Breton: New arena negotiations sounding all too familiar

VF21

Super Moderator Emeritus
SME
#1
http://www.sacbee.com/100/story/24555.html

Marcos Bretón: New arena 'negotiations' sounding all too familiar
By Marcos Bretón - Bee Columnist
Last Updated 12:30 am PDT Sunday, September 17, 2006


The Bee headline was in big, bold letters ...

"Maloofs: City sabotaged arena"
"The Kings owners also say the developer lied to them"
The date was Oct. 29, 2003.

Then the headlines read ...
"A city arena is off the table, Kings insist"
It was Aug 7, 2004.

And then it was:
"Arena plan scuttled; Kings' future unsettled"
That was Feb. 24, 2005.

And then:
"Arena talks put on hold"
"Failure to agree on financing ends drive for a November vote"
June 30, 2006.

And then:
"Maloofs quit arena talks"
"Disagreement surfaces over parking, project's size and amenities"

That baby ran Thursday, when my San Jose State education kicked in and I noticed a trend here.

You know, I thought, the Maloof brothers are like those gringo tourists at a Tijuana swap meet -- the ones who haggle, scream and storm away as a negotiating ploy.

Deep down, they really want to buy the velvet Elvis on a cross -- but not for no stinkin' 10 pesos!

It's five or sayonara!

What's that? Sayonora is Japanese, not Spanish? I'm outta here! I feel betrayed!

Good grief.

I think I speak for much of Sacramento when I say:
I'm fed up to here with this whole downtown arena debacle and these Maloof guys with their paper-thin skin, hangdog looks and loud barks whenever someone dares disagree with them.

I mean, I'm leaning toward voting to raise my danged sales tax for what will largely be a public giveaway of $500 million to build the Kings a new arena at the Union Pacific railyard. As a city resident raising a young family, I can see the benefits of a downtown arena to my family, my city and my property value.

Sure, if I voted for this thing, I'd hold my nose with both hands and turn the levers with my toes -- which truly stinks.

But how many times have we held our noses behind that soiled curtain offering fools choices on Election Day?

Remember Dan Lungren vs. Gray Davis?

The fumes knocked me to my knees on that one. And let's not even mention John Kerry vs. W.

The point being: As a voter, I've already stomached much more odious choices than a publicly financed arena controlled by the Maloofs.

But then the Maloof boys go on another Tijuana bender and play the BETRAYAL card.

And then a tough sell on the arena grows daunting.

Understood. These are high-wire negotiations with a lot of posturing and lot of lying.

Walking away from the negotiating table is part of the negotiating.

But the Maloofs painting themselves as victims is too much to swallow. You can't be the victim when you own the monopoly, the card table, the jacks, jokers, chips -- and the very air in the room.

The Maloofs blew up when drawings of a potential arena at the UP railyard showed them squeezed into a small space -- and robbed of many of the parking spaces they claim they were promised. City folks deny those claims.

OK. So, the Maloofs respond to one bad meeting by going to a news conference at the railyard where, without warning to civic leaders standing with them, they poured cold water on moving the Kings downtown?

City and county leaders were floored, humiliated -- spent that whole event scraping their jaws off the ground.

Why would the Maloofs do that when two years ago, they stormed out of a City Council meeting when City Councilman Steve Cohn surprised them with talk of splitting the arena costs 50-50?

If they were furious with the city for negotiating in public then -- and without the courtesy of a heads-up -- why would the Maloofs turn around and do the same thing?

And then they pulled the betrayal card?

No way. At the sleazy intersection of sports, public money and greed -- no one should be allowed to get away with that.

The truth is, the Maloofs and Sacramento are locked in an uneasy marriage filled with loathing.

They are stuck with each other and would each be diminished by a divorce.

This marriage can bring out the best in both, but right now it's the worst as time slips away toward Election Day.

Meantime, no one can cry if the arena loses as a consequence of this mess, but someone probably will. Guess who?

About the writer: Reach Marcos Bretón at (916) 321-1096 or mbreton@sacbee.com.
 

VF21

Super Moderator Emeritus
SME
#2
And yet people agree it's been the developer causing a lot of the problems...

What sounds familiar is Breton pointing the finger of blame at the Maloofs because they're the obvious and easy target...and it'll garner more headlines for the Bee he'll be able to quote down the road.

The one constant in this, if you look closely, is a bias in the headlines that wants to make the Maloofs out the bad guys. And Breton takes things out of context, distorts them and makes you wonder if he and Voisin, Villenga, Hardy and some of the others are even writing about the same Maloofs and the same Sacramento.

I"m not fed up with the Maloofs. I'm fed up with the coverage of this issue by some of the columnists who "write" for the only real daily paper in the area. Competition would sure be nice about now.
 
#3
And yet people agree it's been the developer causing a lot of the problems...

What sounds familiar is Breton pointing the finger of blame at the Maloofs because they're the obvious and easy target...and it'll garner more headlines for the Bee he'll be able to quote down the road.

The one constant in this, if you look closely, is a bias in the headlines that wants to make the Maloofs out the bad guys. And Breton takes things out of context, distorts them and makes you wonder if he and Voisin, Villenga, Hardy and some of the others are even writing about the same Maloofs and the same Sacramento.

I"m not fed up with the Maloofs. I'm fed up with the coverage of this issue by some of the columnists who "write" for the only real daily paper in the area. Competition would sure be nice about now.
I dont like the Bee as much as the next person who is a warm-blooded Kings fan, but I must say that alot of the blame for this latest spat, probably the biggest blow to a yes vote, is the timing of it all...cant blame the Bee for that. I, for once, had to give major kudos to Ms. Ailene for her column yesterday, because it so far, has been the only one that is painting a more broad picture of how the situation looks now. The City, County, Thomas Ent., the Maloofs, etc...are all to blame for this...these are things that should either be handled in private, as far as tweaks to the plans, or SHOULD have been handled before the 'agreement' was made in Las Vegas a couple months ago and everyone had that 'feel good' press conference. This whole thing is a mess, and probably will die a fast death in the next couple months leading up to Nov. 7th, but my question now is...Where do we go from here? Ok, maybe a couple of questions...What will the Maloofs response be to a 'no' vote when its cast? What is the City/County's reaction to a 'no' vote? I dont think it will be the 'end all' vote, contrary to popular belief, but I do think that there are enough uncertainties to fill a swimming pool. Who knows...
 
#4
Further, it would be nice if the Bee let the public know that this is the way the game is played. Was I really mad at the Maloofs last week - and am I still trying to cool off? Absolutely. Am i also reallyed peeved with the county and the developer? Of course.

If you take this from a strictly historical perspective you will find that this is the only way the game is played. Go ask the people in the Twin Cities, Houston or anywhere else that has built a new facility in the past 15 years. Politics, haggeling and a whole lot of headaches is the name of the game. The Bee has a responsibility to inform the public of this fact IMHO.
 
#5
It seems that there are people who wondered why things weren't ironed out before an agreement was signed. Because it wasn't an agreement folks. It was only an "intent to enter into an agreement". It was only an outline of major points that supposedly were agreed upon.

What we are seeing now, is the sides trying to write the actual agreement itself, that is supposed to be the document that spells out the details of the deal. And they promised they would have that in place by October (6th, I think) so the voters would have the details before casting their vote.

So negotiations were far from over. The question now, is will they actually have that agreement on time?

If it does, there can't even be another vote until 2008. And there is no guarantee that would pass either. Sacramento should jump on this.

Other cities are busy revitalizing their cities with civic/private partnership projects (Memphis, Phoenix, Detroit and Little Rock). We need to think forward, not backward.
 

Bricklayer

Don't Make Me Use The Bat
#6
Whatever the underlying issues, you don't dump ice water on the campaign less than two months before election day by pulling a "negotiating ploy" in a bleeping press conference with apparently scant warnign to the other side. That IS the Maloofs fault. Nobody else to blame. If you confuse or deter no more than 2% of potential yes voters with such a public display, in a close election that could be all it takes to swing it to the naysayers.

You got a problem? You work it out behind the scenes until the vote is over. Last time I checked the vote did not actually install a contractual obligation on the Maloofs, nor did it install a contractural obligation on either the city or the developer not to change the details of the plans. All it sets in stone is the method of financing. Bailing out on camera to the delight of the naysayers was completely gratuitous by the boys Maloof.
 
#7
I wish the negotiations had happened behind closed doors too. But the Maloofs, to all appearance, negotiated with the City/County in good faith to come up with the deal points. The outlines of the deal were in place after very intense negotiations.

Then, when the developer drops in with a plan that doesn't come close to meeting the basics of the deal points that the Maloofs and the City/County had agreed to, the City/County sides with the freakin' developer!!!

Since the City/County had also agreed to the deal points, they should have backed their own d*mn deal instead of siding with the developer.

So were the Maloofs wrong? Yes. Was the City even more wrong? Yes. You don't sign something negotiated in good faith and then turn around and want to change it all.

That much is on the City/County. And what the Maloofs did would not have happened if the City/County had stood by their negotiated terms. The City/County should have been the ones to tell the developer the plans weren't appropriate and don't meet the requirements of the deal we have negotiated.

So while I think the Maloofs act a bit petulant at times, I would have been really p*ssed too, if I were them. I think what they expect is for the other party to honor their word on a deal, once its made. Yes, the details had to be worked out, but the City/County comes to the table had wants to start changing the major points already agreed to.

What a mess! And I'm disappointed/mad that it may have caused this deal to fail. :mad: :(
 
#8
Whatever the underlying issues, you don't dump ice water on the campaign less than two months before election day by pulling a "negotiating ploy" in a bleeping press conference with apparently scant warnign to the other side. That IS the Maloofs fault. Nobody else to blame. If you confuse or deter no more than 2% of potential yes voters with such a public display, in a close election that could be all it takes to swing it to the naysayers.

You got a problem? You work it out behind the scenes until the vote is over. Last time I checked the vote did not actually install a contractual obligation on the Maloofs, nor did it install a contractural obligation on either the city or the developer not to change the details of the plans. All it sets in stone is the method of financing. Bailing out on camera to the delight of the naysayers was completely gratuitous by the boys Maloof.

I agree with you completely. While I do believe that the developers did not deliver what was promised (and they even admit that) I think the way the Maloofs handled it was detrimental to the campaign. I like the Maloofs, I really do, but I think they let their passion control them sometimes in situations that calls for, say, prudent business sense?? While throwing a public tantrum may have made them feel better, it really didn't help their #1 cause, which should be getting these measures passed.
 
#9
You know, I'm starting to think the Maloofs are just posturing. With about 1 month before the election (the deadline to finalize negotiations on a contract are Oct 6), wouldn't a "We have a deal!" headline on the Bee look great? Then the love-fest would start, the Maloofs would kick in $2 million to get this passed, and the opponents would be overwhelmed by tons of Maloof-financed advertising, timed perfectly, concentrated over the last 3 weeks of the campaign.

I'm starting to think that could happen.

Bookmark this post, and then remind me on Oct 8 how wrong or right I was. I can take it.

I admit, though, that it looks like they have too many differences of opinion to get it done. My scenario seems impossible, unless the Maloofs are just posturing right now.
 
#10
I doubt its posturing. The City and developer have already said they brought out a plan that did not match the agreement points already in place. How is that fact, admitted by all parties, posturing? Not only that, but it may have very well damaged the campaign irreparably, especially since there are no further talks going on at this point.
 
#13
The plan may not reflect the deal, but the deal was so non-specific and vague that it's even hard to make that claim. For the land for the arena, all the documents ever say is "adequate." They may have VERBALLY said something about 8 acres, but we'll never know that for sure.

So here's how my scenario works out: The Maloofs will say that they really love Sacramento, and it'd be almost impossible to find a town they like more, and that's worth a lot to them. They'll then say they compromised and gave in to almost every demand of the JPA, and they're suffering, but this is the best deal they could get, but it's worth it because of this fan base.

They'll assure us that we're worth it.

Fong, Steinberg, Fargo and Dickinson will all agree, and say that through their tough-nosed stances, they were able to obtain a deal that's more than fair to all parties. So they'll look good to the public.

The Q&R campaign will suddenly have about $3 million (from the Maloofs and Thomas Enterprises) to spend on the campaign over a 3 week period. Even pro-arena activists will get tired of Joe and Gavin saying how much they love Sacramento.

Oct 6 is, legally (because of language in the documents they've already published), the last day they'll be able to do this, and it MAY happen that afternoon. Actually, that'll be the last day it can happen; it might happen up to a week sooner than that.

You think I'm crazy. Just watch. You'll see.

I don't think you heard it here first, but I'm on board this bandwagon.
 
#14
The plan may not reflect the deal, but the deal was so non-specific and vague that it's even hard to make that claim. For the land for the arena, all the documents ever say is "adequate." They may have VERBALLY said something about 8 acres, but we'll never know that for sure.
Regardless of the vagueness, ALL parties say the plan presented did not reflect what was agreed upon.

The Maloofs will say that they really love Sacramento
They already said it loud and clear last Friday on KHTK. They love Sacramento and the fans, they've been here 8 years, have invested in putting a good product on the floor, have homes here and have given over $11 million to local charities. They want to be here the next 30 years. I don't know how much plainer they could make it.

EDIT: They also said they love the employees they have here and think they make up the best organization in the NBA.
 
#15
Well, there you go, then. Seems like my scenario is tailor-made.

It's bound to happen.

How many jobs does the arena produce? I'm just curious. I'm know someone like VF21 is in pretty good position to say. It seems like, to the casual observer, the majority of them are part-time, seasonal, minimum wage, but I'm not sure. Is there a definitive answer to this?

By the way, if Voisin's column is correct, doesn't that seem like a good argument to vote against the arena proposal? By that, I mean that, at the most, with the current proposal, the Maloofs would pay for 25% of the arena. Suppose you think that's not enough, and you personally feel the Maloofs should pay for 40%. If Voisin is correct, you'd vote to reject the current deal because the Maloofs won't leave, even if we reject this.

The flaw here, of course, is that Ailene is bat-**** crazy. I think a no-vote or a court challenge ends it. I'm just saying, if you think she's right, that ain't a bad argument to vote against the deal.
 
#16
How many jobs does the arena produce? I'm just curious. I'm know someone like VF21 is in pretty good position to say. It seems like, to the casual observer, the majority of them are part-time, seasonal, minimum wage, but I'm not sure. Is there a definitive answer to this?
Well than the casual observer should not be quick to judge. Any loss of a job, no matter how trivial somebody else might think it is, hurts each person. Sometimes those with part time jobs need the money worse than some guy sitting on a fat salary. They are all important.
 
#17
By the way, if Voisin's column is correct, doesn't that seem like a good argument to vote against the arena proposal? By that, I mean that, at the most, with the current proposal, the Maloofs would pay for 25% of the arena. Suppose you think that's not enough, and you personally feel the Maloofs should pay for 40%. If Voisin is correct, you'd vote to reject the current deal because the Maloofs won't leave, even if we reject this.

The flaw here, of course, is that Ailene is bat-**** crazy. I think a no-vote or a court challenge ends it. I'm just saying, if you think she's right, that ain't a bad argument to vote against the deal.
Nice try....but not really. If the Maloofs agreed to another deal in 2 years wherin they pay approximately 2x the amount they are paying now I would have to ask myself what the means to me. Right now, I expect to pay an extra $36 dollars/year in sales tax. Approximately 45% is going to the arena - or $16.20/year. If the Maloof's contribution doubled in another deal 2 years from now I guess I will be paying $8.20/year towards the arena.

I am sorry, but I am not about to risk the Kings and a new arena for $8.20/year or .68 cents/month. That would be dumb. I will also mention that I have not figured in the inflation of contruction costs during the 2 years that I am "hoping" for a better deal.

Still a strong "YES" on Q&R. You can keep trying though AS.;)
 
#18
Okay, well, I don't think the Maloof contribution is anything like big enough, so I guess that's the end of it. Doesn't matter what I think, though.

I have scoured the documents on the County's "Quality of Life" website, and it says nothing about acreage. Not a word. It does say 5,000-6,000 parking spots, but not a specific word about the physical size of the thing.

We're stuck with "he said, he said" now. That leaves a lot of people in the cold.

Here are the terms I found:

1. SAC will construct a new facility in the downtown rail yards. SAC will be
responsible for designing the facility (in consultation with MSE who will ultimately operate facility).

2. MSE will enter into a 30 year lease with SAC with two 5 year options to insure that both the Sacramento Kings and Sacramento Monarchs play their games in the facility.

3. MSE shall manage the facility on behalf of the public sector.

4. MSE will pay $3.0 million annual rent with 2% annual growth escalator for inflation (total payments will be approximately $122 million).

5. MSE will pay in full the city’s existing loan.

6. City of Sacramento will consider refinancing a portion of loan, but is under no obligation to participate in future refinancing.

7. MSE will contribute $20 million dollars upfront. It is anticipated that the investment will be deposited into a capital repair fund to maintain the facility. The investment and all interest earnings will potentially be available for capital repairs.

8. SAC will contribute $45 million toward construction of an attached parking garage to serve the sports and entertainment facility.

9. All revenues from concessions, naming rights, and any other revenues associated with operations of sports and entertainment facility will go to MSE.

10. SAC will provide adequate acreage to construct a sports and entertainment facility consistent with those found in Memphis, Charlotte, Indianapolis, and San Antonio.

11. SAC to guarantee the following:
a. Site control of rail yards site by July 2007
b. Construction to begin by July 2008
c. Sports and entertainment facility open by Sept. 2010
d. In the event these dates are not met, the parties will identify an alternative site for the facility.

12. City will approach Thomas Enterprises to engage in discussions regarding the following:
a. Providing adequate acreage for site;
b. The provision of adequate parking for between 5,000 to 6,000 spaces are planned within a ten minute walking distance of sports and entertainment facility;
c. That adequate infrastructure is present to service sports and entertainment facility site.
d. Preparing agreed upon revenue sharing agreements between Thomas Enterprises and MSE.

e. In the event a mutually agreeable arrangement cannot be reached, the parties will identify an alternative site for the facility.

13. SAC will not target the sports and entertainment facility site with any special taxes and/or assessments only applicable to them.

14. City of Sacramento and MSE will work in tandem to arrive at a mutually acceptable list of non-compatible or competitive uses within close proximity to the sports and entertainment facility.

15. City of Sacramento and MSE will work together to formally agree on controls and protections for sports and entertainment facility sponsors within an agreed upon area.

16. City and County and MSE will agree on a facility non-compete provision.

17. In the event of a successful election, City of Sacramento will help expedite MSE land use entitlements for existing Arco Land

18. That City will remove the reciprocal easement and operating agreement subject to any restrictions contained in financing documents.
 
#19
I don't expect every "I" dotted and every "T" crossed. I think people are expecting to judge every detail of the MOU/agreement. It's just unrealistic. It reminds of those who complain that the entire process should have been public. As if every measure has been done that way (none are!). If you recall, this was all hammered out in negotiations and only put on paper hours before the county board voted. And yes I did expect them to get most of this worked out even after the vote was taken.

The bottom line is exactly what the measure states - general quarter percent tax increase for 15 years. And an advisory measure on it's use on the sports facility and a no less than 50% of the tax going to the cities and county. We can wait two years and I don't think these measures are going to look any different. None of what's being argued over right now has anything to do with the measures. Voting yes gives the city the power to get this done and the Maloofs public posturing power is pretty much reduced.
 
#20
Okay, well, I don't think the Maloof contribution is anything like big enough, so I guess that's the end of it. Doesn't matter what I think, though.
You are right on this one. It does not matter what you think....or what I think either. Truth be told, philosophically the Maloofs should be responsible for 100% of costs....perhaps. But then again, philosphically an average home should not cost 350K. My point being, what you and I think does not matter. The market drives these deals and the market could care less what we think. It is what it is.

The issue you should bring up more is the issue to which I do not have a good answer. How does this thing not get held up in court for several years because the measures are being challenged as illegal? Why did the parties create measures that will almost certainly end-up in court? Lack of creativity? Somebody give me an answer that I like.:confused:
 

VF21

Super Moderator Emeritus
SME
#21
There is precedent to support the wording of the measures if/when they end up in court. I don't have the exact information at my fingertips because it's late and I'm tired, but I'll get it for you tomorrow...