BALTIMORE — The aging Royal Farms Arena is one step closer to getting a whole new look.
On Wednesday, Baltimore City's Board of Estimates signed off on a new 30-year lease and management agreement for the arena.
The vote was 4-1, with only City Council President Nick Mosby dissenting.
Under the proposal, Oak View in partnership with NBA star Kevin Durant's Thirty Five Ventures, would fully manage and fund the estimated $150 million overhaul.
Oak View was granted contract rights over two other bidders, in part because of their commitment to maintain 45 percent minority and women-owned business throughout the renovation process, and at least 25 percent of investment opportunities for minorities.
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The agreement calls for the arena to host at least 84 events annually.
Oak View would set a goal of raising $500,000 per year in contributions through charity efforts, and in turn provide at least $750,000 for maintenance over the next decade. After that, the number would increase to $1.5 million.
Once the project becomes profitable by 15 percent, the city would be entitled to 25 percent of all “Arena Distributable Cash” that would then be distributed to the equity owners.
All the city would be obligated to contribute under the agreement is the equivalent of admission and amusement taxes, real property taxes, personal property taxes, and other taxes generated by the arena, which equates to $1,750,000.00 annually.
Construction is expected to begin following the 2022 Central Intercollegiate Athletic Association (CIAA) Men’s and Women’s Basketball Tournaments, and could be completed by the time the tournament rolls back around in 2023.