The Charlotte Hornets’ plan for a new NBA practice center was approved by Charlotte City Council on Monday night, according to Erik Spanberg of Charlotte Business Journal.
The City Council voted 7-1 to approve changes to a 2022 agreement with the Hornets. This new deal will allow the NBA franchise to build a practice center on taxpayer-owned property behind Spectrum Center.
At the meeting, Renée Johnson casted the lone dissenting vote, per Spanberg. Three members were absent: LaWana Mayfield, Tariq Bokhari, and Tiawana Brown.
The city of Charlotte will pay its $275 million commitment as negotiated in the 2022 agreement in exchange for the Hornets’ 15-year lease extension through 2045 at the city-owned arena.
Last night, Charlotte City Council approved the revised proposal for the Hornets to build a standalone practice facility on a property behind Spectrum Center.
The changes allow the team to expedite the process with an anticipated opening in 2026 instead of ’27-28.
🏙️ #LetsFly35 https://t.co/vnt28PWLbe pic.twitter.com/vMd0GuHpqe
— /r/CharlotteHornets (@HornetsReddit) March 26, 2024
“Hornets Sports & Entertainment [HSE] is dedicated to investing in this community and the City of Charlotte. The development of the new practice facility site is a key aspect in that process,” HSE announced.
City administrators reiterated that total public funding still totals $275 million.
However, the terms on which parts of the development set to receive public funds within that $275 million have changed. The Hornets requested a revised agreement because the team is now under new ownership.
According to Spanberg, about $245 million will go toward arena renovations over the next two summers. That’s a $30 million increase from the negotiated $215 million.
Public funding for the practice center is set to drop from $60 million to $30 million.
Charlotte Hornets’ new practice facility to open in 2026, ownership to invest $70-100 million
More importantly, this deal will keep the team in Charlotte through 2045. The 2022 agreement depended on $60 million from potential arena district naming rights and practice center naming rights.
Per The Charlotte Observer, the Hornets will have majority ownership of the practice center and are expected to invest $70 million to $100 million into the project’s funding.
Additionally, the Hornets and the city will allocate 16% of construction contracts to minority-owned businesses and 14% to women-owned small businesses. City administrators wanted the project’s funding to support communities at large.
The changes to their agreement will allow the Hornets to begin construction on their proposed practice center as soon as possible. Instead of opening in 2027 or 2028, the facility is now scheduled to open in 2026.
Had the City Council supported the original deal, the city would have owned the practice center. In fact, it would have been built as part of a planned redevelopment of the Charlotte Transportation Center.
City Council members said the new agreement “alleviates the city’s financial obligations associated with potential cost of penalties on construction delays, required 350 parking spaces [to be provided to the team], cost overruns and practice facility maintenance.”
The development could include a hotel or “something that activates Trade Street,” assistant city manager Tracy Dodson said during the meeting.
Furthermore, the Hornets’ new NBA practice center will be built on a 3.2-acre, city-owned property at 501 E. Trade St.
