Sacramento's attempts to build a new arena to keep the Sacramento Kings basketball team in town have been costly for taxpayers.
After the latest arena deal was officially pronounced dead at the May 8 City Council meeting, it was revealed that Sacramento spent $680,000 in its attempt to get an arena deal in place. The spending was approved by the City Council in March, and was part of $850,000 designated for the planning and design of a sports and entertainment complex. The majority of this money came from city's self-funded parking account.
Among the expenses that made up the predevelopment costs was money spent for lawyers, consultants and travel. The largest expense was $252,350 for consulting from the Barrett Sports Group, which was Sacramento's financing adviser and lead negotiator. Another $175,000 was spent on an analysis that showed that the city may rely on future downtown parking garage revenue to finance capital improvement projects in addition to an arena. The city spent $8,000 on travel for various meetings that took place in Los Angeles, Dallas, Orlando and New York.
The arena was planned to be built in the Sacramento rail yard for $391 million. Arena funding was to be shared by the city, private partners and the Kings. It appeared that a deal had been reached in February, but fell through after problems occurred with details between the city and the Kings. The Kings' primary owners, the Maloof family, pulled out of the deal in April, and are expected to try to move the team to another city. (Source: The Sacramento Bee, May 8.)