RBC Center Upgrades Promised Without Hurricanes Lease Renewal

RBC Center To Undergo Upgrades As Hurricanes Negotiate Lease Renewal

The city of Raleigh, Wake County (NC), the Centennial Authority and North Carolina State Univ. (NCSU) have agreed to spend $47M on upgrades to the RBC Center “over the next 15 years without a lease extension” from the Hurricanes, the arena's prime tenant and manager, according to Chris Baysden of the TRIANGLE BUSINESS JOURNAL. Despite the commitment, Hurricanes parent company Gale Force Holdings continues to "hold out on signing a lease extension -- saying they need concessions on the rent they pay."  The company is seeking a $1M reduction in annual lease payments. Gale Force currently pays about $2.7M “in flat rent each year,” as well as a percentage rent that "varies depending on how much revenue the team generates.” The first two projects for the improvements fund will be $2M for a new sound system and $1M for a POS system "that will allow credit cards to be used throughout the building.” Both are scheduled for completion by the start of the ’08-09 NHL season (TRIANGLE BUSINESS JOURNAL, 12/7 issue).