Frequently Asked Questions Time Warner Cable Arena Renovations and Upgrades •
•
•
Who owns the arena? o Time Warner Cable Arena is owned by the City of Charlotte and operated by Hornets Sports and Entertainment. Charlotte Regional Visitors Authority (CRVA) is responsible for all “back of the house” operations. When did the arena open? o Time Warner Cable Arena opened in October 2005. How much did it cost to build? o $267 million for land and construction. •
What is taking place right now between the City of Charlotte, Charlotte Regional Visitors Authority (CRVA) and the Hornets organization? o The city, Hornets and CRVA are working toward a renovation and upgrade package for Time Warner Cable Arena, now beginning its ninth year of operation. At the Aug. 25 City Council meeting, a presentation went before council to approve $27.5 million in renovations and upgrades for the arena. Action (voting) on this agenda item will take place at the Sept. 8 meeting. •
What triggered the renovations? Why now? o Per the operating agreement signed by the city, CRVA and original NBA team ownership group when the arena was constructed, it included a prescribed process to look at repairs and upgrades after seven years of operations. The arena opened in October 2005. The recommended package meets the contractual obligations among the City, Hornets, and CRVA. Can you explain how much the Hornets requested for renovations and then how much the city is trying to approve? o The initial request for renovations and upgrades totaled approximately $48 million. The City of Charlotte is proposing $27.5 million in upgrades for approval. o The Hornets are willingly contributing $6 million over 10 years toward improvements, repairs, and maintenance to the Arena. o Additionally, the team has already contributed $6.685 million out of pocket and through partnership negotiations for arena upgrades resulting in a savings for the City of Charlotte. •
1 •
Where is the funding coming from to support these renovations? o The money to support the renovations will come from revenue derived from rental car and hotel/motel taxes. •
Are the Hornets contributing any money to the renovations? What are the Hornets specifically funding for the renovations and upgrades? o Yes, the Hornets are contributing $2.4 million toward improvements over the course of 4 years, and an additional $3.6 million for repairs and maintenance over the remaining 6 years. The Hornets are not contractually obligated to do so. o Some of the upgrades the Hornets are paying for include the home team locker room as well as suite renovations that benefit other arena events. •
How many events does the arena host each year? o On average, the arena hosts 150+ events each year. In addition to the 43 Hornets events, the arena hosts a wide range of activities including concerts, family shows, college basketball tournaments, conventions and graduations. What are some of the events the arena hosts? o Concerts with entertainers including Bruce Springsteen, Justin Timberlake, Beyoncé, etc. Family shows such as Disney on Ice, Sesame Street Live, etc. Charlotte Checkers hockey games, major college tournaments (CIAA, NCAA, ACC) and major conventions (DNC, NRA, ANC, etc.) Community events such as graduations, public meetings, etc. •
•
•
When will these renovations take place? What is the timeline? o The upgrades and renovations to the arena will take place over the course of the next five years. Several projects will start in 2015 and the others will be spread out based on priority order over the course of the following years. The Hornets locker room is one project that the team is working to complete prior to the start of the 2014-­‐15 season. Why not immediately for the changes but over 5 years? o Throughout this process all parties wanted to make sure that they were being good stewards of budgets and allow for financial flexibility. Each party partnered together to prioritize needs, timelines, updates, etc. •
What areas will be impacted in the arena due to the renovations? o The goal of all partners involved is to provide our patrons a world-­‐
class experience at all of our 150+ events annually. We are going to try 2 •
•
•
to minimize the impact on our customers as much as possible as we strive to provide a cutting-­‐edge arena. Some of our upgrades include: § Seating – Increasing the number of lower level seats (approx. 570) is critical to securing additional events. § Flooring –Repairing and/or upgrading from concrete to better material for longevity and quality. § Restrooms – Modernizing restrooms (approximately 50 public restrooms throughout the arena). § Public access to front court restaurant – Allowing more fans access to a larger variety of cuisine options. § Scoreboard – Upgrading to HD quality and larger screens for better viewing experience, as well as ribbon boards and reusing panels from existing scoreboards elsewhere in the Arena. § TVs around facility – Upgrading TVs (approx. 500) throughout the arena including concourse level to provide a better viewing experience in HD quality. § Locker rooms/production rooms – Refreshing and refurbishing these areas that serve multi-­‐purpose functions for all arena events (games, concerts, shows, etc.). This does not include the Hornets home team locker room as those upgrades are funded separately by the Hornets organization. Are these changes necessary to get the All-­‐star game? o These upgrades help make the Arena more competitive in pursuit of the All-­‐Star game, but more importantly, these are renovations that impact hundreds of other events throughout each year. It is much bigger than one event. What’s the economic impact of the arena? o $263.1 million in one year (2013) encompassing approx. 150 events. This study was completed by Dr. Thomas Regan from University of South Carolina. By way of this economic study, the arena events have driven in excess of $1 billion in economic impact for the city since it opened. It has been a catalyst for growth and development in Uptown Charlotte (retail, hotel, restaurants and numerous mixed-­‐use high rise developments). By doing these renovations with the expectations of more events and attendance, are we addressing our other hospitality/retail needs? o Yes, we can handle the volume. We have a sufficient number of restaurants and hotels in the area to more than adequately support the arena and any events that come to the city. 3 •
What was proposed in the initial request that got cut from the budget? o It was less about items that were cut and became more about meeting our collective, contractual obligation, while at the same time, making those improvements that most increased the competitive position of our Arena. •
How do the renovations enhance or impact event goers’ experience? The renovations and upgrades are intended to enhance patrons’ safety and experience throughout each event – whether it is greater access to a restaurant, better restrooms or HD quality video on the scoreboards. The ultimate goal is to provide a state-­‐of-­‐the-­‐art venue providing visitors the highest quality sports and entertainment events. •
How will the renovations impact concession and ticket costs? Will they increase because of the arena upgrades? Keeping in mind that these changes are being funded by revenue derived from rental car and hotel/motel taxes, there isn’t a direct implication on facility costs or patron expenses. Traditionally, with regards to NBA pricing, the Hornets ticket prices have ranked in the lower third of the NBA and the team has always been focused on providing the best value possible for its fans. 4