for special tax revenue collected in Seattle (7%) on hotels and King County (2%) on hotels, car rental, and restaurants, that they would try to have a report written before the legislative session.

However, 2009 is here and the legislative task force charged with putting that report together, outlining how to spend King County taxes, has yet to meet, said Rep. Ross Hunter, D-Medina, co-chair of the group.
Hunter said it’s unlikely that the group will meet before the Legislature convenes Jan. 12, and that the task force will have to put together a report during the first few weeks of the session.

How much attention that report receives is unknown because lawmakers will be spending most of their time trying to figure out how to balance the state budget, with a projected deficit of more than $5 billion.
“The reality is, we are going to issue a report that will have some weight in the Legislature,” Hunter said. “But this is obviously a very contentious issue, and it’s going to be dwarfed by the whole budget disaster."

I thought that it was unusual that Hunter would offer a report on spending priorities before he knew how much money he really had, or has. That offer to have the report done was before the governor provided a budget, before state governors and city mayors provided President-elect Obama a laundry list of requests for federal funding support.

State officials will start the legislative session on January 12th, that's before the size and scope of the federal stimulus package will be known. The state budget process is, in effect, backward. Projected revenue drop-offs may be mitigated by federal spending, Governor Chris Gregoire projected 1 billion dollars of federal money into her budget proposal on December 18th. Since then the federal stimulus package has grown from 2.5 million jobs to 3.2 million.

Back to the Eric Williams story:

But competition for the funding is fierce, and includes a $150 million request from the University of Washington to complete a $300 million proposal to revamp Husky Stadium and a $766 million expansion project put forth by the Washington State Convention and Trade Center to double the size of its current downtown Seattle facility. King County arts groups, youth athletic programs and low-income housing programs also want a piece of the pie.
That funding could be limited if state lawmakers decide to use money from the King County taxes funding source to help balance the budget as the state deals with a weak economy.

"We cannot satisfy all of the groups that are asking for funds,” Hunter said. “That can't happen because they add up to more that there is. You also have to balance what it is the Legislature is likely to do. I can’t predict it. I honestly do not know the answer.”
Hunter had said in December that he would get feedback from the rest of the task force about what their priorities are, and craft a recommendation the majority of the group can support. If some sort of agreement couldn’t be reached, Hunter said the group would put together a report outlining the options.
“We will all be forced together in about a week and a half, and that will solve the problem,” Hunter said.

Rumors keep swirling around that UW husky stadium remodel might end up entirely privately funded, which might explain Hunter's remarks about not having enough money for all of these projects.

The task force has not gotten together since the December 1st meeting, and I would not expect them to until they have an idea of how much federal money may be coming the states way. If the funding is significant enough there will be a big shell game to extract state money from one project covered by federal money, and patch other holes in the state budget.

To be clear, the potential is that the hotel owners in Seattle are saddled with an added 7% sales tax on top of the existing state wide sales tax for the express purpose of funding infrastructure projects in Seattle that boost trade and tourism, such as the Washing State Convention & Trade Center. I am not sure how the hoteliers will react if that fund is raided again. The fund was raided last year to patch a hole in the budget, state lawmakers were pressured to act to prevent that from happening again by passing a law on July 1st.

The tax collected in the city, and the tax collected in the county are often seen as the same, but they are slightly different in their purposes, one for convention center funding and the other sports stadium funding. The convention center folks and the city are looking to split that 7% fund, 6% for the convention center, 1% for Seattle Center's KeyArena.

My opinion is that if it is such a good idea to tax hotels an added 7% to spend state wide, then the hotels state wide should be taxed the added 7%, and not just the hotels in Seattle. But I am just a citizen of Seattle.
I think we are waiting two or three weeks to know how much money there really is, and then to the end of March to see the next quarterly revenue projection to see how much money there will be.
If this does not happen this year it could be a very long time before KeyArena get's any kind of remodel, and even longer for the NBA to return to Seattle.

TheNewsTribune.com: City of Seattle still in pursuit of NBA

The Washington State Task force Local Financing Options for King County did meet on Monday to accept proposals for capital investments in King County, paid for primarily by an existing sales tax on hotels and motels. Among the proposals was a presentation from the City of Seattle's Deputy Mayor, Tim Ceis.

The city's proposal was set in a presentation on the Seattle Center Master Plan, describing Key Arena as a part of the bigger site efforts.
The city's 75 million dollar proposal was presented right after the Washington State Convention and Trade Center proposed, a 766 million dollar expansion of its facility, dwarfing the city's request. The city and the convention center have agreed that there should be enough revenue to build both projects. These two projects are looking at a revenue stream that is drawn within Seattle.

The other groups requesting funds are looking at a slightly different fund that are drawn in King County. Those two revenue sources are separate, and are viewed as separate by the state committee members. The committee will produce one of two things within the next few weeks; a recommendation of which projects to move forward on if the committee is able to reach consensus, or a report to the legislature on all of the different options if consensus can not be reached within the committee.

Eric Williams of the Tacoma News Tribune posted some of his audio he used for his newspaper report. It is on his blog titled, City of Seattle still in pursuit of NBA. The deputy mayor explains in the audio how he views the presentation, and one of the co-chairs of the state task force, Ross Hunter, gives his view and preference that local governments should have more control of how locally derived taxes are allocated. That's a good thing.

The presentation that was the focus of the local media was the request from the University of Washington for 150 million dollars to match 150 million in private contributions to remodel the football stadium. The stadium is 93 years young. That proposal brought harsh criticisms from Washington State University alumni. In a way this is good for the Key Arena proposal, it keeps the media busy with the dog and cat fight.

For all of these desires for funding the biggest risk is the state raiding the fund and using it for general fund obligations, even though they passed a law 5 months ago to keep that very thing from happening.

Here are the links to the city's presentation, click the meeting date to go to the state page for the rest of the agenda links:

Meeting Material
December 1, 2008
Agenda
4 Culture Presentation - Jim Kelly, Executive Director 4 Culture and Friends
University of Washington 1 - Scott Woodward, UW Athletic Director and Ron Crockett, Major Gifts Chair
University of Washington 2 - Scott Woodward, UW Athletic Director and Ron Crockett, Major Gifts Chair
Youth Athletic Facilities - Kaleen Cottingham, Director, Recreation and Conservation Office
Washington State Convention Center - Frank Finneran, Chair, Board of Directors, Washington State Convention and Trade Center
Seattle Center 1 - Tim Ceis, Deputy Mayor, City of Seattle
Seattle Center 2 - Tim Ceis, Deputy Mayor, City of Seattle

Have a great day,
Mr Baker
Sent from my iPhone

KeyArena, or no KeyArena, that is Monday's Question

Monday, December 1st, the Washington State Task Force for Local Financing Option for King County is required to submit to the appropriate state committees their findings and recommendations.

Along with funding arts in King County, youth athletic programs, the Washington State Trade & Convention, and Husky stadium, is the request by the City of Seattle's request for funding to pay for Key Arena renovations.
If the task force does not recommend the Key Arena proposal then it is, more or less, dead (more or less).

Not recommending the renovation might also let Clay Bennett off the hook for 30 million dollars should Steve Ballmer not be able to buy a team within 5 years of the settlement date with the city, August 17, 2008.
The state has until December 31, 2009 to provide a funding resource for 1/4 of the cost toward an arena in order to put that part of the settlement in play.

This is a big step, and not the last step, should it move forward.

Part of the city's presentation is that the funding could be used in the near term on something else at Seattle Center, home to Key Arena, should there be a delay in Steve Ballmer being able to buy an NBA team. A major point here is to provide near term construction jobs. If the city did redirect the money to another project on the site then they would be on the hook to put the money back in the arena and provide 75 million of their own.

Committee co-chair Ross Hunter teld me in an email reply that he does not think this is "shovel ready" this Spring, and that he would be "astounded" if Steve Ballmer's Seattle Center Investment group made its investment before securing a team.
I agree with both of those things. What I will say is that very few of the requests are "shovel ready", activity at Seattle Center is likely much closer, and Key Arena still closer than Husky stadium and the convention center.

If there is doubt that Steve Balmer could secure a team in the near term I will direct anybody's attention to the Memphis Grizzlies home game attendance.

I would expect activity of some kind to start sometime, in some way, at Seattle Center this year, should the financing eventually get approved in the next couple months.
But, first things first, we need the committee recommendation.

House Bill 2765 New Section states the due dates for the task force, authorizes the activity, and the scope of their work.
Have a great day,
Mr Baker
Sent from my iPhone

Revised Agenda: Local Financing Options for King County, Joint Task Force

Local Financing Options for King County, Joint Task Force* - 12/01/08 9:00 am

Full Committee
(360) 786-7124
Bellevue City Hall
450 110th Ave. NE
Bellevue, WA

REVISED 11/20/2008 10:00 AM

Agenda:

1. Funding Arts in King County.
2. Financing for the renovation of the University of Washington Stadium.
3. Youth Athletic Facilities Fund grant program.
4. Washington State Convention Center presentation on future plans and funding.
5. Key Arena renovations.
6. Public comment.

~
So, is it better to close the show? I think yes, though I expect most questions that the City of Seattle would have to answer about Key Arena renovations have been answered. I see the convention center presentation precedes the city. I think in contrast the Key Arena project will look more mature, just my guess, based on them not being in the meeting materials to this point. See here.
Hopefully they will play well with others.


Have a great day,
Mr Baker
Sent from my iPhone

FixTheCenter.com

By now the readers that go to http://SonicCentral.com have been encouraged by Brian Robinson in his story about Ray Allen to go to a new web site, www.fixthecenter.com

It is not difficult to understand why, the Sonics franchise is gone, as of last July; the franchise went to Oklahoma City, and the symbols went to the Museum of History & Industry in Seattle. There isn't a Sonics to Save, but there is a new future to try for, and the arena is the key.

What is left is Seattle Center's Key Arena as the main focus. Through the trials and tribulations the utility of Key Arena stayed unresolved for NBA interests, and civic interests.

Few people can argue that watching an NBA game is anything but great. What is not great is nearly everything else about the arena. Fewer people can argue that Key Arena that going to an event there is anything but slightly above average. The Seattle Thunderbirds hockey team will complete their evacuation from the facility to Kent, Washington (though they have the desire to still call themselves "Seattle"). They didn't leave because of anything but the facility the lease terms.

What is not slightly above average is the use of Key Arena by non-civic, non-pro basketball activities. The Everett Events Center will draw arts and entertainment acts that could be held at Key Arena by using the curtain to isolate the activity. The new Kent facility, where the Thunderbirds now play, will also compete for similar sized activities. For larger events are completely bypassing Seattle. Some of the acts you see are there for more than one show, getting in and out of the facility is a challenge.

Regardless, if you are a Sonics fan, the means to an end has always been an arena solution. Right now, the only feasible solution in Seattle is a complete renovation of Key Arena. Expect the city to have the NBA consult on the Steve Ballmer portion of the arena.

We are were we are.

A few days ago Brian Robinson sent me an email letting me know that SonicsCentral.com will direct people to visit www.fixthecenter.com

I write stories there at SonicsCentral, Brian said I was welcome to write at the new site, though nothing has been arranged. The new site is advocacy web site (Sports and Activities for Families (501c4). I will likely write stories there, I am not a lobbyist, I am not paid, they are not obligated to tell me anything or publish anything I write.
If I choose to write about their public activities I post it here. But beyond that, I write about this subject and until something is arranged for me to write there I will keep writing here.

Begin forwarded message:
Mr Baker
Date: October 25, 2008 6:01:35 PM PDT
To: Brian Robinson
Subject: Could you answer a few questions about SC?

Could you answer a couple easy questions?
Your web site, SonicsCentral.com, now encourages those readers to www.fixthecenter.com, what will the change in focus mean for the readers of SonicsCentral.com?

The new site is likely going to attract and broaden the types of people that may not have any interest in NBA basketball, any words of advice you want to give to posters and readers of SonicsCentral stories and threads?

Do you see this new effort to take on stories and conversations about the entire Seattle Center site?
Will you have stories written by local politicians, and media people, similar to a reader might see at Crosscut.com?
~
I sent the email with the questions 3 weeks ago, and have not had any answers and there hasn't been anything from Brian letting me know about writing on the new site, like, how access the site.
Over the past couple weeks there was a tab for a forum on the site, that is gone.
I am not sure what its diminished function is supposed to provide the public.

Mr. Baker has sent you a video from tvw.org, Washington State Joint Task Force Local Financing Options for King County

The lesson is: Do not stop looking for information that you want.

About 3:26 minutes into the linked video that actual meeting takes place.
The meeting is the July 16, 2008, of the Washington State Joint Task Force Local Financing Options for King County

Have a great day,

Mr Baker
Sent from my iPhone
Begin forwarded message:

From: tvw@tvw.org
Date: October 31, 2008 8:03:45 AM PDT
To:Mr. Baker
Subject: Mr. Baker has sent you a video from tvw.org

Mr. Baker has sent you a video from tvw.org

Local Financing Options for King County held on July 16, 2008 9:00am
Task Force administration (selection of Chair, discussion of goals, meeting schedules), overview of stadium-related material in King County, review of 2008 legislation (SB 6638 - reallocating existing lodging taxes for heritage & arts programs), other.

Please click here to watch video or paste this url into your browser address bar: http://www.tvw.org/media/mediaplayer.cfm?EvId=2008070075




please do not reply to this email.
for questions or concerns please email support@tvw.org

The web is a wonderful thing.

CrossCut.com: New tax for KeyArena? A big maybe

David Brewster at Crosscut.com has taken another run at expressing the Washington State Convention & Trade Center's (WSCTC) point of view on the City of Seattle's desire to use the hotel tax that is collected within Seattle for the state/public portion of Seattle's Key Arena renovation.

WSCTC is closer to identifying an actual site to expand to, they are not there yet. They are closer to knowing how big the new facility will be, they are not there yet. They do want to expand in order to satisfy the over population of hotels in Seattle.

It is interesting that people comment at Crosscut and in the stories at the Seattle Times and Seattle PI that the money should go toward Pike Place Market because it is such a tourist attraction. The question there is: is Pike PLace Market the reason people come to Seattle?

The hotel folks are wanting an expansion of convention space to draw people in from far and wide. I do not see them asking for Pike Place Market to be expanded. I am sure they do not want it to look like a dump, and the city has responded with a measure on the ballot next Tuesday. People will vote for that, not me, but people that comment on these kinds of stories in media outlets.

Having a 15 to 17 thousand seat arena that can actually attract major out of town non-sports events seams to be more in line with what the hotel people are wanting, a place for people to gather for events. While those people are here from out of town I am sure they will go to Pike Place Market as something to do while they are here for their event.

As far as WSCTC providing construction jobs, they are much further away from having an actionable plan than the Key Arena project. If the city had money 6 months ago I think we would see hard hats at Seattle Center today marking up the site for construction.

Something not quite said in David Brewster's story is that unstable timeline of getting a team into Key Arena, and Steve Ballmer paying for the sports effected portion of the renovation, 150 million dollars worth. That is an unknown to them, and I do not think they want the schedule sliding into a window where the WSCTC would want to break ground and have funding for its activity, fair, or fare enough.

What Deputy dog Tim Ceis is telling David Brewster is that they want to use the state money and do the public portion of the renovation even if there isn't an NBA team available right away. That is the hard sell, that isn't the impression they had been giving in public. They had position much of this as just having revenue available if a NBA team could be procured by Steve Ballmer.
The city had a study two years ago that said that Key Arena would need at least 30 million in basic upgrades just to make it a minor league venue without the NBA. That infrastructure and non-sports construction would have to happen no matter what happened with the NBA or state. It looks to me like Ceis and the state are resolving the WSCTC uneasiness with the soft NBA timeline by funding that statement of work, and whatever else they are including (parking garage, or enclosure of the Key footprint?) with the state portion. If this is the case then it does make some sense for the effected WSCTC, and it could infuse the area with construction jobs in a hurry.

This could satisfy WSCTC timeline concerns, stimulate the economy with some jobs right now, and show the NBA that we are going to improve the facility on our own no matter what Ballmer does do. Being able to commit putting an NBA team in Seattle would go much faster if construction was in motion, even if it isn't the sports effected portion of the statement of work.

TheNewsTribune.com: The City of Seattle will present its proposal on Dec. 1 to a task force created by the Legislature

In yesterday's Tacoma news Tribune Eric D. Williams reported that on December 1st the City of Seattle will present its proposal for renovating Key Arena to the Washington State Joint Task Force on Local Financing Options for King County.

A couple interesting paragraphs at the end of the story should give readers an idea of what role Brian Robinson is taking.

The city will have another supporter championing its proposal in Olympia. Brian Robinson, co-founder of the group Save Our Sonics, is part of a lobbying group called Sports and Activities for Families. The group plans to help the city’s funding proposal pass in Olympia. The group's effort will be led by Ryan Dicks, son of U.S. Rep. Norm Dicks, D-Belfair.

"We want to put this issue in front of the legislators and make sure it doesn’t get dropped," Robinson said. "We’re going to go to work to make sure that it stays front and center and receives some of the publicity that the city hasn’t been good in attracting."

Tax money key to arena renovation, ERIC D. WILLIAMS; eric.williams@thenewstribune.com, Published: October 28th, 2008 12:30 AM

The Sonics were not Saved, okay. The franchise left, the symbols went to the Museum of History and Industry.
The effort here, and in other places, is to resolve the arena issue. My interest is centered on the Seattle Center, and that a dead Key Arena on the Seattle center site is a drag on the entire site. Many of us hard core Sonics fans have let the idea of the team, and the NBA, go as a goal. Brian Robinson has written as much at SonicsCentral.com: What if we don’t miss them?
The question Mr. Robinson asks is this:

I have to ask former Sonics fans, and fans of the NBA, what the risk to the league is in our valuable market. What if we simply don’t miss them? What if we fail to get it done this year and then decide not to spend more effort on it going forward?

My answers are these:
The risk to the league is that the value is contained in the interest and value of the markets competing for the product (pretty basic business value relationship). If you can not find a buyer for a house then the value drops. I think this is where the NBA really is, that they are a bubble economy, and that Seattle, as well as Oklahoma City are presenting remodeled arenas as preferred venues. Kansas City is offering the same thing, St. Louis as well. I will not be shocked to see the Kings effort to build a new arena in a major new development in California fall through. That is not just a function of the current economy, but the actual market for the NBA. Key Arena renovation is the best offer this market, or any market, should be offering the NBA product. They are 3 years away from reliving the NHL process of 5 years ago if they are not careful. David Stern is not careful, he is chasing the business model that crushed the NHL, nobody wins.

What if Brian Robinson and the lobbying group called Sports and Activities for Families, along with the City of Seattle, fail? Then they should accept the reality that they made the best of this effort, but the public/private partnership to rebuild an arena will not produce a solution. Done.
Thanks Brian.
City, you are now obligated to get out of the way of a private group that may want to build a new arena, maybe partner with that group to provide a way for a private group to locate land in the city for an arena, and figure out a redueced role or date to close it.

Key Arena is not likely going to survive in this market long term without a significant upgrade. Either compete or not, if the answer is not then crush most of Key Arena and use the bowl as an out door, partly covered amphitheater, when a new private arena takes its place 10 years from now.

I started my blog right after the city and Clay Bennett agreed that there would be a settlement. I have moved on. Brian Robinson has moved on. Move on.
If you still want NBA basketball, it only happens with an arena.
If you never want to see NBA basketball again and you live in Seattle, your public arena is dying, you can get a 300 million dollar upgrade for 150 million dollars in mostly hotel taxes, or Sonics fans parking and buying tickets.

The fans have mostly moved on from the team leaving, hopefully the sports haters can as well, and recognize that their memory of Key Arena is the only current thing about that public building.

Have a great day,
Mr Baker
Sent from my iPhone

KING COUNTY PROJECTS FINANCING TASK FORCE

Here is the link to the Joint Task Force on Local Financing Options for King County

And the October 1st meeting where they collected presentations. Including information on the current arenas in the NBA, directly linked here.

The July 10th letter from the Mayor of Seattle describes the request that is consistent with all media reports over the past three months, including yesterday.
Letter from Mayor Nichols, Gregory J Nichols, Mayor of Seattle


Here is the direct link to the Qwest Field presentation, QWEST FIELD AND EVENT CENTER
Presentation to Joint Task Force,
King County Local Financing
Options
October 1, 2008

Here is the University of Washington's blog post from July, their presentation is here!

Here is an unofficial and independent source of input and information, and is not affiliated with any school, team or league. called Tell a Husky! supporting the University of Washington's effort.

Some day there will be a Seattle Center presentation, right?

Seattle PI: A new NBA team here?

Reported in the Seattle PI today, front page, above the fold was a story titled A new NBA team here?
Guys with little else to do right now, that happen to be newspaper reporters, were noted sports columnist Art Thiel, and former Sonics Beat reporter Gary Washburn.

This is the time that I expected stories to come out, to quote myself from Saturday, September 13, 2008:

The reality for the city, Hunter, Chris Gregoire, Rossi, Seattle Mayor Greg Nickels, and Brian Robinson, is that the first NBA season without the Sonics in Seattle is Tuesday, October 28th, one full week before election day. This is in time to be right in front of the majority citizens that vote by mail.

The first NBA preseason game is October 5th (I had to look it up). The sports columnists, reporters, journalists, bloggers, sports radio, will have nothing much to cover in the two weeks leading up to that because the Seattle Seahawks have a bye week the prior Sunday. That is two weeks without meaningful local NFL coverage. The Seattle Mariners season officially ends September 28th. The NBA, and the missing team story, will fill the hole in the sports section at some point during that period. What else are they going to write about?

Well, Mr Thiel and Washburn have made great use of their downtime between baseball season and whatever it is that is being called football right now. I was worried that the kind of story that would be written would rip down any real hope, or present such an incomplete story that the average reader would dismiss future efforts out-of-hand.
Thankfully, this is not the case.
The dynamic duo did a reasonably thorough job of stating the basic parts of the tax elements, and the needed quotes from the three legs that an NBA deal is set on: political figures, ownership, and David Stern.
Many of the details I have speculated about here, or re-reported from a variety of places.

Let's take a look at the meaty bits from the report.

A new plan to divert a portion of hotel-tax money from the state convention center to a remodel of KeyArena could help Seattle begin pursuing a replacement NBA team as soon as 2010.

That is pretty solid: tax revenue, Key Arena, replacement team as soon as 2010. My early guess was 2011, I would feel good about being wrong there.

NBA Commissioner David Stern said Thursday "positive" talks have gone on between the league and a potential ownership group headed by Microsoft Chief Executive Steve Ballmer, who led an ill-fated plan to save the Sonics earlier this year.

Stern, and Ballmer have talked according to Stern. This really should put to rest the fretting some fans have been doing about this situation.

Deputy Mayor Tim Ceis confirmed the talks, and said he was optimistic that this time around the city's request for state authorization will meet little resistance when the Legislature convenes in January.

"It should be noncontroversial, because it's a city-only tax that already exists and will not be an increase," Ceis said of the latest attempt to find a long-sought public portion of a proposed $300 million renovation for a building currently deemed financially obsolete by the National Basketball Association.

"If we can get our funding package together this session, we can start to work with the Ballmer group on identifying a team for Seattle, but probably not until 2010."

Stern, speaking to reporters on his annual season-tipoff conference call, made his first public comments on Seattle since the Sonics left.

"I don't want to mislead, so I will say that we have had some contact and we're aware of what's going on," he said. "I'd rather not deal with the specifics of it at this time, but we have had some positive contact."

While no city official has talked to Stern, Ceis said standard procedure always has been for Stern to go through the owner, or potential owner. He confirmed that Stern and Ballmer have talked, and Ballmer conveyed the new funding plan for the public portion of the remodel.

That is your deal right there. The city has insulated a funding resource from as many people that thought they had a right to say no about it. Until there is an official source for the money you are not going to get solid responses from David Stern, and why should he.
Here is the tax:

The tax under consideration is different from the so-called stadium taxes from King County that the Sonics, as well as the University of Washington, pursued in recent sessions to fund their sports building projects.

A 7 percent tax on all hotel bills within the city long has been dedicated to convention center operations. The city, which is still negotiating with the hotel industry and center officials on the proposal, seeks to divert one-tenth of the revenue to Seattle Center and the KeyArena project.

Ceis said that growth in hotel-room rentals over the past 10 years is generating enough revenue for the diversion to produce over a 15-year period the $75 million necessary to finance construction debt without compromising convention center operations.

There is more than was planned, nobody gets hurt, and he didn't mention that the tax really can't be used for anything else, not for schools, not for lost puppies. It doesn't come from there and the hotel owners that are impacted by its application don't want it going there. That's a general fund responsibility, this isn't general fund money. It's the law.

The settlement, which paid off the $34 million in construction bond debt remaining from a remodel completed in 1995, included a provision for another $30 million to the city by 2013 if an NBA team had not moved to Seattle. But the city had to have an NBA-ready arena, or the funding committed for one, by Dec. 31, 2009.

For practical purposes, that means the pending session in Olympia will be last chance for any funding requiring state authorization.

Asked why the city didn't come up with this idea while the Sonics were still in town, Ceis said the focus was on finding revenue that didn't require state approval. Even though this revenue still requires a legislative OK, the source is strictly city taxes, not county, and provides an upgrade for a city-owned building that helps draw tourists to city hotels.

"It's the path of least resistance, and there's no competition for the funds," he said.

At the time of the settlement, which was widely criticized as insufficient for the loss of a 41-year civic institution, the city defended itself in part by saying it was necessary to repair the damaged relationship with the NBA in order to have a shot at another team. The $30 million penalty gave the NBA and Bennett a financial incentive to help fill the void.

Ceis said that if the $300 million funding were in hand, the city would firm up the remodel plans that would allow Ballmer to pursue a team. He stressed that the city would not go forward with the remodel until an ownership group secured a team.

What Ceis is not saying is that the law that this funding was part of, and Safeco Field that the University of Washington wants, wasn't changed until March, and didn't go into effect until July 1, 2009. The source was there, but not available to Seattle to use.
Senate Bill 6638
Passed by the Senate March 13, 2008
YEAS 43 NAYS 6

Now, bring in the undertaker:

Since the NBA has no current plans to expand domestically, the only option would be to relocate a team from another city.

As many as half the teams in the NBA may have had operating losses last season, and some of the smaller-market teams have been in financial trouble for a while, including Memphis, New Orleans and Milwaukee. The Sacramento Kings also have been stymied in securing public funding for a replacement building for Arco Arena.

Unless a team is at the end of its lease, the Ballmer group would be in the same position Bennett was in Seattle -- an out-of-town owner attempting to pull away a team under contract with its city.

Ceis said that if a team is secured, the city has provisions to do the remodel before arrival, or to work around a six-month NBA regular season.

Matt Griffin, a Seattle real estate developer and Ballmer friend who served as his spokesman in the earlier attempt to save the Sonics, confirmed by phone Thursday night the group's awareness of and interest in the city's new initiative, but said little about the potential pursuit of a team.

"The first thing has to be the funding," he said. "We told the mayor in April that we were interested in keeping KeyArena from becoming a white elephant that drags down Seattle Center and lower Queen Anne.

"We can't take step two before we take step one. Once the funding happens, we can roll up our sleeves and take a look at what needs to be done."

A new NBA team here?
Tax diversion plan could give city the money for KeyArena
By ART THIEL AND GARY WASHBURN
P-I REPORTERS

That's right, Seattle will likely take a failing franchise from another city, a city that will be a smaller market, that may have been placed in that market by design of David Stern's plan to have his teams be the big show in smaller towns. Well, some of those towns simply can not afford David Stern's NBA, even when they supply a new building.

What David Stern wanted in Seattle was a building that can support a franchise. Hopefully the lesson beyond the building, that will be the second relocation to a remodeled building, is that it isn't always the newness of the building, but the community and businesses that support it. Not being able to make the NBA work here for the Sonics has everything to do with the NBA's business model of growing beyond its habitat and always expecting the place to be more plentiful.
If there is a bubble economy, it is the NBA, and doing anything for them beyond a remodel is foolishness. So, unless you have a much bigger reason to build a new and bigger building, don't build one.

I rank the possible related team by who is most likely to come here after 2010:
Memphis Grizzlies, New Orleans Hornets, Charlotte Bobcats, and Milwaukee Bucks have been walking the tightrope for as long as I can remember, I think they stay. The Sacramento Kings are more likely to be the team to get to Las Vegas.

Have a great day,
Mr Baker
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USAToday.com : Seattle mayor still eyeing NBA's return

Reported by AP reporter Gregg Bell, Seattle mayor Greg Nickels stated that he has sent a proposal to Washington state lawmakers requesting funding for a renovation of Key Arena. The request should be part of the next legislative session in January.

"We'll be going to the Legislature in their next session" beginning in January, Nickels said Monday at a ceremony inside KeyArena to announce Seattle University will be using it when the school returns to Division I basketball this season for the first time since 1980.
Nickels said Seattle will ask for state authorization to divert 1 percent of the existing hotels tax in Seattle from the convention and visitors bureau to the city. He said the convention center no longer needs that revenue and the city should get it.
"Those funds (would be) available for an NBA franchise," he said.
They potentially could generate enough money to back $75 million in bonds - the missing piece in a $300 million arena renovation plan proposed by Microsoft chief executive Steve Ballmer. Ballmer's group would contribute $150 million, and another $75 million would be culled in city dollars from other sources.
In a statement immediately after the Sonics and Seattle settled their lease dispute in July, which allowed the team to move to Oklahoma City, NBA commissioner David Stern said the league would assist in helping Seattle acquire a new team if state lawmakers approve a KeyArena remodel before the end of 2009.
"We think the door is open there," Nickels said Monday. "We feel like there's a working relationship possible there."
. . .
Even though Seattle's latest plan asks for far less, legislative leaders aren't thrilled the NBA and now Seattle officials are trying to force a 2009 deadline upon them.

"It's not going to work, with these 147 individually elected members of the state Legislature, to threaten them and bully them," House Majority Leader Lynn Kessler, D-Hoquiam, said in July. "God love the fans, but we have a state to run. And I think the city of Seattle, they have to go out and make their case to the state."

The city, as I have been saying forever, has to educate and communicate with people like Kessler that are existing in a low information world.

The Seattle mayor feels "the door is open" to the league returning to what would be a remodeled KeyArena.

From the Seattle Times, in the story about Seattle U playing basketball games in key Arena:

"We're beginning that process of getting back to exciting basketball at KeyArena," Nickels said. "Seattle has been a great basketball town for a long time even before the Sonics. So we think this will keep that tradition alive, and we'll see what happens in the next couple of years."
Since agreeing to a $45 million settlement with the then-Sonics' owners, Nickels said the city hasn't had contact with the NBA about returning to Seattle. He also said there's been no significant progress toward a proposed $300 million KeyArena renovation.
"We've had some conversations with [state lawmakers], but obviously they're all focused on the elections that's two weeks from [Tuesday]," Nickels said. "We'll really be veering up between then and when the session begins in January.
"We're going to do everything we can to educate the legislators to the importance of this arena and the importance of having that dedicated revenue available should another NBA team become available."

Seattle University off on fast break
, Percy Allen, Seattle Times.

Have a great day,
Mr Baker
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SeattlePI.com: Seattle U steps into void

As was mentioned here over the weekend, Seattle University is planning on playing games in Key Arena. The first game is January 1st, one game this season, with many games to come in following seasons. This is Seattle U's return to Division I baskerball, after being out of Division I for 29 years.
This may look like Seattle U is taking dates vacated by the dearly departed Seattle SuperSonics until you look around the country and see college basketball being played in a few of the same facilities as NBA teams. Madison Square Garden comes to mind.
I would like to see as much basketball as possible played in Key Arena: Sonics, Storm, Seattle U, high school city finals.
Read the AP story here; Seattlepi.com Seattle University

Have a great day,
Mr Baker
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"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

Sent from my iPhone

In "Other News"

OT (off topic)...
Today U.S News & World Report has reported a major discovery: The
Obesity Gene Linked is to Colon Cancer and Other News.
The big question is: what "Other News" is the Obesity Gene linked to?

Hey, maybe the other news is the Seattle 2009-2010 Proposed City Budget process has started.

Mayor Greg Nickels has added to the CIP (Cap Improvement) in his proposed budget a line item in the CULTURE AND RECREATION section, sub-section Seattle Center in the Narrative on page #2 "In addition, funding is added in 2009 and 2010 for general building improvements at KeyArena."

Seattle Center Project Detail
PDF page 9 of 26 (181 of the budget) has the following item: KeyArena Improvements & Repairs

This ongoing project provides for major maintenance and improvements to KeyArena. Improvements may include, but
are not limited to, lighting upgrades, replacement of the basketball floor and other event components, creation of special
seating sections and partial house configurations to increase revenue, technology upgrades, and funding of concept plans
for future facility upgrades. These improvements both maintain basic building operations and facility integrity and
enhance KeyArena’s position in the highly competitive sports and entertainment marketplace.

As always "*This detail is for information only. Funds are appropriated in the budget at the Budget Control Level. Amounts in thousands of dollars."

As noted on the Seattle City Council web page, public comment is encouraged.

Dispatches from the Tenth Circle - The Sonic's Fan Version

There are parts of the saga of the Sonics' fan that sometimes remind me of something I might have read in The Onion's book, Dispatches from the Tenth Circle. It appeared, at first, that the only people interested in keeping the Sonics in Seattle were the fans, and in the end that is exactly the case.

It has been my contention for the past few years that there are three parties involved, the NBA not being one of them. David Stern acts on behalf of the owner, or potential owner if you are Steve Ballmer or Clay Bennett. So, we really do have the owner of the franchise, the politicos/NGO's (westside Democrats & eastside Repubicans), and absolutely lastly, the fans. All three of those perspectives are required for any major profession sports team to exist in Seattle. This may be the case in other cities, only the names are changed to protect the rich, and deflect criticism away from politicians.

From the word Go, the city has planned on the Sonics leaving, and the owners (any of them) were going to get more revenue no matter where the team was eventually located. When Howard Schultz was owner of the Sonics, and Brian Robinson was acting the part of journalist, he made every effort to help efforts to keep the franchise going long-term in Seattle. That effort didn't change when Clay Bennett purchased the Sonics (though not with the same sense that the owner was holding up his end of the stick.
When Clay Bennett announced that he was giving up and was going to move the team that put the city and Bennett on a collision course, and flipped Brian Robinson from journalist to advocate, and started Save Our Sonics with Steve Pyeatt.

At about that point season ticket holders, that were sold tickets under the pretense that they could purchase season tickets in 2008 and 2009, started to wonder if they had any recourse. They were sold something with the possibility of a benefit in the future while at the same time the team owner was actively trying the make sure those conditions would not be possible. Had they known at the time of purchase that Clay Bennett was begging the league to relocate in time for that same 2007 - 2008 season would those people have purchased their tickets?
In a few cases yes, in many cases no, in either case the consumers in Washington State have the right to know.
Asking Brian Robinson if he knows a lawyer they could hire isn't much of a conspiracy.

And yet, Clay Bennett's lawyer, Sideshow Bob Keller has demanded every email he has that also include the city and more. This does not have much to do with fraud, I honestly think this has everything to do with the fans, including Brian Robinson, costing Bennett at least 20 million dollars, and possibly 30 million more in 5 years.

All the while, quite a few of us Sonics fans have carried on conversations on message boards, newsgroups, listserves, some stretching back nearly 10 years. At various times groups I have had some contact with, public and private, sorted themselves out. A few of us took to writing about the Sonics on a few blogs, and there was an inside/outside the "circle" mostly expessed in a humorist way. As Brian gained connections with reporters, and people working in government and the last two ownership groups, and publicly lamented that they were not always open with him, my guess is that fodder will result in a lot of meaningless paper dumped in Keller's lap.

For me, a paranoid guy that just wanted to write, I opted out of anything that could be described, even jokingly, as an inner circle, and made a few people very unhappy with me. Well, the choices we make are not always clear to the others around us at the time. There wasn't much upside, and the downside looked something a bit worse than what Brian is dealing with right now.
Rich guys have lawyers that have nothing better to do, and they have to bill hours.
No thanks.
As for the idea of circles, what the center of some circles look like are not as positive for the Seattle community as Brian Robinson.

Sometime in the late 20th century the rings of Hell were redefined, and expanded after a new 10th Circle, Corpadverticus, was discovered (see chart, above).
There, near the lower right of the graph, is a red characiture that may or may not be Brad Keller, also known as "Sideshow" Brad by me.

And so, in today's Seattle PI, the venn diagram of all these circles, owners, politicos, and fans, has shown a new color of light: green for the fans.
The fans are not going to run for re-election, they do not have stock holders, and they are not inventing a new scenario (Washington State has a fraud law).
Keller is racking up billing hours on Brian Robinson's back before the music stops, the ride is over, and Bennett pulls the plug.

Save Our Sonics cites subpoena 'attack'
Team owners try to link group with ticket holders' suit

By GREG JOHNS
P-I REPORTER

The Sonics may be gone, but the court fight hasn't quite ended between Clay Bennett's ownership group and some Seattle sports fans.

A class-action suit filed by three former Sonics season ticket holders has escalated into a growing war of words and court filings, the latest surrounding Save Our Sonics co-founder Brian Robinson and what he must turn over to the Professional Basketball Club attorneys in discovery for a scheduled March 2 trial.

PBC lawyers served a subpoena on Robinson and the Save Our Sonics organization on Aug. 25 seeking e-mails and records regarding the group's interaction with city of Seattle officials, NBA representatives, the fans filing the class-action suit and numerous other matters.

Robinson's attorney, Paul Schneiderman, sought to limit the scope of the initial inquiry and the PBC responded by filing a motion to force compliance with the legal action.

Robinson now is agreeing to turn over some of what has been requested, but on a delayed basis.

The battle took a step up in volume Monday when Schneiderman filed a sharply worded response to U.S. District Judge Richard Jones accusing the PBC of launching an unnecessary attack on the Save Our Sonics group for its alleged role in bringing about the class-action suit against Bennett.

"The PBC, a combined billionaire group of Oklahoma-based NBA owners, have shockingly taken the unprecedented steps of attacking an all-volunteer NBA fan group in United States federal court," Schneiderman wrote.

The motion states that Bennett's attorneys are painting Robinson and his fan group as part of a "broader conspiracy" intended to bleed the PBC.

"The 'bleeding' allegations are Oliver Stone-like, conspiratorial in nature, and grossly distort and mischaracterize the actual efforts of Brian Robinson and SOS&S," the motion stated.

SOS&S refers to Save Our Sonics and Storm, the original name of the nonprofit corporation formed by Robinson in July 2006.

Part of Schneiderman's argument against the PBC's motion to compel the subpoena is based on the fact the PBC originally subpoenaed the Save Our Sonics group, but didn't subpoena the actual SOS&S affiliation.

PBC attorney Brad Keller said Robinson's attorney physically filed the original complaint against Bennett's ownership group.

"Robinson clearly played a role in orchestrating the lawsuit," Keller said. "We are just trying to get to the bottom of what his role was. Robinson shouldn't be resisting the subpoena if he has nothing to hide."

The entire case revolves around the three fans' attempts to hold Bennett's ownership group to what they perceived as a promise to give Sonics season ticket holders a three-year price guarantee and priority seating through the remainder of the former KeyArena lease.

Now that Bennett has moved the club to Oklahoma City, the suit seeks to force the PBC to guarantee the 1,387 Sonics season ticket holders from last year the right to buy similar seats at the Ford Center and also require the PBC to pay for travel accommodations that would now be necessary to attend the 41 home games in Oklahoma for the next two seasons.

PBC lawyers filed a motion last week asking the judge for summary judgment on the contract damages portion of the suit.

The PBC is attempting to show Robinson played a role in bringing about the fans' suit and thus they have a right to discovery concerning his group's actions.

In a declaration accompanying Monday's motion, Robinson acknowledged that he "referred several people to an attorney" in regards to a class-action fans suit, but denied any active role.

"The plaintiffs in the class action case have clearly made a decision to participate in this case without the active participation of SOS&S," Robinson wrote.

Robinson's attorney said the Oklahoma City owners are attempting to create a rift by doing everything possible to "alienate and inflict injury" on Seattle's NBA fan base in hopes of derailing the Save Our Sonics efforts to lobby the Washington Legislature for further KeyArena funding.

If the Legislature doesn't approve a $75 million tax stream to help rebuild KeyArena by Dec. 31, 2009, Bennett won't have to pay the city the final $30 million of the settlement package.

Robinson said that although the franchise has moved to Oklahoma, his goal is to "re-establish Seattle" as an NBA city and he intends to continue working toward a KeyArena funding solution.
As reported by Greg Johns of the Seattle PI.

My fuzzy memory is that the idea was floated on SonicsCentral.com, (you could put 100 other people in the "conspiracy" to not get screwed) those season ticket holders, I call fans, asked Brian if he knew a lawyer, and it looks like they found one.

Crosscut's David Brewster asks - Could a convention center work at Seattle Center?

The answers I have are:
Yes, if they are going to operate the meeting space and arena when Key
Arena is rebuilt.

No.

In either case the city is not going to promote a facility to be placed at Seattle Center ( or anywhere else in the city) while it is actively seeking part of the same revenue stream that the Washington State Convention & Trade Center currently enjoys. It is not going to promote convention space to be added while it is trying to fill its own space. The more likely spot is the "air space" above the King County bus ranch.

The fact is that the Washington State Convention & Trade Center people do not have an actionable plan. They have a want to grow in 3 possible spots with no scope of size (200 to 300 hundred square feet). They do not want to give up the revenue stream when their project is paid off. They have not proposed a cost, which might be hard to do without a real scope of work.

David Brewster has taken another swing at throwing this idea out there. I think that when he says that the "state" is interested he is also talking about Frank Choop.

He also gives Ron Sims' point of view. He did give the reaction from the spokesperson from the Seattle Center, that the city would not support a Seattle Center solution for the WSCTC. The story was sadly lacking in fully explaining the city's point of view.

This is a sandbag, David Brewster is the bagman.

The answer at the end will be that the city plan for Key Arena is defined, does not consume much of the revenue source, and enough revenue from that source would be there if the WSCTC ever got its plan together.

Brewster does mention that the hotel folks were unhappy that several million dollars from this source were dumped into the state's general fund, and that they do not want that to happen again. I think Senate Bill 6638 closed that loophole.

There are 30 million reasons the city is not ready to "finally let Key Arena go".

BTW, Ron Sims, mind your own backyard. You have been no help to me.
www.GoForItLarry.com

http://www.crosscut.com/blog/real-estate/17746/Could+a+convention+center+work+at+Seattle+Center/?comments=On&cID=8524#c8524

Have a great day,
Mr Baker

Sent from my iPhone

Washington State Senate Bill 6638

Senate Bill 6638 went into effect on July 1, 2008. This bill set a framework around the funding sources, and the types of things the funds could be used for. This restricts the spending to agracultural, arts and heritage, and in counties with a population greater than one million - sports stadiums. The "lodging" tax that had an end date no longer has an end date. A great deal of the general scoping and limiting has been done.

What it looks like to me is that the Washington State Task Force is going to have to play match maker between descrete sources and revenues with more specific requests for those funds. At this point, I think Seattle Center's Key Arena has a better shot at slicing off a sliver of the Washington State Convention Center tax collected in Seattle, than does the University of Washington's attempt at the stadium tax collected in King County and currently paying off Safeco and of Qwest.

The Senate Bill keeps refering to "Arts and Heritage", maybe those that want Key Arena remodel to happen and another run at having a teamed the Sonics might want to have the NBA opening day "rally" at the real current home of the Sonics at the Seattle Museum of History and Industry (MOHAI).

That is where our Art and Heritage went, not Oklahoma City.

"It's my ballet" (did Mike Seely say that?)

http://apps.leg.wa.gov/documents/billdocs/2007-08/Pdf/Bills/Session%20Law%202008/6638.SL.pdf

Have a great day,
Mr Baker

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