City, Thunder agree on lease deal, arena policies to keep team through 2053
OKLAHOMA CITY (KFOR) – The Oklahoma City Council approved a lease agreement with the Thunder on Tuesday that would keep the team in town through at least 2053.
Mayor David Holt solidified the contract, posting a picture of himself signing the documents.
"It is certainly one of the primary accomplishments of this city government really over the last 30 years," said Holt.
The agreement also included five, three-year renewal options, which would mean that the team could stay in Oklahoma City until at least 2068. It also incorporated stiff penalties if the team decided to relocate.
"What we've tried to do as we approach these agreements is to work it in a way that we help the team to be successful here but also incentivize the team through the contract to remain," said Craig Freeman, city manager.
The deal culminated around a nearly $1 billion arena that is expected to be built by 2028 on the site of the old Cox Convention Center.
Oklahoma City voters overwhelmingly approved a sales tax to pay for the new building, with $78 million coming from a MAPS 4 fund and another $50 million from the Thunder organization.
The Thunder will rent the new arena for $58,000 per game. Money generated from the rental fee will go to a capital improvement fund, which will pay for any future arena projects.
A new addition to the deal was an option for the current Paycom Center.
"The team has the exclusive right to purchase the existing arena property within five years of the opening of the new arena and for that they will pay us a $100,000 annual fee," said Brent Bryant, assistant city manager and CFO.
If the team were to purchase the property, it would have 12 months to demolish the Paycom Center, which means that demolition is a possibility.
Less than two years ago, the city spent $20 million on upgrades to the current facility. They told KFOR that the new scoreboard and shiny new seats would be either salvaged or sold once the team moves into its new home.