Mayor Kevin Johnson emphasized on the need for a completed term sheet and signs of commitment from interested companies in order to finish the new arena project in 2015.

Johnson gave a progress report on the plans to build this new arena in Sacramento at Tuesday’s weekly press conference. Johnson said that there were many questions still in the air that were being discussed even as he stood in City Hall, mainly questions on what companies will contribute to the arena project, and how.

Johnson said that his hope is that by Feb. 28, all stakeholders involved will be in agreement on a term sheet that outlines all financial areas of the project – a sort of rough draft for the budgeting plans of the arena. The reason this term sheet must be put together so soon is so it can be presented to the NBA for review on March 1.

From there, the remaining 10 companies interested in leasing the city’s parking system should state their intended part in the term sheet and whether they find said terms acceptable.

Johnson said that, at this point, the term sheet and parking companies’ responses are the two most critical components.

In order to complete the arena by 2015, Johnson said design work must begin within 30 days. Johnson said that a downtown venue like this would increase the city’s chances for hosting events like The Winter Olympics, and could also help revitalize the downtown area and bring in additional revenue.

“We need to get the T’s crossed and I’s dotted in the next few weeks,” Johnson said. “If we don’t, we’re not going to make the 2015 deadline.”

One piece of the jigsaw puzzle that the term sheet must place is the Anschutz Entertainment Group (AEG), the current king of sports teams and entertainment venues ownership. According to Johnson, AEG is going to play a critical role in the financial investment of the arena, but what’s uncertain is how much of a role. Even now, Johnson said, it’s still too early to say that they’ve officially signed on to the project.

“We know they’re going to be in as an operator,” Johnson said. “We’re still negotiating what equity investment level they’ll participate in.”

There have been rumors that the Maloof family won’t be able to afford to remain owners of the team and be strong tenants of the arena. Johnson said that the NBA has been negotiating on the behalf of the Maloof family, and no one has given him the impression that they’d be unable to support the team financially.

Johnson said that it has always been “scenario one” for him that the Maloofs remain the owners and that the team remains in Sacramento.

“I think what the public needs to understand is they’ve never missed a loan payment in terms of Sacramento,” Johnson said. “They’ve honored their financial obligation in Sacramento, and I don’t have any knowledge of anything different.”

Another concern is whether the City Council will agree to the term sheet once presented, though Johnson said the majority of the council has remained positive toward the project. Johnson said that he thinks if the council is assured that parking rates and jobs are protected, then the council shouldn’t be an obstacle to the project.

“I think the goal on the 28th is to try to address all of those questions in a way that council would feel good about and satisfied with,” Johnson said.

Finally, there’s the question of whether the NBA will accept the presented term sheet. The term sheet may have to fine-tuned for the NBA to accept it, if not completely rewritten. Johnson said that he believes that leasing the city’s parking has been a big “game-changer” in getting the NBA to side with the city and close the deal at acceptable terms for both sides.

“If we do our part, then it forces the NBA and the Kings to do their part, as long as you create a win-win and a fair situation,” Johnson said. “At the end of the day, all that we can control though is ultimately our part.”

Despite these loose ends, unanswered questions and the approach of the deadline, Johnson said that he remains confident that building will begin on time and that the current level of progress is admirable.

“I’m just proud that even though there’s a lot of moving parts, I think the city is really doing its part to deliver and bring forward a fair deal for everyone involved,” Johnson said.

Johnson added that he will meet with NBA Commissioner David Stern over the weekend.

“That’ll be a chance to build on the positive conversations that we’ve had to date,” Johnson said, “to sit down face to face and hopefully get us across the finish line.”