Taxpayers stuck with research costs if arena deal fails?
»Play Video
SEATTLE -- Seattle and King County leaders made promises, but there may be not be a way to keep them.
Taxpayers could end up paying at least half a million dollars for consultant contracts and lawyers for the proposed sports arena in SoDo. Mayor Mike McGinn and King County Executive Dow Constantine lauded the project's financing plan earlier in the year. But there appear to be no protections to get that money back if the arena fails to break ground.
"I think everybody should be concerned when we have a process that does not have transparency," said King County councilmember Pete von Reichbauer.
He said it was "absurd" and "frightening" the spending on consultant contracts is skyrocketing. "And the only beneficiaries are the lawyers and outside consultants," he said.
The Problem Solvers found multiple firms were given contracts with few bidders and startling paychecks. The hourly rates range from $360 to $520 per hour plus expenses.
Since the secret discussions began last summer city departments have handed out more than $593,728. Spending on contracts has been escalating and many of the contracts have been extended multiple times. There appears to be no end in sight.
Reichbauer called for a full investigation into city and county spending.
"We're talking about hundreds of thousands of dollars at a time when public services are being restricted and cut back," he said.
County Executive Dow Constantine supports the arena and says scrutiny is expected.
"We have complicated matters that come before us on a daily basis. This is one that gets more attention," he said.
Taxpayers settle up the tab?
Developer Chris Hansen's Memorandum of Understanding says he will reimburse the city and county up to $5 million for consultants and other run-up costs, but the MOU still hasn't been approved by the city and county councils.
If the MOU fails, there appears to be nothing in writing to make Hansen reimburse the councils.
When asked if he expected Hansen to pay the money back if the MOU doesn't get passed, Mayor Mike McGinn had no idea. "You know, I'm sorry, I don't have the answer to that. I'd have to ask that question," he said.
Other members of the county council don't know if Hansen will be required to pay. Hansen's spokesperson wouldn't comment on the hypothetical scenario. His camp believes the MOU will pass.
While there may be no protections for taxpayers to back up the promises of the arena, the checks are still being cashed.
Residents speak out
At a packed Tuesday night Town Hall meeting, arena fans and opponents showed up in droves to make their voices heard.
Some attendees said the city needs to be more transparent in its financial dealings.
"How much have we spent as citizens of this city dealing with this stadium issue right now?" one person said.
Despite the many unanswered questions, there are still plenty of supporters looking forward to the project coming to fruition.
"The creation of this arena would create so many jobs and put a lot of people back to work in the City of Seattle. It would far out number what the port will lose," one person said.
Taxpayers could end up paying at least half a million dollars for consultant contracts and lawyers for the proposed sports arena in SoDo. Mayor Mike McGinn and King County Executive Dow Constantine lauded the project's financing plan earlier in the year. But there appear to be no protections to get that money back if the arena fails to break ground.
"I think everybody should be concerned when we have a process that does not have transparency," said King County councilmember Pete von Reichbauer.
He said it was "absurd" and "frightening" the spending on consultant contracts is skyrocketing. "And the only beneficiaries are the lawyers and outside consultants," he said.
The Problem Solvers found multiple firms were given contracts with few bidders and startling paychecks. The hourly rates range from $360 to $520 per hour plus expenses.
Since the secret discussions began last summer city departments have handed out more than $593,728. Spending on contracts has been escalating and many of the contracts have been extended multiple times. There appears to be no end in sight.
Reichbauer called for a full investigation into city and county spending.
"We're talking about hundreds of thousands of dollars at a time when public services are being restricted and cut back," he said.
County Executive Dow Constantine supports the arena and says scrutiny is expected.
"We have complicated matters that come before us on a daily basis. This is one that gets more attention," he said.
Taxpayers settle up the tab?
Developer Chris Hansen's Memorandum of Understanding says he will reimburse the city and county up to $5 million for consultants and other run-up costs, but the MOU still hasn't been approved by the city and county councils.
If the MOU fails, there appears to be nothing in writing to make Hansen reimburse the councils.
When asked if he expected Hansen to pay the money back if the MOU doesn't get passed, Mayor Mike McGinn had no idea. "You know, I'm sorry, I don't have the answer to that. I'd have to ask that question," he said.
Other members of the county council don't know if Hansen will be required to pay. Hansen's spokesperson wouldn't comment on the hypothetical scenario. His camp believes the MOU will pass.
While there may be no protections for taxpayers to back up the promises of the arena, the checks are still being cashed.
Residents speak out
At a packed Tuesday night Town Hall meeting, arena fans and opponents showed up in droves to make their voices heard.
Some attendees said the city needs to be more transparent in its financial dealings.
"How much have we spent as citizens of this city dealing with this stadium issue right now?" one person said.
Despite the many unanswered questions, there are still plenty of supporters looking forward to the project coming to fruition.
"The creation of this arena would create so many jobs and put a lot of people back to work in the City of Seattle. It would far out number what the port will lose," one person said.
