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Hawks fans and others attending events at Philips Arena will pay an additional $3 per ticket as part of the deal to renovate the arena.
The facility-admissions surcharge will go toward, among other things, the cost of traffic management around Philips.
According to the terms of the deal, it is the responsibility of the Hawks “to develop and deliver a new Traffic Management and Pedestrian Security Plan reasonably acceptable to the City and to provide for adequate security and traffic management for all events held at the Arena, subject to reimbursement of such cost from the Facility Admissions Charges.” The Hawks will be reimbursed $360,000 per year from the surcharge for such costs.
A memorandum of understanding (MOU) among the City of Atlanta, the Atlanta-Fulton County Recreation Authority and the Hawks stipulates that the fee will be implemented on all events at the arena and will be in effect through June 30, 2046. It is expected to take effect with tickets sold after Aug. 31 this year.
The Atlanta City Council, which voted to approve the renovation deal Monday, was told that about 1.2 million tickets per year are sold for Philips Arena events. Based on that figure, the $3-per-ticket fee would bring in about $3.6 million annually. (For tickets included in suite and club-seat packages, the charge will be added to the price of such packages, according to the MOU.)
In addition to traffic management, the facility admissions charge will go toward: reimbursing Atlanta for advances made to College Park under the deal to use car-rental taxes collected at Hartsfield-Jackson International Airport for the renovations; building a reserve fund that could be used to pay College Park in the event of two consecutive years of shortfalls; funding capital repairs and replacements over the years, such as replacing scoreboards or air conditioning units; and, finally, other Atlanta-Fulton County Recreation Authority purposes.
The $192.5 million renovation of the 18-year-old Philips Arena — to be funded with $142.5 million in public dollars and $50 million from the Hawks — began this week.
The arena will be closed for approximately the next four months, reopening for the start of the Hawks’ 2017-18 home schedule. The renovation will be spread over two off-seasons and is scheduled to be completed by the start of the Hawks’ 2018-19 season, ultimately resulting in new amenities, improved basketball sight-lines, connected concourses and, perhaps most notably, removal of the wall of suites on one side of the building.
RELATED: Philips Arena renovation work started Tuesday; more deal terms outlined.
ALSO: Atlanta City Council votes to approve renovation deal .
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