Arena panel trying to make sure Seattle doesn’t get hosed

She’s been a hardcore Seattle sports fan for years, but
former Seattle City Councilmember Jan Drago says she’s not
about to simply rubber stamp a new arena.

Drago is co-chair of the Arena Advisory Panel, a citizens
committee made up of local business and
community leaders. The group met for the first time
Wednesday night to determine whether the city and county
should back a proposal from Seattle-native and hedge fund
manager Christopher Hansen. He wants the new arena in Seattle’s
SoDo neighborhood, but is asking the public to finance $200
million, to be repaid with future arena revenues.

Among the biggest concerns for the panel are
transportation and making sure taxpayers don’t get stuck
footing the bill for the arena if either a new NBA or NHL
franchise goes bankrupt.

“It sounds to me like they’re building in as much
protection as they possibly can,” Drago says cautiously.

An expert told the panel the taxpayers would get paid
before any other creditor in the case of bankruptcy, and
pointed to NBA and NHL takeovers of bankrupt franchises in
Phoenix and New Orleans, where the teams continue
operating.

“There’s kind of a double protection there before the city
is left holding the bag and stuck with an empty arena.”

The advisory panel is tasked with making sure the proposed
financing of the arena protects the city from risk and
complies with a city initiative requiring all
publicly funded sports facilities make a profit.

“I think that we have to feel confident that we aren’t
going to repeat the mistake of the past with KeyArena and
the Sonics,” insists Drago.

Finances weren’t the only red flag raised at Wednesday’s
meeting. An official with the local Longshoreman’s union
expressed concerns about arena traffic blocking vital
freight corridors in and out of the Port of Seattle.

Drago agrees it’s a legitimate concern and says the panel
will take the impact into consideration when it makes its
final recommendation to the city and county councils
about whether to proceed with the agreement.

The panel is on a tight timeline. It’s tasked with
issuing a report on March 16.

Hansen is expected to attend an upcoming meeting and lobby
on behalf of the proposal. Drago says she hasn’t met him
or spoke with him, but can’t wait.

“It’s very interesting. I mean, I haven’t heard one person
that’s met him say anything negative about him,” Drago
says. “He kind of seems like the guy riding in on a white
horse who loves Seattle and loves basketball. It almost
seems too good to be true.”