Initiative would block tax subsidy for Sonics

A local union plans an initiative campaign to try to block taxpayer subsidies for the Sonics at KeyArena.

Service Employees International Union (SEIU) 775 will file the initiative Wednesday and start gathering the nearly 18,000 signatures of registered Seattle voters needed to place it on the November ballot, union spokesman Adam Glickman said.

Details were still being worked out, but the initiative basically would prohibit the city from signing a new lease with the Sonics that did not give the city a "fair market" return on any taxpayer investments in KeyArena, according to a draft of the measure.

The Sonics want a $220 million expansion of the city-owned arena. Under the team's proposal, taxpayers would pay most of the construction bill while the Sonics would keep profits from the building.

The SEIU initiative would prevent such an arrangement, requiring instead that the city earn a substantial cash profit on any publicly financed arena expansion.

SEIU is prepared to file similar measures in Bellevue and Renton if discussions about a new Sonics arena get serious in those cities, Glickman said.

"We think this could be one of the easiest things you could possibly gather signatures for," he said. "There is clearly a lot of outrage about this."

Sonics spokeswoman Valerie O'Neil said Monday she had not seen the SEIU initiative and had no comment.

The Sonics' KeyArena lease expires in 2010 and team owners have said they need an expanded arena and more lucrative lease deal to stay in Seattle. KeyArena is the National Basketball Association's smallest venue, and the team says it has lost nearly $60 million since 2001.

SEIU's initiative campaign could further complicate continuing negotiations between Seattle Mayor Greg Nickels and team officials over an acceptable arena proposal to take to the Legislature next year.

The team has tried to persuade lawmakers to extend taxes on hotels, restaurants and car rentals — currently dedicated to paying off Safeco and Qwest fields — to pay for a KeyArena expansion. Those efforts have failed in part because there has been no clear consensus among Seattle officials in support of the Sonics.

SEIU 775 represents about 28,000 home-care and nursing-home workers, who earn an average of about $9.20 an hour. The union has been a vocal opponent of tax breaks for corporations, arguing the money would be better spent on schools and other pressing needs.

Jim Brunner: 206-515-5628 or jbrunner@seattletimes.com