Read the arena “Memorandum of Understanding”

The City released the MOU today and KCRA has the document (31 page PDF). I’m not going to read this very closely and as always I’m no expert, but so far I can only find a few things of note…

UPDATE: KCRA has Dave Jones stating that the MOU contains new costs, but I actually disagree on that point; the preliminary term sheet didn’t contain the $45 million for parking, but the July 25 Quality of Life measure did.

  • page 3: “The Kings Partnership will enter into a non-relocation agreement” that would permit the Kings or Monarchs from relocating during the life of the lease. That’s good news.
  • pages 9-10: It says something about resolving “any issues relating to the impact, if any, on the value of that portion of the Arco site owned by the Kings Partnership” if the Railyards falls through and the Arco site is chosen. I don’t really understand it but does that mean that the Maloofs would get a break for using the portion of the land that they own? In addition to getting the building built for free?
  • page 11: “Although it is currently contemplated that [the $20 million upfront payment] will be deposited to a capital repair…fund,” the JPA can use that money to do whatever it wants. Probably a good thing flexibility wise.
  • page 13 talks about advertising for other tenants of the railyard district. Sounds like a lot of freedom will be taken away from other business in that area. But I guess that’s what an “arena district” would look like.
  • As previously agreed to, the JPA is exempting the Maloofs from paying possessory interest tax, which any other tenant of public land would have to pay and would substantially increase their $3 million a year responsibility.

I don’t really see anything in here about parking spaces or the competing business buffer zone.

Author: CoolDMZ

"X-ray vision to see in between / Where's my kimono and my time machine?"

3 thoughts on “Read the arena “Memorandum of Understanding””

  1. The Maloofs are in BUSINESS. If they run a good business, and/or have support of the community, it will do well. If they are poor businessmen, their business will either fail, or have to be supported by outside funds (“philanthropy”).

    Obviously, because they are axing for more and more “assistance” outside of their business revenue, they have either failed as businessmen, or their is no demand (or community support) for their product, in which case they have also failed).

    Turty sez- “Support all business as much as it supports Sacramento and you!” Which appears, by all objective measures, to be “not at all” given the current rhetoric.

    No on the arena tax. Yes on a tax that would be used to *purchase* Sacramento’s OWN, City/County-owned, professional team (in a real sport/leauge- not the WBA or the WHL, or whatever psuedo-sport women are trying to emulate men with) playing a REAL sport, where people BUY tickets and watch it on TV. Heck- Monster truck teams if that’s what it takes, but come up with a good business model that doesn’t involve tax incentives to out of town whiney playboys.

    And if the memorandum of understanding is more than 1 page, it’s too complicated.

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  2. The parking stipulations are on Page 2, probably because that was the big sticking point last month. Sacto will buy, and Maloofs will get all fees for, 2000 adjacent parking spaces. Further, if I’m reading the legalese right, the fees from up to 5000 outer spaces will be split between the city, the railyard, and the Kings. They talk about off-offsite parking too; I can’t exactly tell if the Maloofs get those fees as well.

    So it appears they will get nearly what they originally asked for on the parking issue.

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  3. How in the hell is J Street going to accommodate 8000 cars coming and going from the “proposed” site?

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