Sonics pick Renton, but will state play?

OLYMPIA — Sonics owner Clay Bennett ended a long-running mystery Tuesday when he told state lawmakers he prefers Renton over Bellevue for a new $500 million basketball arena.

But that decision was only the first of many obstacles facing what Bennett said would likely be the most expensive arena in the country.

Some legislative leaders remain skeptical about the Sonics' request for $300 million in tax money for the project. Opponents are already threatening to scuttle any arena plan with lawsuits and initiatives.

And King County Councilman Larry Phillips said a majority of the council sent a letter to Gov. Christine Gregoire on Tuesday demanding a public vote on any arena plan — a prospect that Bennett has sought to avoid.

Bennett, the Oklahoma City businessman who led a group that purchased the Sonics and Storm for $350 million last year, repeated that he is committed to keeping the teams in the region. But, he said, "we need a place to play."

The new arena would cost about $500 million. The Sonics hope Renton will chip in some money to help cover the $200 million that the tax package would not provide. The team's request to the Legislature is part of a $423 million tax package that also would fund arts groups and maintenance for existing stadiums.

The Sonics' lease at Seattle-owned KeyArena expires in 2010, and team owners have said they need a new arena or they might move the team to Oklahoma.

Tuesday marked Bennett's first appearance before state lawmakers, who spurned two years of pleas from previous team owners for a $200 million renovation of KeyArena.

Bennett repeatedly touted the proposed arena as a "community asset" that also could draw political conventions, a National Hockey League team and corporate events.

"Let's build it right. Let's build it big. Let's build it flexible," he told the Senate Ways and Means Committee.

Arena opponents scoffed at the notion that the plan was anything but a giveaway to wealthy NBA owners and players, and noted recent polls have shown widespread public opposition to arena subsidies.

"You can't pay Ray Allen $15 million a year and pretend this is anything more than a fig leaf for an out-of-control payroll," said Chris Van Dyk, co-chairman of Citizens for More Important Things, a group that also fought the Seahawks and Mariners stadiums.

King County Executive Ron Sims testified in favor of the Sonics proposal.

But even if state lawmakers approve the Sonics proposal, the plan will have to go before the King County Council. And a majority of council members signed a letter Tuesday written by Phillips, D-Seattle, demanding a public vote on any arena-tax package.

The letter, to Gregoire and Sen. Margarita Prentice, D-Renton, cited a recent successful Seattle initiative opposing arena subsidies and said the public is already paying for debt from four other sports stadiums: the Kingdome, Qwest Field, Safeco Field and KeyArena.

Bennett received a mostly cordial reception from the Ways and Means panel, which is chaired by Prentice, the team's chief legislative ally. Bennett said afterward he was surprised that lawmakers did not ask more pointed questions — especially since he declined to say exactly how much team owners would contribute to the project.

With a request for $300 million in state-authorized taxes, Bennett said the remaining $200 million or so would be split among private investors and the city of Renton. He said team owners have talked informally about a private contribution of $100 million.

Renton Mayor Kathy Keolker said she was happy with the Sonics' decision but cautioned that the city has made no specific commitment to contribute to the arena. "We don't have $100 million sitting in a bank account somewhere," she said.

But Renton leaders view the arena as a possible catalyst for the city's development. The proposed site is next to The Landing, a $300 million development of retail stores, condos and restaurants now under construction.

Renton contributed about $28.5 million to that project by paying for utilities, roads and other improvements. Keolker suggested the city may do something similar for the Sonics if leaders determine that Renton would be paid back by future tax collections at the arena.

The Sonics had kept the Renton pick so mum that even city officials said they were not told until shortly before Bennett's appearance at the meeting.

In the end, Bennett said he picked Renton over Bellevue because the site — a 21-acre piece of Boeing land at the south end of Lake Washington — was larger, less expensive and had enthusiastic support from city leaders. Boeing has been in talks with the Sonics over the property.

Sonics owners had considered at least 29 sites in King County after it became evident that Seattle voters would not support a renovation of KeyArena for the Sonics. The team narrowed those to two finalist sites in Renton and Bellevue but had delayed for weeks on naming its final choice.

Even Tuesday, Bennett said Bellevue remains a viable option if Renton does not work out.

Bellevue City Manager Steve Sarkozy said he was not disappointed by Bennett's choice and that the city supports keeping the team in the region.

"It's great that we can move this to another level," he said.

Despite the hoopla surrounding Tuesday's announcement, the Sonics' prospects in Olympia remain unclear.

House and Senate leaders have said repeatedly that legislation to fund the arena is not a top priority this year.

But Sen. Darlene Fairley, a Ways and Means Committee member who is adamantly opposed to the tax package, said she thinks the legislation has a better chance now than in the past two years.

"I think they're going to come up with enough glitter to make it look like it's worth doing," said Fairley, D-Lake Forest Park.

Sen. Jeanne Kohl-Welles, D-Seattle, agreed that the bill will fare better this year. Kohl-Welles, who supported the Qwest and Safeco field tax packages, said she's still undecided on the Sonics proposal.

She said she thinks the Legislature should consider including money to help Seattle Center remain viable after the loss of the Sonics.

Democratic Gov. Christine Gregoire, who worked hard last year to try to broker a deal that would fly, has not weighed in on the new proposal. But top aides say she is committed to keeping the team in Washington.

Staff reporter Ashley Bach contributed to this story. Jim Brunner: 206-515-5628 or jbrunner@seattletimes.com