Sodo arena would push up everyone's property taxes

While local leaders have been saying all along that a new sports arena in Seattle would not be paid for by the everyday taxpayer, it was revealed Wednesday that such a venue would -- indirectly -- push up everyone's property taxes.

The proposed arena site, just south of the Safeco Field parking garage in Seattle's Sodo neighborhood, is currently private property. But under the current plan, the city and county would take ownership of the land and venue, removing the site from the property-tax ledger.

As a result, Seattle property owners would likely pay $2 to $3 more per year to make up the difference, The Seattle Times reports.

"The rest of city taxpayers are going to subsidize this facility," City Councilmember Tim Burgess said Wednesday at a committee hearing on the arena proposal.

The city's deputy budget director, Hall Walker, acknowledged that property taxes would increase slightly, The Times reports. But Walker said revenue from the arena could end up profiting the city after the government's construction loan is paid off, to the benefit of other city agencies.

Under the arena agreement among investor Chris Hansen, the city of Seattle and King County, the two local governments would advance up to $200 million to help build the multipurpose venue. These loans would be paid off by a number of taxes on the arena itself and on operations there once it opened.

The city plans impose property, leasehold, and business and occupation (B&O) taxes on the arena and its operators. People who attend sports games, concerts or other events would help foot the bill by paying extra taxes on admission, sales and parking.

In a memorandum of understanding (MOU) signed last month, the city said it would contribute $120 million for construction if Hansen and his investment group can nail down an NBA franchise for Seattle. King County would contribute $80 million if both an NBA team and an NHL team will move to Seattle, but would contribute  up to $5 million if Hansen only gets an NBA franchise.

Construction would not begin until at least an NBA team is on its way. Hansen and his group of investors plan to spend up to $800 million on contruction and franchise acquisition.

The MOU is now before the city and county councils for review. Hansen is scheduled to appear before the City Council committee on June 20. The full council is expected to make a decision in August. 

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.