Phil Serna taking effort to keep the Kings seriously

County Supervisor Phil Serna often reflects on the fact that his late father, former Sacramento Mayor Joe Serna, saw the city’s only professional sports team as part of the “tapestry” of this community.

Today, he believes his father would be proud of the way Sacramento has fought to keep the Kings in the River City.

“I think my father would probably commend the fact that people have taken this seriously and are really making a concerted effort to work with what they have to keep the team here,” Serna said.

He is one of the folks taking it seriously.

Following a recent conversation with Mayor Kevin Johnson, Serna helped craft a financing option for the county to assist in the city’s efforts to build a new entertainment and sports complex. The proposal, released on Thursday, would commit county possessory interest taxes  generated by the project and allow the commercial use of three county parking facilities during events at the new ESC.

The possessory interest tax (similar to a property tax) and the county parking facilities is estimated to generate $3.5 million annually toward a new facility. The parking lots, all of which are within walking distance of the downtown rail yards, include 1,500 spaces that are currently underutilized at nights and during weekends.

“This type of facility [entertainment and sports complex] located in the rail yards can really inspire redevelopment…of the rest of the rail yards. That is in the county’s best interest because then you have property tax that comes from the rest of the development from that site – which now it has very minimal value on it,” Serna said.

Part of the proposed plan, which is headed to a vote at the Board of Supervisors meeting on Tuesday, requires a portion of the revenues (an estimated $500,000 annually) generated from county parking facilities to be dedicated to provide financial support to county regional parks.

“There is going to be a positive return here, not just in light of the economic benefit of having a sports and entertainment complex,” Serna said.

Serna said the county’s initial commitment will arm Mayor Johnson with another bullet heading into negotiations with David Stern this weekend at the NBA All-Star Game.

“I think the narrative that the contingent from Sacramento is going to take back to the All-Star Game when they meet with the commissioner and league representatives is that they can now with all honesty say, ‘listen, at least there is a few supervisors in Sacramento County that understand the economic benefit that this could bring,’” Serna said.

To view the agenda item for Tuesday’s Board of Supervisor’s meeting, click here. Those who wish to express their support of the proposal can sent e-mails to the following addresses:

BoardClerk@saccounty.net

supersivosrserna@saccounty.net

YeeJi@saccounty.net

MacglashanR@saccounty.net

nottolid@saccounty.net

PetersSu@saccounty.net

City of Sacramento, NBA negotiate 'term sheet'

Wednesday afternoon, Mayor Kevin Johnson's office released a joint statement on behalf of the city of Sacramento and the NBA.

The statement indicates the NBA is ready to dive into the details of the city's financing plan with the aim of having a term sheet ready by March 1 so the public can review it leading up to March 6 when the plan is presented to the Sacramento City Council.

The key funding pieces to the plan are $190-$230 million from the lease of several Sacramento parking garages, $85 million from the Kings and the NBA and $50 million from AEG (the potential operator of the new arena).

Below is the statement:

"The City of Sacramento and NBA are continuing to engage in constructive discussions on the details of the proposed  financing plan for the entertainment and sports complex.

In an effort to keep the public fully informed of the negotiating schedule, and ensure adequate time for public and  City Council review of any proposed financing plan, both parties have mutually agreed to the following Work

Plan for the next nine days:

• 2/22 – 2/25: City officials and City representatives continue to review terms with NBA officials and representatives.
•  2/26:  Mayor Kevin Johnson and select City Representatives to meet with Commissioner David Stern and NBA officials, and representatives of the Maloof family in Orlando during the NBA All-Star Weekend.
•  2/27 – 2/29:  Final discussions and briefings.
•  3/1:  If a plan has been agreed to, publicly announce in form of proposed “Term Sheet”.
•  3/1 -3/5: City Council and public review of the Term Sheet.
• 3/6: Formally present Term Sheet to the City Council for a vote.
  
  

“Sacramento stands ready to meet the March 1 deadline,” stated Mayor Kevin Johnson, “Our approach makes good on the principles that have guided us throughout this process: protecting the taxpayers, creating jobs, and pursuing an open and transparent process.”

“We appreciate the work of the City of Sacramento and our discussions have been constructive,” said Commissioner Stern. “Our hope is that current momentum continues in a way that we’re able to reach a deal by March 1 that makes sense for all parties.”

At the March 6th meeting, the Mayor and Council will consider both the proposed term sheet and a companion plan to ensure no net impact to the City’s general fund.  Council will also consider parking public-private partnership options and other funding opportunities.

The City is being represented by its negotiating team, including Mayor Johnson, Council Member Rob Fong, Council Member Steve Cohn, City Manager John Shirey, City Attorney Eileen Teichert, City Treasurer Russ Fehr, Assistant City Manager John Dangberg, Sports Finance Consultant Dan Barrett, and Transaction Attorney Paul Jacobs."

The marriage between Sacramento and the Kings

Last year, during the fight between Sacramento and Anaheim, the comparisons to a rocky relationship with a girl were getting as old as Jeremy Lin puns.

But considering the news that Seattle has an arena plan in the works that involves a substantial amount of private funding ($300 million from Chris Hansen), I just couldn't resist. I had to.

So here it is. The marriage between the Kings and the people of Sacramento.

Sacramento - The dedicated husband.
Anaheim - The suave, clean cut dude who already tried to steal your girl and created troubles for your marriage. He still wants her and continues to make that clear.
Mayor Kevin Johnson - The marriage counselor. You see him once a month or so.
Seattle - The older, divorced-twice, smooth-talking rich guy. He has his eye on her, but she says she is remaining faithful this time. (Puts you a little on edge, but you are confident.)
The grassroots community - Your family and friend support network.
Feb. 28 council meeting - Your last counseling session. No need to bring up Seattle here because you guys have a plan for the future.
The parking proposal, NBA, AEG, private investments - Key components to your future plan and a way for you to get beyond the past, as well as any current attempts at your woman by those mentioned above.
New entertainment and sports complex - Your future plan - a new house in a different part of town that will provide inspiration and stability. A place for your kids to enjoy when they come home to visit.

I decided to take a light-hearted approach to breaking down the current situation because I don't believe the Seattle arena plan has much of an impact on Sacramento. The city of Sacramento currently controls its own destiny. Chris Hansen, the wealthy San Francisco business man interested in putting $300 million toward building a facility and bringing a team to Seattle, is still at the start line. The Seattle City Council is still going to have approve a deal that would involve some tax revenues. As far as the Kings moving to Seattle, Hansen would have to pay a hefty relocation fee to the NBA, the Maloofs would have to sell - which they have continued to say they aren't interested in doing - and Seattle leaders said on Thursday that they want a team before they put funds into a facility. This is opposite of what the NBA wants to happen.

Seattle deserves a franchise after what they went through when they lost the Sonics to Oklahoma City. I think they will get a team, but it will likely be the New Orleans Hornets before it is the Kings.

The saga will continue, but case in point - Sacramento has an opportunity later this month to secure a "term sheet" between the city, NBA, Kings, AEG and other private investors and save this marriage. My money is on Sacramento - I have already seen too much happen here to believe otherwise.

Getting a new entertainment and sports complex too important to sit idle

The Sacramento City Council will be making a huge decision this month that will set the course
for the future of the region.

With a chance to make Sacramento a destination city - no longer the middle point between San Francisco and Lake Tahoe - we must urge our elected officials to support this project.

This Tuesday, there is a critical council meeting at which our representatives will be deciding whether or not to move forward with the lease of several parking garages that would generate hundreds of millions of dollars toward a new entertainment and sports complex.

As a member of the Here We Stay grassroots campaign and a proud citizen of the Sacramento region, I encourage you to attend this meeting.

I also urge you to e-mail the following letter to the council to express your support for a new entertainment and sports complex.

***

Dear Councilmember,

I am writing to urge you to support the city staff's recommendation on the proposal to lease parking facilities in order to generate capital needed to construct a new entertainment and sports complex in downtown Sacramento.

Boosting the Sacramento economy should be our No. 1 priority right now. A new entertainment complex at the Railyards would generate an estimate $157 million in regional revenue annually, $100 million of that just in downtown. The local tax base will be increased by an estimated $6.7 million per year. That's money that can help pay the police officers and firefighters our community needs long-term.

We'll begin seeing those returns immediately, as the development of the project could create up to 4,000 sorely needed construction jobs downtown, and development of additional area parcels currently sitting idle could add thousands more to that tally. Building a new entertainment complex also keeps the thousands of jobs tied to arena operation in Sacramento. We can't afford to lose those jobs. The proposed developers of the project have entered an agreement with regional labor groups to keep those jobs local.

This proposal has unprecedented support from labor, from business and from the hundreds of thousands of residents who enjoy first-class entertainment options like NBA basketball, the music industry's top acts and so much more. This is a historic opportunity to help secure Sacramento's economic future, and it's one we can't afford to pass up.

Please join me in supporting the staff proposal on funding a new downtown entertainment and sports complex.

Sincerely,

[YOUR NAME]

***
Here are the email addresses to use:
aashby@cityofsacramento.org
jschenirer@cityofsacramento.org
ssheedy@cityofsacramento.org
scohn@cityofsacramento.org
rkfong@cityofsacramento.org
kmccarty@cityofsacramento.org
bpannell@cityofsacramento.org
dfong@cityofsacramento.org
mayor@cityofsacramento.org

Here We Stay urging community to make statement on TNT

The Here We Stay grassroots campaign is asking Kings fans attending Thursday’s game against the Oklahoma City Thunder to print this chant flyer and bring it with them.

The campaign is dubbing the game “TNT Night” mainly because it is the team’s only nationally televised game this season. But it comes at a critical moment as well. The Sacramento City Council’s vote on the lease of several parking garages is quickly approaching, and it is important to use the national attention to again spotlight the community’s support of the franchise and the effort to build a new entertainment and sports complex.

Kings fans also are encouraged to bring signs displaying their support and to be as loud as they possibly can.

The Kings are calling the entire day “Black Thursday” and asking fans to wear black to work and school, and then to the game. Click here to purchase tickets.

For more information and ways to get involved, follow Here We Stay on Twitter @herewestay and on Facebook at www.facebook.com/herewestay.

Executive director of Think Big: This is a 'defining moment' in Sac's history

The city of Sacramento recently released a list of companies interested in purchasing a collection of city-owned parking garages that would provide a substantial upfront payment to help fund a new downtown entertainment and sports complex.

The list, shown below, is a mixture of national and local parking companies and financial institutions.

Ontario Teachers’ Pension Plan Board

Xerox Corporation

InterPark LLC

Guggenheim Securities, LLC

Sacramento Forward, LLC

Gates Group Capital Partners

LAZ Parking/CIM Group

The Carlyle Group

CMB Export LLC

Morgan Stanley Infrastructure, Inc.

Bainbridge ZKS

Revitalizing Sacramento LLC

Capital City Parking Group

I recently spoke to Chris Lehane, executive director of the Think Big Sacramento coalition, about the status of the arena financing plan. The Sacramento City Council is expected to vote on whether or not to move forward with the parking lease at their Feb. 14 meeting.

BE: Are you pleased by the response and quality of the companies interested in purchasing the parking facilities?

CL: “We had 25 entities expressing interest, 13 actually made an RFQ. To make an RFQ it costs money, you have to spend money and time. It’s a complicated process to go through, so you have 13 entities and that really does represent the top-tier entities in the country, nationally who are involved in parking. Top-tier banks or financial institutions, and in addition to that we’ve also got some of the cream of the crop in the region who have expressed interest. People who have done successful projects in Sacramento, people who have significant credibility here in Sacramento. So it gives the city an opportunity to really be able to have some confidence that it can move forward with an RFP.”

BE: Obviously, there is a big city council vote coming up. How do you see this playing out in the coming month?

CL: “I don’t want to be presumptuous, I think the council has done a great job to date in terms of doing their diligence and looking out for the best interests of the city and their constituents…I do think as we work through February the city is going to have a major decision to make that will be a defining moment in this city’s history." 

"It can go one of two directions. One direction, and I don't think this is going to happen, but one direction is for whatever reasons the decision is made not to go forward with the leasing of the parking, and I think that decision would make it very challenging. Not impossible, but challenging, for the arena deal to be able to move forward, for the 4,000 jobs to be created, for the $7 billion in economic development to happen - all of the great things that can happen from an economic perspective. And the other decision is to move forward with the leasing of the garages, which will then help provide basically, the catalyst for this entire deal to be able to move forward. If the deal moves forward, we keep the Kings, the Kings are the anchor tenant to develop the facility. The facility gets developed, the downtown is transformed."

“This is going to be the biggest decision that the city has faced since the decision was made to have the transcontinental railroad end in Sacramento, which basically kicked off modern-day Sacramento. And if this city wants to move into the future and have a vibrant, robust downtown – a real economic epicenter – this is that moment in time.”

BE: If the city council votes yes to move forward with the lease of the parking facilities, does it put the ball in the NBA’s court to show a dedication to stay in Sacramento?

CL: “They almost have to happen concurrently. So the RFQ has happened. We now know that there are 13 entities. We now are going to be in a place where we can move forward on an RFP which will have some type of a baseline number that would represent the contribution from the city, again derived from the people who would be parking there, who would have otherwise not been there. That point is now. The NBA is going to need to be in a position where it either says, 'this is a deal that makes sense, we’re prepared to move forward' because it is difficult for the city to move forward with the RFP until they know that the NBA, and by extension the Kings, are prepared to move forward because the RFP locks you in. Once you do an RFP you are committed to whichever bidder is the best.”

BE: With the meetings that the city and the Mayor has had with the NBA, do you get a sense that if the city council votes yes on this parking deal that the NBA will be on board?

CL: “If you look around at the various arena deals that have been done by the NBA, this would represent a deal that makes sense from an economic perspective. It is not the single best deal that has ever taken place – it’s not Orlando which paid 110 percent of the cost – but it is a very competitive deal. It is certainly a better deal than what was available in Anaheim. It is a deal that should allow the team to be in a much stronger economic position. It is a deal that should allow the NBA to stay in a market that they have expressed a strong desire to stay in. At the end of the day, we have always said that this is about economics. The economics have to work for the city, it has to work for the league, it has to work for the team. We know it works for the city, based on what we know it should work for the league and the team, and so with those types of facts in the mix, I see every reason why folks should go forward. But I can’t speak for the NBA and don’t have the benefit of knowing what is exactly inside their heads.”

BE: Is AEG waiting until the city OK’s this parking lease to put their full support behind the arena financing?

CL: “AEG is very much a possible big piece of the formula, but their piece is really continent ultimately on whether the NBA decides to move forward. I am comfortable that we have an economic scenario that will allow a really credible operator, whether it is AEG (and AEG is at the top of the list), or someone else to participate in this, and by participating also make revenue available that will help pay for the facility. I am very confident and comfortable that we have a viable formula that works.”

BE: Ron Burkle recently expressed interest in purchasing the Los Angeles Dodgers. You know him personally, do you think he is still keeping an eye on the situation in Sacramento?

CL: “I don’t want to speak on Ron’s behalf obviously, but I know Ron is someone who cares deeply about California. He has been incredibly supportive of efforts in California and I also know that he is a sports fan, and has had tremendous success with what he has done in Pittsburgh with the Penguins, which I was involved with." 

"I certainly believe you could take a look at the Sacramento scenario and see it to be the NBA analogue to what took place in Pittsburgh, and I think there is no one smarter in terms of looking for opportunities that people may not typically see than Ron Burkle. I’ve always said that I think that people have not looked at the Sacramento opportunity in a way that they really should. In an adjusted market analysis with only one major professional sports team here, there is a lot of revenue that is not typically available. It is also the capital of the 8th largest economy in the world. To the top 100 businesses in the United States, after Washington D.C., this is the single most important regulatory environment for them. So it’s not just necessarily looking at who the corporate base community is here, it is also looking at corporations that have an interest in what is happening in Sacramento. That impacts luxury boxes, naming rights, other types of sponsorships.”

“Ron is one of those in a small group of folks who see opportunities where other people don’t. He doesn’t think in a linear way, he thinks in a much more global way and I think that whether it is Ron or someone else who is willing to look at this in a little bit different way, there is a potential opportunity. Having said all of that, I want to be very clear, this is the Maloof’s team, they own the team. They have obviously expressed a strong interest in staying here and making this work and obviously, to have them remain here and be a big part of this is a natural solution.”

BE: Let’s talk about what is going on right now with Think Big. The Mayor announced the "Brick by Brick" campaign at his State of the City speech, which will allow people to purchase engraved bricks on the new arena. Are there any details on that campaign yet?

CL: “The details will be coming in April, we need to get through the next couple of months to have a sense of where we are. But yeah, we are going to be putting out a detailed program and that will really give people the opportunity to look at this as the ‘people’s house.’”

“The idea with this arena is that it is going to be the people’s facility, not just basketball which I do think it is important because it contributes to the community, but concerts which help bring other potential venues and events which will contribute to the community. It is a community asset. People have compared Sacramento to a greenhouse – it grows up these great kids but then the kids leave. Let’s keep the next generation of great people here in Sacramento. This facility, I think, will be an incentive to do so, and so let’s actually have a tangible connection so that people can contribute." 

"We’re not looking at this [the Brick by Brick campaign] to solve or address the funding issue, that’s a separate thing, but we are looking at this as a way to have a connection in much the same way that part of the Boston Celtics are publicly owned or the Green Bay Packers are wholly owned. Let’s have that community connection because I do think that this franchise is a special franchise. It is the only major professional sports team here. There has always been an affinity between the public and the Kings, and it is a huge part of the community. This is the type of the community that can have even a more special and enhanced relationship with the team and the community and with the facility and the community.”

BE: Think Big also brought in a group of political advisors recently as well, the “Purple Swat Team” as they are being called. What do they bring to the table?

CL: “We brought in a group of guys who are from Sacramento, their families are here and they are committed to living here, and they have deep experience in statewide politics - Aaron Mclear was the spokesperson for Gov. Schwarzenegger; Brian Brokaw ran California Attorney General Kamala Harris’s campaign; Josh Ginsberg was a lawyer for Governor Schwarzenegger. All three are making their homes here and they have volunteered their services to help do community organizing.”

“It is great that those guys have offered their services. We call it the ‘Purple Swat Team’ because first of all the Kings are purple, second of all because you are getting the red and the blue - the bipartisan - so you end up with purple.”

BE: It has been said that something like 70 percent of the construction work is going to be contracted out through local companies on this arena. It seems as though this project gives Sacramento an opportunity to build out of the recession.

CL: “Just look at the economics: 4,000-plus jobs and we have committed to making those Sacramento jobs. Right now, there may be a small number that there just aren’t people in Sacramento who can do the type of technical work, but first and foremost almost all of these jobs are going to be based here. And there is nothing that can catalyze the economy of a community more than construction jobs. The dollars attached to construction jobs have the greatest velocity. They will have a multiplier effect throughout the communities."

"Think about it, a carpenter has a job where they may have been unemployed over the last couple of years. In the building trade, unemployment is over 30 percent in some places, maybe even higher here. That carpenter has a job for a year or two years, they are able to take care of their family, they are able to buy things in the community that money ripples out very quickly. Then you look at the $150,000-plus million a year of economic activity that’s going to be spent developing this and spun off by it. That is a huge injection of money. You have the $7 billion that will be spent over the lifetime of the arena, which is a huge injection of money and that’s obviously the net present value of that money. And then above and beyond that you are transforming downtown Sacramento.”

“This city is one decision away from really transforming itself so that when you walk through downtown it would be a remarkably different place.”

“It’s a baseball facility, but the Giants facility in San Francisco [AT&T Park] has completely transformed a neighborhood that was basically an undeveloped area of old railroad yards. So the ability of what this can do for Sacramento is just enormous. Again, people have to do their due diligence, but if you are walking down the street and you see a $20 bill on the ground, all you have to do is pick it up and you are $20 richer. This is a comparable type of decision for folks to make.”

Kings seeking solutions for lackluster play

The Kings aren’t there yet. And there aren’t any specific answers as to why.

One of the more general reasons is that the team isn’t playing, well, like a team. Head coach Keith Smart agrees.

“We don’t have a team right now, we have a collection of players trying to fit something together,” Smart said after the 122-93 loss to the Nuggets Wednesday night.

Turnovers, one-pass possessions and an inability to defend the paint were just a few of the breakdowns on full display against the Nuggets.

Jason Thompson said it’s going to take every individual player to make changes in order to turn around this 6-13 season.

“There is a lot of selfish stuff going on right now,” Thompson said. “We have to look at ourselves in the mirror.”

Thompson said that starts on defense.

“You gotta look at yourself in the mirror and say, ‘alright my man averages this, he’s going to be 10 below that tonight,” Thompson said.

Smart also says the changes must begin on defense.

“It’s not offense right now, we’ve gotta get our defense together,” Smart said. “If you don’t get your defense together, [and you are] playing bad offensively, you are not going to have a chance.”

Jimmer Fredette, who has seen an increase in production over the last three games, says he and his teammates are getting the hang of where they need to be on the floor.

“I think we are getting better, there is still some confusion sometimes with different things that we need to do, but I think it is getting better than it has been in the past,” Fredette said.

As for the struggles?

“We’re trying to get there, obviously it’s tough, we’re still building as a team; still building with the coaching staff, trying to get where we are supposed to be and we realize it is going to be a longer process than we probably want it to be,” Fredette said. “So now it is us trying to be consistent and trying to make ourselves be a contender every single night.”