Kings pay city $1.4 million owed from 1997 loan agreement
08/13/2013 12:00 AM
10/01/2014 1:48 PM
The new Kings ownership made good on a debt last week that was 16 years in the making.
Sacramento city officials announced Friday they had received $1.4 million in deferred development fees from the team that stems from the 1997 loan the Kings took out with the city.
Those fees were originally due last August and will be earmarked for public projects in North Natomas.
Assistant City Manager John Dangberg said the Maloof family, who sold the Kings in May to a group led by Silicon Valley software executive Vivek Ranadive, had inquired last year about paying the fees back over a 10-year period. The fees were later included as part of the sale agreement the Maloofs had to sell the Kings to a group in Seattle.
The new Kings ownership group also had the option of paying the fees over 10 years, but instead paid the debt back in a lump sum last week, Dangberg said.
Councilwoman Angelique Ashby had been leading the effort to recover the fees, city officials said in a news release.
"The $1.4 million received this week goes into a fund used specifically for public facilities, like fire stations, freeway over-crossings and other critical infrastructure in North Natomas," Ashby said in a statement. "It's a great start to what promises to be a tremendous opportunity for Natomas to work with the new ownership on creating an economic engine via a designated reuse on the existing arena site."
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