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SODO Arena Comparison with KeyArena Proposals

From arena design, to transportation and parking, to the need for public financing and funding, to city tax revenue generated — there are major differences between our arena plan in Seattle’s Stadium District SoDo and the proposals for KeyArena.

 

  • The RFP said no public financing. The Oak View Group (OVG) and Seattle Partners (SP) proposals both require public financing. We do not.
  • OVG and SP both offer “music-first” proposals that could make attracting a NBA or NHL team less likely.
  • Our SoDo proposal does not ask for exclusivity. If OVG or SP proposals are granted the exclusive right to build an arena in Seattle it could force prospective NBA or NHL owners to look outside the City to seek a better share of arena economics.
  • The OVG and SP arena proposals will cost the city — public financing, taxes, parking, sponsorships, exclusivity, etc. In contrast, our SoDo arena proposal will benefit the city: 100% private financing, no financial risk, $27 million in public benefits including $8 million in public art, and significantly more new tax revenue that flows directly to the City.
  • Is the Port of Seattle really considering spending $25-30 million of King County property tax money on a parking garage for OVG while investing only $5 million in the Lander Street Overpass that directly benefits the Port?
  • The OVG and SP proposals both ask for significant public subsidies — the present value of which we estimate is well in excess of $200 million.
Financing
OAK VIEW
GROUP
SEATTLE
PARTNERS
SODO
ARENA
Total Cost $564M $579M $600M+
Hard Owner Equity ? ? $200-300M (including $100M+ invested to date)
Synthetic Equity/Quasi-Equity ? ? 0
Private Debt ? ? Balance
Public Debt 0 $250M 0
Risks to City
OAK VIEW
GROUP
SEATTLE
PARTNERS
SODO
ARENA
Entitlement/Development/Deposit Cost Risk Yes Yes No
Cost Overrun Risk Yes ? No
Capital Improvement Cost Risk Yes Yes No
Exclusivity Risk ? Yes No
Public Subsidies
OAK VIEW
GROUP
SEATTLE
PARTNERS
SODO
ARENA
SODO ARENA
ESTIMATED TAXES*
City County State Total
Admissions Tax Waiver or Recapture Yes Yes Yes
Taxes on Arena Construction Yes Yes No 11.5 2.0 29.0 42.5 one-time
B&O Tax ? Yes No 1.6 1.6 year one
Sales Tax On Concessions & Merchandise ? Yes No 0.4 0.1 3.9 4.4 year one
Property Tax ? Yes No 1.5 0.4 3.2 5.1 year one
Lease Excise Tax Yes Yes No year one
Parking Tax Yes Yes No 0.6 0.6 year one
Utility Subsidy ? Yes No
Parking Revenue Subsidy Yes ? No
Seattle Center Sponsorship Sales ? Yes No
Landmark Designation Benefits Yes No No
Total One-time Taxes 11.5 2.0 29.0 42.5
Total Annual Taxes (year one) 4.1 0.5 7.1 11.6

*Based on two team building (NHL & NBA)

 

For Reference: KeyArena RFP Redevelopment Submissions to City of Seattle