Officials in Sacramento, the state capital of Calfornia are basing their hopes on a new sports arena complex where the NBA team Sacramento Kings would be playing would help boost the economy of the downtown area. The current occupants of the area consists of a decrepit shopping mall so rundown that parts of its second floor are sloping down.
The project is valued at around US$450 million and is pegged to be completed by October 2016. This new sports arena is one of the key points why the deal was approved by the NBA Board of Governors this week to have the Kings remain in Sacramento, thwarting a deal by a Seattle consortium to move the team out to the Pacific Northwest.
According to Sacramento Mayor, Kevin Johnson, the new arena is critical to revive the city out of the doldrums. Johnson himself was a former NBA All-star guard. For its part, the city of Sacramento had agreed to pay about US$260 million for the project in exchange for the projected construction boom that would employ nearly 6,500 people. As for the rest of the financing, private developers have promised to provide the funds and financing.
The decision by the NBA ends the extended tug-of-war over the franchise between Mayor Johnson and the Seattle group lead by hedge fund head Chris Hansen. The deal is not out of the woods yet as locally, opponents have already filed suit to stop Mayor Johnson and his plans, saying it was risking too much. There is also a petition for recall and a call for a special election being made in the city of Sacramento.
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