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Play Ball: The Warriors are Coming to Santa Cruz

After being threatened with a lawsuit by neighbors, the Santa Cruz City Council voted unanimously to bring the Golden State Warriors D-League team to Santa Cruz.

Santa Cruz will have its first professional basketball team and the first basketball arena housed in a canvas tent in the U.S.

After threats of a lawsuit looked like the city council voted Wednesday night to approve a $5.4 million building for the Developmental League franchise of the Golden State Warriors.

The team is set to play in a 33,000 square foot tent-covered arena that holds 2,950 for basketball or as many as 4,000 for other events. The season is scheduled to begin Dec. 23.

"I'm excited by this," said Councilman Ryan Coonerty, who made a motion to accept the team's proposal that was approved unanimously, with Tony Madrigal absent. "I think it will be a good project and we will address issues as they come up."

The first issue that came up was a threat of a lawsuit filed by Beach Hill neighborhood residents, whose homes look down on the arena from the hill that divides downtown from the Beach Boardwalk. They were worried about parking, noise and traffic.

A letter from the group's out-of-town lawyers stopped the public hearing that was scheduled for Tuesday. It was rescheduled after study by the city's staff for Wednesday, and residents packed the council chambers.

The city made changes requested by the neighborhood group, including providing permit parking in the neighborhood, adding parking staff to the area during games and dropping live electric music concerts. The city would also black out big arena events during all summer weekends.

While there won't be concerts, there could be youth basketball, roller derby, lacrosse, volleyball and UCSC sports games. The city council will meet again with Beach Hill residents in six months to check on the effects of traffic, noise and parking.

Warriors' President Jim Weyermann promised to have parking attendants spread throughout the area directing cars away from Beach Hill and toward downtown lots. The team will also provide parking directions and maps to people when they buy tickets, directing them away from the immediate neighborhood.

The neighbors, although not happy with more traffic in the area, softened their opposition.

"Despite what may have appeared as a threat I don't think any of the items we've asked for in a whole series of meetings that have gone on with several members of the council is a deal killer," said George Webber, representing the Beach Hill Association, which filed a letter threatening a lawsuit during Tuesday's meeting.

"We aren't deal killers. We like basketball. We are already people who suffer the negative effects of tourism."

During the week the council received 145 emails favoring the proposal, 23 against it and 12 that were neutral, according to City Clerk Bren Lehr. Those who spoke in the public hearing were mixed, but passionate either way.

"I really want this to pass," said Santa Cruz High School basketball player Walker Nodine, 17. "The D-League players are role models. There aren't many opportunities around town for teenagers like me to do stuff that is safe, legal and informative."

John McEnery, the brother of former San Jose Mayor Tom McEnery, spoke against the proposal, saying that the team should pay for all of its expenses itself. Ironically, his brother shepherded the Sharks through an election in San Jose and then went to work for the team on its board of directors. The family owns downtown San Jose benefits that profited from the arena.

Others who spoke against the proposal's finances noted that 15 D-League teams have moved or gone out of business, lasting an average of only three years.

The Warriors Developmental League franchise has been based in Bismarck, North Dakota but wanted to move closer to its Bay Area franchise, which is in the process of moving from Oakland to San Francisco. The team has a website, a storefront on Pacific Avenue and T-shirts proclaiming the Santa Cruz Warriors.

The Warriors have been affiliated in the past with the Chicago Bulls, Washington Wizards and Memphis Grizzlies.  The Wizards started in 1995 as part of the International Basketball Association based in the U.S. and Canada before joining the D-League in 2001.

The financial arrangements include a 15 year loan of $4.1 million from the city to the Warriors with 3 percent interest. The money comes from the city's Public Trust Fund, which is money set aside from building projects, and it is now earning 1 percent.

The loan will be paid off by seven years of $250,000 payments by the Warriors. They will prepay rent of $532,000 for four years ahead of time. And, all revenue from concessions and rentals to other people who want to use the arena will go to paying off the loan. The name of the stadium has been bought by Kaiser-Permanente for $750,000 for three years.

Some of the city's costs will be paid by a $1 fee on every ticket sold. County treasurer Fred Keeley said he figured that the city was only risking $500,000 in a worst case scenario, a risk that was worth the upside.

DevCon Construction will donate $100,000 toward construction costs.

The city will have the right to 30 free events a year and the Warriors will contribute $50,000 for signs. If the Warriors relocate during the seven years it must immediately pay back the loan.

If the team leaves after seven years and the city wants to get rid of the stadium, the team is responsible for paying for demolition.

The Warriors will lease the building from the city and the city will rent the land from the Seaside Co. Seaside will relocate 122 parking spaces for its employees to the third floor of the Front Street garage from which they will shuttle the employees to work. Another 35 spaces used by UCSC students will be moved to a city lot.

"I know this feels rushed to some people," said councilmember Coonerty. "But the point was made that it might take this long to get a house permitted. It's not the length of this project that is the problem. It's the length of how long it gets to get a house permitted. If it's a year, that's a problem."

Said Mayor Don Lane: "We've answered some questions and solved some problems."

 

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Julian Faras September 13, 2012 at 08:53 AM
"We aren't deal killers. We like basketball. We are already people who suffer the negative effects of tourism." You do realize that Santa Cruz is a tourist town? You do realize that Beach Hill is in one of the most touristy spots right? You do realize that without tourism Santa Cruz would have no jobs for most of its residents under age 30? And that without tourism Costco would be one of the towns main sources for tax revenue? Ok, sure, complain about the tourists some more.
j8 September 13, 2012 at 11:29 AM
THE CITY COUNCIL IS LIKE A BUNCH OF DRUNKEN SAILORS AT 3:00 AM IN THE RED LIGHT DISTRICT IN BANGKOK AT A WHOREHOUSE!!! LORD HELP US AND OUR SANCTUARY CITY!!! I MEAN THEY SUCK!!!
John Martin September 13, 2012 at 03:55 PM
Awesome! Thank you City Council for looking for creative ways to boost our economy. Sure there are drawbacks for a new project, but the benefits seem to outweigh the risks. I live in the neighborhood, too, and parking will be a pain, but I can deal with it. We've never done this before, and it will be a learning process. Like all new ideas, it won't be perfect at first. Adjustments can be made along the way.
Dave N September 13, 2012 at 04:55 PM
YEAH - good job council members.
Brian Friesen September 13, 2012 at 04:57 PM
It's all about someone making lot's of money. Plain and simple. And it won't be the city that makes it. It will be the land speculators, the construction company owner, the team owner and the investors. Everyone else loses.
Brian Friesen September 13, 2012 at 04:58 PM
And who knows how much the City Council members will make from this.
Meredith Poteran September 13, 2012 at 06:49 PM
Areas surrounding downtown don't have trash or recycling cans, public restrooms, permit or metered spots, speed bumps, or any other amenities to accommodate crowds. Seabright, Midtown and other Eastside neigjborhooods are impacted by the tourism of downtown, but we do not receive the benefit of renovation, landscaping, maintenance, or safety regulation. Small, local businesses need the tourist boost just as much if not more than downtown or Boardwalk/Pier areas. They also do not have a fraction of the resources that businesses in these areas have or a fraction of the public funding support. If Water Street or Soquel or Seabright Avenues had the same maintained sidewalks, curbside landscaping, street lighting, and visually appealing signage as downtown and the same parking, traffic, and safety regulation that Pacific Avenue has, perhaps these businesses could attract some of the tourist traffic this new stadium is supposed to bring. Perhaps tourist traffic and revenue and protection will be spread a little more evenly around town. Let's not forget that this means providing tourists with more areas to enjoy in and of themselves.
Meredith Poteran September 13, 2012 at 06:58 PM
I live in Seabright- a neighborhood without permit or metered parking that is within walking distance of the Boardwalk/Beach Hill area and the new proposed arena. I also work at a business in the Midtown area. The residents and businesses in these areas are impacted by the traffic, parking and safety issues that high volume tourism can bring, but do not necessarily benefit from the patronage. I have seen people in groups of cars park in front of my home and in the parking lot of my employer and either walk or share a taxi van to the Boardwalk or concerts downtown. Small businesses cannot always afford to regulate parking or tow cars. In this economy, everyone is looking for entertainment on a budget. Cutting costs on expensive parking is one of the first tricks people try. The city focuses on regulating the traffic and parking at the beaches, the Boardwalk, and downtown, pushing these problems to surrounding areas. The noise doesn't come from the events themselves. This is ambient noise. The noise comes from the patrons walking back to their vehicles parked 1/2 a mile away in a free spot or lot. Their arms get tired of holding their large cups of Pespsi or dirty diapers or beer bottles and they discard them along the way. They also have no public restrooms in which they can relieve themselves. These problems land in our yards.
Meredith Poteran September 13, 2012 at 07:08 PM
Recognizing and accommodating the impact that tourism and this stadium will have on the greater city is the only way it can truly benefit all of Santa Cruz. There are things that can be done now while the stadium is being built to help prepare the city (not just downtown or the Boardwalk) for its opening. This stadium can be a wonderful thing if the infrastructure around it is arranged and supported properly. If it is hurried along without regard to consequence for neighbors, inevitably we end up dealing with lots of problems that we have to try and sort out after we're already in the midst of them.
Meredith Poteran September 14, 2012 at 05:46 AM
Julian, While I appreciate your enthusiasm for the stadium and subsequent feelings about the Beach Hill residents, please understand that while Beach Hill might be the squeaky wheel on this issue, it's not the only neighborhood needing some funding grease if this project is going to do down smoothly. I completely agree that this town made a commitment to tourism well over 100 years ago and thus it is a huge part of who we are and how we generate revenue and adding this arena will further this ideal. Those who live in tourist areas by the beach, boardwalk/pier, downtown, ucsc, and even the mystery spot understand fully that they need to bear the burden of tourism for the good of the city. I do my best to be helpful as a citizen in a tourist neighborhood. I report crimes and violence to the police, pick up trash along my street and on the beach, and attempt to swap parking spots with neighbors as we come and go to work so we can all park within a few block of our homes. But as our homes, cars, yards, personal items and landscaping gets regularly damaged and stolen, it would be nice to have the city help us a little with trash, traffic, parking, and crime management. If people are going to park for free in my neighborhood or at my work and then walk or cab it the the arena, I'd like some trash/recycling bins, an extra patrol car or two in the area, maybe even improved sidewalks or lighting. The residents ARE the neighborhood watch/maintenance, not the enemy. We just need help.

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