Arena

August 29, 2014

No ruling yet in Sacramento arena subsidy suit

A judge will continue to ponder the fate of a lawsuit challenging the city of Sacramento’s $255 million subsidy for the new Kings arena.

A judge will continue to ponder the fate of a lawsuit challenging the city of Sacramento’s $255 million subsidy for the new Kings arena.

One day after issuing a tentative ruling that kept a portion of the suit alive, Sacramento Superior Court Judge Timothy Frawley heard an hour’s worth of legal arguments on the matter Friday and didn’t make a final decision.

However, Frawley did say he’s scheduled a Dec. 12 hearing on the merits of the case.

On Thursday, the judge made a tentative ruling that struck down parts of the lawsuit but kept other parts intact. Among other things, he said the three Sacramentans challenging the subsidy can proceed with claims that the subsidy is “illegal and wasteful” and represents an “abuse of discretion” by the City Council. They also can challenge the legal validity of the bonds that will be issued to finance the lion’s share of the city’s subsidy.

The council approved the subsidy in May and the Kings began demolition of the arena site, at Downtown Plaza, earlier this month.

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