Advisory panel calls arena plan ‘a solid proposal’

An advisory committee reviewing the proposal for a new
Seattle arena has determined the plan by hedge fund
manager Chris Hansen is “solid” and worth pursuing.

King County Executive Dow Constantine, Seattle Mayor Mike
McGinn and Hansen are expected to make an announcement
about the proposal Thursday morning.

“We believe that it is a solid proposal that is worth
taking forward for further study and input,” said former
Seattle City Council member Jan Drago, co-chair of the
Arena Advisory Committee.

The panel of local business and civic leaders was tasked
with determining whether the city of Seattle and King
County should move forward on the proposal for a new
arena south of Safeco Field that has been estimated to
cost between $450 and $500 million.

The group’s primary focus was assessing risk to taxpayers
and the feasibility of Hansen’s proposal, which includes
$290 million in private investment. The city and county
would contribute $200 million, which would be repaid
through taxes and rent generated by the arena.

Hansen would also own the NBA team under an agreement, but
not the NHL team.

“Based on the review, the panel believes that the proposal
is favorable, has promise and is generally consistent with
the principles set forth by the mayor and the county
executive,” said Drago.

The committee said that, while Hansen’s plan is strong,
especially compared to other stadium financing plans
nationwide, a number of questions remain about protecting
taxpayers during the 30-year agreement. “Especially, how
do you address the kinds of risks that could happen in
bankruptcy or default by the investment group?” said
committee member Maud Daudon.

The committee didn’t review many of the concerns raised by
Mariners CEO Howard Lincoln and the Port of Seattle,
including traffic and parking. They did identify those
issues as ones that need to considered as the project
moves forward.

“Obviously, if they result in significant financial
impacts that would impact the question of the general fund
and the financial risk of the city and county,” Daudon
said.

Lincoln said, in his letter to city and county officials,
that if the SoDo neighborhood is selected as the site of
the new arena, then the Mariners would stand “ready to
work,” with the city, county, and Hansen.

Other locations for the proposed arena were also suggested
by Lincoln, but the panel has been examining a Seattle-
specific proposal, according to Seattle Mayor Mike McGinn.

The committee’s report goes to city and county leaders,
who will ultimately determine whether to pursue the arena
project with Hansen.

Hansen has said he is trying to make Seattle arena-ready
if a NBA team becomes available. Although he said he’s not
rooting for any teams to fail in their city or market.
Many have been closely following the possibility that the
Kings will leave Sacramento.