SoDo Arena Update: Hansen Speaks

SoDo land owner and prospective NBA franchise owner in Seattle, Chris Hansen, made news today when he spoke to a couple of local media outlets today. This morning he spoke to local AP reporter, Tim Booth, and this afternoon he jumped on the Dave Softy Mahler show on KJR.

The executive summary of his message is that he is still very committed to the SoDo Arena project and believes it is inevitable that the NBA will come here. Most importantly, Hansen made it clear that no prospective NHL owner has approached him with basic terms to enable an NHL first scenario. It could have been a case of wishful thinking, but most of us anticipated that talks between Victor Coleman and Hansen were progressing. As fans, this is a little disappointing, but I do appreciate Hansen sharing information.

Here is an updated visual on the complexity of a possible NHL first scenario at the SoDo site:

 

Visio20150526

Seattle needs a new Arena

Over the weekend, CBS Sports ran an article titled “Seattle City council wants to pull public funds from proposed arena”. In there was a quote from Tim Burgess.

“This deal’s just not doable, at least as it’s constructed today,” says Tim Burgess, the president of the Seattle City Council. “I wouldn’t say it’s dead. But we are not going to go ahead with this arena without substantial changes. And there are no plans right now for those.”

As far as I remember, Burgess has been consistent in this issue, the economics of the MOU need to change to accommodate an NHL first scenario. He has never got into specifics because there are several economic levers to pull to restructure the deal. It could be higher rent, higher surcharges or more guarantees/assurances.

This got me thinking….independent of NBA and NHL, does Seattle really need a new arena. I took a look across the Top 50 Metropolitan Statistical Arenas to determine how Seattle stacks up with other Metro areas and their arenas.

I first isolated the most modern arena equipped to handle major concerts and sporting events that had a capacity over 10,000 within each metro area. For example, for the New York Area, I selected the most modern arena of the 4 in the area, so Barclays Center in Brooklyn. The results may not surprise you.

Most Modern Arenas

MostModern

The data shows that with exception of Virginia Beach and Richmond Virginia that do not have an arena, Seattle has the oldest primary arena. Maybe the City of Seattle needs the arena more than they are letting on?

For the heck of it, here is a list of all main arenas in the top 30 markets.

Top30

The FEIS and what’s next

Seattle Mayor Ed Murray

Seattle Mayor Ed Murray

As scheduled, the Final Environmental Impact Statement on the Seattle Arena was released Thursday morning and as expected, the results were favorable.

This news is being picked up everywhere but the most thorough article came locally from Chris Daniels and Geoff Baker.

Chris Daniel’s Article here.

Geoff Baker’s article is here.

The Puget Sound Business Journal also had a good summary piece on the economics.

Here are some highlighted tweets of the coverage:

Sonics Arena Statement

Within a couple hours of the FEIS being released, the SonicsArena camp released a statement. There was an entire HockeyView_SonicLevel3paragraph on an NHL first scenario.

We also wanted to take the opportunity to reiterate that we remain 100% supportive of the NHL returning to Seattle and playing in the Arena — and are completely open to the prospect of that occurring prior to the NBA. In light of recent speculation, we would just like to clarify that we have sought to be as accommodating as possible in our negotiations with potential NHL partners, with our only major requirements being that such a deal does not jeopardize the process or put the City, County, Taxpayers or us in a worse financial position.

This is consistent with the Hansen camp’s position from the very beginning. In an interview late 2012 with King 5, Hansen said that an NHL first scenario would be possible in the right scenario. At the time, NBA expansion or relocation looked like more of a possibility which made the scenario less likely. Comments from Victor Coleman last week have muddied the waters a bit so it is great to see the Hansen group affirm their position.

Port of Seattle Opposition

Consistent with the ports messaging throughout this entire process. They released this statement on their opposition to the Arena and the EIS findings. In my three plus years of following this project, the Port has never provided any data on the impacts of the Arena to their business and have never appeared to be collaborative in this project. We should expect more and more of this type of PR from the port.

What is next?

Now that the Final EIS hurdle has been cleared, a couple things will start to play out. For an NHL first scenario, a prospective NHL owner will need to strike a deal with the Hansen group. Once that happens, the Hansen group will need to take a proposal to the Mayor to change the current MOU to be an NHL first scenario. This will more than likely need to happen in PopulationAugust so that the Mayor can bring it to the city council for vote in September.

In the meantime, the NHL has two key Board of Governors meetings, one before the NHL Draft in June and another in September. As reported last week, it appears they will “vote” on expansion in September. Since the news did not come from the league, it is up to us to define “vote”. Most people interpret this “vote” as to start the application process and not necessarily, awarding the franchise.

Meanwhile, the Tukwila arena proposal moves forward and should be considered a major competitor to the SoDo Arena regardless if there is movement on the NHL first scenario in Sodo.

As I tell most people, this is a rollercoaster, try not to get too high or too low on any news. So let’s celebrate the victory but do not assume this thing is a done deal. Lots and lots of work still remain.