Sacramento Entertainment and Sports Center Northern California - - PowerPoint PPT Presentation

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Sep 26, 2023 326 likes •610 views

Sacramento Entertainment and Sports Center Northern California Institute of Transportation Engineers ESC Ownership City owns land and building Leased to ArenaCo Operated by ArenaCo Use agreement with Kings ESC Lease Lease

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Sacramento Entertainment and Sports Center

Northern California Institute of Transportation Engineers

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ESC Ownership

City owns land and building
Leased to ArenaCo
Operated by ArenaCo
Use agreement with Kings

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ESC Lease

Lease terms:

– 35-year lease ($580M non-relocation agreement) – Two five-year extensions – $6.5M minimum rent – Rent escalator greater of 3% or CPI - 5% cap – Minimum of $18M at year 35 – $390M minimum total payments over term

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Development Budget

$477 million
Kings to cover cost overruns
Includes:

– Grand civic plaza – Arena – Practice facility and administrative offices

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Development Financing Sources

Cash Sources for Development City Cash Contribution Public Finance 212,500,000 Parking Infrastructure Fund 5,630,010 MOPA Funds 5,000,000 City Subtotal: 223,130,100 SBH Cash Contribution Debt and Equity 253,869,900 Total $477,000,000

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City In-Kind

Transfer of 8 City-owned properties valued at $32M
Ground leases at City sites for up to 6 digital billboards
SBH management and operation of Downtown Plaza garages
1,050 parking spaces in City garage under ESC
Other benefits:

– Development entitlements for up to 1.5 million sq. ft. – Entitlements and ordinance change for digital billboards – Entertainment sign district

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SBH Contributions

Annual lease payment with annual escalator
State-of-the-art LEED Gold multi-purpose arena to City
Grand public plaza
ESC predevelopment expenses and cost overruns
ESC and plaza maintenance, operating and capital repair risk
Downtown Plaza parking maintenance, operations and repairs
Reimbursement for event municipal expenses
ESC public sector suite and tickets
City use of ESC for 9 major/24 minor events per year
35-year non-relocation agreement
Future reuse of entire Natomas site and other sites

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Schedule

May 20, 2014 – Council action
Late June 2014 – Demo prep. work begins
Late July 2014 – Simultaneous close of financing
Late July 2014 – Demolition
Nov. 2014 – GMP contract
Nov. 2014 – Kings financing and construction
Early 2015 – City’s financing
Sept. 2016 – Construction complete
Oct. 2016 – Grand opening

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