Title
Spectrum Center Agreement
Action
Action:
A. Authorize the City Manager, or his designee, to negotiate and execute an agreement between Hornets Sports Entertainment and the City of Charlotte in an amount not to exceed $215,000,000 for arena improvements and repairs and $60,000,000 for a new Performance Enhancement Center,
B. Adopt a budget ordinance appropriating $215,000,000 in proceeds from Certificates of Participation in the Tourism Capital Projects Fund for arena improvements and repairs, and
C. Authorize the City Manager to negotiate and execute contracts necessary to complete arena improvements and repairs to the Spectrum Center and Performance Enhancement Center related to the City's agreement with Hornet Sports Entertainment.
Body
Staff Resource(s):
Tracy Dodson, City Manager's Office
Phil Reiger, General Services
Teresa Smith, Finance
Explanation
* The original operating agreement was signed in January 2003, and the arena opened on October 23, 2005. The operating agreement was amended on September 8, 2014.
* The City of Charlotte owns the Spectrum Center, and per the operating agreement, is contractually obligated to maintain and make improvements to the building.
* The estimated costs for the needed repairs and improvements to meet the City's contractual obligations is $173 million. Per the agreement, the City is required to make capital repairs, make any upgrades required to meet National Basketball Association (NBA) requirements (e.g., building separate locker rooms for female referees), and ensure the building is comparable to 50 percent of other NBA facilities.
* Renovations and upgrades will help keep the arena competitive and help attract additional events to bring more visitors to the Center City and support local businesses - particularly businesses that have been negatively impacted by the pandemic.
* Energy efficiency upgrades will make the operations of the arena more environmentally friendly and support the City's Strateg...
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