In the wake of Chris Hansen’s surprise announcement that he’d shoulder all the construction costs of a new Seattle arena (or at least front the money for all of them, though he’d still pay some of them off with tax breaks), another potential bombshell: Both the Oak View Group, an entertainment venue business launched last year by former AEG exec Tim Leiweke and artist manager Irving Azoff, and AEG itself have expressed interest in renovating KeyArena to bring in NBA and NHL teams.
“We believe in the KeyArena location,” Leiweke, CEO of the 11-month-old Oak View Group, told The Seattle Times in an interview Thursday night. “We believe that the studies have proven — and we will continue to do additional studies as we go through this process — that there is a chance to renovate and make that arena work for music and sports.
“And the economics are such that if the right private-public partnership can be established, that it will stand alone on its own two feet without the rest of the land around it having to be developed.’’
If you’re like me, your alarm bells probably went up at “the right private-public partnership,” since that is almost always code for “we’ll build it … for a price.” The last best estimate of the cost of Key renovations was $285 million; while Leiweke told the Times that “we understand that the private sector is going to have to do the heavy lifting here,” there are no details yet of what exactly Oak View would be asking for from the public side, in either cash or tax kickbacks.
That said, Seattle could do far worse than suddenly having three different developers fighting for the right to build a new or renovated arena. As the Times’ Geoff Baker writes:
That’s great news for NBA fans and anyone wanting the NHL here. Two arena locales close to the downtown core will openly compete; with NBA and NHL leadership looking on, knowing a winning site won’t be in some distant suburb… Seattle has become a wealthy, desired place where many more people and businesses than ever, sports leagues included, want to be. And like the most beautiful woman at the dance, we don’t have to leave with the first guy showing up in a designer suit.
That’s, um, only a slightly creepy metaphor, Geoff, but the point is valid: All else being equal, it’s always better to have options, since you have the potential to drive suitors into a bidding war. Possibly not a hugely lucrative bidding war — I remain skeptical that there’s a ton of money to be made in building or renovating a Seattle arena — but competition is always good for getting the best price, so kudos to Seattle politicians for driving a hard bargain. Now to see if they can pick a winner based on what will be the best deal for residents, and not just on which powerful locals are shouting the loudest.