Seattle NBA arena investor: 'It's a question of when, not if'

Chris Hansen, the Seattle-raised investor who wants to spend millions on a new arena and NBA team for his home town, said Wednesday it is "somewhat inevitable that we will eventually have a team out here."

The enigmatic hedge-fund manager, in town for a hearing with the city's Arena Review Panel, may live in San Francisco now but clearly left his heart in Seattle. He consistently referred to Seattle as "our" city and is obviously excited as a fan, not just as a businessman, about the possibility of getting the NBA back here.

"It's just a matter of patience," Hansen told a group of reporters after speaking to the panel. "If we can get the deal with the city, then it's a question of when, not if."

It was Hansen's first public appearance since Seattle Mayor Mike McGinn and King County Executive Dow Constantine on Feb. 16 unveiled Hansen's financing proposal for a new NBA, NHL and concert venue in Sodo, on land Hansen owns just south of Safeco Field.

Under the agreement, Hansen's investment group would chip in some $500 million for arena construction and to buy an NBA franchise; the city and county would contribute $200 million more to the project, to be paid back by tax revenue generated chiefly by arena activity.

McGinn and Constantine have asked the Arena Review Panel to submit its findings later this month. The Seattle City Council and King County Council could consider a financing proposal as soon as this spring, allowing Hansen to make a formal presentation at the NBA owners meeting in April.

But that would be just the tip-off in a long game. Now that the NBA's Sacramento Kings and the NHL's Phoenix Coyotes are staying put, there are no obvious teams up for immediate relocation to Seattle.

The arena won't be built on spec; at least one team must be nailed down before construction can start. But Hansen is nevertheless optimistic that the plan will move forward.

"This was the right time to do it for the city," Hansen told the panel. "There were a lot of things that needed to come together to put us in this position: support from the community, interest rates being low enough to finance a stadium like this, finding a creative way to put it together, the land being available. ...

"It was time to step up to the plate, and no one else was doing it. Somebody had to take the lead and try to make it happen."

It was a long four years ago that the Sonics left Seattle, relocated to Oklahoma City by their new Oklahoma City-based owner, Clay Bennett. (Bennett, by the way, now happens to head the NBA's relocation committee.) The Thunder are now one of the best teams in the NBA. 

Hansen is certain that Seattle could successfully host an NBA team again, and also be a lucrative market for the NHL. As the 12th largest television market and the 15th largest metro area by population -- a population, of course, with a higher-than-average density of millionaires – Seattle is an attractive place for more professional sports, Hansen said.

The NBA and NHL commissioners have each agreed. But it's "unrealistic," Hansen said, to expect NBA and NHL teams to move to Seattle at the exact same time.

"I'm a very patient person," Hansen said. It's up to him and his ownership group to jump on opportunities as they present themselves, he said.

But Hansen is leaving the NHL part up to someone else; he is seeking a partner who would like to bring professional hockey to Seattle. When all is said and done, the ownership groups will consist of a handful of investors – with "very healthy local ownership and participation," he said.

Hansen would not say who else might invest in the project. Microsoft CEO Steve Ballmer offered $150 million to keep the Sonics in town, and has been mentioned as a possible partner in a rumored, unrelated arena project for the Eastside.

Hansen's group of investors will be revealed once they go after a team, he said.

"It's not my place to put other people's names out there," he said. "I have to be out here now because I am the focal point of this, but other people will definitely have to be out front when it comes time to acquire a franchise. ... It will not be just myself."

Multiple owners should reduce the slim chance that the operation – the arena, the owners or the teams – would go belly-up in the event of an economic recession or other unforeseen circumstances, he said. Panel member Maud Daudon, president of Seattle Northwest Securities Corp. and former Seattle deputy mayor, grilled Hansen on whatever safeguards would protect the city and county in the case of financial downturn.

Under the proposal, in which the city and county would jointly own the new arena, any revenue shortfalls would be made up in extra rent paid by the teams and arena operators. If the city and county see a revenue surplus, those funds would be put into a reserve account for arena improvements.

Meanwhile, Hansen does expect the city to invest in the project, since the arena will generate revenues that don't exist now.

"We didn't just rush out and make a proposal. This took a lot of time and effort to get where we are," Hansen said, referring to the past year of talking with the NBA, the city of Seattle and King County. "I think it's fair. Am I biased? Probably."

That got some chuckles out of the City Hall crowd, which included a dozen or so fans decked out in Sonics apparel. Many Seattleites are still bitter about the departure of the Sonics – including Hansen, whose proposal includes an agreement to keep the NBA and NHL teams in town for at least 30 years.

"I lived through the Sonics leaving this town, and I never want to see it happen again. Just like a lot of you," he said. Later, Hansen lamented to reporters, "It's slightly depressing to come back at this time of year and there's no professional sports."

As Hansen rallies an investment group and hunts for an NBA team, the city will do its part to study the feasibility of his financing proposal. On Wednesday, the Arena Review Panel also met with experts on sports-facility management and public-private partnerships, and will continue to pull together a more complete picture of the project.

The panel, which also includes such local figures as former Sonics coach Lenny Wilkins, former City Councilwoman Jan Drago and Seattle Community Colleges Chancellor Jill Wakefield, will meet again on Monday, March 12, at City Hall. But they're not likely to hear directly from Hansen again; he's got work to do.

"I'm trying to put this in a place that it will not blow up," Hansen said. "I mean, that's my ultimate goal. I'm not doing this for financial reasons."

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.