Sacramento Entertainment &
Sports Complex
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Pictured is one idea of what a new complex may look like, but it does not represent a proposed design.
About the proposed Entertainment and Sports Complex
The City of Sacramento is working to develop an entertainment and sports complex (ESC) at the Downtown Railyards. The proposed project includes the construction and operation of a 675,000 square foot, approximately $387 million facility on the 13-acre site, located next to the existing historic Sacramento Valley Station Depot.
The ESC includes a sports arena and associated commercial activities within one large building intended to replace the existing North Natomas arena.
The ESC is proposed to be located on City-owned property next to the existing historic Depot along I Street between the I-5 freeway and 5th Street. The Depot currently provides intercity rail, light rail and bus services and is the future location for the City's planned Intermodal facility.
Current activities
Joint Statement by City of Sacramento and National Basketball Association
Read today’s joint press statement and work plan for the next nine days… Click here
For more information regarding the Parking Monetization RFQ process...Click here
Parking Monetization RFQ Most Qualified Bidders List Report to City Council
Tuesday, February 14, 6 p.m.
City Council Chambers
915 I Street
See Reports and Resources page for the Council Report.
About the process
The City is currently completing studies and researching the opportunity so that any potential agreement will represent a return on the public's investment, with the return defined as jobs, cultural and economic development. In order to keep the public informed we have and will continue to make all studies and reports available to the public for review and comment.
The City is also committed to evaluating the relocation of the region's arena from Natomas to downtown and is analyzing reuses of the current Natomas arena site including the surrounding land owned by the City. This site totaling over 184 acres represent a tremendous economic development opportunity for the community.
The City will provide updates and hold public meetings throughout the ESC development process. You can obtain more information through Gov delivery (Sign up for email alerts.), the City's official Facebook page and official Twitter page.
Next steps
The City has started environmental review of the ESC under the California Environmental Quality Act. The approximately one-year environmental process began on October 12, 2011 with the release of a notice of preparation of an environmental impact report.
The building design and precise location within the 13-acre site and the financing structure for the ESC is being planned and evaluated concurrently with the environmental review process.
To ensure that the public's interests are protected, the City has hired specialized professionals to include legal, sports finance, parking, investment banking and municipal finance experts.
With the assistance of the consultant team, the following will occur between fall 2011 and early 2012 along with the start of the CEQA process:
- An evaluation of the asset value of the City's parking operations and assets along with policy, legal, timing, operations and general fund impact considerations
- A peer review and further analysis of the revenue and finance options presented to Council on Sept. 13, including: policy, legal, finance, timing and budget impact considerations
- A review by the City Treasurer of the debt capacity and credit rating and implications of any debt
- Negotiations with ICON-Taylor, NBA, the Kings and the facility operator
- Agreement on acceptable terms for the finance, development and operation of an entertainment and sports complex.
- Preparation of a predevelopment agreement for the ESC
The NBA, Kings, developer and City are working diligently toward having a finance plan funding secured by the end of the year. The NBA has established a target date of March 1, 2012, to complete a viable finance plan. The NBA, Kings, developer and City are working diligently toward developing a finance plan.
The following are the team members that are representing the City in these discussions:
- Council Ad Hoc: Mayor Kevin Johnson, Council Member Rob Fong, Council Member Steve Cohn
- City Team: John Shirey, John Dangberg, Eileen Teichert
- Outside Advisors: Dan Barrett (Finance/Negotiation Advisor), Paul Jacobs (Transaction Counsel)
Background
In February 2011, City Council selected ICON-Taylor over three other teams to prepare a financial feasibility analysis on a new ESC. David S. Taylor Interests, a Sacramento developer, and Denver-based ICON Venue Group, which represents owners in the entertainment and sports industries were chosen based on qualifications and approach.
On May 26, 2011, the ICON-Taylor team presented a feasibility report to City Council outlining the potential site, arena program and design, construction cost and overall project budget, project development schedule, and sources for project funding and financing and financial viability of ongoing arena operations.
With the May 26th report, the City began a technical review and this report to further vet issues and costs related to the planning, building, design, transportation, utilities and re-use of the current arena. The staff reports were presented on Sept. 13, 2011 along with a nexus report and this presentation from the Think Big committee outlining a mix of public and private funding sources and user fees. Think Big is a regional initiative launched by Sacramento Mayor Kevin Johnson to facilitate construction of a new entertainment and sports complex.
The approval to hire professional consultants to analyze the finance options and negotiate was given on Sept. 27, 2011, when the Council authorized staff to enter into contracts for consultant services, as well as with an Exclusive Right to Negotiate with the ICON-Taylor group.
On December 13, 2011, City Council authorized staff to begin the initial phase of parking monetization in order to secure funding to support construction of the ESC. For more information on that process, please visit the parking monetization website. Please note that no decision will be made by Council on the lease of the City’s parking assets until terms for the finance, development and construction of the ESC and revenue sources for the backfill of the general fund are identified.
Timeline
- Environmental process for CEQA - September 2011 through September 2012
- Research, evaluation, negotiations on the finance, development and operation - September 2011-December 13, 2011
- City Council meeting, December 13, 2011
- City Council meeting on parking RFQ results on February 14, 2012
- NBA target for a jointly developed finance plan - March 1, 2012
Public meetings
- Meeting to define the scope of the Environmental Impact Report required under the California Environmental Quality Act, Wednesday, Oct. 12, 2011
Contact us
Fran Halbakken,
Project Manager, 916.808.1228
John Dangberg,
Assistant City Manager, 916.808.1228
