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Thursday, February 16, 2012

It Was a Very Good Day for Mike McGinn

Posted by on Thu, Feb 16, 2012 at 5:18 PM

Seattle Mayor Mike McGinn explains the deal to sports radio fans, shortly after announcing a $500 million arena proposal.
  • Goldy | The Stranger
  • Seattle Mayor Mike McGinn explains the deal to sports radio fans, shortly after announcing a $500 million arena proposal.

I betcha that's a headline you haven't read too often since our beleaguered mayor's surprising victory a couple years back. Yet there he was in front of a packed room, announcing the outline of a public/private partnership that could bring NBA and NHL franchises to Seattle to play in a new $500 million arena, without relying on new taxes.

I've never seen such a big crowd at a City Hall press conference before. Nor have I been to a press conference so frequently punctuated by applause.

Like I said: A very good day for McGinn.

Whether McGinn will ultimately benefit politically, remains to be seen. This is one of the best arena/stadium deals any city has negotiated in quite some time, but it's got a lot of contingencies that must fall into place before the first ball drops through a hoop, not the least of which being, the private investors need to snare themselves a couple of teams. And even then, McGinn will be facing reelection long before the arena opens if ever.

Furthermore, our local media just doesn't like McGinn, so it wouldn't be surprising to see them deny his office any credit.

Still, if it happens, it happens on McGinn's watch, and that should be worth something with voters. Yup, it was a very good day for McGinn—a day to savor while it lasts.

 

Comments (45) RSS

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Teslick 1
Sorry, I don't know how you explain this deal to voters who on one hand see massive cuts but yet somehow there is $200,000,000 for this facility. I know that's not a fair explanation, but that is how it will be seen.

McGinn will be losing more voters than he may gain by pushing this deal.
Posted by Teslick on February 16, 2012 at 5:26 PM
gloomy gus 2
No kidding. A few more rungs on this ladder and he can climb out of that hole he dug himself into.
Posted by gloomy gus on February 16, 2012 at 5:27 PM
3
@ 1

Public funding participation would be capped at $200 million, with revenue generated mainly by operation of the facility, and with rent paid by the teams and by the arena operator.

The possible location of a new NBA and NHL arena is shown south of the Safeco Field parking garage on Thursday February 16, 2012 in Seattle's Sodo neighborhood. (Joshua Trujillo, seattlepi.com)
Under the proposed agreement, if those sources do not generate enough money, the teams would be on the hook to pay more in rent, said Dwight Dively, finance director for King County. He spoke with media at a briefing before Thursday’s news conference at City Hall.

The anti sports crowd at The Stranger, and thats not everyone here, do not make up the entire voting population, I think this was a very good move for McGinn.
Posted by Democrat1234 on February 16, 2012 at 5:30 PM
Karlheinz Arschbomber 4
If the revenue is generated by the facility, why does govt. become involved in financing this POS at all? Big fucking scam this is.
Posted by Karlheinz Arschbomber http://de.wikipedia.org/wiki/Arschbombe on February 16, 2012 at 6:02 PM
5
it's entirely possible that this deal will pave the way for Sonics to return to Seattle (from Sacramento or New Orleans) as soon as fall 2012 and play in Key Arena. Even if the team doesnt return until Fall 2013 actually having a team back would be a huge boon for McGinn's relection. And I know plenty of people that voted against Nickels in 2009 simply because he lost the sonics.
Posted by melongum on February 16, 2012 at 6:02 PM
6
A similar deal was struck between the City of Glendale, AZ and the then-owner of the Phoenix Coyotes, about ten years ago. This is the same Coyotes team that is discussed as the likeliest to relocate to Seattle. So Glendale committed about $200M, and is now going to be the proud owner of an empty hockey arena. Don't presume that this is a slam-dunk deal for the city and its citizens just yet.
Posted by Looking For a Better Read on February 16, 2012 at 6:19 PM
7
As much as I would love to see Seattle get NBA and NHL franchises, I am dead-set against sports arena deals that have to be substantially subsidized by the taxpayer. And clearly, my opinion reflects the current political climate here in King County. That 2006 Seattle ballot measure only codifies that political reality.

And that's what makes this proposal so intriguing, if it holds up to scrutiny. It's a proposal that recognizes there's zero public appetite for pro-sports hostage-taking. It's a message to the likes of David Stern that: "Hey, if the voters stand up to your arena-financing Ponzi schemes, it's not like the pool of private investors is going to dry up."

I hope most voters out there can make the distinction that, just because it's a public-private partnership, it doesn't have to be a raw deal for taxpayers. Maybe this arena deal is a raw deal after all, in which case I won't have the least regret about pressuring our leaders to walk away.
Posted by cressona on February 16, 2012 at 6:21 PM
8
@ 7 That mood of the city might have changed after losing the team.
Posted by Democrat1234 on February 16, 2012 at 6:26 PM
9
I hate these deals because I hate arenas and I hate arenas because I hate the culture they abet.

Still, I love McGinn.
Posted by stating the obvious on February 16, 2012 at 6:30 PM
Will in Seattle 10
Lose the NBA.

We want the NHL and Professional Lingerie Rugby.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on February 16, 2012 at 6:30 PM
11
@ 1 Reading comprehension fail. It's 200 million in debt, guaranteed by rental income on the arena. If for some reason the rent falls short of covering the debt, the deal would require the team owners to pay extra rent to make up the difference.

Not one dime of taxpayer money will be spent, if this plan is all they say it is. Anything else would be illegal in the city of Seattle, thanks to initiative 91.
Posted by Lack Thereof on February 16, 2012 at 6:31 PM
12
Bring back the SuperSonics! This is a great deal. For the first time since the theft of the Sonics there is warmth in the part of my heart that loves pro basketball. The naysayers can suck it and take their bunched underpants somewhere else to complain. Bring em back!
Posted by Slog Tipper David on February 16, 2012 at 6:42 PM
Jenny from the Block 13
@4 The county and city's bond ratings probably mean they get a lower rate to pay back than some investment company... maybe?
Posted by Jenny from the Block on February 16, 2012 at 6:43 PM
Teslick 14
11: Uh, what part of "that's not a fair explanation" was difficult to understand? I fully acknowledge I was mis-representing this deal, but people vote on perception and emotion most of the time, not facts.
Posted by Teslick on February 16, 2012 at 6:48 PM
edie murphy beverly hills have eyes cleary 15
@9 - You mean urban black culture, right? Because all of Seattle should love your libraries, fancy glass museums and sculpture parks? Because you know what's best for the rest of us, right?
Posted by edie murphy beverly hills have eyes cleary on February 16, 2012 at 6:48 PM
Foghorn Leghorn 16
For once I agree with Will In Seattle on this.
Posted by Foghorn Leghorn on February 16, 2012 at 6:52 PM
Fnarf 17
Oh, I see -- it's magic falling-out-of-the-sky money. Well, then. Never mind.

The fact is, this arena is using MY credit as a resident of Seattle to put money in Chris Hansen's pocket.
Posted by Fnarf http://www.facebook.com/fnarf on February 16, 2012 at 7:05 PM
Kinison 18
Welcome to the Goldy Spinzone. First up, licking the ass of the mayor who has done nothing but jack up the parking rates and enforcement, while pissing off every democrat in the state. Not that I dont mind tax dollars being used to create a new area, but once voters see him flip flop on this, it will be the final nail in the coffin and we can go back to electing someone who knows what the fuck their doing!

Anyone else find it ironic how Clay Bennet pushed for a 500 million dollar arena, just to see the county balk and give him an edge in moving the city to Oklahoma. Now in order to get the Sonics back, we need to spend 500 million.
Posted by Kinison http://www.holgatehawks.com on February 16, 2012 at 7:06 PM
Posted by Supreme Ruler Of The Universe http://yrihf.com on February 16, 2012 at 7:14 PM
20
Goldylocks is ok with blacks playing basketball, just not acting. (Oh, he's ok with them rapping, too.)
Posted by BetarayBilly2 on February 16, 2012 at 7:40 PM
gloomy gus 21
@17, and to reelect the mayor. You are a generous fella.
Posted by gloomy gus on February 16, 2012 at 7:40 PM
Catalina Vel-DuRay 22
There is zero chance of me going willingly to see either a basketball or hockey game, but I like the idea of getting teams, because I am shallow. But they have to call the basketball team the Sonics or SuperSonics. I will also accept the Vel-DuRays, as long as I don't have to do anything but look gracious.

Everyone wrung their hands over the other two stadiums, yet the world didn't end, and there are people who like this sort of thing, so have at it. Plus, if it is successful, it will make the McGinn hater all tense and nervous.
Posted by Catalina Vel-DuRay http://www.danlangdon.com on February 16, 2012 at 7:52 PM
23
Wow, didn't take McChubster long to toss his base overboard. I my grow to like him now he realizes pro-business moderates run this town, not the loony left and their army of social service dependent hobos.
Posted by Now cycle home morons, your king rejects you on February 16, 2012 at 7:59 PM
24
"hand see massive cuts but yet somehow there is $200,000,000 for this facility"

Because unlike the hobos, illegals, criminals, dope fiends and gangbangers the left worship, you can tax stadiums and get it back.

"I hate arenas because I hate the culture they abet."

Really? Key Arena is pack full of lesbians for 4 months every year cheering on the Storm, surely you approve of that? Or are hockey and basketball not gay enough for you?
Posted by Is hockey too white for Seattle? on February 16, 2012 at 8:08 PM
25
I think Mayor McGinn's reelection campaign started today and his first act was tossing his loony left base overboard!
Posted by I may vote for him this time on February 16, 2012 at 8:12 PM
26
Anyone else notice he wore a decent looking suit and tie today and didn't look like a bum, aka. his base? Seriously, what a makeover, he may even get some votes in magnolia if he keeps this up.
Posted by Run Mike Run! on February 16, 2012 at 8:14 PM
27
Hey Kinison, you got your facts wrong. Not to mention some of your descriptive phrasing is disgusting. Clay Bennett's proposal and this proposal are polar opposites. But I think you know that, and are just trolling. Viva The SuperSonics!
Posted by Slog Tipper David on February 16, 2012 at 8:19 PM
28
They were liking McGinn a lot on sports talk radio today. That's for sure. A lot of people don't like McGinn over the tunnel. But between his smooth handling of the snow a few weeks back and this deal, I think he's starting to look better to a lot of folks. If this gets done, it will only help his re-election prospects.

The irony is that getting the Viaduct tunnel situation hammered out is probably one of the variables that made this deal possible and makes it harder for the port of Seattle to complain about it having a negative impact.

This Sonics situation has been one long meta-negotiation. The city stood firm and lost the Sonics. But in doing so, it helped create a context where a better deal has become possible. An improving economy, lower interest, rates, etc probably have helped too.

You have to think that Hedge Fund dudes like Hansen knew in 2007 that it was the wrong time to try and do a mostly privately funded building, because of the state of the credit markets.

Seattle was also shackled to a shitty situation at Key Arena, so that wasn't the most appealing place to try to get something done either, particularly with the demise of the monorail and the Seattle Commons.

Clay Bennett also had no interest in keeping the Sonics here unless they made an offer he couldn't refuse. And even then, his agenda was to take the team back to OKC. That was not a favorable position to negotiate from if you're the city, because the only way to make that kind of an offer was to get help from Olympia, and that wasn't going to happen.

Now the NBA has multiple franchises in financial trouble and more incentive to work together with Seattle to make something happen. Seattle also has a cleaner slate to be creative about getting a deal done. They know Seattle is a good market for NBA basketball. It's probably one of the best markets available right now, provided that the correct variable align. And it looks like maybe they are aligning.

The city and county need to be involved, so they can assess the use taxes, do whatever traffic mitigation is necessary and issue the low interest bonds that make this deal feasible. It seems like about the best deal that a city could possibly get right around now.

But some stuff will have to be done down there. I drove down to the site the other day. It's hard to see how you build an arena solely on the parcel that Hansen has already purchased. It doesn't see wide enough. You either need to go over the railroad tracks or you need to build on Occidental and probably also on the block where the Showbox SODO now sits (unless I"m really confused about where Hansen's land is). But given that AEG owns the Showbox and is evidently a player in some of the L.A. stadiums, maybe they'll end up being a partner in a new arena building up here too.

Assuming they can get the parcels they need, the new location makes much more sense in terms of proximity to I-5 and I-90, connections to transit, etc. than the Seattle Center does.

Why do you think that the establishment powers worked so hard to kill the Monorail? Once light rail was dialed in, they had a plan in mind for the South end. They didn't want to have to compete with another train that served Ballard, Queen Anne, and West Seattle, because those are neighborhoods that are already popular the very white people that they hoped to attract to new real estate development in the south end.

Think about it. By 2024, we'll have a tunnel instead of the viaduct with an open waterfront in Pioneer Square and one imagines luxury condos looking out on it and hopefully a waterfront park. The north parking lot of Centurylink Field will have a large Condo development on it. Probably, these two areas of new development will spur further development activity in Pioneer Square.

A trolley will run from Pioneer Square up First Hill to Capitol Hill. The south part of First Hill will be transformed into more upscale housing, after Yesler Terrance is torn down and replaced with more market rate housing. The area around Beacon Hill Station will be much more densely populated as people realize how well situated it is to downtown, a great park, and the airport. And barring something unforeseen, the East Link light rail will be operating, and Central Link Light Rail will run from Kent all the way to Northgate.

By siting the Basketball/Hockey arena in SODO,, all three professional sports facilities will be accessible by rail from just about every major population center around Seattle. And there will be events and business activities there pretty much all year round, between, the sonic, mariners, seahawks, sounders, and an NHL team to be named later.

That makes a lot more sense to a private developers, which is why this deal is possible when a Seattle Center deal was not. It also makes sense for Seattle, because it keeps the arena in the city limits, where it belongs, and not out in Renton or Bellevue, where it is not as well located for transit, etc.
More...
Posted by j-lon on February 16, 2012 at 8:29 PM
Gern Blanston 29
Besides hockey and basketball, the arena would provide a 20,000 seat venue for concerts, which Seattle could really use. The acoustics for Key Arena are terrible. Think of how many concerts that wind up in the Tacoma Dome would be staged in this new building. I haven't been a fan of McGinn up to this point, at all, but he's shown a lot of leadership in helping to broker a solution to this problem that should work for everyone. I will definitely consider voting for him now.
Posted by Gern Blanston on February 16, 2012 at 8:47 PM
the idiot formerly known as kk 30
Heh. McGinn bailed out by a hedgie in a big money downtown deal.
Posted by the idiot formerly known as kk on February 16, 2012 at 9:14 PM
31
Sad that facts don't matter for some people. The way I read this, the city and county are basically financing construction, not committing any existing public money or making any subsidies. All public money gets repaid with interest (that's what I-91 says). It doesn't come at the expense of anything else local government is currently funding.

It's basically a free arena. Well, free unless you go to the games, in which case you are paying for it - and that's as it should be. If you don't go, you don't pay anything, and you don't lose anything.

I think a lot of people are seeing "public investment" and suddenly think "omg they're spending my tax dollars on this and not on x, y, or z." And I don't see any evidence at all to justify that belief.
Posted by junipero on February 16, 2012 at 9:27 PM
32
@ 27 I agree with you on everything, except the site. Basketball & Hockey arenas are mostly seating, hardly any of them are on the actual first floor. These arenas do not have to be particularly wide. They wouldn't have to elevate the entire building - they could pretty easily cantilever the seating on the east side of the building over the tracks.

However, I suspect they're going to vacate Occidental and use the whole block from 1st to the railroad, Holgate to Massachusetts. The Seattle Center Colosseum would fit almost perfectly in that footprint. That would take out the Showbox, which to me is a net nightlife loss to the neighborhood. The Showbox brings a crowd almost every night of the week to that section of 1st - the arena most definitely will not.
Posted by Lack Thereof on February 16, 2012 at 10:15 PM
33
@28 That was a fantastic post.
Posted by Eric Reynolds on February 16, 2012 at 10:28 PM
34
Yes. @28. Excellent read on the situation.
Posted by derkle on February 16, 2012 at 11:01 PM
gloomy gus 35
What 33 & 34 said. Thank you for that.
Posted by gloomy gus on February 16, 2012 at 11:22 PM
36
I don't often say this, but FuckYeahFnarf@17.

"Magic falling-out-of-the-sky money" is the only kind that sports-stimulus proposals have ever dealt in.

Posted by d.p. on February 16, 2012 at 11:52 PM
37
@28 that's a great summary.

and Glen B @29: I'm all with you. I really don't care much about the NBA/NHL, but I do care about a music venue for larger events. Since the implosion of the Kingdome we're totally off the map for big ones. And although this venue isn't large enough to bring back large acts, it might get us some of the mid-size ones.
Posted by gnossos on February 16, 2012 at 11:55 PM
38
@37: The concert angle is why the AEG tie-in on the arena makes a certain amount of sense to me. They lose access to the Showbox SODO, but gain access to a venue where they can do significantly bigger shows. Moreover, there's probably some other space further south where you could relocate the Showbox SODO if that made sense. Or perhaps you integrate a room that size into the Arena complex.

Another thing that occurs to me now is the way in which having the arena down there makes SODO an even more attractive site for large conventions and trade shows.

The concentration of all these facilities in one place accessible by rail might also might put Seattle in a better position to make a summer Olympics bid at some point down the line as well (not that I care about that myself, but I'm sure it's something that business leaders with hubris do consider). That the Husky stadium, etc. would be connected to the SODO area by rail also would probably be a plus for an Olympic bid.

@32: I'm no expert on basketball arenas, I just drove by the parcel I saw on a map and it seems smaller than the footprint of Key Arena, the Cleveland Richfield Coliseum, the Boston Garden, and some of the other arenas I've had an opportunity to be in. But yeah, I agree that part of the arena could probably over hang above the train tracks. My point was just that it seems like you'd need to vacate Occidental like you said, tear down the Showbox SODO building and take the entire block from 1st to the railroad.

Also, to the extent that arena events happen out of Baseball Season, presumably the Safeco field parking lot could be used for the arena as well. So that's an income source for someone and another plus.
Posted by j-lon on February 17, 2012 at 12:28 AM
Supreme Ruler Of The Universe 39

One thing about locating it here, seems like the Mercer de-messer project is a big waste, because one of its jobs was to get people in and out of Key Arena.

No matter how much of a "great deal" this is, it still seems like using the Key is infinitely cheaper and with the New Mercer much more accessible.

Also I'd love to hear how Lake Union land barons Allen and Bezos feel about having a major project 180 degrees opposite of where they would get the benefit for their rentals. I mean wouldn't all the 28 year old beer drinkers at Dukes want a b-ball stadium up the street from their condos, instead of having to take a g-d trolley and then a light rail to see some ball?
Posted by Supreme Ruler Of The Universe http://yrihf.com on February 17, 2012 at 1:18 AM
Kinison 40
@27 "Clay Bennett's proposal and this proposal are polar opposites."

http://newsok.com/article/3001175

All I see are two proposals, both worth 500 million dollars. One was meant to push the team to another city, the other is meant to bring the team back.
Posted by Kinison http://www.holgatehawks.com on February 17, 2012 at 5:46 AM
41
Are all the greens and social justice loons crying onto their "I like Mike" pins this morning?
Posted by I'm sure you can cycle to the arena girls on February 17, 2012 at 6:37 AM
42
um...if the city isn't giving them *something* (they're giving them credit, duh!) why aren't regular banksters giving te sports proponents the same deal or better?

once again it's a public handout to the rich, end of story.

Posted by mcginn: sellout his base on February 17, 2012 at 9:03 AM
43
@4, excellent point.

$10, bring it!
Posted by LiberatusQuirkus on February 17, 2012 at 12:04 PM
44
@39: Key might be cheaper but it's existing footprint is not suitable for NHL hockey without pretty much tearing it down and starting from scratch. Without Key, you also have no place to put the Sonics while the new building is built. Any money earned during this period would also probably help the city retire the remaining debt on Key.

Being in Seattle Center also probably entails a different sort of relationship with the City that is less appealing to private investors.

There are also less ancillary real estate development opportunities in lower QA than there are in SODO. Presumably, this is another reason why this site is more attractive to private investors. Even if the return on the arena itself is not amazing it may still create synergies for other development around the arena, much like people are hoping that rail will do. Long term this may offer investors in the arena project the opportunity to make higher returns on these other projects.

Don't know how Allen feels. You have to see the demise of the monorail as a loss for him and his vision for QA and SLU and a win for the elites who backed the Link. But it seems like they are still doing just fine in developing SLU. And honestly, the land that Key Arena sits on is probably more valuable in the long run for something other than a sports arena. There are also many other reasons to fix Mercer besides the arena situation. And long term, there will probably be trolley service from SLU to the ID or Pioneer Sq. So Amazon workers should have no problem getting to a game. The same goes for the people of Ballard.

Don't look at where the puck is now. Try to imagine where it will be in 2025. Against this backdrop the SODO plan seems to make a lot more sense to me.
Posted by j-lon on February 17, 2012 at 3:03 PM
45
@3: "Public funding participation would be capped at $200 million"

And when they go overbudget? Will we be stuck with a fucking hole in the ground?
Posted by why can't they self-fund? on February 19, 2012 at 4:35 PM

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