Arena Cost Up $30 Million, Team to Cover Difference

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arena rendering

Official arena rendering provided by the Sacramento Kings

SACRAMENTO-

The City of Sacramento announced Monday that the Sacramento Kings will spend an extra $30 million on the downtown arena project, bringing the expected cost to a total of $477 million.

The extra money will go toward “enhancements” to the arena, improvements to L Street and a new practice facility and team office building, among other things.

While the team’s contribution increases, the city’s share will decrease by about $3 million.

City officials say the key pieces of the project remain the same.

Along with the extra $30 million going into the project, the Kings and the city agreed to a fixed lease payment schedule that, according to the city, will allow Sacramento “greater certainty” on revenues from the arena.

A new lease revenue financing structure was also adopted, allowing the city to sell bonds at a “higher credit rating, lower borrowing costs and a greater flexibility with repayment.”

The City Council will discuss the changes in the term sheet during Tuesday’s meeting.

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