Major components of the arena deal

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Major components of the arena deal:

$7.5 million a year for 30 years from Pittsburgh casino winner Don Barden.

$7.5 million a year for 30 years from gambling-financed state economic development fund.

$4.2 million a year, including $2 million annually in naming rights, from the Penguins. Also included in the $4.2 million team share is $400,000 a year from a parking surcharge once the new arena is opened and $200,000 a year from parking once Mellon Arena is demolished.

The city-Allegheny County Sports & Exhibition Authority will pay the Penguins $8.5 million for the team-owned old St. Francis Central Hospital.

$10.5 million from the state, including $8.5 million toward construction and $2 million for marketing.

$15 million credit to the Penguins as part of an agreement on development rights to 28 acres of the Mellon Arena property. The Penguins must develop 2.8 acres a year or lose the rights.

Construction cost estimated at $290 million. If the guaranteed maximum price for the arena ends up between $290 million and $310 million, the Penguins and the state will split the cost. Penguins will cover any cost overruns beyond the guaranteed maximum price.

  
More on the deal
More details on the terms of the agreement released by the governor's office (in .pdf format)   


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