SACRAMENTO (AP) —
Three Sacramento residents who sued the city alleging Sacramento gave the Kings an illegal “secret subsidy” have agreed to dismiss their lawsuit, enabling the city to secure financing for the downtown project.
The plaintiffs gave up their-two year legal crusade Wednesday, two weeks after a Sacramento Superior Court judge rejected their claims, the Sacramento Bee reported.
Expected to be finalized in court Thursday, the settlement clears the city to move quickly on financing its $255 million subsidy to the new Golden 1 Center.
In their lawsuit, political activist Isaac Gonzalez and retirees James Cathcart and Julian Camacho said the true value of the city’s subsidy is tens of millions of dollars more but a judge in July emphatically rejected their claims.
The Kings started construction on the $507 million arena last October and have spent $216 million so far, according to a city document. City Treasurer Russ Fehr said the project needs the city’s money, and soon.
“The cash-flow needs of the project are so acute, we can’t wait,” Fehr said.
The city plans to execute a short-term loan with Goldman Sachs & Co. by the end of August.
That loan would be converted into a long-term bond offering a few weeks later, probably in September, Fehr said.