Sacramento to spend $550K for sports arena consultants | News
SACRAMENTO, CA - Sacramento city leaders are being asked to approve $555,000 in fees for consultants for the proposed sports and entertainment complex.
The item is on next Tuesday's Sacramento City Council agenda. Various entities are being hired to provide legal, sports finance, investment banking, municipal finance and parking expertise.
Assist. City Manager John Dangberg said, "We are using that money to complete really important due diligence, and that due diligence is required to provide good information to city council and to city staff to ensure that we are protecting the interest of the public."
Sacramento Mayor Kevin Johnson's office defended the proposal, offering the following statement:
"Given that the arena represents an opportunity to generate $7 billion in economic development and 4,100 jobs, Sacramento needs to play offense to be in the strongest possible position in order to protect taxpayers.
"This includes getting as smart as we can on the opportunities that we will need to consider as a part of a public-private partnership."
According to city staff, the monies are to come from the city's parking and five-year Capital Improvement Program close-out funds.
With the exception of a $125,000 fee to Barrett Sports Group for financial advice, the city manager has the authority to approve the other consulting expenditures under $100,000.