The Carolina Hurricanes are close to a deal to remain at PNC Arena through 2029
READ MORE
PNC Arena & West Raleigh Development Plans
Carolina Hurricanes owner Tom Dundon has a vision for both inside and outside PNC Arena that could entice fans to come early for games and stay after they’re over. Here is The News & Observer’s coverage of arena renovations and development plans for west Raleigh.
Expand All
A term sheet is in place between the Carolina Hurricanes and the Centennial Authority on a five-year extension to the team’s lease at PNC Arena, although the financial implications of the coronavirus pandemic may delay a final agreement.
The authority, the city-county-state board which oversees PNC Arena, could potentially approve the extension as early as its next scheduled meeting June 4. But because the authority’s primary source of funding is Wake County’s hotel and restaurant tax, uncertainty over future finances could delay the process or even reopen negotiators.
“We’ve been discussing a term sheet but the board has not approved a term sheet at this point,” authority chairman Thomas McCormick said. “Obviously with COVID-19, and not being able to have any person-to-person meetings, it has been difficult. I can’t really comment on anything that might be in the term sheet since the board has not approved it yet.”
The Hurricanes’ current lease runs through 2024; the terms of the extended lease would take effect immediately and run for the next nine years.
The authority has discussed extensive renovations to the 21-year-old building and was promised $9 million per year in hotel and restaurant tax revenue through 2034 to fund them. The authority asked architects Ratio and HOK to prepare a menu of possible renovation options and expects those documents soon, but plans to “pump the brakes” on moving forward with any until it has a better sense of the economy, authority executive director Jeff Merritt said Tuesday.
The Hurricanes and new owner Tom Dundon have been seeking an increased operational subsidy from the arena authority as a condition of any lease extension. Last year, the Centennial Authority hired a consultant from CAA Icon, Dan Barrett, to represent it in negotiations. Barrett asked for, and received, access to the Hurricanes’ finances for assessment.
“I think it’s a fair deal,” Dundon said. “This gives us the flexibility to focus on Raleigh. We want to stay. This puts us in a position to stay here long term. It gives us all the time we need to focus on a long-term solution.”
Part of that long-term solution could potentially include the development of an entertainment district around the arena and Carter-Finley Stadium, amenities PNC lacks. Such an effort would require the involvement and approval of the Hurricanes, N.C. State and the authority.
The Centennial Authority last met in person March 13, a special meeting to discuss the proposed term sheet in closed session. Its next scheduled meeting, on April 2, was canceled. Later in April, the authority’s building and construction committee met by phone and cut its capital project budget for the next fiscal year by $2.6 million because of the lack of events in the building and expected decrease in tax funding.
“Our principal source of revenue is from the room and meal taxes,” McCormick said. “Those industries are hurting as badly as anybody else in the whole country, not just here. We have to be really careful about what we end up approving, if we do approve something, because we have to live within our means.”
This story was originally published May 19, 2020 at 1:06 PM with the headline "The Carolina Hurricanes are close to a deal to remain at PNC Arena through 2029."
