New lawsuit could hurt Sonics arena deal
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SEATTLE -- A new lawsuit could be another big hurdle to stop the Sonics from returning to Seattle.
"We're alleging that the basketball arena deal is really "bailout ball," said attorney Cleveland Stockmeyer.
Stockmeyer filed the lawsuit on Friday, alleging the city of Seattle's $200 million loan to Chris Hansen does not comply with I-91, a measure to protect taxpayers on land deals.
Stockmeyer's suit says the city has no true guarantee to see a return on the investment.
"This is a bailout in advance," he said. "It's an ongoing subsidy and it's a lack of fair value."
Stockmeyer hopes to depose Hansen during discovery.
The City Attorney's office is not commenting about pending litigation, but did say they are settling a separate lawsuit with the Longshore union. That suit centered around the ongoing Environmental Impact Study.
Hansen's representatives did not respond for comment.
The suit comes at a vulnerable time for Hansen and the Sonics. Councilmembers Bruce Harrell and Tim Burgess confirmed Tuesday that city staff has been briefed on Hansen's deal to buy the Sacramento Kings.
That city's mayor, Kevin Johnson, was granted the opportunity to cobble together investors to buy the ailing team and keep them in California's capital. It's unclear how that hearing may affect Hansen's deal. So far no specifics have been announced.
"We're alleging that the basketball arena deal is really "bailout ball," said attorney Cleveland Stockmeyer.
Stockmeyer filed the lawsuit on Friday, alleging the city of Seattle's $200 million loan to Chris Hansen does not comply with I-91, a measure to protect taxpayers on land deals.
Stockmeyer's suit says the city has no true guarantee to see a return on the investment.
"This is a bailout in advance," he said. "It's an ongoing subsidy and it's a lack of fair value."
Stockmeyer hopes to depose Hansen during discovery.
The City Attorney's office is not commenting about pending litigation, but did say they are settling a separate lawsuit with the Longshore union. That suit centered around the ongoing Environmental Impact Study.
Hansen's representatives did not respond for comment.
The suit comes at a vulnerable time for Hansen and the Sonics. Councilmembers Bruce Harrell and Tim Burgess confirmed Tuesday that city staff has been briefed on Hansen's deal to buy the Sacramento Kings.
That city's mayor, Kevin Johnson, was granted the opportunity to cobble together investors to buy the ailing team and keep them in California's capital. It's unclear how that hearing may affect Hansen's deal. So far no specifics have been announced.
Sounds like typical Seattle politics. Nothing ever gets done without the threat of lawsuits, assuming stuff ever gets done here. Everybody's so lawsuit happy. Chances are this'll get thrown out along with the Longshore union's suit.
Seattle should completely stay away from the stadium other than issuing permits and building inspections. They do not need the money from the lease, rent for shows, concerts & conventions. Stay away from pricing the vendors, we don't need $7.50 hot dogs and $10 beers so the city can make 50% of it.
i dont want to say i told you so but , The NBA cant come back to seattle without the blessing of Clay bennett and david stern, and as long as those two are in bed together, seattle will not have an NBA team. I ask again, why would you do business with an outfit like that ?
 @sportbuff01 They only did that so Clay can get the team down to OK and Stern can rake in more money thru that team and arena. As far as this deal, I really don't think either one of them really care that much. I'm sure Stern would like to get a team here now that we seem to be offering a better deal than Sac.
http://www.king5.com/news/arena/Hansen-Seattle-Council-reach-deal-on-financing-new-sports-arena-169272086.html
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People are just upset that Hansen has so far been able to counter the detractors at every turn.
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-Dawn M. Welch
SONICS NATION Facebook page manager
Anyone who trusts the NBA should have their head examined. Pay for the NBA to come back here and they will be demanding a new facility every 10-15 years at our expense. Good riddance and stay away.
I agree that tax money should be used for education purpose not a handout for the rich to make money off, Hanson should fund his own private buss. keep the gov. out of private companies or deals. Find a bank to loan you that kind of money on a high risk deal.
Good luck Kevin Johnson I hope you find enough investors to keep the team in California's capital. I hope the NBA never gets back to Seattle.
 @olyvinman are you just a bucket of.......... cheer
Only jealous people hate rich people, lawyers do their job,If you kill 5 people,lawyers will defend you.
Lawyers are the biggest prostitutes,Many people are envious of Chris Hansen because he is a success man, the losers use  lawyers for their envy.
I-91 says if taxpayers monies are used they must a have a return on investment at least at the rate of a 30 year treasury bond nothing about not helping pay for it...
Go to heck Stockmeyer. Hansen owns the land, not the city. EFF-OFF
@BluefireJaguar and that's why the city gov. should not use tax payers money on a private deal, Hanson needs to get the money from a bank, good luck the bank knows it is to high risk.
I would love to see a NBA Team back here and maybe even a NHL team as well. I do want to make sure that not one red cent of city municipal bonds or tax monies of any kind are used. let the rich investors pay for it let them buy the land and pay the fees.
I'd like to see a team here, too, but Hansen's flippant disregard of waterfront concerns bothers me; seems like it's big money getting its way, as usual. How about staying at the Key? Do we always need the biggest and best? I'll bet the players will play as hard, and fans will or won't come, regardless of venue.
@lifesize If I'm not mistaken, and I may be, I think the Key is one of the reasons we lost the Sonics in the first place.
 @Surveyor1  @lifesize You aren't mistaken.  If you put a winner on the floor people will come but if you have a loser a nice arena sure helps bring people in as well.  The Sonics had greater attendance than the Kings back when we lost them.  They were sold because Key Arena didn't have enough luxury suites to bring in top revenue. Â
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@Legendsfan @Surveyor1 @lifesize that's only in fairy tales, let Hanson get the money from the banks, if he can find one to take that high of risk!
 @Legendsfan  @Surveyor1  @lifesize What disregard for the waterfront are you referring to? And Key Arena was/is a dump, that's why it wouldn't work.
I think that this is a mistake for Seattle in the long run.Â
I agree, the lawsuit is a mistake.
There is no way that Mr. Hansen is going to fully fund the building of the new arena. That money is going to have to come from somewhere and it will be the tax payers. Frankly, I am tired of the city saying we don't have money to fund schools, roads, police, etc but can always find money to do crap like this. And how exactly does a new arena help the economy? I have yet to see any of my taxes go down from all of the "profits" made from the last two stadiums that were built. And no impact to the traffic in the area? Who got paid off to say that? It takes me 1 1/2 hrs on game day to get from Bellevue to South Seattle when the Mariners play. Can't imagine what it would be like with more traffic. So those of you that want the team to come here, you fork over your money and leave mine alone.Â
 @des6786 "And how exactly does a new arena help the economy?" Well....about 1000+ jobs....tourism money....boost to local bars, restaurants, hotels....attracting other clients such as NCAA finals, political conventions, major concerts. Basically a slew of money into the economy.
 @des6786 again, it is better funded sports arena than American wars of foreign countries
@des6786 why not have him get Bill gates and other Microsoft billionaires to help fund it? Oh yeah they seem to always want to use OPM other peoples money. Like saddle the tax payer with it.
 @Exiled_Patriot  @des6786 How many games or events at the new arena will you be attending?
 @des6786 Grrrr, stadium bad...rabble, rabble. Why when I come over from Bellevue (cause I don't live in Seattle) to go to games at the other 2 stadiums that were both an actual boondoggle to tax payers...I'm grrrr, angry about traffic...grrrr, doesn't matter that the other part is funded by bonds...grrr.The word for you and those like you is hypocrite.Â
@MaxVonToadenoff @des6786 those bonds were slated for roads and infrastructure repairs not for building a wood floor to bounce a rubber ball on in your underwear.
 @Exiled_Patriot You don't get out much. do you?
 @des6786 With more traffic? There are less seats at a NBA game than a MLB game. I think you mean the same traffic on more days of the year.
If were Mr. Hansen, I would have told Seattle and King County to go pack sand by now. The constant whinning of these cry babies would be far louder then any cheering the fans would make
 @Dhnr Seattle and King County have been supportive so what in the hell are you talking about?  The expression is pound sand.  Next time, do a little research before you start flippin' your flappers.
Based on what I read on the Seattle Times, I-91 was to slapdown any tax payer subsidareis on sports teams & stadiums
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So if Hansen's group is purchasing the land, & team what would this have to do with I-91? The only thing I could think of is getting the city to approve any permits for building on the land & I'm thinking that I-91 would have nothing to do with that.
I-91 was to ensure the city received a fair return (15%??) on their investment. It wasn't to forbid tax payer subsidies.