Why can’t Seattle arena investor get money from the bank instead of taxpayers?

Seattle Mayor Mike McGinn defends arena deal in live appearance on Ross and Burbank (Erin Rose/97.3 KIRO FM photo)

There’s plenty of enthusiasm for the proposed Seattle
arena that would bring the NBA back to town. Local
leaders have hailed the plan that calls for hedge fund
manager Chris Hansen and other investors to put up around
$800 million dollars for the arena and two pro sports
teams, with Seattle and King County fronting up to $200
million in bonds. The agreement calls for the taxpayers
to be repaid with taxes generated by the arena.

“These are taxes from the arena itself, taxes that
wouldn’t exist except for the arena. It’s an unprecedented
deal,” Seattle Mayor Mike McGinn told 97.3 KIRO FM’s Ross
and Burbank in a live interview.

But co-host Dave Ross remains skeptical about putting up
any tax money and getting stuck holding the bag.

“Why wouldn’t he just go to a bank like other businesses
have to do, because I think it is fair to say that as
socially beneficial as this may be, any job you could
argue is socially beneficial so why don’t other businesses
get this kind of deal?”

But McGinn again insisted it’s not only a great
opportunity for the city, taxpayers are more than
protected.

“I think a lot of the skepticism out there comes from of
when have you seen somebody come forward and say ‘I will
put in hundreds of millions,'” McGinn said.

Ross remains among the skeptics, but McGinn remains
confident Hansen will make good on his word and the city
will come out a winner with a new arena and all the
benefits that come with it.