Seattle, county councils could finalize Sodo arena Monday

After a King County Council committee on Tuesday approved its version of a funding package for the proposed Sodo sports arena, investor Chris Hansen's plan could get a full green light this coming Monday.

The full County Council is scheduled to vote on the arena legislation at meeting Monday afternoon, and the Seattle City Council is expected to reaffirm its support at a hearing just afterward, King-TV's Chris Daniels reports.

Both councils must approve the same document for the process to proceed. It was two weeks ago that the Seattle City Council approved their finalized version of the arena package, sending it back to the King County Council for reexamination. A County Council committee on Tuesday approved the city's changes, and after voting yes on the arena proposal this summer the full County Council is expected to again pass the reworked legislation next Monday.

Under the agreement, the city and county would contribute about $200 million in bonds to help construct the arena. The loans would be paid back over a period of 32 years (two 30-year bonds that start two years apart) via taxes on the arena and operations there. No new general taxes would be created, so only people who use the arena would help pay for it.

The document approved by the City Council on Sept. 24  includes several amendments to further protect taxpayers from financial risk if the arena venture were to turn out unsuccessful. Aside from several requirements for reserve accounts and legal liabilities, and the creation of funds to enhance Sodo's transportation infrastructure and find a future for KeyArena, the amended agreement most notably includes a personal guarantee by Hansen to repay the city and county's debt if it all goes sour.

That was an unusual and key concession for the City Council to finally support Hansen's proposal.

Hansen, a San Francisco hedge-fund manager who grew up a Sonics fan in Seattle, has purchased a chunk of land south of the Safeco Field parking garage and wants financial help from the local governments to build a $490 million arena there. He also wants to acquire an NBA franchise to bring back to his hometown, and wants a business partner to relocate an NHL team to the Emerald City. 

After Hansen, Seattle Mayor Mike McGinn and county Executive Dow Constantine announced the proposal in February, they got to work on a "memorandum of understanding" for the city and county councils to review. After months of negotiation, Hansen and the councils have arrived at a funding plan that most everyone is comfortable with.

County Councilmember Jane Hague said Seattle's arena package is one of the best this country has ever seen, according to Daniels.

Though Hansen surely has been talking with NBA owners throughout the whole process, Monday's expected votes are the final approvals he needs to shop around for the next Seattle SuperSonics.

However, even if the city and county councils approve the arena package Monday, the new venue still won't be a sure thing.

Under state law, an environmental review must be done to make sure an arena would fit in at the proposed location, including the identification of key improvements needed to transportation near the Port of Seattle. The City Council also added a provision that the study must look at alternate construction sites, including KeyArena or at least its footprint.

The King County Council is expected to meet at 1:30 p.m. Monday for a full vote, with a Seattle City Council follow-up vote starting around 2 p.m., Daniels reported.

Nick Eaton can be reached at 206-448-8125 or nickeaton@seattlepi.com. Follow him on Twitter at twitter.com/njeaton. Visit seattlepi.com's home page for more Seattle news.