Companies Line Up To Bid On City Parking

SACRAMENTO (CBS13) — On the same day as the mayor's State of the City speech, Monday was also a big deadline day at Sacramento City Hall.

Companies beat the clock, filing paperwork with unofficial offers to take over operation of public parking in Sacramento for decades in exchange for a multi-million dollar upfront payment to cover roughly half the cost of a new downtown arena.

Two dozen companies reportedly bid on the contract.

"I want you guys to know we are this close to making it happen," said Mayor Kevin Johnson, who made the arena effort a key part of his speech.

It's a plan that still has to pass the City Council.

"I think the bigger issue for the city will be what do we have to give up in order to get that kind of revenue," Councilman Steve Cohn said. "That'll be more of where the tough negotiations come into play."

Two councilmember have already expressed opposition to the plan. Sandy Sheedy and Darrel Fong are unconvinced the city can make up the $9 million annually public parking brings to the city's general fund.

"We're looking at $9 million possible impact to the general fund," Fong said. "I will not jeopardize the general fund. I will not jeopardize public safety. This is the city that we live in."

The city staff is still working on a financing plan aimed at plugging the $9 million hole with new revenue created by the arena, possibly from new arena billboards and ticket and event parking surcharges.

There's no deal done yet, but the NBA won't wait much longer.The league set a March 1 deadline for the city to have a financing plan in place on how the arena will be built.

"Now it's time to finish what we started," Johnson said.