OLYMPIA -- By balking at the latest plan for a $300 million renovation of KeyArena, lawmakers are not only turning down an offer to help keep the NBA in Seattle, but they are also turning their backs on about $45 million in potential state tax revenue. Sonics supporters who are critical of leading Democrats for refusing to authorize $75 million in King County taxes for KeyArena this year say it's a huge missed opportunity for the region.
"No one, including myself, wants to see the Sonics leave Seattle," Republican gubernatorial candidate Dino Rossi said. "We all have been waiting for a viable public-private plan to renovate KeyArena and keep the team here. Last Thursday, we got that plan."
"I have been skeptical about stadium plans in the past, but this is the best proposal I've ever seen in this area. No new state or county tax would be levied, and public money would only be spent on the public areas of the arena."
In addition to the roughly $20 million in sales tax revenue that the state could bring in from the remodel arena itself, the Rossi campaign said, the new facility "could generate $25 million over 10 years through sales and (business) taxes on Sonics-related operations."
State Department of Revenue spokesman Mike Gowrylow said it's difficult to calculate revenue estimates on the operations at KeyArena without more-specific information, but the estimate was within the range of possibilities.
"It is important for residents statewide to understand that the state will not be paying a dime for the new arena, but will be gaining millions in revenue," Rossi said.
House Majority Leader Lynn Kessler, D-Hoquiam, dismissed Rossi's criticism.
"They don't even have a team," Kessler said of a local investment group's attempts to buy the Sonics from their Oklahoma City-based owners. "This is total speculation based on political pandering."
The local investment group, led by Microsoft Corp. Chief Executive Steve Ballmer and developer Matt Griffin, recently came forward with an offer to contribute $150 million for the $300 million KeyArena upgrade. This week they said the offer will expire if the state fails to pass the tax authorization by April 10 to use King County restaurant and rental car taxes for KeyArena.
Gov. Chris Gregoire has been supportive of the investment group's efforts but has been unable to broker a deal in the final weeks of this year's legislative session. She also has declined to disclose details of the discussions she's had on the issue.
On Monday, Gregoire and House Speaker Frank Chopp, D-Seattle, tried to extend the deadline by a year by releasing a letter in which they said they would reconsider the issue in 2009 after a "task force study group" assesses all the requests for money in King County.
By Tuesday it was clear that the offer wasn't what the investment group was looking for, nor was the Legislature any more likely to take action this session.
P-I reporter Chris McGann can be reached at 360-943-3990 or [email protected].
