I could have sworn that McGinn told the Seattle Center to prepare documents related to financial stability and studies of how to use the area. There were going to be studies before grandstanding moves like this were going to happen.
Chris Hansen and the Seattle City Council appear to be pushing forward on the KeyArena Use Agreement. The hearing is scheduled for 9:30 AM on Wednesday morning. This would give Hansen the ability to operate and profit from the KeyArena in exchange for a $1.5 mil use fee, any NHL team would pay a 0.75 mil use fee, and any tickets for events that weren’t sports related (non NBA, WNBA, NHL, or city events) would get a ticket surcharge of $1 or $2.
This would be a joint meeting of the Gov’t Performance and Finance Committee as well as the Center Committee. Hopefully someone with brains (Licata/Godden/Conlin, I’m looking at you) tables this thing until Hansen has NBA approval, because there’s little point in giving the operation over to him when we’ve already got a guaranteed payment and profit sharing from AEG for KeyArena use.
The use agreement summary is here and the full text is here.
Tim Burgess, Co-Chair
Jean Godden, Co-Chair
Nick Licata, Member
Sally J. Clark, Member
Richard Conlin, Member
Sally Bagshaw, Member
As a bonus, staffers Sara Belz, Hall Walker, Nathan Torgelson, and Robert Nellems (of the Seattle Center) will be there. Ben Noble, and Dan Eder will also be there. I’m still waiting for Noble and Eder to revise their “this doesn’t comply with I-91” presentation to show that the MOU somehow does comply, but not holding my breath.
Later in that meeting, there’s a budget-related issue with approving carry-forwards that has a SoDo arena carry forward of $400,000 cited as “This carry forward covers costs related to the SoDO Arena proposal. These funds were appropriated in the 2012 3rd Quarter Supplemental (Ordinance 124054) and were not fully expended by the end of 2012.” Sally and Richard were asking for a summary of the “burn rate” on this arena proposal back in February’s arena update… I’m really curious if they got those documents before they approve what may well end up being more arena expenditures.
I’ll be watching to find out answers to such interesting questions as:
if we don’t have a finalized transaction document for the rest of Hansen’s MOU, doesn’t this KeyArenaUse agreement have to comply with I-91 on its own ? I wonder if we’ll finally find out what the fair market rent value is for an NBA arena. Or how much of Hansen’s “use fees” would come from the KeyArenaFund that is earmarked to come from KeyArena taxes.
Wow, most of the questions I’d asked were responded to during the discussion.