The National Hockey League's Carolina Hurricanes will remain in Raleigh for at least 20 more years and changes are coming to their home at PNC Arena.
On Tuesday, the board that oversees PNC Arena has approved plans to renovate the 24-year-old venue, and the Hurricanes signed a new 20-year lease.
The Centennial Authority also voted unanimously Tuesday morning to give Carolina Hurricanes owner Tom Dundon permission to build an entertainment district next to the arena. The mixed-use development will have, "100,000 square feet of retail, 150,000 square feet of office, [and] 200 multifamily residential rental units," according to Dan Barrett, a consultant with CAA ICON, which is advising the authority on renovations.
"The improved experience for fans and spectators, not just from the building renovation, but creating a new district and the ability to come before games to stay after games," Barrett told the authority. "It's a different experience."
To pay for the renovations, the Centennial Authority wants to use $300 million collected from Wake County's hotel tax, which will require permission from county commissioners and the Raleigh city council. Members of both bodies seem receptive to the idea, after meetings with authority leadership. Last week, the Raleigh city manager and Wake County manager presented a plan recommending that $300 million go towards PNC Arena. The plan also called for millions to improve the Raleigh Convention Center, to relocate the Red Hat Amphitheater, and for a new multipurpose indoor sports facility in Cary.
The Raleigh City Council will vote Tuesday night on how to spend money from the interlocal fund — which comes from taxes on hotels, food and beverages in Raleigh and Wake County. Wake commissioners will then vote on those recommendations on Aug. 21.
Another part of the deal will see the Hurricanes stay at PNC Arena through 2044. In turn, Gale Force Sports and Entertainment, the team's parent company, will commit $200 million to a "phase one" development on land next to the arena. That commitment will escalate to $800 million by the 20th year of the agreement.
"North Carolina is the home of the Hurricanes, and I am proud to say that the Hurricanes will continue to call PNC Arena home," Dundon said in a statement.
There have been discussions for years about renovating the arena, which opened in 1999. The Centennial Authority moved into action after comments from NHL commissioner Gary Bettman. He told the News & Observer last year that the arena was "no longer up to NHL standards, nor the area around it."
The authority then voted to hire consultants and architects to sketch out proposed renovations, which were unveiled in February.
Don Waddell, the president and general manager for the Hurricanes, told the News & Observer recently that $300 million was "a healthy number to work with" to bring PNC Arena up to the NHL's standards.
In addition to concerts and other events hosted by the venue, the Hurricanes and N.C. State's men's basketball team are its primary tenants. N.C. State's football team plays just next door at Carter-Finley Stadium. The proposed entertainment district would likely impact parking and tailgating for football games.
