Deal reached for Philips Arena renovation, 7 months after announcement

ATLANTA — The home of the Atlanta Hawks is a big step closer to getting a facelift.

A deal is finally in place to pay for the remodel of Philips Arena.

The city of Atlanta needed College Park's help to pay for the Philips Arena makeover because most of the money to pay for it will come from a tax on rental cars.

The planned renovation appeared to be far from a slam dunk until now.

Channel 2 investigative reporter Richard Belcher learned Thursday that the city of Atlanta has finally reached a deal to pay for it.

"We got a new stadium for the Falcons, so I guess they're finding a way to do something for the Hawks," Atlanta Hawks fan Brandon Kendrick told Channel 2’s Justin Wilfon.

Basketball fans outside Philips Arena Thursday evening told Wilfon they were excited to hear the venue will soon get a facelift.

"It needs an overhaul. They need to go in there and do a major overhaul. I think the fans deserve that.  They deserve the overhaul," Hawks fan Antonio Washington said.

The $192 million renovation will be paid for, in large part, with an extension of a tax on rental cars.

With the rental car lots sitting within the College Park city limits, College Park has long-shared the tax profits with the city of Atlanta.

After months of negotiations, both cities have agreed to continue doing that for years to come giving Atlanta the money it needs to pay for the renovation.

"I like Philips Arena now, but I'm excited to see how the new Philips Arena looks," Kendrick said.

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The deal ensures the Atlanta Hawks will stay in Atlanta for the next 30 years.

Atlanta Mayor Kasim Reed sent Wilfon a statement saying the remodel "will maintain the downtown facility as a world-class, state-of-the-art venue for sports and entertainment events."

[READ: Hawks CEO talks about sweeping renovations for Philips Arena]

These animations provided by the Hawks show updated concourses and completely remodeled luxury boxes.

A new look for the Hawks' nest.

"The new Philips Arena. I'm looking forward to seeing that," Kendrick told Wilfon.

Construction should start this summer and will be complete by late next year. The Hawks will continue to play at Philips throughout the project.

Cox Media Group