Sacramento releases financing plan for $391M arena

ANTONIO GONZALEZ AP Sports Writer Published:

SACRAMENTO, Calif. (AP) -- The city of Sacramento has released the financing plan for a new arena, setting the stage for Tuesday night's City Council vote that will decide whether the Sacramento Kings stay.

The non-binding term sheet announced Thursday night estimates the final price tag for the arena at $391 million. The city will contribute $255.5 million to the project, mostly by leasing out parking garages around the facility.

The Kings have agreed to pay $73.25 million and sign a lease obligating the team and any future owners to remain in Sacramento for 30 years. Arena operator AEG will contribute $58.75 million, and another $3 million from a public sponsorship campaign.

There also will be a 5 percent ticket surcharge to help fund the plan and a $1 ticket surcharge for facility maintenance.