Arena investor Chris Hansen doesn’t want to be congratulated yet for bringing a basketball franchise back to Seattle, but he was certainly in the mood to celebrate last week.
Just two days after the City Council’s Government Performance and Finance Committee announced that it had a revised memorandum of understanding (MOU) with Hansen for his SODO arena project, Hansen was buying the first round of beers at F.X. McRory’s in Pioneer Square for 1,500 supporters.
Since the revised agreement still needs a full City Council vote (scheduled to take place Monday, Sept. 24), as well as approval from the Metropolitan King County Council and a subsequent, yearlong environmental-impact study, this is not yet a championship-winning slam dunk.
When it comes to protecting city and business interests, Seattle City Councilmember Tim Burgess assured, “We got it all.” Even so, there are still many who aren’t convinced that the city is doing all it can to ensure an objective analysis.
It doesn’t help to convince them — the Port of Seattle, the Seattle Mariners and the Manufacturing and Industrial Council — otherwise when the arena proposal didn’t happen within the usual “Seattle process.” From its inception in secret meetings between Hansen and Mayor Mike McGinn, to Hansen’s rush to buy all the land needed for the facility (including the Showbox SODO property at more than twice its appraised value), this mad dash to the hoop has left the city gasping.
The momentum has spurred a playoff atmosphere for basketball fans who have sorely missed their SuperSonics since the team moved to Oklahoma City in 2008.
Hansen has even agreed to more concessions on his behalf toward a $490 million facility than in the original MOU: $40 million to start a transportation-improvement fund, $7 million for KeyArena improvements and $15 million in a reserve account.
He also needs to maintain his personal net worth above $300 million, agree to possibly buy the building and its property for $200 million after they’re paid off in 30 years and repay all public contributions by the end of the agreement term through arena profits.
This is in addition to whatever price he pays to land a team here.
Hansen, a hedge-fund manager, is placing all his money on his proposal and, particularly, on the SODO site (nearly $49 million). While the city, county and the Port won’t need to pay for anything unless an NBA team is secured, Hansen has a lot already invested in the outcome.
He has stated that the NBA is “rooting” for Seattle to have a team, but is it? The league is still run by the same person who OK’ed the Sonics’ move in the first place: ornery commissioner David Stern.
Here’s hoping Hansen has taken advantage of some inside track he has with Stern because, otherwise, the fervor Hansen has caused will be the largest upset any Sonic fan has ever felt.