Sacramento releases financing plan for $391M arena

By Antonio Gonzalez

Associated Press

Published: Thursday, March 1 2012 7:55 p.m. MST

Sacramento Mayor Kevin Johnson is congratulated by fans after the Sacramento Kings beat the Utah Jazz in an NBA basketball game in Sacramento, Calif., Tuesday, Feb. 28, 2012. The Kings won 103-96.

Steve Yeater, Associated Press

SACRAMENTO, Calif. — The city of Sacramento has released the financing plan for a new arena, setting the stage for Tuesday night's City Council vote that will decide whether the Sacramento Kings stay.

The non-binding term sheet announced Thursday night estimates the final price tag for the arena at $391 million. The city will contribute $255.5 million to the project, mostly by leasing out parking garages around the facility.

The Kings have agreed to pay $73.25 million and sign a lease obligating the team and any future owners to remain in Sacramento for 30 years. Arena operator AEG will contribute $58.75 million, and another $3 million from a public sponsorship campaign.

There also will be a 5 percent ticket surcharge to help fund the plan and a $1 ticket surcharge for facility maintenance.

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