KeyArena renovation is on; now task is attracting NHL, Sonics

After Seattle Mayor Jenny Durkan and Oak View Group CEO Tim Leiweke put pen to paper Wednesday afternoon, the $600-million-plus renovation of KeyArena is officially on.

Amid hearty handshakes, wide smiles and a celebratory tone in front of the Winterfest Ice Rink underneath the Seattle Center's Fisher Pavilion, there was a small helping of desperation -- both Durkan and Leiweke seemed to know they will be judged on whether or not the new arena attracts a new incarnation of the SuperSonics.

Durkan, mayor for little more than a week, wore an old Sonics T-shirt underneath her blazer ("This is an original. It's not one I ran out and bought today.") and invoked the names of Lenny Wilkens, Spencer Haywood and "Downtown" Freddie Brown as she thanked Leiweke, City Council members Debora Juarez and Sally Bagshaw and others for their work in negotiating a memorandum of understanding (MOU) between the city and California-based OVG.

"From the early days of my campaign, I made it very clear that I was open to any proposal that would bring and NHL team and our Sonics back to Seattle, and that is why I am signing this MOU today," Durkan said. "I think we are here. I think we have the path."

RELATED: Seattle City Council approves $660M KeyArena renovation agreement

It's no accident that Durkan mentioned the NHL before the Sonics, as the hockey league reportedly has designs on a Seattle franchise in the near future. In a column published Wednesday, TSN's Bob McKenzie said the league could start the expansion process as soon as this week, with Seattle being the overwhelming favorite to land a team.

Leiweke, who has relationships with both the NHL and NBA, didn't back down from the expectations, becoming emotional while vowing to do all he could to acquire franchises in both leagues to share the new arena with the WNBA's Storm.

"One hundred years ago to this year, the Metropolitans won the Stanley Cup for Seattle. Fifty years ago, the NBA came to Seattle with the Sonics. Ten years ago, you had heart ripped out," he said, his voice breaking. "We're going to get you a team."

Those words ring hollow for Sonics fans angry at the treatment hedge-fund manager Chris Hansen received from the City Council, which killed his plans for a Sodo arena in May 2016 by voting down the closure of a one-block stretch of Occidental Avenue south of Safeco Field. After signing the MOU, Leiweke said he understood fans' anger and frustration, but also indicated that attracting an NHL franchise to a newly redeveloped KeyArena might be a necessary first step toward bringing back the Sonics.

"I've been through this. I've seen teams ripped out of communities, and it's not a pretty thing to go through. I feel the pain, and we've been dealing with Sonics Rising and the Sonic community, and we understand," he said. "Lots of people have preferences about the NHL compared to the NBA: Whichever one comes first, if we do a great job with them, the other one will come."

Before any team plays in the 55-year-old arena, it will need to be gutted and rebuilt. OVG has pledged $600 million for the project, as well as an addition $40 million to help with traffic mitigation and other transportation issues.

"This will not be a publicly financed arena," Durkan said. "This will be financed by the people who are investing in this arena, so we make sure we are protecting our dollars. (The MOU) will protect Seattle taxpayers."

OVG plans to start renovation next year and open the new arena in time for the 2020 NHL or NBA season.

The MOU includes an exclusivity agreement that bars the city from providing "financial support, benefits or incentives (other than those generally available to any potential developer) with respect to the construction of any live entertainment venue with a capacity of more than 15,000 seats" inside the city, but Durkan claimed that didn't necessarily put Hansen's Sodo plans to rest. Durkan said she spoke to Hansen shortly before the City Council voted 7-1 to approve the MOU on Monday.

"I've told them that if they have something that they think they can bring forward to the city that is viable, that will bring a team here, I'm all ears," she said. "I think as a city we will remain open to all possibilities, but we have right now a deal in our hand that we think is a great path to moving forward to get what Seattle deserves, which is both an NHL team, an NBA team and having a world-class facility in what is a world-class city."

Juarez, who co-chaired the council's civic arenas committee, praised Leiweke and OVG for their professionalism during difficult negotiations.

"I felt the whole time that we were pushing hard, they were pushing hard, and we came out a winner," she said.

KeyArena is scheduled to host NCAA basketball tournament games in 2019, but Leiweke told reporters the Seattle Sports Commission asked the NCAA to move those dates to 2021, saying, "We want to put our best foot forward for the NCAA tournament."

Seattlepi.com reporter Stephen Cohen can be reached at 206-448-8313 or stephencohen@seattlepi.com. Follow Stephen on Twitter at @scohenPI.