PITTSBURGH -- An agreement has been reached to build a new arena in which the Pittsburgh Penguins can play hockey for the next 30 years, Gov. Ed Rendell said on Tuesday.

Rendell, Allegheny County Chief Executive Dan Onorato, Mayor Luke Ravenstahl, Penguins owner Mario Lemieux and NHL Commissioner Gary Bettman all spoke at a news conference at the Heinz History Center in the Strip District Tuesday evening, discussing details of the agreement.

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The $290 million agreement will carry a lease that ties the Pens to the new arena for 30 years.

Also, no city or county taxpayer money will be used to pay for the arena, which will be across Centre Avenue from Mellon Arena.

Rendell lauded the legalization of slot machine gambling, saying the expected revenues will allow the state to contribute arena financing.

"Without expansion of gaming in Pennsylvania, the Pens would be gone," Rendell said. "They would be moving to Kansas City. Next year, you would see the first puck drop in Kansas City."

Some details of the arena term sheet include:

The Penguins will enter into a 29.5 year lease for the new arena, commencing upon its opening. The lease will obligate the Penguins to play hockey in the arena for the term of the lease and contain a nonrelocation clause.
A.)The Penguins will make 30 payments of $3.6 million per year throughout the term of the new arena lease.
B.) Upon the opening of the new arena, the SEA will impose a new surcharge on parking. The first $400,000/year of revenue generated from the new parking surcharge will be deposited annually into a capital reserve fund established to maintain and improve the new arena. The balance of the proceeds from the new parking surcharge in excess of $400,000/year shall go to the Penguins.
C.) Upon the opening of the new arena, the SEA, at its expense, shall promptly demolish Mellon Arena and pave, stripe and in all respects prepare the land under Mellon Arena for use as a parking lot. Upon completion of this work, the Penguins shall pay an additional $200,000/year over the life of the lease. This use shall continue until the land under Mellon Arena is developed.
The Penguins will manage, operate and maintain the new arena, subject to the terms of its current agreement with SMG, and shall retain all revenues generated from all events at the new arena.
The arena construction budget will be set at $290 million. The budget will cover the following matters: Construction, Design, Soft Costs, Eligible pre-development expenses previously incurred by the Penguins in an amount of approximately $6 million (Commonwealth and SEA to review and approve the itemized expenses,) Acceptable design and construction contingencies, including a 5 percent owner contingency, Oversight expenses of the SEA, estimated at approximately $2.5 million.

"We worked hard all along, and sometimes it's hard for the general public and some folks to understand, really, the dynamics and everything that's involved," Ravenstahl said Tuesday. "It's just so exciting. It's a hockey night in Pittsburgh for the next 30 years."

Last week, Burkle and Lemieux sent a letter to Rendell, Onorato and Ravenstahl, declaring that arena negotiations had reached an impasse and the team would aggressively explore options outside Pittsburgh.

The Pens had a deal on the table from Kansas City, which was offering a rent-free lease and a large cut of revenues at its new Sprint Center. Team representatives also met with officials in Las Vegas.

Two days after the impasse letter was sent, another meeting on the Pittsburgh arena was called, and Bettman joined in.

At that time, both sides simply said they had made good progress and were planning to talk again.

"It's quite a comeback from the dark days just a week ago, when the Pens made it clear they were actively looking to leave town," said Ravenstahl Tuesday.

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Just minutes after the arena deal was reported Monday on Channel 4 Action News at 11 p.m., fans were already speaking out on Thepittsburghchannel.com's Penguins message board.

"WakeUp92" posted, "Sorry KC fans ... the Penguins are staying the PITTSBURGH Penguins!! THE DEAL IS DONE!! Let's Go Pens!!"

"PAforever" posted, "I don't believe for one second that Mario has anything but the Penguins best interest at heart. I just think Mario is learning how to play dirty, just like the city and state officials. Hey, he's learning from the best."

"erico" posted, "I am not a huge hockey fan. I can either take it or leave it. However I am so happy that that Pens are staying here. It would (have) been a huge black eye to this city if they were to leave. Congrats to all of the true fans and the Penguin franchise."

gtpjerry posted, "What a joke. Mario gives an ultimatum like some kind of terrorist, and everyone buckles under. You should all be ashamed."

joseph401 posted, "IT'S A HOCKEY NIGHT IN PITTSBURGH - FOR THE NEXT 30 YEARS! BRAVO to all involved in the negotiations and to Mario for FINALLY getting a new arena after years of patiently waiting and listening to promises! It's a great day in the history of the 'BURG! NEXT STOP: LORD STANLEY'S HOUSE!"

And "roofing101" posted, "Mario has the hat trick!!!! He has now saved the Pens three times!!! Way to go Mario. We love you and the Pittsburgh Penguins!!!!"

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