Sonics want a deal this month

On the cusp of their 40th anniversary, the Sonics and city of Seattle are behaving like a married couple with serious problems. They're not talking much. They have money problems, and they're harboring resentments.

Gov. Christine Gregoire recently suggested the two sit down with a counselor. But there may not be enough time for that.

In their most detailed demand to date, Sonics owners said Tuesday in a letter to Mayor Greg Nickels the team wants to know this month whether city officials will back a $220 million KeyArena expansion. If not, the team, which started playing in Seattle in 1967, may leave.

Team president Wally Walker outlined requirements for an arena expansion and a new lease similar to that enjoyed by the Mariners and Seahawks. Putting a dollar figure on the owners' potential contribution for the first time, Walker said they'd offer "not less than" $18.3 million toward a $220 million arena project.

Walker warned against protracted negotiations.

"If it is not a realistic possibility that our requirements can be met, we both need to move on," he wrote.

Some city officials said they were dismayed by the tone of the letter and by the amount of money owners put on the table.

"They want the whole enchilada and they're not willing to walk down to the cafeteria with us. It didn't really strike me as really an engaged letter for negotiating; it's more like 'Here's where we are. If you meet us, fine; if not, we'll just walk away,' " said Seattle City Council President Nick Licata, who has opposed tax subsidies for the Sonics.

Councilman Richard McIver wants at least $40 million from the team. And Councilman Peter Steinbrueck said the Sonics need to "downsize" their arena expectations.

Seattle Mayor Greg Nickels was not available for comment, but spokesman Marty McOmber reiterated the mayor's earlier statements that "he prefers that the future of KeyArena includes the Sonics" and plans to keeping talking with the team.

Walker's letter also detailed what he called an "industry-standard lease" desired by the team. Under its terms, the Sonics would take over management of KeyArena and keep all the revenue generated by events there. In exchange, the Sonics and Storm would sign a 20-year lease and pay rent of at least $1 million a year. The city would still own the building and be responsible for major maintenance projects.

The team's existing KeyArena lease runs until 2010, and owners have been pushing for a more lucrative deal to keep the Sonics after it expires. The ownership group, led by Starbucks chairman Howard Schultz, claims to have lost nearly $60 million since buying the team in 2001.

But two legislative sessions in a row have produced no arena deal, and the Sonics owners announced recently they were exploring all options, including a sale of the team.

The Sonics and city officials, meanwhile, have not moved closer to reconciliation despite a recent letter from Gregoire urging Seattle leaders to come to an agreement with the team as soon as possible. NBA commissioner David Stern last week said Seattle's inaction shows the city is "not interested in having the NBA there."

The Sonics letter came a day after Nickels and all nine City Council members outlined their own arena position in a letter to Gregoire.

The letter said any arena expansion must be put to a countywide vote and be paid for out of "visitor taxes" such as the fees on restaurant and hotel bills, which helped pay for Safeco and Qwest fields.

But the city letter did not address basic questions for the Sonics, such as whether city officials will support the Sonics' desired $220 million KeyArena expansion. Meanwhile, Walker's letter, while detailed on many points, is silent on the question of a public vote.

Gregoire's staff said Tuesday they had not yet seen Walker's letter. Marty Brown, Gregoire's legislative liaison, said the governor suggested bringing in a third-party arbitrator in order to force the two sides to sit down and talk. Sonics officials said they were enthusiastic about that idea, but it was not clear Tuesday whether city officials would agree.

Even if the city and Sonics reach agreement this month, the package will still have to go before the Legislature and possibly the King County Council.

Walker, who was traveling and not available for further comment, did sound some conciliatory notes in the letter.

"We have been proud to call Seattle Center home court for four decades. Were the city to proceed with a project and be willing to enter into a lease that meet our requirements, we would join with the city in extending that legacy to our mutual benefit," Walker wrote.

And if they must split, he suggested, the city and team can at least remain friends. "In the event we do part company, we hope to be able to do so in a mutually respectful way in the spirit of a partnership of such long and honorable duration."

Jim Brunner: 206-515-5628 or jbrunner@seattletimes.com

Seattle Times staff reporter Ralph Thomas and The Associated Press contributed to this report.