NHL, NBA Closer To Coming To Puget Sound Area

SEATTLE, WA - The city took another step toward attracting a professional sports team Tuesday as a memorandum of understanding (MOU) was submitted to the City Council. The MOU details the agreement set between Mayor Ed Murray and developer Oak View Group to expand KeyArena. The MOU specifically states that the $600 million development will be geared toward attracting an NBA or NHL team.

Murray was supposed to attend a press conference Tuesday morning about the Key Arena redevelopment, but he cancelled after the Seattle Times broke news of the latest sex assault accusation. Murray announced his resignation, which will be effective Wednesday.

Construction will double the arena's size and is scheduled to begin in 2018 and conclude in 2020 - meaning that a pro sports team could be playing there within three years. The City Council will now review and potentially amend the agreement.

The deal is funded by private equity, debt financing from lenders and federal historic tax credits. The city will not take on any debt financing. Oak View was selected this summer specifically because its plans didn't include any public financing. Oak View is also expected to cover costs related for additional transportation and chip in $40 million to the city's transportation fund.

The MOU states that the developer will have an initial 39-year lease with two optional eight-year extensions. The city will receive a cut of revenues equal to base rent for the arena plus percentages of other revenue flows.

Plans call for a complete overhaul, including excavating underneath the roof of the arena and enlarging the overall space.

KeyArena, formerly the Seattle Center Coliseum, was home to NBA's SuperSonics until 2008, when the franchise moved to Oklahoma City.

Image via Creative Commons