Cal Expo, the site of California’s annual state fair, has reached an agreement with the NBA to explore the possibility of a new arena deal for the Sacramento Kings. As reported by Mary Lynne Vellinga of the Sacramento Bee:

With NBA Commissioner David Stern smiling on, the Cal Expo board Wednesday voted unanimously to approve a document that defines its courtship with the league for the next 180 days. The two parties will work together on a conceptual plan for how the 360-acre site might accommodate a new arena for the Kings, a revamped fairground and a development profitable enough to pay for both.

NBA and Cal Expo consultants will attempt to add up the cost of building roads and constructing other improvements to Cal Expo. Both sides want to develop this project without adding any new taxes.

The six-month agreement allows the two parties enough time to seek proposals from interested developers. Stern claims at least six different developers have expressed interest.

“This board sits astride perhaps the most valuable site in the state of California,” Stern added.

The plan is to construct sufficient homes, offices, retail stores and restaurants to fund the new arena, which could cost $500 million or more. An additional $150 million will be needed just to rebuild the fairgrounds.

Brian May, the fair’s deputy general manager, says Cal Expo does not intend to sell it’s land. Instead, they would lease the property to a long-term developer.

The Kings’ current home, ARCO Arena, opened in 1988. The 442,000 square-foot arena cost $40 million to construct, and seats up to 17,317. ARCO Arena has hosted world-famous acts in entertainment, as well as ice shows and monster truck rallies. ARCO Arena is also home to the WNBA’s Sacramento Monarchs, and has previously hosted the Western Region of the NCAA Men’s Basketball Tournament.

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