According to the Bee, the deal for a privately funded arena is dead: http://www.sacbee.com/content/sports/basketball/kings/story/12434054p-13290238c.html
This is not surprising, considering the unreasonable demands that the King's owners were making. Graswich had a quote from a city council member yesterday that said there is no way a Wal-Mart can be built in that spot downtown because the city controls the parking garage. I'm beginning to think that all the council's grandiose plans will fail and maybe the city will just remain the pleasant city that it is and they won't be able to ruin it no matter how hard they try. I guess I shouldn't get my hopes up.