PNC Arena upgrades, development still being debated a year after Gary Bettman’s visit

More than a year has passed since NHL commissioner Gary Bettman visited Raleigh to drive home the point that the long-discussed renovations to PNC Arena were officially overdue from the league’s perspective.

Bettman’s visit spurred action on the part of the Centennial Authority, which oversees the arena, to start finalizing its renovation proposal, negotiating a long-term lease with Hurricanes owner Tom Dundon and — on the recommendation of the consultant it hired to oversee the process — opening the way for Dundon to begin developing the land around the arena into a mixed-use entertainment district.

In a closed session that lasted more than 90 minutes Thursday, the authority received the latest update from that consultant, Dan Barrett of CAA ICON, still without any tangible agreements or public timetable, although Barrett’s contract with the authority was recently extended through the end of July.

“We have lots of cooks in the kitchen, so we’re running traps, making sure we’re talking to the right folks, keeping everybody informed and up to date,” authority chairman Philip Isley said Thursday. “We have a lot of people to talk to. It’s an interesting authority. We’re doing all that. … I’m an optimistic guy. I hope we have something by (July). We’re pushing as hard as we can to figure that out.”

It’s a complicated process, because all three elements have to proceed simultaneously. Dundon won’t sign a long-term lease without the right to what the authority calls “ancillary development” outside the arena, a process that requires the approval of more than a dozen stakeholders, including various state agencies as well as N.C. State; while the city and county won’t release tourism tax funds to upgrade the arena without a guarantee the NHL team is going to be there.

“It’s all very much connected,” Isley said.

But if the development agreement can be reached, Dundon said he and Barrett have agreed on a “framework that is close enough” on a new lease for the hockey team.

“That’s not going to be the problem,” Dundon told The News & Observer. “Assuming the constituents are all happy, I think I’m the easiest part of this, candidly. We want to stay, and the idea of building all this is fun. That’s why we’re doing it.”

How much money the city and county are willing to allocate to upgrade the building is also still an open question, but Greater Raleigh Convention and Visitors Bureau CEO Denny Edwards reported to the authority Thursday that the hotel and food-and-beverage taxes that go to the arena, convention center and other major tourism projects continue to run well beyond post-COVID projections.

Thursday’s meeting also offered a reminder of why the renovations and development are both so long overdue. Assuming the legislature passes this year’s version of the sports gambling bill this week, the Hurricanes would have the opportunity to open one sportsbook inside PNC and one within a half-mile of the arena.

But there’s apparently no readily available space in the 25-year-old building suitable for a quick-turn conversion into a sportsbook space. There was some previous discussion that the space now used as The Eye team store could potentially be used as a sportsbook, but it sits below a catering kitchen that makes it unsuitable.

Dundon has said a sportsbook would also be a major feature of the envisioned entertainment district around the arena, what he has previously described as a massive mixed-use development that includes a live music venue around the arena.

And Bettman’s last visit — for the outdoor game at Carter-Finley Stadium, when he got stuck in traffic like so many others — demonstrated the need for more amenities around the arena and better access to it. All of that would come with the development, if and when that ever happens

“The way I understand it is, everybody’s making progress and there’s some of the parties who get to vote on it and we’ll have to see how those votes turn out,” Dundon said. “For our part, we’re just waiting to be told. If whoever that is — the authority, the city, the county, the state, N.C. State — if everybody wants in, we’re a hard yes. We want to stay. We want to make it work.

“It’s going to be really good, what we can do here. It’s just not up to us. We’re waiting for everybody else.”

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