BY ERIC D. WILLIAMS
eric.williams@thenewstribune.com
Boston – Undaunted by the state Legislature’s unwillingness to contribute money this session for a $300 million KeyArena upgrade, Seattle Deputy Mayor Tim Ceis said he and the private investors committed to the project will go back to the drawing board.
“We’re trying to take advantage of it,” Ceis said. “We still think that it has been a game-changing opportunity. I think there’s still some momentum behind it if we can be creative and take advantage of it, but I’m not certain how good our chances are of getting it done. But we’re going to give it our best shot.”
Four prominent, local businessmen who want to keep NBA basketball in Seattle, including Microsoft CEO Steve Ballmer, offered to pay for $150 million of the $300 million KeyArena renovation costs. The group asked the state to approve extending existing taxes to pay for $75 million of the project, with the other $75 million coming from the city of Seattle.
But the state has said no to the proposal for now, and the group issued an April 10 ultimatum, saying the offer will expire if he state does not agree to participate this session.
Although Gov. Chris Gregoire and state lawmakers did not commit the $75 million the city asked for this session, on Wednesday they wrote language into the 2008 supplemental capital budget creating a KeyArena task force that would look at all funding sources being used to pay for Safeco Field and Qwest Field, earmark a portion for the arts and then figure out how to divide the money up for projects like low-income housing, Puget Sound cleanup and education, along with funding for the KeyArena remodel.
Both the House and the Senate have agreed on the budget, and will rubber stamp it during the final day of the session today.
Until the Legislature can approve money for KeyArena next session, Rep. Ross Hunter, D-Medina, chairman of the House Finance Committee, said the city can put together the $75 million by using a combination of city taxing sources, including the city’s real estate excise tax, which Hunter said has come in over projections, and the city’s square-footage tax.
“We want a substantive conversation between Seattle, the county and the state about the complex array of taxes and financing around stadium packages and other important regional needs,” said Hunter. “Personally, I’m not sure if using public funds for a sports facility is the best use of tax dollars. At the same time, the Key is a public facility that can’t be left to deteriorate at tax-payer expense. If Seattle commits to funding their proposal now, it gives us the chance to consider the proposal along with other potential uses for regional revenue.”
However, Ceis said the city does not want to take money away from essential city services
“That would mean we would be taking money away from other city services like fire, police, libraries and parks, and I don’t think we’re prepared to do that,” Ceis said. “The restaurant tax and the car rental tax was something that didn’t put us in competition with other basic services, and that’s why we thought it worked out so well.”
Ceis also is frustrated with what he views as the state’s inaction, but will soldier on and continue to try and put together a proposal before NBA owners consider Sonics chairman Clay Bennett’s application to move the team to Oklahoma City April 17-18 in New York.
“We’re never going to say it’s too late,” Ceis said. “But it’s definitely too late for the timeline we have in terms of the (NBA) Board of Governors meeting in April, and the trial date in June. Events may overtake any ability we have to have a viable proposal next year. And again they may change and go a different direction, so you never know.
“But right now with the timeline they have for next year is about 12 months too late.”