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Task force questions prospective arena developers

by Kathleen Haley, published on February 17, 2010 at 10:59 PM

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Prospective developers for a new sports and entertainment complex were questioned by Mayor Kevin Johnson’s volunteer task force Wednesday night.

The 12-member task force, which includes real estate, finance and communications executives, asked numerous follow-up questions after listening to presentations by Matt Haines, Doug Tatara and Ali Mackani.

Haines, who owns Bistro 33 in Midtown, told the task force about his proposal to build the complex in downtown’s Docks Area. “This would be a direct front-door” to Old Sacramento, he said.

Old Sacramento is north of the proposed area.

Task force project coordinator Matt Massari wrote earlier that Haines’ Docks Area project would be “adjacent to the central business district defined on the north by Capitol Mall, on the east by the I-5 freeway, on the south by Broadway and on the west by the Sacramento River.”

Haines proposed to finance the project by selling seats at the complex.

Task force member Mark Harris called Haines’ ideas "great," but said Haines had not figured out every detail on how to finance his proposed project.

Tatara took the floor after Haines. He pitched a project that would include an arena, theme park and monorail at Cal Expo.

He suggested that the theme park would finance the project. “This visitor-generation goal is important for the purpose of attracting corporate equity marketing sponsors who will finance the project.”

Task force member Tom Friery asked Tatara if he had discussed his proposal with the state, which owns Cal Expo.

“I have not,” Tatara said. “Again, you have to understand that I’ve been working behind the scenes on this for 18 months because Cal Expo wouldn’t talk to me.”

Mackani made the final presentation. He proposed building the entertainment and sports center in the Westfield Downtown Plaza. “We have a line item in our budget -- to buy Westfield,” Mackani said.

He said the project's budget would be $500 million: debt financing would be $200 million; equity partners would provide $100 million; private placement would be $100 million; and the city would invest $100 million.

Friery noted that the task force was told not to consider city funding. But task force co-chairman Chris Lehane indicated that Mackani’s idea for city funding might not violate the panel's principles because it was not related to a “broad-based tax.”

The task force is researching seven private-sector proposals and two other plans: remodeling Arco Arena and building an arena at Cal Expo.

Task force members will meet again Thursday to hear from the remaining prospective developers. The public meeting will be held from 10 a.m. to noon at the Natomas Holiday Inn on Advantage Way.

The panel's recommendations will be delivered to the City Council.

Kathleen Haley is a staff reporter for The Sacramento Press.

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February 18, 2010 | 10:32 AM
Good to see what is going on with this - thank you for the report!
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