Development on the new downtown arena faces a key hurdle tonight as Sacramento City Council members will be voting on whether to pay $13 million in pre-development costs.
The Maloofs have said they will not pay these pre-development costs, and the city alleges they did not know the owners wouldn’t pay. The Kings are reasoning that they will be tenants, not owners of the arena, so they are not responsible for these costs.
A source in the mayor's office told FOX40 he expects the council will okay the expenditure, but, as we reported on FOX40 News at 10PM last Friday night, the council will also probably vote not to spend any of the money until the current rift with the Maloofs over their share of the pre-development funds has been resolved.
The NBA stepped last week and paid $200,000 towards the costs as a show of commitment to keep the Kings in Sacramento.
It's not impossible the council will vote NO tonight, which could kill the arena project, but the sense in the mayor' office is that the vote will pass.
Kings owners are still pledging to pay $73 million of the $391 million of the total cost for the area.
The next key dates for the arena project could be April 12 and 13. That's when the NBA Board of Governors meets again in New York. The Commissioner and Board are expected to discuss the arena/Maloofs situation. If the railyards plan survives until that meeting, any decision made by the NBA it will certainly be important to the arena project and Sacramento's future.
The vote is scheduled for 6 tonight.