The Memorandum of Understanding (MOU) for the redevelopment of a fully compliant NBA/NHL and music events arena was submitted to the Seattle City Council today which should be viewed as a huge step toward attracting an NHL team. Both Chris Daniels and Geoff Baker did a great job covering the story, but I will highlight some of the major items.
- Construction is anticipated to start in October 2018 and opening in October 2020. October 2020….let that sink in. We could see an NHL game in Seattle as early as October 2020! Personally, I have been mentally preparing myself for 2022, so I’m ecstatic for 2020. Assuming no major snags on the way, 2020 would be outstanding. Start prepping those mock expansion drafts!
- Total cost of the new arena will be close to $600M. $600M isn’t a remodel, it’s a completely new building under the old roof, which had to be kept for its historical landmark designation.
- The arena will nearly double the size of the current KeyArena.
- Arena development will be completely privately funded and OVG will also assume risk on all overruns.
- Term of the agreement is 39 years with 2 eight-year renewals.
- In order to exercise those 2 renewal options, OVG must invest $168M back into the arena for capital improvements.
- $3.5M will be reimbursed to the city for developer costs for MOU. (Legal, Finance Consultants etc.) OVG will pay for all SEPA mitigations and contribute an additional $40M to a transportation fund that the city will administer.
- OVG is also setting up a community fund worth $20M, of which $10M is already earmarked for YouthCare.
Over the next several months, the Seattle City Council will evaluate the terms of the MOU and conduct their due diligence to make sure the city is protected. In December, the MOU is expected to be voted on for execution.
As most of you know, I try not to get too excited about any news these days, since it often feels like a rollercoaster. It hasn’t stopped some of the hockey beat writers from talking about it….
(Two tweets and articles about NHL to Seattle)
Big day in Seattle.MOU between Oak View Group and City for $600+ million reno of Key Arena.
Let the NHL expansion/relocation rumours begin!
— John Shannon (@JSportsnet) September 12, 2017
New arena deal in Seattle makes expansion a no-brainer, particularly if NHL can make $650 million off it. My blog. https://t.co/wyxtlb9LT2
— Ken Campbell (@THNKenCampbell) September 12, 2017