Hansen group revives arena deal with private financing offer

SEATTLE — The plan for a new Sonics basketball arena hasn't changed much, but its prospects for success have likely improved.

“Well the main change is that it will be 100 percent privately financed,” said former Sonics General Manager Wally Walker. Walker is one of the partners with lead developer Chris Hansen.

In a new letter to elected officials they write that, "…a changed economic climate makes possible the private financing of the arena."

That means taxpayers no longer have to borrow $200 million in public bonds to help pay for the arena. Or use the tax money generated by the arena to pay off the bonds.

“It means a lot to Seattle. It's a longtime tradition here. Means a lot to the fan base, a lot to the city,” said Sonics fan Chris Jensvold.

The arena would be built on land just south of Safeco Field.

A bare majority of City Council members rejected the arena plan in January, out of concern for traffic impacts on the Port of Seattle.

In this new proposal, the partners will contribute to building a new Lander Street overpass to help with freight mobility.

In return, arena developers are asking the City Council to approve the Occidental Street vacation it rejected before, to waive the city's admissions tax and to adjust in some way the city's business tax rate on out-of-town revenue like television fees. The admissions tax is already waived for the Seahawks and the Mariners.

The plan for 100 percent private financing gives the arena plan new life.

“There was a lot of public money involved and he didn't get the street vacation first time around for a whole variety of reasons and I think this removes one of the potential hurdles to that,” said City Council budget committee chairman Tim Burgess.

“Under the plan with public financing, the arena could not be built before an NBA team was secured for Seattle. But now that Hansen’s group is financing the arena privately, an NHL could come first.

“Based on the level of interest right now, it seems the NHL is a bit ahead in at least looking at our market,” Walker said.

Cox Media Group