Key Arena funding proposal

The climate for this isn't the best but the proposal isn't too bad. But, there isn't a mention about the 24 million from the sale of the land that the practice facility is on to the B&M Gates Foundation. In the "other" proposal the cost is knocked down by 24 from the land sale.
500 more seats, all revenue, new practice facility.

http://seattletimes.nwsource.com/html/localnews/2002187629_sonics23m.html

"At the request of the Seattle Sonics and Mayor Greg Nickels, a bipartisan trio of state lawmakers will introduce legislation today that would finance a $205 million expansion of KeyArena and provide millions more for King County arts programs by extending several taxes now used to pay construction debt on Qwest and Safeco fields.
The bill asks lawmakers to redirect revenues to city-owned KeyArena and local arts programs that would first be available in 2013 when the Safeco Field debt is retired.
Those revenue sources include portions of car-rental, general-sales, hotel-motel and restaurant taxes in King County. The Sonics' proposal also includes a sales-tax exemption on Arena construction costs. The bill is sponsored by Reps. Eric Pettigrew, D-Seattle; Larry Haler, R-Richland; and Kelli Linville, D-Bellingham.
It does not include an earlier proposal floated by the Sonics to indefinitely extend several temporary taxes to pay for future renovations to Qwest and Safeco fields as well as KeyArena. "


"The bill would retire KeyArena's $58 million debt from the building's 1995 remodel. City leaders want to see a financial recovery for KeyArena because its problems create a drag on the entire city budget.
It also would help King County arts and cultural groups, which have been eyeing the same revenue sources as the Sonics. The bill would steer $4 million a year to arts, cultural and heritage groups from 2013-20. Starting in 2021, the Sonics would split the 2-percent hotel-motel tax with those groups until the KeyArena expansion is paid off.
Deputy Mayor Tim Ceis said approval of the bill would make it more likely that the Sonics — who say they have lost $50 million over the last five years — would stay in Seattle when their current lease expires in 2010.
As part of the legislative package, the Sonics would manage the renovation project and assume responsibility for any cost overruns. They would also commit to a new 20-year lease and manage the new KeyArena for the city. In return, they would receive all revenues from operating the arena.
The team now splits some revenues with the city. Sonics executives say that split makes it difficult for them to make a profit.
The proposed expansion would nearly double interior space at KeyArena to 730,000 square feet, including a practice facility and team offices. It also would add about 500 seats, while eliminating roughly half of the building's 53 luxury suites in favor of more varied seating and prices.
Sonics' Vice President Terry McLaughlin said the arena's physical expansion is more about "fan appreciation" than adding to the team's bottom line through food, beverage or souvenir sales.
"It means we can sell tickets easier, he said. "It would make the fans' experience better."