Last year the Sacramento Kings was sold to Vivek Ranadive’s Group for more than 500 million dollars.. This transaction was the highest in NBA history.
There are allegations the City of Sacramento intended to rebate the owners in a form of undervalued land included in $258 million subsidy to build a new arena in downtown Sacramento.
A local grassroots group “Eye on Sacramento” questioned the city’s valuation of the land early last year. In December, Craig Powell President, wrote: We want to draw the attention of the media and the public to Agenda Item 5 on your consent agenda this evening which seeks your approval of a deal to sell a 9.15-acre parcel of land that adjoins the 60-acre Haggin Oaks property to Rapton Investment Group for a price of $4,305,000 or $470,049 per acre. (A Mel Rapton dealership currently leases the land from the city). Unlike your staff’s valuation of the 60-acre property, the city secured an independent appraisal for the sale of the Rapton parcel and the appraiser found that that parcel has a current market value of $467,760 per acre, more than seven times the phony $65,000 per acre valuation your staff placed on the adjoining 60 acres of land that a council majority wish to give away to billionaires.
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On Tuesday, Sacramento Superior Court Judge Eugene Balonon ordered the city to make Council member Kevin McCarty and city economic development director Jim Rinehart available to answer questions about the $258 million subsidy within the next 20 days. Balonon indicated a week ago he would allow the depositions of McCarty and Rinehart, which would be held behind closed doors.
City officials had contended that McCarty, as a council member, should be immune to answering questions.
City lawyers have said there was no backroom deal with the new team owners.
Read more here: http://www.sacbee.com/2014/01/14/6072642/sacramento-councilman-mccarty.html#storylink=cpy
34000 thousand signature are currently being verified by Sacramento County to place the Arena issue on the June ballot.