Oak View Group, based in Los Angeles, has released its renovation plans for Seattle’s KeyArena in an effort to attract NBA and NHL consideration for expansion franchises. The group has a formal agreement with Seattle Mayor Ed Murray to build a $600 million privately financed arena to be completed by 2020. The proposed plan and agreement, commonly referred to as the Memorandum of Understanding, will be formally submitted to the Seattle City Council this week. OVG sent a compilation of renderings that were put together to give the decision-makers an idea of what the proposed arena might look like upon completion. The renderings included detailed images of the inside and outside of the arena, as well as blueprints for both the arena and parking structures. In addition, the group provided renderings of what a concert, an NBA game, and an NHL game might look like inside the complex.
Commitment To The Community
In addition to the $600 million proposed for the arena renovations, OVG is committing $60 million into the surrounding community. Professional sporting events increase traffic. It’s not a secret, and it’s not going to change; however, OVG plans to spend $40 million to improve transportation around the arena. They will also commit $20 million to a community fund, and half of the fund will go towards the city’s YouthCare program to prevent youth homelessness.
Of course, anytime a proposal for a new arena is submitted, there are a lot of obstacles to overcome in order to execute the plan. OVG’s proposal is not different. First, they have to get everything approved by all the appropriate government entities within the city and state. Then, the group may need to invest capital into the relocation of some landmarks that it will need to remove for its arena proposal. There are also quite a few provisions that will need to be accommodated in conjunction with the city’s proposed lease to OVG. Seattle is currently offering a 39-year lease with two 8-year renewal options. In order to extend the lease past 39 years, OVG will have to invest $168 million in improvements and will need to house both an NHL and NBA franchise.