The arena task force assembled by Mayor Kevin Johnson has given the Sacramento City Council a gift. It’s a smart starting point as the council mulls over some weighty decisions on a possible sports and entertainment complex for the city.
Some on the council griped that the volunteer panel was created without their blessing and had no standing to evaluate arena proposals. But it would be difficult to argue that Johnson somehow gamed the report unveiled Thursday.
The mayor has insisted that he did not want to be boxed into supporting the complicated three-way land swap that has the backing of the Kings owners and the NBA. Yet, the task force concluded that of the seven proposals submitted, the land-swap plan from a group led by local developer Gerry Kamilos was indeed the most promising – both in terms of having financing and in spurring economic growth.
The so-called convergence plan calls for the state to obtain the current Arco Arena site in Natomas for a new fairgrounds; for Kamilos to buy the Cal Expo property from the state for a residential-commercial project; and for the arena to go on city-owned land in the downtown railyard.
Chris Lehane, chairman of the task force, told the council that the Kamilos plan had “the best chance of success right now.” He added that it is the most likely to limit taxpayers’ contribution and that it offers the prospect of an economic boost to three parts of the region.
The task force, however, urged the Kamilos team to tweak its proposal to integrate an arena with the city’s planned regional transit hub in the railyard. That idea was in the proposal from Thomas Enterprises, which is developing 240 acres surrounding the city-owned site for the transit station. As Johnson congratulated him after the meeting, Kamilos said he was open to that concept, which would help with traffic and access.
The task force also recommended that the council enter into exclusive negotiations with Kamilos and do much deeper vetting of the proposal with the help of outside experts.
That makes sense, as long as the city isn’t bound to any agreement before all the details are worked out.
Council members raised a host of other questions, and they are right to insist on getting answers before proceeding too far: How will the Natomas area be protected? How much is the Cal Expo land really worth, and is that enough to make the deal work? How will the city be repaid the outstanding $69 million on its loan to the Kings? And, most importantly, what will taxpayers put in?
An effusive Johnson said that a new arena could be a “transformative project” that could change the city’s trajectory for decades to come, and that if Sacramento can pull it off during a down economy, it would win national notice.
Maybe so, but only if the deal is done right.
Coming Sunday in California Forum
Associate Editor Foon Rhee and Sacramento-based economist Jock O’Connell pose questions the city should consider in financing and siting a new arena.