Arena Deal Papers Are Promised After Lease

A spokesman for the developers of the proposed $240-million downtown sports arena said Wednesday that they will release all documents relating to the project before the City Council votes on it, but not until negotiations on a ground lease and other agreements with Los Angeles city government are complete.

The only fact the owners now plan to withhold is the amount of money changing hands between the Lakers and Kings.

John Semcken of Majestic Realty--the development company through which the owners of the Los Angeles Kings plan to build the hockey and basketball arena near the city’s Convention Center--said disclosure of the documents covering the agreement between the developers and the Los Angeles Lakers, among other items, will probably come in a couple of weeks, before a final council vote on the project scheduled for mid-September. Semcken described the precise sum being paid to the Lakers as “proprietary” information.

The Kings have been under pressure by city officials and media organizations to release the contract with the Lakers, and other deals connected with the arena project, since Times columnist Bill Boyarsky began writing a series of articles questioning the secrecy. Last month, the council unanimously approved a motion urging release of the documents. City Atty. James K. Hahn wrote to the developers’ attorneys two weeks ago demanding full disclosure.

The developers originally said they would only release “relevant” portions of the lease agreement, such as the section that discusses the Lakers’ commitment to play in the arena for 25 years. “It’s more than anybody has asked for, but because of the pressure from the newspaper articles and the city attorney’s letter, we’ve decided to release everything,” he said. “We just want to get our business deal done first.”

Hahn and Councilman Joel Wachs, who also has pressed for disclosure of the documents, praised the decision but questioned the delay.

“I’m pleased that they’ve embraced the idea of full disclosure--that’s a positive,” Hahn said. “I think everybody would like it sooner rather than later.”

Waiting until the ground lease and other technical agreements have been completed, Hahn said, prevents city negotiators from taking the contents of the Lakers’ lease and other documents into account.

“I would think it would be helpful to us in negotiating the terms of the ground lease to be informed of any deals or side deals that are out there,” Hahn said. “We’re not just curious, we’re not just snoopy, that we want to see everything. We want to be confident and assured that the citizens are protected.”

As part of the deal, the city is being asked to assume $70 million in bonded indebtedness to help clear land for the arena. Those bonds would be repaid over 25 years with proceeds from the arena.

Wachs called Semcken’s promise to release documents after the ground lease is completed “nonsense.”

“They want to negotiate the critical part of the deal first and then they’ll give us the documents? That’s so offensive to any reasonable person,” Wachs said. “They’re making a mockery of the system.”

Wachs has been an outspoken critic of the arena from the start, and on Thursday ratcheted up his opposition campaign by asking for volunteers to help launch an initiative that would prevent public money from being spent on professional sports teams or facilities without a direct vote of the people.

At a morning news conference, Wachs said he would pursue placing a measure on the ballot in June only if there is “an outpouring of support” from the public. To qualify for the ballot, the initiative would need the signatures of more than 60,000 registered voters; Wachs said he would collect 120,000 to make sure there were enough valid signers.

“You cannot trust City Hall to drive a tough bargain. The voters will drive a tougher one,” Wachs said on the steps of City Hall. “I have given up on relying on the members of the City Council. I am going to be relying on the people of Los Angeles.”

Semcken, the spokesman for arena developers Ed Roski and Philip Anschutz, blasted Wachs for using any means necessary to block the project.

“It sends a message that if one council member doesn’t like what the council does, he’s going to try and circumvent the process,” Semcken said. “I think it sends a message that Los Angeles is not a good place to do business.”