PNC Arena's $300M upgrade and bigger convention center could win crucial tourism money

Local governments appear ready to give PNC Arena and the Raleigh Convention Center tens of millions of dollars more annually in a move that could bring major upgrades to two of Raleigh's biggest sources of tourism.

Driving the news: The Wake County Board of Commissioners received a recommendation from the county manager's office on Monday on how it should use tax money from the county and Raleigh's interlocal fund.

• While the commissioners didn't vote on the proposals of — which would determine how the region uses its tourism tax money for the next two decades — they all expressed support for the choices.

Why it matters: The money from the interlocal fund would pave the way for major upgrades to PNC Arena and the relocation of Red Hat Amphitheater to make way for a new convention center building.

• The Carolina Hurricanes, in turn, appear ready to sign a new long-term lease with the arena and invest in more entertainment-centered development around the arena, the News & Observer reported.

Details: The Wake County recommendation prioritizes four major projects to boost tourism.

PNC Arena upgrades

PNC Arena would receive $21.3 million annually for the next 25 years starting in 2025.

• The move would allow the Centennial Authority, which operates PNC Arena — to take on $300 million in financing to renovate the 24-year-old stadium and develop the area around it.
• In turn, the Canes need to sign a long-term lease there and help with the surrounding development, something owner Tom Dundon has long wanted to do.
• A component of affordable housing must also be included among the developments.

Of note: The county said that it has heard from many residents concerned that the redevelopment could affect some parking lots popular with N.C. State football fans for tailgating.

• "I have more friends than I realized who [tailgate] and contacted me over the weekend concerned about their tailgating parking spots," County Commissioner Vickie Adamson said. "But we got a long way to go, and we will not forget you."

Raleigh Convention Center expansion

The Raleigh Convention Center's long-discussed expansion would also be funded under the recommendation, with $25.6 million provided a year for 30 years.

• The money would help move and rebuild the popular Red Hat Amphitheater so that an expanded wing of the convention center could go in its place.
• The project would leverage $387 million in debt capacity to complete the project, and it would start in 2025.

Cary Indoor Sports Facility

Cary's proposed indoor sports facility would get $5.4 million annually for 25 years, and allow it to take on $75 million in debt to build the indoor facility, 12 indoor basketball courts, multipurpose event space, a walking track and gym.

• The indoor facility, which would be used to attract youth sporting events, is in talks to become part of Loden Properties' redevelopment of the former South Hills shopping center in Cary.

Downtown Raleigh hotel project

The city and county also want to use money as a way to attract a developer to partner on a major hotel on Fayetteville Street to support the convention center.

• The city is currently in negotiations with developers over building a 400-plus room hotel on a parking lot in front of Martin Marietta Center for Performing Arts.
• Under the recommended plan, that project would get $6 million annually for 20 years and allow up to $75 million in debt to help build it.
• The hope is for construction to start in 2026.

Be smart: The interlocal fund comes from taxes on hotels and food and beverages in Raleigh and Wake County.

• The money from the tax can only be used to support projects that would increase tourism in the county — specifically for the arts, cultural activities, sports and the convention center.
• Both the Raleigh City Council and Wake County Board of Commissioners must vote on how the funds are distributed.

What's next: The recommendations for how to spend money from the interlocal fund will be voted on by the Raleigh City Council Tuesday night.

• The county commissioners would then vote on the recommendations on Aug. 21.
• The city and county could then adopt them officially at a meeting in September.