This is the most complex proposal of the seven and also appears to have the most supporters. With the NBA and Maloofs liking it, this could be the plan that moves to the next phase. In short, this deal involves selling Cal Expo land for redevelopment that would help finance a new arena, the old Arco site would become the new location for the state fairgrounds using Arco Arena as an exhibit hall, and the Railyards site would become Sacramento’s new entertainment sports complex.
I see a few sticking points before this plan can happen. First, will the State agree in selling Cal Expo to help pay for Sacramento’s new entertainment complex? Will the $68 million loan the Kings owe the city be forgiven? How will a new state-of-the-art fairground in Natomas be paid for if all the money from selling Cal-Expo goes to building the new sports complex in the railyards? This whole thing is vary complicated. The numbers also don’t add up when the cost to build a new fairground is also included into the over all development costs. The sale of land only pays for a percentage of the new arena in the railyards and not a new fairground to be built in Natomas.
Remolding of the current fairgrounds is the most cost effective way to upgrade dated Cal Expo, not building a new one at more that twice the cost. We all know that this is not what this whole proposal is all about, it’s about building a new arena for the city. It appears to me at this point, the movers and shakers of this deal aren’t even thinking about this part of the equation right now, but it will have to be addressed at some point.