A friend of mines from Sac told me they could get an arena done if they were to build on the site where Arco/Power Balance stands now. They railyards site is the problem. Of course everyone wants a new arena downtown but its not always easy, first you have to clear the site out, develop it, and so forth.
Mayor KJ wants NO part of renovating Arco Arena/Power Balance Pavilion because it doesn't make any sense after all of the energy him and the city invested in a downtown arena. Especially with the same Maloofs giving the media a tour of how badly outdated the building is back in 2006. Plus, nothing good happens with a refurbished arena. Seattle renovated their Arena TWICE before the sonics moved to OKC. Also the Warriors, who renovated their Arena back in the late 90s, are moving to a waterfront arena in SF before the end of this decade once their lease for the Oracle expires which I believe is 2017. Its a short time fix, but it still doesn't solve the problem.
Ask your friend how clear the railroads site is now. This isn't four years ago. All of the redtape from the previous land owners is resolved and its checked environment-safe. Parking was the only snag and even that was resolved. The Magoofs just balked despite Stern & the NBA willing to spot them on anything else.