It has been a busy week regarding the KeyArena renovation. Here’s what we know so far.
Seattle City Council Approves KeyArena Renovation MOU
On December 4, Seattle City Council voted 7-1 to approve the $600-million-plus KeyArena renovation package with Oak View Group (OVG) of Seattle. The vote came a day after the a deal with SoDo arena investor Chris Hansen expired.
Seattle agreed to the memorandum of understanding with OVG who has agreed to privately finance the $600 million renovation of the 55-year-old arena. They will also be spending millions more on transportation and community improvements in what is already a very congested Lower Queen Anne neighborhood.
This is the beginning of what will be a deluge of negotiations and contracts within the agreement including environmental and traffic impact studies, construction permitting and the specifics on how mitigation money will be spent. Under the MOU, the city will retain some revenue from the arena. OVG would enter a 39-year lease with the city that includes options for two eight-year extensions.
What happens to SoDo Arena?
Over the past six years, Chris Hansen and the Sonics Arena team of investors put forth an endless effort to work with the city in bringing together their plan of building a 100% privately funded arena to SoDo. The team of investors, which now includes Wally Walker, Erik Nordstrom, Pete Nordstrom and Russell Wilson, released a statementon their website following the council’s vote:
“Today we remain steadfast in our goal to have the NBA once again playing in Seattle, so we will keep the land we own in Seattle’s Stadium District until that commitment has been made… And if Seattle Center does indeed end up once again being the home for the Sonics, we’ll be right there with you to cheer them on.”
Seattle Mayor Jenny Durkan Signs MOU
On December 6, Seattle Mayor Jenny Durkan and Oak View Group CEO Tim Leiweke officially signed the $600-million-plus MOU for the redevelopment of KeyArena. This new deal provides an opportunity for NHL officials to make a statement at the upcoming Board of Governor’s meeting about how the MOU affects a probable NHL expansion franchise to the city.
During the signing Oak View Group CEO, Tim Leiweke, spoke on acquiring NHL/NBA franchises, saying, “Our job is to get you a team. So hold me accountable a year from now – or sooner.” He then went on to recap a bit of Seattle sports history:
“One hundred years ago to this year, the Metropolitans won the Stanley Cup for Seattle. Fifty years ago, the NBA came to Seattle with the Sonics. Ten years ago, you had heart ripped out. We’re going to get you a team… Lots of people have preferences about the NHL compared to the NBA: Whichever one comes first, if we do a great job with them, the other one will come.”
NHL to Seattle?
At the Board of Governors meeting on Deccember 7, the NHL announced that Seattle Center Arena investors and potential NHL team owners David Bonderman and Jerry Bruckheimer have requested and been granted the ability to formally apply for an expansion team. Should the application be accepted, the expansion fee will be $650 million.
Seattle will hold a season ticket drive, similar to what the Vegas Golden Knights did before being awarded their franchise. Despite these steps, NHL commissioner Gary Bettman said that this is not a guarantee of a team.
OVG plans to start the renovation next year. Should everything go according to schedule, the first event at the renovated KeyArena could be October 2020, which happens to be just in time for the 2020-21 NHL season.