Think Big Sacramento committee members met at the West Sacramento City Hall Thursday to review a report identifying publicly owned assets that could potentially increase in value with the development of an entertainment/sports complex.

The “Public Synergies Report,” prepared by the Think Big executive committee, outlined four asset areas with potential for increased revenue: the use of existing parking structures, new billboards and digital signage near the facility, the sale or development of some publicly owned land and the placement of cellular phone towers near the facility.

“We are identifying revenue that would not otherwise exist if not for the development of this facility,” said Think Big Sacramento Executive Director Chris Lehane.

The committee has been exploring ways to fund the new complex using a variety of public and private options, public-private partnerships and the use of new development to leverage the ability to get construction bonds.

“There are 1,900 property assets that the city controls,” Lehane said. “We are specifically looking at 19 or 20 properties that have some real value.”

Lehane said that the properties being considered were selected because of their proximity to the proposed downtown complex site and because they have the greatest overall potential for value increase and creating consistent revenue.

Lehane said the committee is looking at assets that are owned by the city that will increase in value “because of the very fact that the arena will exist downtown.”

Lehane added that maximizing publicly-owned assets such as parking structures, billboards and new cell towers, would not increase costs to the public or have any impact on other funding because revenues would result from increased use – the more cars parking in available spaces, the more money that comes from parking fees paid.

Sen. Ted Gaines (R-Roseville) said that the real focus of discussion for the committee is exploring options without resorting to new taxes or tax increases for the public.

“We don’t want to burden taxpayers throughout the region,” Gaines said. “The question is how to find the sweet spot where (we are) generating enough revenue to justify the bonds to complete the construction.”

Gaines said there is “a lot of solid evidence” indicating that non-tax-related revenue options are possible, and the committee is making it a priority to find them.

Tom Friery, former Sacramento treasurer and head of the Think Big Sacramento finance committee, said the completed financing picture for a new entertainment/sports complex will not be “just one big pie,” but a variety of revenue streams put together to create a sustainable project.

“We’ve looked at eight different revenue sources so far,” Friery said, “and we’ve got seven weeks to go and 49 more (options) to look at. When we finish that, we’ll be focusing on which ones make the most sense.”

In June, the committee released a 37-page report on the expected impact to the region of a new entertainment/sports complex. According to that report, the new complex could draw 3.1 million visitors to the Sacramento area each year and bring the region more than $7 billion over 30 years.

The 72-member Think Big Sacramento committee is about halfway through a 100-day research timeline established in June, during which committee members hope to organize funding options and secure funding sources for the proposed entertainment/sports complex.

The committee is preparing for a March 2012 deadline when Sacramento Kings owners are expected to decide whether to relocate their organization.

Read the “Public Synergies” report here.
Read the previous “Economic Engines” report here.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.