And the winner is . . .
http://seattlepi.nwsource.com/local/..._sonics14.html
Sonics: Renton, here we come
But first, team wants $400 million from taxpayers
By CHRIS McGANN AND CRAIG HARRIS
P-I REPORTERS
OLYMPIA -- The Seattle Sonics want the public to pay for most of a new $500 million multipurpose arena in Renton, they want most of the proceeds from that facility and they want the money without a public vote, owner Clay Bennett told lawmakers Tuesday.
The NBA team will face a fight on every front.
Aside from support from Renton and King County, Bennett is dealing with taxpayers who still are paying for four major stadiums and who have grown weary of subsidies for millionaires and sports teams.
And there are many other formidable obstacles:
# It would be nearly impossible to pass the tax package without support from Speaker of the House Frank Chopp, D-Seattle, who has said his caucus isn't interested and that the money should go to education and health care.
# If the Legislature authorizes a tax package that does not include a public vote, opponents say they'll file an initiative to block the deal and King County Council Chairman Larry Phillips has told state leaders he'll block the necessary county tax increases.
# The land Bennett said he wants to build is apparently not for sale.
The Boeing Co. owns the roughly 22 acres that the Sonics want, but a Dallas-based developer, Harvest Partners, has the first right of refusal to buy the property.
And Harvest Partners on Tuesday gave no indication it was willing to sell.
"We are moving forward to build a shopping center on that land. That is our intent and that is the direction we will pursue," said Natalie Quick, a Harvest Partners spokeswoman. "We have no formal agreement nor have we had discussions with anyone. Our plan remains the same."
Bennett told the Senate Ways and Means Committee that he expects the public to provide most of the financing -- $300 million from the state, about $100 million from the city of Renton -- and that most of the money from the facility should go to the team.
Bennett said his time and the $350 million the Oklahoma City ownership group spent buying the Sonics last year is a substantial part of the team's investment. He also said he expects to take responsibility for about $100 million in private investments.
Ways and Means Chairwoman Margarita Prentice, D-Renton, said the public would benefit from new jobs and tax revenue generated by sales at and around the arena.
"With each transaction, you get a new tax," she said.
But Chris Van Dyk, founder of Citizens for More Important Things, blasted the proposal.
"For them to say they are doing a big community service by buying the team is preposterous," he said. "The former Sonics owners bought the team, held it for five years and made $80 million profit."
Van Dyk said the Sonics should pay for their own arena.
"This is a private enterprise, we are not a socialist state, let the private market take care of those problems."
Bennett said the hostility in some quarters to public sports stadium funding surprised him.
"I underestimated that part of the deal," he said, adding he hopes the region will rally to keep professional basketball. Bennett has said he may move the team if the Sonics don't get a new arena.
Asked why he didn't try to build the stadium with private money, Bennett said the "model has changed" because the facility will be much more than a venue for sports. "This will be the most expensive building ever built (for an NBA team)," he said.
King County Executive Ron Sims testified in support of Senate Bill 5986, which would allow the county to extend taxes on things such as restaurants, rental cars and hotels worth $423 million. He said the plan would provide sustained money for the arts and ball fields that is not available today.
Renton Mayor Kathy Keolker said the facility would help create a vibrant community.
"We see the potential of this arena as a once-in-a-lifetime opportunity," she said.
But one of Renton's biggest investors said the area's economy could bloom without a new multipurpose stadium and pro basketball.
Harvest Partners is now building on 46 acres of the first phase of the Landing, a proposed 68-acre urban village just off Interstate 405 near the south end of Lake Washington. The land the Sonics want is directly south of phase one, which Quick said is 70 percent leased.
"People continue to see the value of doing business in Renton and we don't see that changing," Quick said. "When we think of that second 22 acres, we are looking at it as viable property for retail."
Peter Conte, a Boeing spokesman, said the company was very excited about possibly having an arena in Renton, but "significant issues" such as security and traffic flow must be worked out because the nearby Boeing plant is the final assembly site for Boeing 737s.
"Boeing needs to make sure its manufacturing operations are not impacted and we continue to meet our obligations to our customers," Conte said.
Larry Warren, Renton's attorney, said the city has not made any financial promises to the Sonics regarding infrastructure or parking amenities.
"There is no deal," Warren said. "We have a pretty strong message we try to follow and that is the revenues brought in by any new endeavor have to cover what we will invest. We would have to do an economic analysis."
Meanwhile, Renton's gain is a loss for Bellevue, which also had been in discussions with the Sonics about having an arena.
"I wish them well," Bellevue Mayor Grant Degginger said. "If they continue to look, I'm sure we will talk to them again."
Back in Renton, Jay Fisher, who owns the Dog and Pony Ale House and Grill, is optimistic about the proposed move.
"This is going to impact us, and it can only be positive. ... Sonics fans are not just in Seattle; they're from all over Washington. I think for many Sonics fans it wouldn't be much harder to make the drive here."
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