The Seattle City Council outlined its bargaining points with the Sonics on Monday, while council President Nick Licata prepared an alternative that would raise nearly $1 billion from taxpayers over 30 years to help KeyArena, Seattle Center, the arts and tourism.

The council unanimously approved a resolution to guide Mayor Greg Nickels in his ongoing negotiations with the Sonics. The council agreed the Sonics must contribute a "significant" amount to a $220 million expansion of KeyArena the team has proposed. The Sonics last month offered at least $18 million and have threatened to leave Seattle if an arena deal isn't approved.

The resolution, among other things, also calls for a countywide vote on any taxpayer-funded KeyArena renovation.

David Della, who leads the council committee that oversees KeyArena, described the resolution as "hanging tough" despite pressure from the team owners, news media and Gov. Christine Gregoire to move more quickly on negotiations.

"Sometimes cities that don't cave in are able to negotiate a pretty good deal. I still have hope that might happen," said Councilman Richard Conlin.

The council's bargaining points are consistent with the mayor's, said Deputy Mayor Tim Ceis, who has been at the negotiating table with the Sonics. Team spokeswoman Valerie O'Neil said the council's action signified progress.

Led by Starbucks Chairman Howard Schultz, Sonics owners have demanded a taxpayer-financed renovation of KeyArena, saying they have lost nearly $60 million since buying the team in 2001.

Licata's plan, which is more far-reaching, is expected to be introduced Wednesday at Della's committee meeting.

The package serves two purposes, he said: It provides an alternative to any potential deal the Sonics and Nickels agree on, and it's a backup plan if those negotiations break down.

Licata has long been an opponent of public subsidies for professional-sports facilities. In this plan, he uses the Sonics' demand for an expanded KeyArena as an opportunity to steer financial aid toward the arts and the aging Seattle Center.

Arts, culture and tourism, Licata said, have "known and quantifiable benefits for Seattle, King County and Washington state."

Licata would tap the same revenue streams the Sonics are seeking — a mix of countywide hotel, restaurant and car-rental taxes that have been used to pay for Safeco and Qwest fields. He also proposes using lottery funds that now go to Safeco Field. Those lottery payments are scheduled to end in 2014, and Licata would extend them to help pay for his plan.

Licata would split the roughly $1 billion this way:

• $20 million to upgrade KeyArena.

• $45 million to retire debt from the arena's 1994 remodel.

• $215 million to improve facilities at Seattle Center.

• $128 million for Seattle Center operations.

• $327 million for arts and cultural facilities in King County.

• $122 million for arts outside King County.

• $129 million for tourism development.

The tab for his 30-year proposal, based on today's dollar value, is not as staggering as it might seem, Licata said. The Sonics' $220 million proposal would cost taxpayers about $500 million when debt and interest were calculated, he said.

He pointed out that his plan would benefit the Sonics by paying off the KeyArena debt, which has been financed largely by the Sonics' sale of luxury-suite tickets. Retiring the arena debt would save Sonics owners about $7 million a year, which could get the team close to profitability, Licata said.

O'Neil said she couldn't comment on Licata's plan because team officials hadn't seen it.

Ceis questioned whether state lawmakers — whose approval would be needed for the tax package to fly — would support such a broad proposal.

Della said he wants to first figure out what's best for the future of Seattle Center, the city's 74-acre cultural campus, then devise a plan to finance it. Licata's proposal, Della said, "puts the cart ahead of the horse."

Bob Young: 206-464-2174 or byoung@seattletimes.com

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