Looks like Renton for Sonics - The News Tribune

It appears that the struggling Sonics could be receiving a new arena and fortunately for them, the new project is not expected to drain their wallets.

Still, would it be a fiscally responsible decision by the legislatures in Washington state to raise an approximated $240 million for the new arena? I don't believe that the taxpayers in the state of Washington think so, but only time will tell if the expected investment was worth it.

FRANK HUGHES; The News Tribune
Published:December 27th, 2006 01:00 AM

When the Seattle SuperSonics announce in a week to 10 days the site for their proposed new arena, it is anticipated that the choice will be a plot of land in Renton, according to multiple sources.

Although nothing has been finalized and negotiations are ongoing, unless there are some last-minute concessions by Bellevue the team will choose a location on the south end of Lake Washington, according to the sources.

A primary reason is that Renton would give the land to the team at either no cost or at a significantly reduced rate, three sources with knowledge of the team’s approach said.

If things remain the same, the team is expected to ask the state Legislature for a public subsidy of approximately $300 million while contributing $100 million of its own money, the sources said.

There are continuing discussions among Sonics decision-makers about the best locale for what they say they want to be a world-class facility.

One argument is that Bellevue holds more allure because of the amount of money in the area and the corporate entities located there.

However, Sonics chairman Clay Bennett is leaning toward Renton, sources said, because Renton has more potential in terms of development.

“If you go to Renton, you are the piece around which everything else will be built,” one source said. “If you go to Bellevue, you are only icing on the cake.”

In the end, Renton is the likely choice because it might be the most sound business decision.

With Renton contributing the land at little or no cost, the cost of the project goes down from an estimated $500 million cost to $400 million.

The sources said the Bennett-led Professional Basketball Club would contribute $100 million, more than five times the amount than the team’s previous ownership group was going to contribute. That puts the cost needed to be covered by the state at about $300 million.

The Washington Restaurant Association said it would support leaving a 0.5 percent tax on restaurant bills in King County in place until 2015, which would raise an estimated $60 million toward a new arena, meaning the Sonics would have to convince the Legislature to raise an estimated $240 million.

It is unclear what revenue sources would generate the money, though the Sonics could again ask for an extension of hotel, motel and rental car taxes that are paying off Safeco Field.

The team is expected to argue that the state would get a new facility that would be the cornerstone of new development in the area for roughly the same price that the previous ownership group said it would pay for a renovation of KeyArena.

A new facility could attract national political conventions, sporting events and an NBA All-Star Game as well as serve as home to the NBA Sonics, the WNBA Storm and perhaps a National Hockey League team, generating far more tax revenue than a renovated KeyArena would be able to, the team is expected to argue.

The Renton site, close to where the Seattle Seahawks are building their new practice facility, also is gaining momentum because of proximity to highways, as well as to the South Sound. About 10 percent of Sonics season ticket-holders live south of Federal Way.

Fans could use Interstate 5, Interstate 405 or Highway 167 to get to games or events.

Bennett is expected to announce his choice of a site three or four days before the Jan. 8 start of the legislative session. He will then present his proposal to the Legislature in mid-January, about a week or 10 days after the start of the session.

Sen. Margarita Prentice, D-Renton, chairwoman of the Senate Ways and Means Committee, said she has been pointing out the advantages of a Renton site, particularly the benefits of being near a 46-acre retail and residential development called The Landing.

She said Tuesday that she hadn’t heard that Renton is now the preferred site.

Rep. Ross Hunter, D-Medina, incoming chairman of the House Finance Committee, said, “I haven’t heard anything. They (Sonics) haven’t come talk to me. And I have not heard from a single (legislator) that they want to sponsor a bill, and I’m going to have to hear from members that they want to do this. There has to be a lot of interest in my caucus to do this.”