The Atlanta Hawks‘ renovation of Philips Arena is moving forward, after a vote in College Park helped secure a major piece of the project’s funding.
Originally announced last November, the renovation to Philips Arena will cost $192.5 million, $142.5 million of which will be covered by the City of Atlanta. Multiple sources are being utilized for the city’s contribution, including a tax on rental cars.
Many of the rental car lots that serve Hartsfield-Jackson Atlanta International Airport sit within the city limits of College Park, so Atlanta has to negotiate with College Park officials to reach an agreement that would enable Atlanta to continue collecting funds from rental cars in that area. Atlanta mayor Kasim Reed was relieved by the vote, as the car rental tax accounts for a significant portion of the Philips Arena renovation funding. More from 11Alive:
Reed told 11Alive that the City of College Park voted to allow Atlanta to collect money in the rental of cars at the Hartsfield-Jackson to cover the city’s portion of the arena’s update. The neighboring city’s agreement was necessary since the rental property actually sits in College Park.
“Last night they had the unanimous vote so the $192.5 million renovation of Philips is moving full steam ahead,” Reed said. “And I’m excited for Atlanta and having the Atlanta Hawks for another 30 years.”
Of the price, Atlanta is responsible for up to $142.5 million. The city previously announced that $110 million of that would come from a series of bonds backed by the rental car tax at the airport and other parts of the city. An additional $12.5 million is expected to come from the $30 million sale of Turner Field to Georgia State University and Carter. Approximately $20 million in proceeds is expected from the liquidation of other city assets. Following the announcement in November, the city said it also expected an estimated $50 million from the Atlanta Hawks.
Philips Arena is slated to be renovated in two phases, allowing the Hawks to continue playing at the facility. The project has been expected to be completed in time for the 2018-19 NBA season. Philips Arena originally opened in 1999.