OLYMPIA -- Seattle's attempt to secure a tax package for KeyArena wasn't the wild, last-second shot at keeping the Sonics that leading lawmakers made it out to be, according to e-mails obtained through a public disclosure request.

Seattle developer Matt Griffin, Microsoft Chief Executive Steve Ballmer, cellular phone mogul John Stanton and Costco's Jim Sinegal are trying to help Seattle keep the Sonics -- and keep an anchor tenant at KeyArena. They came forward with an offer to try to buy the NBA team and contribute half the money for a $300 million remodel of KeyArena.

Though the idea didn't become public until two weeks before the 2008 legislative session adjourned March 13, Griffin and city leaders say elected leaders knew details of the plan much earlier -- in time to authorize $75 million in local taxes for the plan had they been so inclined.

In March, top lawmakers and Gov. Chris Gregoire said the deal was the best they'd seen in three years, but the offer simply came too late to act on this year.

From the investment group's perspective, that was a misrepresentation.

In a March 7 e-mail to Gregoire's legislative liaison, Griffin expressed exasperation with the way the issue had been framed in public comments.

"I want you and the Governor to have the timeline," Griffin wrote. "As you can see from the attachment, the mayor started working with Olympia in December. We met with the Speaker over a month ago. We tried to do it quietly, so people wouldn't feel pushed into a corner. For trying to be gentle and work respectfully with Olympia, it seems unfair to now be told that we came in at the last minute. You and the Governor should know the timeline."

The timeline indicates Gregoire, Speaker of the House Frank Chopp, Seattle Mayor Greg Nickels and King County Executive Ron Sims met in December to discuss a basic framework of the proposal.

The names of the investors were shared with Chopp in the first week of February and the group upped its potential contribution to KeyArena from $75 million to $150 million nearly a month before the end of the legislative session, according to Griffin's account.

Seattle Deputy Mayor Tim Ceis said Chopp and Gregoire's policy staff knew the names of the investors involved early in February and details of the plan by midmonth.

"I think the information was there early enough -- before the session and at the front end of the session -- that leadership was clearly aware that there was a proposal and then that proposal matured as the session went on," Ceis said.

The two accounts differ from those of Gregoire and legislative leaders.

"It wasn't until on or about March 3rd that we learned the specifics of the deal," said Gregoire's spokesman Pearce Edwards. "There was a call from Deputy Mayor Ceis to Marty Brown in late February, around the 21st, that a deal may be forthcoming, but there were not specifics of the deal or of the group of potential owners."

Edwards said the governor's office was aware of rumors of a group coming together but didn't know the specifics of the deal or who the potential owners were until March.

"I'm sorry, that's not true," Ceis said. "I know it was long before March 3, I think they are mistaken. ... We did have a face-to-face meeting on March 3, but we clearly had been in communication with her office."

Chopp said the point was moot.

"The NBA says the KeyArena fix-up would not be acceptable, that's what (NBA Commissioner David) Stern said last week. So, I don't understand what the issue is here," Chopp said.

"The team is not for sale and I don't know where the votes were. ... The public is solidly against a state taxpayer subsidy of KeyArena."

Sonics owner Clay Bennett is asking the NBA for permission to take the team to Oklahoma City, where local voters have endorsed a plan to upgrade the Ford Center.

And Chopp had an alternative understanding of legislation that, according to Griffin's e-mail, his staff had agreed to draft for Griffin.

"There was never any promise to produce legislation for KeyArena," Chopp said. "We talked about the basic general idea of doing this thing for a variety of local needs and most likely to do it over the interim."

Chopp said the Legislature wanted to balance a variety of priorities with various requests it was getting from local groups.

Before it adjourned, the Legislature agreed to create a study group to prioritize all the requests for money in King County and weigh the Sonics legislation next year.

On Monday, Griffin said he was surprised at how the Legislature had handled their offer.

"We tried to be respectful," he said. "If I tried to give the electeds the benefit of the doubt, I would basically go back and look at the timeline we gave them. Some of the information, like us saying $150 million -- actually twice what we were thinking about -- that information was new in February."

That said, Griffin said the group provided the details much earlier than state leaders have indicated. "And we tried to do it while trying to have a meaningful discussion about it along the way," he said.

Griffin and the other investors have set an April 10 deadline for finalizing a deal to come up with a KeyArena funding proposal, but he and Ceis said it was unlikely to materialize.

"It's hard to see where the city can do this alone," Ceis said. "We can clearly provide $75 million to support this proposal, beyond that, we start getting into the city's general fund."

The earlier proposal would have redirected the restaurant tax to KeyArena from 2012-14 and the car-rental tax from 2012-16.

If the Sonics leave Seattle after their KeyArena lease expires in 2010, the city will still owe $25 million on the 1994 KeyArena remodeling project and would face an estimated $20 million or more in new improvements.

Meanwhile on Monday, a public relations firm said there would be an announcement Tuesday morning about a new privately financed downtown Seattle sports and entertainment facility. Wongdoody Communications would provide no other details about the announcement, though there was speculation that it could be a basketball facility.

 

WHAT HAPPENED BEHIND THE SCENES

A timeline released by a prospective NBA ownership group reveals House Speaker Frank Chopp, left, attended meetings involving KeyArena renovations weeks before the final plan was announced to the public.

DEC. 17, 2007 Met with Gov. Chris Gregoire, King County Executive Ron Sims, Seattle Mayor Greg Nickels and Seattle Deputy Mayor Tim Ceis to discuss prospects for KeyArena funding.

JAN. 9 Met with U.S. Rep. Norm Dicks to discuss KeyArena funding.

FEB. 2 Met with the prospective local ownership group, represented by Costco Chief Executive Jim Sinegal and developer Matt Griffin. The next day, at Chopp's suggestion, Sinegal and Griffin met with the House Finance chairman.

COMPLETE TIMELINE OF EVENTS ON A6

 

"LAST-MINUTE"

CONTROVERSY

 

Seattle developer Matt Griffin e-mailed Gov. Chris Gregoire's legislative liaison on March 7, saying it was "unfair" for state leaders to say that a local prospective NBA ownership group came to Olympia at the "last minute." The e-mail included a timeline of contacts between the city of Seattle and the ownership group with state leaders. This is an edited version of that timeline.

Dec. 17, 2007: Gov. Chris Gregoire, Speaker Frank Chopp, King County Executive Ron Sims, Seattle Mayor Greg Nickels and Seattle Deputy Mayor Tim Ceis meet to discuss prospects for funding for KeyArena renovations during upcoming legislative session.

Jan. 9: U.S. Rep. Norm Dicks meets with Chopp at the request of Seattle to discuss KeyArena funding. Chopp suggests city staff meet with his staff.

Jan. 15: Following Chopp's recommendation, Ceis and Seattle Finance Director Dwight Dively meet with Chopp's senior staff. Staff indicates they are drafting legislation.

Feb. 2: The prospective local ownership group, represented by Costco Chief Executive Jim Sinegal and developer Matt Griffin, meet with Chopp.

Feb. 3: At Chopp's suggestion, Sinegal and Griffin meet with House Finance Chairman Ross Hunter. Hunter indicates he'll work up legislative "concepts" for KeyArena funding.

Feb. 15: Prospective local ownership group tells city it would contribute half of the $300 million KeyArena renovation bill.

Week of Feb. 16: Ceis goes to Olympia and asks the state to help provide $75 million in public money for Key Arena.