You can officially breathe a sigh of relief, Penguins fans. Your favorite hockey team is formally locked into Pittsburgh until June 30, 2040.

The Penguins and the city-Allegheny County Sports & Exhibition Authority signed a lease for the new $290 million arena Tuesday, formalizing the agreement reached in March to keep the team in Pittsburgh.

It will bind the team to Pittsburgh for 29¹/₂ years, or 30 hockey seasons. It kicks in when the new arena opens in 2010.

Gov. Ed Rendell and county Chief Executive Dan Onorato announced the lease signing before a ground breaking yesterday in Moon for the new US Airways flight operations center.

"I remember back in 2005 and 2006, the county executive and I were under a lot of heat," Mr. Rendell said. "We told people in fact that this day would come, that we would keep the Penguins here, and now we can say that it is done."

The lease signing completes an eight-year quest by Penguins owner Mario Lemieux to secure a new arena for the franchise, and came after a winter of tense negotiations that included the threat of a move to Kansas City or another city unless an agreement was reached.

"We want to thank Gov. Rendell, county Executive Onorato and Mayor [Luke] Ravenstahl and the Sports & Exhibition Authority for their efforts in completing our lease agreement for the new arena," Penguins President David Morehouse said. "We're excited about working with the local leaders, the community and our fans to bring a state-of-the-art multipurpose facility to the region."

With the signing complete, the authority expects to close on about $313 million in financing for the arena the first week of October. The authority had authorized a bond issue of up to $325 million in June. The Penguins, who will be responsible for the construction, hope to be playing in their new home at the start of the 2010-11 season.

The lease terms closely follow the agreement reached between the team and state and local leaders in March. The arena will be funded through a $7.5 million annual payment for 30 years from Pittsburgh casino operator Don Barden, $7.5 million a year from a state economic development fund backed by slot machine revenues, and a base rent of $3.6 million a year from the Penguins.

However, the team's contribution actually could go as high as $4.3 million a year. It would pay $500,000 a year more if it exercises an option to build a 500-space parking garage as part of the construction, as is likely. It also would pay another $200,000 a year for additional parking on Mellon Arena property once the new building opens.

Mr. Onorato said the arena deal would not have been possible without the revenue from gambling, which will finance more than two-thirds of the construction.

"The Penguins are here because of gaming. Let's be clear about that," he said. "Gaming passed. That gave us the ability to create a new arena for them and keep the pressure off the local taxpayers. So it's a win-win for everybody."

Under lease terms, the Penguins will keep all the revenue generated by the new arena. It also is responsible for the management, operation and maintenance of the arena.

Marc Ganis, president of Sportscorp Ltd., a Chicago sports business consultant, said arena revenues could run anywhere from $15 million to $40 million a year. For Pittsburgh, that's more likely at the low to middle end, he said. Arena operating costs could cost the team "well over $10 million" a year, he added.

A fund similar to those set up for PNC Park and Heinz Field will be established for capital repairs. The first $3 million will come from the bond issue to finance the construction. Another $400,000 a year will come from a parking surcharge. The team will have control over parking in the lease.

Mary Conturo, SEA executive director, said officials worked hard to prevent any loopholes that would enable the team to leave town before the end of the lease.

"What was important for us was to have a lease that committed the Penguins to stay and play hockey in Pittsburgh for 30 years," she said.

The lease also prevents a new owner from moving the team during the 30-year period.

Still to be determined is the guaranteed maximum price for the arena. If the cost exceeds $290 million and goes up to $310 million, the state and the Penguins will split the excess 50-50.

If the guaranteed maximum cost exceeds $310 million, the parties will work to reduce costs. If they unable to do so, the team has the right to drop its participation in the project. However, no one expects the cost to come above $310 million.

The new lease relates only to the new arena. Part of the March accord that gives the Penguins development rights over the 28-acre Mellon Arena site will be covered by a separate option agreement to be negotiated over the next six months, Ms. Conturo said.

Mr. Ganis said the Penguins' lease is a "reasonable market rate lease" and is "consistent with other recent single anchor tenant" National Hockey League buildings. He said it was similar to what the New Jersey Devils received in their deal for a new arena.

"This is what was necessary to retain the team," he said.

The Penguins also agreed to an affordable seating plan where they would make available an average of 300 tickets per home game at "a materially discounted price."

The Penguins are operating under an interim lease at Mellon Arena while their new home is built.

The team expects to break ground on the arena next spring. The SEA board, at its meeting yesterday, authorized the purchase of a parking lot at 1205 Fifth Ave. to add to the 11 properties it has acquired for the project.

Ms. Conturo said the price for the lot is still to be negotiated. The SEA also has begun talks with Beth Hamedrash Hagodol-Beth Jacob synagogue about acquiring its property on Colwell Street for the arena. Until recently, Isle of Capri Casinos Inc. held options on both properties. Both have been transferred to the authority without cost, Ms. Conturo said.

As part of the lease, the authority receives free use of one luxury suite at the new arena. It also gets no fewer than 10 seats in the stands that are no more than 12 rows from the ice.

For non-hockey events, it receives the same number of seats not more than 12 rows from the floor.