In a repeat of the March 6th City Council meeting, council members again voted 7-2 in support of the new arena, by moving forward with a pre-development deal.
Mayor Kevin Johnson, clearly dismayed over the Maloofs saying they never agreed to fund pre-development.
"There are some challenges with one of our partners, but nonetheless. I think we need to stay the course. Members of the public articulated very well. There's no city dollars at stake that this particular time," Mayor Johnson said.
Council members Sandy Sheedy and Kevin McCarty voted the deal down.
The first stage of work takes place in two weeks in a meeting with the NBA. Commissioner David Stern has vowed the league will advance $200,000 to keep the project afloat.
The mayor says he'll hold the Maloofs accountable.