Charlotte would lose ownership in Hornets practice facility, invest more in Spectrum Center under proposed deal
CHARLOTTE, N.C. (QUEEN CITY NEWS) — The city is saving nearly $5 million while shifting $30 million in a new proposal to renovate the Spectrum Center and construct a related facility across the street.
Since the City of Charlotte owns the uptown area, leaders are partnering with the Charlotte Hornets with renovations. In 2022, the city approved $215 million for arena improvements and $60M for a new practice facility, or Performance Enhancement Center (PEC).
But last summer, Michael Jordan sold his majority stake in the Hornets to Gabe Plotkin and Rick Schnall. The new ownership could have agreement changes, including expediting the projects.
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Charlotte Economic Development Director Tracy Dodson told City Council Monday night that the city saves approximately $5 million from the changes. Dodson’s team got the proposal in December.
In addition to in-arena upgrades, the two entities plan to build a Performance Enhancement Center. The initial plan meant the center would replace the Charlotte Transportation Center, but new plans would place it in a parking lot on the arena’s east side.
The larger lot would allow for further development adjacent to the PEC.
Hornets owners have requested the city to shift $30 million from the PEC to new work in the arena. And it transfers ownership – and half of the naming rights — from the city to the team.
“Hornets Sports & Entertainment is dedicated to investing in this community and the City of Charlotte, and the development of the new practice facility site is a key aspect in that process,” the Hornets said in a statement. “HSE is committed to fully funding the practice facility costs above the $30 million provided by the city, and we have teamed with longtime Hornets partner Novant Health to offer a destination for leading-edge sports medicine and orthopedic care as part of the mixed-use practice facility development. The new practice facility is the next step as we work toward our vision of building the premier franchise in the NBA and having world-class facilities.”
This comes as the team has bumped up the PEC construction completion from the end of 2027 to 2026. The Spectrum Center opened as Bobcats Arena in 2004.
Dodson proposed using the leftover $30 million and putting it into arena projects since the city actually owns that building.
Council member Dimple Ajmera questioned investing in the PEC if the city has no (direct) financial stake in the building. Dodson emphasized that the $30 million is half of the previous agreement and “we still feel like we have a commitment to PEC; it’s part of keeping (the Hornets) here to 2045.”
There also are changes in ownership of a gravel parking lot across from the area. The city gains 250 parking spaces for city employee use and would have development rights for the whole block instead of just half of it.
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The plan garnered support from much of the board. Mayor Vi Lyles emphasized that City Attorney Patrick Baker must sign off on the updated contract.
“It’s a better deal for us and puts us in a better situation,” Council member James “Smuggie” Mitchell said.
Next in the process is an Economic Development Committee meeting on March 4. Lyles was hopeful the meeting would be open to the public, both in person and online.
The Spectrum Center renovations should commence after the Hornets season ends in April.
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