SEATTLE — The committee that will authorize the mayor of Seattle to execute the Memorandum of Understanding between the city and Oak View Investment Group for the potential redevelopment of KeyArena may vote as early as Thursday.
The Select Committee on Civic Arenas is scheduled to discuss and vote on the MOU, according to a memo from the director of central staff.
Included in the memo is the financial incentive of securing NHL and NBA teams. Revenue generated from KeyArena with NHL and NBA teams will, according to the memo, be more than four times as much than without the teams.
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%A chart included in a memo to the
shows revenue for Oak View Group with redevelopment would skyrocket if the NBA returns to Seattle along with an NHL team. The investment group
with the city in redeveloping an arena at Seattle Center earlier this year.
The revenue information was included with proposed amendments to the pending Memorandum of Understanding with OVG. The revenue amounts shown cover a 41-year period that assumes two years of construction plus a 39-year lease. For the city, revenues include all guaranteed payments from OVG and the share of incremental tax revenues.
“OVG’s revenues would include its share of incremental tax revenues only,” the memo states.
Furthermore:
Note that the OVG share reflected in the chart does not include revenues generate[d] from 'arena operations' (i.e. rent, concessions, sponsorships, etc.) or deductions for any expenses for operations, debt service, and various financial commitments to the city as outlined in the MOU.
Which means it’s in OVG’s best interest to secure those teams as soon as possible.
The Seattle City Council must approve the plan before an environmental impact statement and construction can begin. The actual project is estimated to cost $600 million, with additional funding for transportation mitigation, non-profits, business relocation, and more.
The council is expected to hold a series of public meetings before a tentatively scheduled Dec. 4 vote on the arena deal.
Cox Media Group
