Pretty price for arena advice

City and county officials are the first to admit that putting together the myriad details surrounding the financing and construction of a downtown arena isn't easy.

To help them with that task, they have hired five consultants, and so far have planned to spend about a quarter million dollars.

"We're talking about (an arena) project that will cost upward of half a billion dollars," said Paul Hahn, economic development director for Sacramento County. "We want to make sure the supervisors and voters have the best information available to them when making decisions."

Arena opponents question if the money is well spent. Linda Roberts, an Oak Park activist volunteering to defeat two arena proposals going before voters Nov. 7, said the money for consultant fees could have gone for additional police officers in her neighborhood.

"Consultants or police? I vote for police," Roberts said.

Of the funds already spent by the city and county, nearly $150,000 has gone to Dan Barrett, a Manhattan Beach sports consultant who, at $350 an hour, has led negotiations between the municipalities and the Maloofs, the owners of the Sacramento Kings.

Sacramento Vice Mayor Rob Fong said Barrett is a veteran negotiator who brings expertise and knowledge of previous NBA deals as well as tough negotiating skills.

Arena negotiators have said that the agreement with the Maloofs is better than three of four recent arena deals in the United States, but critics believe the city and county gave up too much to the Maloofs by allowing them all revenue from a new facility.

"All of us knew going in that getting a deal we could support and take to voters was going to be very challenging," Fong said. "We certainly knew that no matter what we did there would be detractors. What might be a good sports deal might not necessarily seem like a 'good deal' in another context."

Barrett has represented professional sports teams and municipalities across the country. He worked for San Diego in its Petco Park project and with the owner of the Sacramento River Cats during negotiations for Raley Field.

When the most recent arena negotiations gained momentum in March, the city hired Barrett, giving him a contract not to exceed $100,000. City Manager Ray Kerridge is authorized to approve contracts of $100,000 or less without City Council approval.

When Barrett went over the city's contract by more than $7,000, the City Council needed to give its OK. On Tuesday, without comment, the council unanimously agreed to extend the contract by $10,000 -- a total of $110,000.

Councilman Steve Cohn, who has been critical of the arena deal, said he didn't see a need to raise objections to Barrett's contract, but wouldn't be silent "if more bills like this one start coming in each week."

Further, Cohn said he'll be carefully scrutinizing the binding memorandum of understanding that is being negotiated between the city, county and the Maloofs.

That document will flesh out many details in the deal, including deadlines, parking and design.

The Sacramento County Board of Supervisors last week approved its own contract with Barrett, to help even out the contribution between the city and county, said Hahn. So far, the county has received invoices totaling nearly $41,000, according to county figures.

John Dangberg, assistant city manager, said Barrett's role has lessened since the main deal points were negotiated early this month. He expects the heavy lifting will now fall to legal consultant Paul Jacobs, who will help draft the memorandum of understanding.

The county in May signed a $25,000 contract with Jacobs, a Colorado attorney who has worked on several sports deals, including several with Barrett. So far, Jacobs -- who bills at $425 an hour -- has submitted bills of $913. Dangberg said it's likely Jacobs' work will exceed the $25,000 contract limit.

Jacobs and Barrett also have worked on previous arena efforts in Sacramento. They were once hired by the city of Sacramento when officials were considering placing an arena downtown at Seventh and K streets. And they represented Natomas landowners in an effort to build a privately funded arena there.

In the current negotiations, the city paid consultant PC Sports $45,000 for building cost comparison of other recently completed arenas as well as how costs would differ in various geographic areas.

In April, the city signed on consultant Martha Lofgren, a former Folsom city manager, to provide outreach to other cities within the county. Lofgren, who charges $325 an hour, has billed nearly $32,000 from her $45,000 contract.

The county also has bond counsel Orrick Herrington & Sutcliffe for $195 an hour, but as yet the firm has done no work on the arena deal, Hahn said.

BREAKING DOWN THE ARENA DEAL

• Proposal: $1.2 billion measure funded by a Sacramento County quarter-cent sales tax.

• Breakdown of funds: $470 million to $542 million for arena and parking structure; minimum of $594 million for unspecified community projects.

• Arena ownership: Public joint powers authority created to build the arena would own the facility, oversee the building's design and construction, and be responsible for cost overruns.

• From the Kings' owners: Lump-sum payoff of an outstanding $71 million loan; sign 30-year lease, pay $4 million annually; $20 million repair fund.

• Kings' responsibilities: Maloofs would maintain the building and keep proceeds from events, parking and concessions. They would control naming rights for the new facility, which would anchor a planned sports and entertainment district in the downtown railyard.

• On the Nov. 7 ballot: Requires approval by 50 percent plus one voter -- a simple majority.

About the writer:

• The Bee's Terri Hardy can be reached at (916) 321-1073 or thardy@sacbee.com.