The Atlanta Hawks will have a $193-million-renovated aerie, thanks to Atlanta Mayor Kasim Reed who undoubtedly considered the expense of potentially losing 75% of Atlanta’s sports teams during his tenure when deciding whether to cough up the dough.
Atlanta will kick in $142.5 million of the money that will go to a massive mixed-use construction project around Philips Arena. The Hawks will kick in the rest and commit to 30 more years at Philips Arena, according to a report in The Atlanta Business Chronicle.
Financing is where things get tricky.
Atlanta will fund the project with an extension of the car rental tax, generating $110 million, Reed said. The city will commit another $12.5 million toward the arena’s renovation with proceeds from the sale of Turner Field. However, even with the Hawks spending millions, that still leaves a nearly $21 million funding shortfall.
It’s uncertain how the city will pay for the remainder of the project, but it could use additional proceeds from the sale of more city-owned land, Reed said.
Earlier today, the AJC said the development “could rank among the largest commercial redevelopments conceived for downtown Atlanta in a generation.”
Among the ideas under consideration is a complex similar to L.A. Live at the Staples Center in Los Angeles that would include more retail and restaurants and perhaps offices and residences, said two people with direct knowledge of the discussions.
The Hawks would attempt to create a live-work-play destination in an area largely populated by workers and tourists. The team is contemplating a number of properties around the arena — including land within downtown’s “Gulch” — but additional property as well.
Your Atlanta Hawks remain on top of the Eastern Conference with a second-best league record of 3-0. Clearly they’re getting a chip this year.