Sacramento, Calif., leaders and the owners of the National Basketball Association’s Sacramento Kings announced a tentative deal Monday to build a new arena in the city.
The city would contribute $200 million to $250 million to the deal, mainly by leasing its parking garages to a private company, according to the Sacramento Bee newspaper.
California’s capital city will lose $9 million annually from leasing the garages, to be recovered partially through a surcharge on tickets to events and parking at the arena, the newspaper said.
The Kings owners, the Maloof family, agreed to contribute $75 million to help build their new home.
They are to pay off a $67 million bond issued by Sacramento for the team’s current arena and take out another one with an unknown lender, according to the newspaper.
The Anschutz Entertainment Group has agreed to pay $60 million to operate the arena, the paper said.
The new facility will be located downtown, five miles south of the basketball franchise’s current home in a suburban setting at the 23-year-old Power Balance Pavilion.
The arena deal still needs approval of the Sacramento City Council. It is set to discuss the matter March 6.