In response to recent questions raised by some, we would like to share a financing letter provided to us by JP Morgan Chase & Co, the largest bank in the U.S. and one of the pre-eminent lenders in professional sports. While similar in some respects to Oak View’s Goldman, Sachs & Co financing letter, a notable difference is that there is no mention of “tax rebates” in the JP Morgan financing letter. This is because no public tax money is required for the SoDo Arena project.
As we have highlighted on a number of occasions, with over $150 million in capital invested in real estate and legal and entitlement costs related to the arena project, we have already invested the vast majority of the equity necessary to build a world class sports venue. Accordingly, this letter should provide clear evidence of the ability of our group to finance the project — and do so without public financing from the City, County or State.
We continue to believe that an arena in SoDo is the best option for the City and the region as a whole. It is clearly the location with the best parking and transportation infrastructure. With a world-class design and an entitlement process nearly complete, the timing of our project is years ahead of any KeyArena redevelopment.
Finally, since our arena project will be completely privately financed — with our group covering all construction costs and cost overruns — there will be a significant tax windfall for the City, County, and State.
We believe that when you compare our plan and the plan for KeyArena, it all comes down to these three Ts: transportation, timing, and taxes. And on every front, the SoDo Arena offers a better solution for the City and its sports fans.