The Carolina Hurricanes on Wednesday announced plans to develop a $1 billion mixed-use district that will envelope the arena it shares with North Carolina State university.
The 80-acre Raleigh Sports & Entertainment District will feature retail, dining, a 4,300-seat amphitheater operated by LiveNation and curated outdoor spaces for tailgating, concerts and more. The district will be developed in phases over the next 15 years, with the first phase of construction slated to begin in December 2025. While the financing details have yet to be finalized, construction will be privately funded for $800 million.
In August 2023, the team signed a 20-year lease with the Centennial Authority, the North Carolina General Assembly’s governing body for PNC Arena, which included $300 million in public subsidies to renovate the venue. In June, Tom Dundon, the team’s sole owner, signed the agreement for the renovation and said he planned to develop the land surrounding the arena.
Phase 1 of the project will include 200,000 square feet of entertainment and retail, 150,000 square feet in office space, a hotel and at least 500 apartments. Additionally, the project promises improved plaza space leading into the arena, which includes tailgating and meeting spaces. Of the $800+ million earmarked for the district by Dundon, $200 million will be used for Phase 1, which is to be completed by 2030.
“This is really a greenfield site,” Hurricanes CEO Brian Fork said in a phone interview. “Since it’s just a giant parking lot that’s all one level, we don’t have to tear down any buildings or anything like that to do it. And it’s a very centrally located place. It’s pretty easy to get to both within Raleigh and the greater Research Triangle Area. Durham and Chapel Hill are very accessible to this spot.”
What is now known as PNC Arena opened in 1999 as Raleigh Entertainment and Sports Arena and is due to undergo another round of renovations as part of the new lease. Lenovo has been rumored to take over arena naming rights, according to local media, and some PNC signage was taken down on Monday. PNC will have sponsorship rights for the arena’s premium seating sections.
Mixed-use districts in the sports industry have gained prominence over the past decade, with the Los Angeles Lakers, Atlanta Braves and others having surrounded their homes with retail and entertainment.
They include NHL powerhouses like Edmonton, home to the Western Conference champion Oilers. The ICE District surrounds the 18,000-seat Rogers Place, which opened in 2016 in downtown Edmonton. The 25-acre complex includes retail, residential condos, a casino, a JW Marriott hotel and an outdoor plaza. ICE is the second largest of its kind in North America behind New York City’s Hudson Yards, which does not feature a large-scale sports venue.
Fork said that the team has observed the ICE District and others around North America to figure out how to make a similar project unique for Raleigh. “I think the thing that’s unique about this area is the blending of the college football atmosphere that kind of spills into our parking lots, which has led to this great tailgating tradition, particularly when the weather’s nice for playoff games and March and April end of the season. Those tailgate suites are really a nod to us trying to help N.C. State football and the Hurricanes as we develop these parking lots preserve the (tailgating) tradition.”
The Oilers own the ICE District and generate revenue from all the food and drink consumed in and outside of Rogers Place. The development is one component that set the Oilers as Sportico’s eighth-most valuable NHL franchise at $1.59 billion (U.S.). The seven teams ahead of them play in metropolitan areas with populations that are at least three times bigger than Edmonton’s.
At $980 million, the Hurricanes are 24th in the franchise valuations, up five spots from 2022 due to a 59% increase in value. A perennial Stanley Cup contender, the team fell to the New York Rangers in six games during the Eastern semifinals last spring.
