Kings and City of Sacramento Agree To New Arena Terms



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(Sacramento, CA)
Monday, December 16, 2013

Assistant City Manager John Dangberg says the old Haggin Oaks sale was part of an agreement between the city and Ron Burkle - one of the original members of a group that agreed to help buy the Kings and build an arena.

'We had a different developer as part of the team when this term sheet was negotiated," says Dangberg.  "They had a greater interest in freeway commercial development than our current team does. Our current team is more focused in on urban core development."

The City has instead agreed to sell three downtown parcels to the Kings for about $3 million. The properties are the former Plaza building east of Cesar Chavez park, a vacant lot at 14th and H, and a retail building at Third and K streets.

The money from the sale of property counts towards the $38 million the Kings promised to the arena project. 

The Kings have also agreed to hand over the deed to the site of the arena to the City of Sacramento.

Dangberg says instead of paying property tax, the Kings will pay a possessory interest tax.  Dangberg says the two amounts are "generally equivalent."  

The Sacramento City Council will be asked to approve the new terms Tuesday night.

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