Seattle Sonics Choose Renton over Bellevue for New Arena

You might have heard that the Seattle Sonics are leaving Seattle’s Key Arena for a new location between now and 2010. According to the Seattle Times, Sonics Owner Clay Bennett told state lawmakers that he prefers Renton over Bellevue for the new $500 million basketball arena. (It would likely be the most expensive in the country.) Sports lovers seem relieved to hear that the prospect of sending the team completely out of our region to Oklahoma as initially rumored has become less likely but the fate of the Sonics in Renton remains far from certain.

This is a quote from the Seattle Times: “With a request for $300 million in state-authorized taxes, Bennett said the remaining $200 million or so would be split among private investors and the city of Renton. He said team owners have talked informally about a private contribution of $100 million.” The Sonics have not officially asked the citizens of Renton for anything at this point.

I was speaking with my wife about this topic the other day and she brought up an interesting point. She said… “We are already paying for Safeco Field (Seattle Mariners) and Qwest Field (Seattle Seahawks) why shouldn’t we subsidize the Sonics? We’ve proven that it’s not necessary to be a winning team.” While I don’t necessarily believe we need to subsidize a professional sports team that is paying Ray Allen 15 million a year, I do tend to agree that professional sports teams contribute to the economic base of the region they are located in and regardless of whether they are a winning team or not, they help create a sense of community and this has been the basis for the subsidies in the past.

Being chosen over Bellevue, Washington is a major boost to the ego of Renton residents who have long been the butt of jokes based on our working class economic base but is it really a good thing? We were not actually chosen first. Bennett didn’t want to leave Seattle in the first place. He has spent the last two years pleading with the state legislature for 200 million which he planned to use to renovate Key Arena. The specific plat of land Bennett had been investigating in Bellevue was actually four plats and four owners as opposed to the simplicity of one plat and one owner (Boeing) here in Renton. In spite of all this; I believe the answer is yes… It is a good thing, regardless of whether it comes to fruition or not. This is actually the second pat on the back from a professional sports team in the last year. The Seattle Seahawks have chosen Renton as the site of the corporate headquarters and they actually break ground on their new building next month.

Renton is a major player in the game of creating opportunity centers within the Pacific Northwest and ongoing increases in property values will continue to reflect that. Even if we do have a large working class population, I submit that it’s something to be embrace, not shy away from because it has paid off. While housing in Renton is considerably less expensive than Seattle and Bellevue (part of the reason for the Sonic’s choice), prices are on the rise (for the same reasons the Sonics’s were attracted to Renton.) If you need numbers to prove it, note that the average sale price of a 3 bedroom home in Renton was $366,000 as of December, 2006. Compare that figure to December, 2005 below to see our increase in property value for the period.

Renton Median Home Price
Single-Family $346,000
Condominium $176,950
Blended $305,000
Source: Northwest Multiple Listing Service (December 2005)

Median Home Price Comparisons (Single-Family)
Renton $346,000
King County $387,000
Seattle $399,990
Issaquah $459,990
Redmond $535,000
Bellevue $561,750
Source: Northwest Multiple Listing Service (December 2005)

David Edwards
REALTOR
Keller Williams Southeast Sound
425-890-8045
david@davidjedwards.com
http://www.davidjedwards.com