Hornets lease extended through 2024

[jonathanlambert33]

Louisiana Gov. Bobby Jindal will announce this afternoon that the State of Louisiana and the New Orleans Hornets have reached an agreement in principle that will keep the team in the city at least through 2024 with no escape, with an NBA guarantee of another All-Star Game in New Orleans Arena sometime during the period of the lease, sources with knowledge of the deal said Friday morning.

The state legislature will be asked to approve a capital bond issue of about $50 million that will fund improvements to the Arena which will allow the Hornets to generate additional monies and relieve the state of the burden of providing the team annual subsidies.

Sources indicate the new deal will save the state more than $70 million Additionally there will be no new taxes necessary to fund any part of the agreement.

Terms of the new lease agreement must be accepted by a new owner when the team is purchased from the NBA.
Arena improvements, if the capital outlay is approved by the legislature, will be completed over two offseason periods, and will help the Arena to remain state of the art so that it can continue to attract other major events.

Sources said the deal also will include language wherein the Hornets could receive and additional $10 million in capital outlay monies in 2013 that can be used for either additional improvements to the New Orleans Arena or for the Hornets training facility.

Wooooo. This makes me happy. Means the team isn't leaving.