PNC Arena would receive more $21 million annually from Wake County hospitality taxes, paving the for $300-million renovation project for the Raleigh venue, according to recommendations made by a stakeholder committee Friday morning.
The Raleigh city council and Wake County board of commissioners must give their approval to the recommendations. The city council's next scheduled meeting is Tuesday. The board of commissioners will next meet on Aug. 21.
The funding would begin in 2025 and last for 25 years.
The promise of dedicated future money would allow the Centennial Authority, which owns PNC Arena, to borrow up around $300 million — and possibly more — for the project, which "assumes a long term lease, development around the arena and affordable housing," according to the hospitality tax county manager recommendations discussed at the meeting.
"We’re pleased that the recommendations will allow us to move forward with the plans that we’ve been contemplating for many months," Centennial Authority board chairman Philip Isley told WRAL after the meeting, which was closed to the public. "We believe this is the first step to provide a continued benefits for the community, NC State and the public at large.”
The money comes from a 6% hotel room occupancy tax and a 1% prepared food and beverage tax countywide. The revenue The revenue is used to support arts, culture, sports and convention facilities.
The taxes generated $66 million in fiscal year 2022. The tax was projected to bring in $77 million in the fiscal year that ended in June, though the occupancy rate was running even higher than those projections. By FY 2028, the taxes are projected to bring in $98 million.
PNC Arena receives $9 million annually from the fund for operations. It will continue to receive that money through 2029, according to the recommendation.
The Centennial Authority has scheduled a special board meeting for Tuesday morning. Its agenda includes an update on lease negotiations with the Carolina Hurricanes and votes on two contracts — expected to be a long-term lease with the Hurricanes, the building's main tenant, and an agreement to allow the team to develop property around the arena.
Isley said at Tuesday's meeting he will be "asking the Centennial Authority for a vote where we can satisfy the terms of us receiving the money from the city and county fund.”
The Authority has long discussed a large-scale renovation project for the 25-year-old arena, which is home to NC State's men's basketball team as well as concerts and other events.
The board was presented with more than 70 individual projects at a recent meeting and expects to narrows the list before the end of the year. Some of the enhancements, like expanded loading docks and bays for trucks, are designed to attract performers. Many of them, however, would be seen by fans or attendees, such as viewing bars on the third level and more grab-and-go food vendors.
Funding the renovations, a long-term lease for the Hurricanes and development around the arena have long been considered tied together. Hurricanes owner Tom Dundon said in June those issues were "concurrent."
Now it appears that they'll all be settled in quick succession.
If, or when, the dollar figure is approved by the city and county, the Centennial Authority will need to pick its projects. Given the overlapping hockey and basketball teams and the lead time needed for construction work, it could be years before all renovations are done.
Development around PNC Arena, which shares parking lots with Carter-Finley Stadium, could take even longer. But development around stadiums and ballparks has become increasingly popular with the owners of major sports franchises as they seek to attract fans to the arena area for longer periods of time and even when games are not happening.
PNC Arena is not the only facility that would receive funding. The Cary Indoor Sports Facility would receive $5.35 million annually, allowing it to take on about $75 million in debt, under the recommendations.
The Raleigh Convention Center would receive $25.6 million annually, allowing for nearly $400 million in financing.
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August 11, 2023 at 08:45PM
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Raleigh, Wake leaders set stage for $300M PNC Arena revamp - WRALSportsFan
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