A New Home for the Sacramento Kings: Exploring the Best Potential Sites for a Sports and Entertainment Facility in Sacramento

Author

Mitchell Lee

American River College, Geog 350: Data Acquisition in GIS

Spring 2010

Abstract

                The search to find an arena proposal for a new sports and entertainment facility in Sacramento has been an issue that has plagued the region for the past seven years.  Many proposed arena plans never materialized because of reasons such as financial problems, voters turning down Measure Q and a bad U.S. economy.  I will observe five proposed sites for a new arena which include; the Downtown Railyard, Westfield Downtown Plaza, the Docks area, Cal Expo and the Arco Arena property in Natomas.  I have created maps of all of the proposed sites and I also got a chance to visits three of these sites.  The best proposal that is currently under review is the Kamilos arena land-swap proposal.  It is known as “the Sacramento Convergence” plan and it is expected to finally bring a new arena to the downtown railyard.  If the Kamilos land swap plan is successful, we can expect to see a beautifully constructed facility by 2014.  One big question remains, will all parties involved be able to compromise and agree on terms that are fair for everyone?

Introduction

The city of Sacramento has received many proposals from developers in regards to finding a suitable site in Sacramento for a new arena.  I will examine the best possible locations in Sacramento for a new arena and sports entertainment facility.  One big question that will hinder this project is how will the arena be funded?  Through thorough research I will determine the most practical financial plan and the best location for an arena.  I will provide detailed maps of proposed sites for the arena complex.  The maps will contain building footprints, explanations of what the map is displaying and any other data that is relevant to the proposed site.  I will provide aerial images of the sites in question as well as visiting the sites for further analysis.  Not only will this new arena be home to the Sacramento Kings but it will also be used for concerts, musicals, graduation commencements, special events and much more.

Background

There have been many articles, conferences and debate over building a new arena in Sacramento over the past ten years.  Developers have had elaborate ideas for a new arena but the financial constraint of constructing such a project has always been the tough part to figure out.  Renovating Arco Arena was out of the question because it did not make financial sense to do so.  One of the earliest proposals that caught the public’s eye was devised by Tony Giannoni.  His plan called for a “sports and entertainment complex at seventh and K streets, in the heart of Sacramento” (Garvin).  This is located directly behind the Westfield Downtown Plaza shopping center for those not familiar with downtown Sacramento.  Giannoni estimated the city of Sacramento would have to contribute $200 to $500 million dollars to get this project done (Garvin).  However, Giannoni does not want the public to focus on the dollar amount alone.  He believes the arena would create a “truly regional downtown” by attracting “millions of sightseers, shoppers, tourists and concertgoers” while also sparking “the development of shops, restaurants, housing, museums and theaters (Garvin).  I love the idea of establishing a sports and entertainment facility in the core of downtown Sacramento.  It would undoubtedly revitalize the K street mall district and create thousands of new jobs.  There was and still is interest in establishing a downtown arena but the high cost has developers looking at other alternatives.

In 2006, developers reached a deal on a proposal that would see a new arena built in the old downtown Sacramento railyards.  The railyards are located north of the Westfield Downtown Plaza Shopping Center, east of the Sacramento River, south of Richards Boulevard and west of 12th street.  “The deal includes a quarter-cent sales tax increase effective for 15 years that would help pay for a project intended to replace Arco Arena” (kcra.com).  The proposed voter-approved sales tax increase would be open to the public.  The cost to build a new arena in the railyards was estimated to be $470 to $540 million (kcra.com).  Sacramento County Supervisor Roger Dickinson proclaimed it to be “a great day to be a Sacramentan” in regards to the quarter cent sales tax being added to the ballot.  On November 7, 2006, voters got a chance to vote on Measures Q&R.  The results “concerning the expenditure of new County sales tax revenues approved by voters” were 29% Yes votes and 71% No votes (smartvoter.org).  I was surprised to learn that a majority of voters voted No on Measure Q.  It was a great opportunity to finally start construction on a new arena.

The Maloof brothers requested the help of Commissioner David Stern of the National Basketball Association after Measure Q was rejected by voters.  For the first time in NBA history, the NBA and the owners of the Kings were working together to keep the Kings in Sacramento and resolve the arena issue.  According to Stern, “The Kings and Sacramento are an NBA success story and I’m not interested in seeing the success end in failure” (Wojnarowski). 

In 2008, the NBA and Cal Expo opened up the idea of constructing an arena on the Cal Expo site.  Cal Expo is located on Exposition Boulevard, south of the Arden Fair Mall and north of the American River.  The Cal Expo property is owned by the state of California and is home to the annual California State Fair.  Cal Expo and the NBA “agreed to explore a joint redevelopment of the fairgrounds that would include a new arena, commercial space, housing and office space” (Johnson).  Thus, an arena built on the fairgrounds would be owned by the state.  “New buildings, including an arena, would be operated under long-term leases” (Johnson).  On February 27, 2009, NBA consultants released a detailed plan for the fairgrounds.  “The $1.9 billion development plan for Cal Expo, including an arena for the Kings that would anchor a city within a city” (Shaw).  NBA consultant John Moag estimates the arena and exhibit space to cost $500 to $600 million.  Many residents that live near Cal Expo argued that redeveloping the fairgrounds would cause major traffic backups to streets that currently experience heavy traffic jams on a daily basis.  “Cal Expo and NBA economists say it’s a viable plan, but a request for proposals will not go out this year because of the economy” (Shaw).  I support the development plan for the Cal Expo property.  Cal Expo needs a much needed face lift.  Establishing a new arena on the fairgrounds is still an option.  However, the NBA and the city of Sacramento are still exploring all other options.

Methods

                The process of producing an arena proposal that benefits all parties involved is often a slow and tedious procedure.  The Maloofs, developers, the general public and the city of Sacramento all have to come to a consensus before ground breaking can begin.  One person most concerned over the new arena issue is Mayor Kevin Johnson.  “If we don’t have a clear path to an arena in the not too distant future, then we as Sacramentans need to know that the Kings very well may look elsewhere” Johnson said (Lillis and Bizjak).  Kevin Johnson has made the arena issue one of his top priorities on his to do list.  “He expressed a greater sense of urgency, and a desire to look for other sites and ideas for getting a new arena built” (Lillis and Bizjak).  In December 2009, Mayor Johnson reported that there were seven new arena proposals submitted by private developers.  The five proposed sites include; the downtown Railyards, Westfield Downtown Plaza, the Docks area, Cal Expo and the Arco Arena property in Natomas (Haley).  The Mayor receiving these new proposals was a huge step taken in the right direction to speed up the process of getting an arena deal done.

                The maps that I have created were made using ArcGIS software.  Each map represents a specific proposed site for a new sports and entertainment complex which include; the Downtown Railyards, Westfield Downtown Plaza, the Docks area, Cal Expo and the Arco Arena Property.  Each site has the building footprints of the proposed new arena, proposed parking facility, the property boundary and various other structures.  I took a field trip to visit a couple of the proposed sites in question that include; Westfield Plaza, Cal Expo and Arco Arena.  The Westfield property is in a great location and it resides in the core of downtown.  However, it is occupied by many existing building and structures, thus, making it an expensive site to build on.  The Cal Expo site sits on a gigantic piece of property and is very close to downtown.  One problem that will hamper building an arena on the property is the fact that the Expo property is state owned.  The Arco Arena property was familiar territory for me because I have gone to a few Kings games this year.  There is plenty of room to build a new arena there but it is not anywhere near downtown Sacramento.  This in turn, could make the Arco site undesirable.

Results

                Developers have presented many beautiful arena proposals to the city of Sacramento and the Maloofs.  However, not one single proposal has gained steam and garnered the support of all parties until now.  The Mayoral Arena Task Force led by Kevin Johnson has finally put forth a proposal that has a very good chance of materializing.  In March 2010, “Sacramento City Council began preliminary analysis and lay out a timeline and process for working with the team led by developers Gerry Kamilos and David Taylor for a proposed arena in the downtown railyards” (Johnson).  The Kamilos arena land-swap proposal has captured the attention of thousands of people in the Sacramento region.  “The three way land swap involving the railyards, Cal Expo and Arco Arena has the best chance of success, based on financing sources” (Johnson).  If all parties involved come to agreement; we would see a new arena built in the downtown railyard, the Cal Expo site moved to the existing Arco Arena property and the Cal Expo site would be sold to private investors.  The proposal by developer Kamilos and Taylor is already “backed by the NBA and by Maloof Sports and Entertainment” (Bizjak and Lillis).

                The best part of the Kamilos proposal is that it does not involve increasing taxes which may be present in other arena proposals.  “The Kamilos financing proposal includes two major private investment companies and a $300 million-plus financial commitment from the Kings over the next 30 years” (Bizjak and Lillis).  That would guarantee the Kings organization staying in Sacramento for the next three decades.  “A contract will put pressure on Kamilos to pull together a very complicated deal very quickly… the task force says the city should require the arena to be under construction by November of next year and open doors in 2014” (Bizjak and Lillis).  That translates to seeing constructions of the new arena in the railyards in six months!  There are a few cons to moving the fairgrounds to the Arco Arena property.  The Cal Expo board of directors are worried that Arco may have too many limitations to support the annual state fair.  According to Bizjak, there is 100,000 square feet of floor space inside Arco Arena.  Expo officials say that they require 300,000 square feet which brings up the possibility of tearing down Arco Arena and replacing it (Bizjak).  If Arco Arena is torn down and replaced, another funding source will have to be introduced.  Another issue that Expo officials are worried about is “whether Arco’s 185 acre site is even big enough for the state fair” (Bizjak). 

                Two weeks ago in Sacramento, “in a unanimous vote, the council agreed to enter into an exclusive negotiating agreement with the Kamilos and Taylor development team” (Lillis).  According to Lillis, Sacramento city officials will analyze the proposal over the next two to three months that has been dubbed “The Convergence.”  The progress that has been made under Kamilos have many fascinated by the possibility of finally getting a new arena built.  “Under the Kamilos team, they would purchase the Cal Expo grounds from the state and develop the 350 acre site… proceeds from the development would help fund a new arena at the railyard” (Lillis).  Kamilos financial plan for the arena is by far the best proposal out there.

Analysis

                The Kamilos arena land-swap proposal has by far the best chance of delivering a new sports and entertainment facility to Sacramento.  A new arena in the downtown railyards will help invigorate new life into the downtown district.  In my opinion, the Arco arena site in Natomas has plenty of space for construction of a new fairground.  Selling the Cal Expo site to private investors for development with proceeds going to the railyard to fund a new arena is ingenious and an excellent idea.  I think Kamilos financial plan is the best option available and I don’t see anyone topping that plan.  A completed arena by 2014 would be a great feat for the city of Sacramento.  Over the next couple of months Sacramento city officials will hopefully find “the Convergence” plan sufficient enough to move on to the next big step.  If the city rejects Kamilos plan, I fear we will lose our Sacramento Kings. 

Conclusion

                The Mayoral Arena Task Force led by Mayor Kevin Johnson finally has a viable arena proposal that can potentially satisfy all parties involved.  Kamilos and Taylors arena land-swap plan better known as “the Convergence” is by far the best proposal out there.  A new arena constructed in the downtown railyards will rejuvenate downtown Sacramento.  The new fairgrounds established on the Arco Arena site will serve as a great place to enjoy the California State Fair.  New mixed-use development on the Cal Expo site made by private investors will help fund the new arena at the railyards and also aid funding for the new fairgrounds in Natomas.  The tough part of this process is getting all parties involved to agree upon all aspects of “the Convergence” plan.  If city officials reject the land-swap plan, there will be a need for more proposals and future research.  However, by that time, it may be too late and we could lose the only professional sports franchise Sacramento has ever known. 

Maps and Graphics

The following six maps are taken from different areas of the Sacramento region.  

Figure 1) Is an overall view of the five proposed sites that are being considered for an arena Figure 2) Is the Arco Arena Property with the old arena and the new proposed arena present Figure 3) Is the Cal Expo Site with the proposed arena and the Ethan Way shown Figure 4) Shows the Westfield Downtown Plaza  with the proposed arena Figure 5) Shows the Docks area with the proposed arena shown Figure 6) Shows the downtown railyard with the proposed arena and planned transit center (See Maps Below)

 

 

Figure 1site5overview.jpg

 

Figure 2site6arconatoarena.jpg

 

Figure 3site7calexpoarena.jpg

 

Figure 4site8dtparena.jpg

 

Figure 5site9docksarena.jpg

 

Figure 6site10ryarena.jpg

 

References

Bizjak Tony, April 26, 2010. Arena plan may hit snag over Arco’s limitations. The Sacramento Bee, p 1A. <http://www.sacbee.com/2010/04/26/2705128/arena-plan-may-hit-snag-over-arcos.html>

Bizjak Tony and Lillis Ryan, March 11, 2010. Sacramento arena task force picks Kamilos-Taylor plan for railyard site.  The Sacramento Bee, p 1A. <http://www.sacbee.com/2010/03/11/2598497/sacramento-arena-task-force-picks.html>

Bizjak Tony and Lillis Ryan, March 13, 2010. Sacramento arena developer Kamilos faces tight deadlines. ModBee.com < http://www.modbee.com/2010/03/13/1086158/sacramento-arena-developer-faces.html>

Garvin Cosmo, July 15, 2004. Extreme Makeover. Newsreview.com           <http://www.newsreview.com/sacramento/content?oid=30101>

Haley Kathleen, December 29, 2009. Private sector delivers seven new arena proposals. SacramentoPress.com <http://www.sacramentopress.com/headline/19992/Private_sector_delivers_seven_new_arena_proposals>

Johnson Kelly, March 17, 2010. Sacramento City Council approves analysis for new arena. Sacramento.bizjournals.com  <http://sacramento.bizjournals.com/sacramento/stories/2010/03/15/daily39.html>

Johnson Kelly, May 21, 2008. Cal Expo, NBA agree to explore new arena. Sacramento.bizjournals.com   <http://www.bizjournals.com/sacramento/stories/2008/05/19/daily45.html>

KCRA.com, July 20, 2006. Deal on New Sacramento Arena Reached. Kcra.com  <http://www.kcra.com/news/9550473/detail.html>

Lillis Ryan, April 28, 2010. Sacramento City Council’s on board with arena land swap plan. The Sacramento Bee, p 1B. < http://www.sacbee.com/2010/04/28/2710832/sacramento-city-councils-on-board.html>

Lillis Ryan and Bizjak Tony, Sept 23, 2009. Kevin Johnson, worried Sacramento could lose Kings, to push for NBA arena. The Sacramento Bee, p 1A. < http://www.sacbee.com/2009/09/23/2202177/kevin-johnson-worried-sacramento.html>

Shaw Michael, Feb 27, 2009. Plans unveiled for Cal Expo arena. Sacramento.bizjournals.com  <http://sacramento.bizjournals.com/sacramento/stories/2009/02/23/daily100.html> 

Smartvoter.org, Nov 7, 2006. Measure Q, Advisory vote concerning the expenditure of new County sales tax revenues approved by voters County of Sacramento.  <http://www.smartvoter.org/2006/11/07/ca/sac/meas/Q/>

Wojnarowski Adrian, Nov 16, 2006. Sacramento’s savior. Sports.yahoo.com  <http://sports.yahoo.com/nba/news?slug=aw-sacramento111606>