The City of San Jose and the Sharks "have reached an agreement that extends the team’s lease" at SAP Center, keeping the franchise at the 22-year-old arena past the '17-18 season when the management agreement was set to expire, according to sources cited by Curtis Pashelka of the SAN JOSE MERCURY NEWS. San Jose Mayor Sam Liccardo and Sharks COO John Tortora "will hold a joint press conference" Friday at 1:00pm PT at the arena, where it is "expected they will make the official announcement and likely reveal more details, including the length of the agreement." The new lease is "also expected to see the Sharks’ payments for use of the building earmarked for improvements rather than going into the city’s general fund, something Sharks officials have wanted for some time." The Sharks have "made lease payments to the city," including $1.6M annually, as the city’s "share of the naming rights to the building." It is believed the new arrangement "will see most of the money collected by San Jose rebated to the Sharks for use in upgrading and improving the arena." Since the building opened in '93, capital repairs, equipment replacements and enhancements made in various areas "have primarily been paid for by a capital reserve fund contributed to by the Sharks and the City of San Jose, which owns the building" (SAN JOSE MERCURY NEWS, 5/8).
