The City and the Kings are being sued by members of the group Sacramento Taxpayers Opposed To Pork or STOP.
If the ruling is finalized, the fraud claim made against the City and the Kings will be dropped because the court has found the petitioners failed to prove the City purposely under-valued assets it plans to leverage to help pay for the arena.
Judge Timothy Frawley wrote that the petitioners in the case have shown no proof that Downtown Plaza Garage and city billboard leases are worth tens of millions of dollars more than what the City stated in a staff report."
Frawley also wrote that the lawsuit could not be used to prevent the city from increasing parking fees.
The suit claims the City improperly used public funds to help a private business and failed to prove the arena project will benefit the community financially. The tentative ruling would allow those parts of the suit to continue.
The judge listened to arguments this morning. He gave no timetable for issuing a final ruling.