Sports Authority Approves $325M Bond For New Penguins Arena

Sports Authority Approves $325M For Penguins Arena

The Allegheny County (PA) Sports & Exhibition Authority (SEA) board authorized a $325M bond issue for a new arena that will “keep the Penguins in Pittsburgh for 30 years,” according to Mark Belko of the PITTSBURGH POST-GAZETTE. The bond issue will cover the $290M construction cost for the new arena, a possible parking garage, a $3M contribution to an arena capital improvement fund and “expenses and reserves associated with the borrowing.” The board also authorized the SEA to buy the former St. Francis Central Hospital, which is on land needed for the construction, from the team for $8.5M, “$500,000 more than the Penguins paid for it in 2000.” The board authorized the continuation of existing ticket surcharges of 5% on non-hockey tickets and 3% on hockey tickets and existing parking surcharges of $1 for events and $.50 for non-events. The board also authorized the SEA to enter into an extension with the Penguins covering the time the team will play at Mellon Arena “until their home is ready.” The formal lease documents for the new arena are “still being finalized” (PITTSBURGH POST-GAZETTE, 6/8).