A longtime opponent of new stadiums has sued the city of Seattle in an effort to stop the city from helping to fund a basketball and hockey arena proposed for the Sodo neighborhood.
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Joined in the lawsuit by two other Seattle residents, Mark Baerwaldt of Citizens For More Important Things contends a "memorandum of understanding," signed by the city, King County and the arena investor group, is illegal and has asked a county judge to nullify the agreement.
In a deal with arena backer Chris Hansen, city leaders and the King County Council agreed to spend millions to see a new venue built south of Safeco Field in Sodo. Supporters hope Hansen will be able to bring an NBA team back to Seattle – possibly the Sacramento Kings – and that the Emerald City could obtain a National Hockey League franchise as well.
Describing the stadium project as a “giveaway” of public funds, attorney Cleveland Stockmeyer contended the city would be acquiring land from stadium developers at far above the fair price. Such a move, Stockmeyer continued, violates city regulations on such matters.
Citizens For More Important Things was formed in 1995 to stop the building of what became Safeco Field. The organization also previously fought to block a tax-subsidized $220 million overhaul of KeyArena.
In a coup for the poorly funded grassroots group, Citizens For More Important Things in 2006 pushed through Seattle Initiative 91, which prohibits the city from supporting sports teams with city dollars unless the investments yield a profit.
In the lawsuit, Stockmeyer contends the city’s agreement with would-be team owner and California billionaire Hansen regarding the proposed Sodo arena violates the law put in place by that initiative.
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At issue is $200 million in public funding pledged to support the arena. That investment, made through bonds, would be repaid by Hansen’s firm, known heretofore as ArenaCo.
Stockmeyer contended the memorandum of understanding does too little to protect city taxpayers, and could leave the city on the hook for millions of dollars should Hansen fail to keep up his end of the deal -- even though Hansen has pledged to personally cover shortfalls.
“Although the plan calls for sums to be repaid to the public entities, the underlying debt obligations are not secured as the promoters claim and thus they are not compliant with I-91,” Stockmeyer told the court. “This complaint does not seek to stop a basketball arena from being built in Seattle under other arrangements, but only seeks to … avoid a ‘giveaway’ of public funds.”
The lawsuit was filed Friday in King County Superior Court. The city has not yet responded to the claims.