A $215 million deal was proposed for the Spectrum Center renovation project in Charlotte, North Carolina, which will involve making several upgrades to the city-owned arena and home base of the Charlotte Hornets. The proposed project, which is subject to approvals from the Charlotte City economic development Committee, also covers the construction of a new $60 million practise facility for the NBA basketball team.
Based on the agreement terms of the proposed Spectrum Center renovation project, Charlotte Hornets would be given a 15-year extension on its current lease expiring in 2030; once the new lease begins, Hornets will commence making rental payments of $2 million per year, with $1.1 million in capital investments by 2024.
Fred Whitfield, the Hornets President, mentioned that the Spectrum Center renovation project would make improvements to virtually every part of the arena and pending the city’s approval, construction work could commence by summer and reach completion within the next four years.
Improvements to be made for the Spectrum Center renovation project
The renovations and upgrades to the Spectrum Center will include the addition of new entryways to prevent backups before games and other events. The bathrooms, escalators, and elevators will also undergo some revamping and a new grab-and-go concession area would be built as well, to cut down waiting times. HVAC systems will be installed as part of the renovations, along with repair works on the plumbing system and roofing.
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The new $60 million Hornets practice facility to be developed would include two full courts, an expanded locker room space and a health care space. The facility will also house Hornets’ business operations and executive offices. The exact location is undecided and could be built beside the stadium on the existing gravel or replace the Charlotte bus Transportation Center, which would be moved underground afterwards.
Part of the funding for the Spectrum Center renovations will come from monies generated through the city’s tourism, such as rental car sales tax, or hotel occupancy rate tax, which amounts to about $173 million. According to Teresa Smith, Charlotte City CFO, this funding will not affect the city’s general fund budget. A separate source of funding will also be used for the practice facility proposed outside the arena.
