Sonics Update
The City Council’s parks committee just passed a resolution for full council to approve Monday that sets the conditions on any public subsidy for the Sonics. The Sonics, as everyone knows, are seeking $220 million to revamp KeyArena and a new lease. Otherwise, they’re threatening to leave town.
The terms seem solid. Especially the 4th item bolded below which challenges the NBA model of allowing the team to keep revenue from non-NBA arena events like rock concerts. Losing this revenue, could cost the city close to $1 million a year.
Here are the terms the parks committee set this afternoon:
Any proposal for public funding of a KeyArena renovation must be submitted to the voters of King County for their approval; No use of any of the City‚s general fund money will pay for a KeyArena renovation; Any funding package needs to include support for arts and heritage programs and facilities; The Sonics must contribute a significant amount toward a KeyArena renovation; The Sonics should be responsible for any capital cost overruns associated with a KeyArena renovation; Under any lease agreement, the City should receive annual net revenues that are at least equal to what the City projects KeyArena can generate without the Sonics/Storm as tenants; Any negotiated lease should require the Sonics to play at KeyArena for the duration of debt service issued for a KeyArena makeover; The Sonics should be responsible for major maintenance; A proposed lease should carefully address potential impacts to existing KeyArena employees who are currently Seattle Center/ City of Seattle employees; The Sonics need to commit to a package of tangible benefits to the public.
Howard Schultz is making this Sonic fan scream: GO! Sonics.