Hurricanes commit to 20-year lease at PNC Arena with big plans to redevelop property

• The agreement comes as Raleigh and Wake County appear ready to give PNC Arena $21.3 million annually from their interlocal fund for the next 25 years.

Why it matters: The commitment from the interlocal fund, which is funded from taxes on hotels and food and beverages, will pave the way for significant upgrades and new construction around the 24-year-old arena.

• PNC Arena is one of Wake County's biggest tourism draws thanks to sports and music concerts being hosted there.

Details: The Hurricanes organization said it will sign a ground lease to redevelop the surrounding property into an entertainment district, with $800 million worth of construction planned over the next 20 years.

• The goal is to make the arena area more active on game days while also being less reliant on events.

The first phase would cost $200 million and include:

• 100,000 square feet of retail and food space
• 150,000 square feet of office space
• 200 apartments and a 150-room hotel (with 10% of the apartment set aside as affordable housing)
• And a 3,000-5,000-capacity music venue.

Of note: The Canes said it will replace 95% of any parking displaced by the development and will set aside five acres as a "dedicated tailgate zone."

• The parking lots around PNC Arena have been popular with tailgaters for N.C. State football games for decades.

What they're saying: "This development will transform PNC Arena into a year-round destination for residents, while also improving the event day experience for Hurricanes fans, N.C. State fans and concertgoers alike," Hurricanes owner Tom Dundon said in a statement.

• "North Carolina is the home of the Hurricanes, and I am proud to say that the Hurricanes will continue to call PNC Arena home."