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Residents Drop "Secret Subsidies" Arena Lawsuit Against City

Andrew Nixon / Capital Public Radio News
 

Andrew Nixon / Capital Public Radio News

Three Sacramento residents have dropped their lawsuit against the city for allegedly providing "secret subsidies" to the Kings' arena.

That removes the final legal barrier to financing the project. It clears the way for the city to move quickly on its $255 million subsidy to the new Golden One Center.

With bond interest rates expected to rise in the coming months, Sacramento City Councilman Steve Hansen says it also saves the city money.

Construction of the $507 million dollar arena began last October.

"Because they dropped this suit it looks like we're going to save a million dollars additional a year in interest over the 35 years of the loan, so it creates certainty and allows us to move forward. I think they did the right thing," Hansen says.