In a series of tweets Saturday afternoon, Mayor Kevin Johnson finally announced that the preliminary terms of an agreement have been reached to build a new arena in Sacramento’s Downtown Plaza.
Mayor Johnson notes that the deal will avoid new taxes, along with protecting the City of Sacramento on the Kings loan.
Up to $1 billion will be invested into Sacramento by the ownership group, according to Johnson. The ownership group also reportedly will make a 35-year commitment to keep the Kings in Sacramento.
The investor group will contribute $189 million towards the building of a new arena. The city will have to contribute $258 million towards the project. Like brought up in last year’s discussions, the city will draw from parking and land revenue to fund the project.
“This is a monumental project that will redefine the Downtown Plaza and revitalize our urban core,” said John Shirey, City Manager, in a release.
Compared to the 2012 term sheet towards building an arena at the railyards, a Downtown Plaza-based sports complex costs about $56.50 million more. The city contribution to the project remains about the same, however.
City Council will vote on the terms come Tuesday. You can see the report on the new arena deal here- http://sacramento.granicus.com/MetaViewer.php?view_id=21&event_id=1953&meta_id=396718