The Arena Proposal is I-91 Compliant


We believe the annual return to the City/County is likely to be 8-10%
  • This return significantly exceeds the return required by I-91 (30 year Treasury Return)
  • This significantly exceeds the return expected by the private investors on the aggregate private capital (over $600 million) required for the project

Using very conservative assumptions, we believe the project will generate an annual return of 7.4% for the City
  • Assumes only annual cash flow to the City is the debt service as Ancillary taxes generated merely offset the substitution effect
  • Assumes Arena is worthless at the end of 30 years, and is sold for raw land value only

We believe the analysis provided by the City of Seattle staff is inaccurate
  • It is an undisputable fact that the Arena (owned by the City) will have value at the end of 30 years
  • It is an undisputable fact that there will be incremental taxes the City/County will receive as out of City/County Arena patrons spend money on outside of the Arena goods and services (bars, restaurants, hotels, rental cars, team merchandise, etc.)
  • A financial analysis of the expected returns to the City/County that fails to acknowledge or account for these two sources of investment returns is incomplete/inaccurate

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