10 things to know about the Carolina Hurricanes’ historic agreement with PNC Arena

Tuesday’s historic agreements between PNC Arena and the Carolina Hurricanes to extend the team’s lease through 2044 and develop the 80 acres around the arena — along with $300 million in renovations to the building — took more than a year to negotiate.

The term sheets are detailed and complex, so we took a closer look at what was decided.

Here are 10 takeaways, and a closer look at the details of the project.

1. The Carolina Hurricanes aren’t moving

The Hurricanes agreed to remain at PNC Arena through 2044, unless they fail to “confer in good faith” with the Centennial Authority, which oversees the arena, on the future of the building in 2039.

The new lease removes all early exit provisions. The Hurricanes, who now pay no rent, will pay at least $4.5 million per season starting in 2029.

2. Hurricanes owner gets right to develop

Hurricanes owner Tom Dundon gets the right to develop the land around the arena, starting with 20 acres to be “mutually agreed” with the authority, investing a minimum of $800 million over 20 years.

“What you hope is that we can build, that the way we build it, it’s a place where people want to be every day, right?” Dundon told The News & Observer in an interview. “Whether it’s because of the shops, the restaurants, the green space. It’s just a place where you want to live, you want to work, you want to come shop.”

Canes owner Dundon on historic PNC Arena deal: ‘Expectation was always to end up here’

3. Music venue in the plans

That $800 million doesn’t include a $40 million, 4,000-seat indoor music venue that’s part of the planned development.

“We’ve got a major partner,” he said. “We’re working hard on that as we speak. That’ll be one of the first things we announce.”

Dundon added that he likes the idea of hosting a festival at the venue.

4. What Phase 1 will include

Work could potentially begin in the summer of 2024.

The first phase, with a minimum investment of $200 million in five years, features;

• 100,000 square feet of retail/restaurant space

• 150,000 square feet of office space

• A 150-room hotel

• A sportsbook

• 200 housing units (10% of which must be workforce affordable).

The Hurricanes will pay 6% of land value to the authority as a ground lease, through 2096.

5. What the team will pay for

The team also will pay for infrastructure improvements from Wade Avenue and Edwards Mill Road in exchange for continuing the arena site’s current tax abatement and will pay property tax after those costs are recovered.

6. The tailgating and parking arrangement

Half of any parking turned into development would have to be replaced with surface parking elsewhere (the other half in parking decks).

A 5-acre “tailgating zone” will be preserved on arena property near Carter-Finley Stadium. (All lots around Carter-Finley remain N.C. State property.)

No parking deck would be bigger than three levels, two above ground, one below.

7. Raleigh could host NHL All-Star game

The Hurricanes also agreed to pursue with NHL an All-Star Game within three years of completion of arena renovations and a Stadium Series game within the ext five years. An NHL spokesman confirmed to the N&O the league would meet those commitments “in a timely manner.”

8. How the renovations will be funded

The $300 million in arena renovations will be funded by the Raleigh/Wake County hotel-and-restaurant tax. The city has approved that allocation. The county is scheduled to vote Monday.

With $300 million potentially to spend, PNC Arena renovations could begin next summer

9. The deal is a very big deal

In terms of impact, “This is the largest economic development project in the history of the city,” Raleigh mayor Mary-Ann Baldwin told the N&O. “It’s big. This is huge.”

Baldwin took note of other arena and entertainment districts in other big cities, like The Battery outside Atlanta. “Now we’re going to get one, too.”

Gov. Roy Cooper, the state’s Caniac in Chief, added in a statement: “Confirming that North Carolina remains (the Hurricanes’) home for the long-term while redeveloping PNC Arena in a manner that benefits NC State, the Hurricanes and the region’s growth and economy is fantastic news.”

Raleigh can’t bring PNC Arena downtown. So, it’s finally bringing downtown to the arena.

10. Here’s how N.C. State benefits

So what’s in this for N.C. State? Football tailgating space/surface parking is largely preserved and the university has to make no financial contribution to arena renovations that will help with basketball recruiting and fan engagement.

PNC Arena upgrades have been years in the making. Here’s how we got here