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Sacramento Treasurer: Arena Lawsuit Will Cost City $27 Million

Bob Moffitt / Capital Public Radio

Work continues at the new Golden 1 Center in downtown Sacramento.

Bob Moffitt / Capital Public Radio

The Sacramento City Treasurer says a lawsuit filed against the city and the Sacramento Kings' arena project caused a delay in the bond-buying process. That delay will cost the city $27 million over the next 30 years.

Treasurer Russ Fehr says the city was prepared to buy bonds for the arena project last May, but litigation delayed entry into the bond market until September.

Fehr says if the city purchased bonds earlier, the interest rate would have been 0.5 percent lower. That's a $900,000 per year increase on the debt service.

The lawsuit alleged the city promised financial benefits to the Kings that were not made public.

A judge ruled against the suit in its entirety.