The Oak View Group is betting on multiple revenue sources to help build a new arena in Seattle Center, according to new documents released late Monday by the City of Seattle.
The financial documents were originally withheld from public disclosure by the city, but released a day after the Seattle Partners withdrew from the bidding, citing in part “the City’s decision to withhold critical financial portions of Oak View Group’s proposal from the public while releasing the financial details of our proposal with our full support raises serious questions about the integrity of the decision-making process and the ability of the public to make a fair and equitable comparison."
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The seven pages of originally redacted documents show a letter from Madison Square Garden’s president and CEO, which said they were “confident they could provide financial support for the project.” Another letter from Goldman Sachs expressed confidence in backing $150 million to 200 million of debt with no NBA or NHL teams and a higher threshold if a team or teams was acquired.
The documents also show that OVG is seeking a historic tax credit and “city tax reinvestment” as part of it’s financing structure.
OVG also notes in the documents that the holding company for the KeyArena redevelopment would be named “ArenaCo,” which is also what Chris Hansen’s investment group has been calling itself down in SODO. This ArenaCo says its revenue structure including money from naming rights, sponsorships, suites, club seats, rent, ticket rebates, parking, facility fees, admissions taxes, merchandise, and private investments.
Seattle Mayor Ed Murray is soon expected to announce OVG and Chair Tim Leiweke as the winning bidders for the KeyArena redevelopment, and those revenue projections will likely be a key point in the negotiation phase between the city and Leiweke’s company.
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