KeyArena Will Be Redeveloped By Oak View Group: Reports

SEATTLE, WA - Seattle Mayor Ed Murray on Wednesday announced that the city has selected Oak View Group LLC as its"preferred partner" to redevelop KeyArena. Up until Sunday, two groups were competing to redevelop KeyArena to attract pro hockey and basketball teams. On Sunday, the group Seattle Partners (comprised of Anschutz Entertainment Group and Hudson Pacific Properties) dropped out, leaving just Oak View.

The selection of Oak View hinges on the group's plan to redevelop the arena without using public money, including bonds.

But the redevelopment of KeyArena - and the prospect of new pro sports teams - is still a long way off. Murray and Oak View still have to negotiate the full financials of the redevelopment, and then the City Council has to approve the deal. Murray said he hopes to have a memorandum of understanding (MOU) in place by the end of 2017.

According to current plans, Oak View would essentially build an entirely new KeyArena. Plans calls for excavating underneath the roof of the arena and enlarging the overall space. The developers would spend about $564 million on the renovation, which would be financed privately.

Seattle Partners dropped out citing Seattle's "unrealistic financing structure" for the redevelopment.

"[W]e believe the City has failed to conduct a sufficiently thorough, objective and transparent process to properly evaluate the respective strengths and weaknesses of the two proposals and, most significantly, to identify the proposal best positioned to deliver a project consistent with the community’s interests," Seattle Partners representatives said in a statement.

Murray released his own statement in response, saying, "There are strengths and weaknesses in each proposal and the City fully expects a robust negotiation upon choosing a preferred alternative, to ensure the final plan meets the needs of the surrounding neighborhoods, the city, Seattle Center and those who will use the building for years to come."

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