Private investor promises $290 million for Seattle sports arena

A private investor, Christopher Hansen, has proposed raising $290 million in private investment for a new sports arena in Seattle. He also says his group will bear the costs associated with acquiring an NBA team and seek help in recruiting an NHL team for the arena.

Seattle Mayor Mike McGinn and King county Executive Dow Constantine, who announced Hansen’s proposal in a news conference on Thursday, have appointed a panel to evaluate the plan.

“This is great news for Seattle,” said McGinn. “On first look, we have an exciting proposal that, if successful, would mean hundreds of millions of dollars of private investment in our city – an investment that means even more during our city’s fragile economic recovery.”

While Hansen promises to contribute nearly $300 million, the proposed package would include financing from the city and county capped at $200 million. It’ll be repaid over 30 years through rent on the arena and taxes on arena activity, including revenues from city and county property, sales and admissions taxes.

While it’s a strong proposal from Hansen, McGinn admits there’s still a lot of work that needs to happen before anyone is going to be buying up seasons tickets.

The major components necessary are the teams.

“He’s (Hansen) not going to put his money in until he’s secured the tenant he needs for his building and we’re not going to put our money in until his money is in,” explained Constantine. “If we’re participating, it’s because there is a team secured.”

That said, mayor said Hansen and his team are serious about working with the city.

“He’s obviously not going to be committing the time and effort he’s been committing so far and the potential dollars unless he feels his prospects are good,” said McGinn.

It is still uncertain which teams would play at a new arena. Seattle’s hopes of landing the Sacramento Kings took a minor hit when a unanimous vote from the Sacramento City Council authorized detailed talks that would raise nearly half of the $387 million for a new sports and entertainment arena.

Sacramento is under a March 1 deadline from the NBA to come up with a viable proposal to build an arena for the Kings.

Former Sonic Shawn Kemp spoke with 710 ESPN Seattle’s Bob and Groz Show about the possibility of Seattle getting the Sacramento Kings, if their deal falls through.

“It just seems like if this happens, maybe we’re in the right position,” said Kemp.

The next step in the process is the review committee will analyze and report findings to the city and county, who will then need to approve the project.

Voters will not play a role in the new decision because there has already been a public vote. According to the City of Seattle, “voters in Seattle set the parameters for the City’s investment when they voted in favor of Initiative 91. The principles of this proposal are structured to ensure revenue streams consistent with Initiative 91.”