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.
First Published March 14, 2007 12:00 am