L.A. Clippers & City of Inglewood Exclusive Negotiating Agreement: FAQs

L.A. Clippers – City of Inglewood

Exclusive Negotiating Agreement

Frequently Asked Questions

1. What happened today?

On June 15, 2017, following approval by the Inglewood City Council, the L.A. Clippers entered into an Exclusive Negotiating Agreement (ENA) process with the City of Inglewood to pursue the development of a state-of-the-art NBA arena that may become the permanent home of the L.A. Clippers.

2. What does the ENA do?

The ENA establishes a three-year timeframe during which the L.A. Clippers will develop the details of its proposed basketball facility. The City of Inglewood will conduct an environmental review including an evaluation of the proposed facility’s construction and operational impacts.

3. Where is the proposed project located?

The project is located on approximately 20 acres of land south of Century Boulevard at Prairie Avenue. During the environmental review and planning process, the L.A. Clippers and the City of Inglewood will determine which portion of the land is the best site for the Clippers new home. Any surplus land will be released from the ENA and be available for other uses by the City of Inglewood.

4. Is anything besides an arena contemplated for the Inglewood facility?

The site will likely include a state-of-the-art NBA arena, a training facility and team office space.

5. How would the L.A. Clippers’ pay for the arena?

The new arena would be 100 percent privately funded and privately capitalized. No public dollars will be used for this project.

6. What is owner Steve Ballmer’s role in this project?

Since purchasing the team in 2014, Steve Ballmer has consistently said he wants the coaches, staff and players to have the support they need to do their best work on the court. And he has pledged to do whatever necessary to provide fans and their families with the best game-night experience in the NBA.

7. Why are the Clippers making this decision now?

Today’s announcement gives the team options for the future. The L.A. Clippers current lease with Anschutz Entertainment Group (AEG) at STAPLES Center expires at the end of the 2023-2024 NBA season, seven years from now. Putting a new project site together, conducting environmental review, obtaining permits and constructing a new arena takes time.

8. What is the process now that the Inglewood City Council has passed the ENA?

The ENA establishes a timeline and framework for the development, analysis and entitlement of the planned basketball facility. The L.A. Clippers will propose the specific site boundary, program and building forms of the proposed development. The City of Inglewood will then analyze the various impacts that the proposed development might have on the community, including both environmental review and fiscal impact.

9. Does the City of Inglewood own the land required for the arena?

Upon project approval, the L.A. Clippers will purchase, from the City and related municipal entities, the site proposed for the development. As required by law, the land’s purchase price will be the fair market value for the land as appraised based on its current zoning.

While City-controlled land constitutes most of the development site, some privately controlled parcels may be added into the final development. Any privately controlled parcels will be purchased at fair market value based on current zoning (i.e., the fair market value of the land with its current zoning and not on its value as a site for a basketball facility).

10.Who is responsible for paying the costs associated with the City of Inglewood’s review?

The L.A. Clippers will pay all the costs to plan, entitle and develop the proposed facility. Within 24 hours of signing the ENA, the L.A. Clippers will pay the City of Inglewood $1.5 million, which will fund the City’s administrative costs. If additional funding is required, the Clippers will provide the necessary resources.

11.How will Inglewood residents and business owners benefit from the basketball arena?

The L.A. Clippers are committed to working with Inglewood residents and businesses to develop a premier basketball facility that will create a tremendous sense of pride, an economic engine and a source of employment opportunities in Inglewood and the greater Los Angeles community.

12.How can I stay updated about future developments?

As the process unfolds, we will continue to keep our fans and community members updated on key decisions here at clippers.com.