Office of Mayor R.T. Rybak

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Target Center Renovation Agreement Breathes New Life into Economic Asset

City, Timberwolves and Lynx, AEG reach agreement through 2032; $97-million renovation to begin in 2014

October 28, 2013 (MINNEAPOLIS) Minneapolis Mayor R.T. Rybak, along with City Council President Barbara Johnson, Minnesota Timberwolves and Lynx owner Glen Taylor and Target Center General Manager Steve Mattson of operator AEG, today announced an agreement to renovate the 23-year-old, City of Minneapolis-owned Target Center.

Target Center is a proven Minneapolis economic asset: it is the 22^nd-busiest building in America, hosting 200 events and 1 million visitors a year. It generates $100 million in economic impact and $1015 million in state and local taxes annually.

This creative, pragmatic agreement ensures continued economic vitality in downtown Minneapolis, and breathes new life into a building with great memories and an even greater future, Mayor Rybak said.

The renovation will include a redesign of the exterior; increased seating capacity for concerts and family shows; additional gathering and meeting spaces; improved pedestrian flow and easier access in and out of the building; additional clubs; improved amenities for all areas of the arena, including the upper and lower levels; and improved loading docks, among other features.

Design will begin later this year, with renovation to begin in 2014. The renovation will be complete within 1824 months.

The renovation will create 850 construction jobs. For the following 20 years, Target Center will continue to support 200 full-time and 700 part-time jobs, as well as more than 1,000 jobs in nearby hospitality establishments. Minneapolis annual hospitality payroll is $1 billion.

The agreement will also keep the NBA Timberwolves and current WNBA champions Lynx playing in the Target Center through 2032.

The Timberwolves and Lynx have enjoyed a great partnership with the city throughout the years. I am proud of the work we did to reach this agreement and I am extremely pleased that we will be spending the next 20 years in Target Center, said Timberwolves and Lynx owner Glen Taylor.

The City of Minneapolis will pay $48.5 million, or 50 percent, of the $97-million renovation. The Timberwolves and Lynx will pay $43 million, or approximately 44 percent, with AEG contributing $5.5 million, or approximately 6 percent.

In addition, the City of Minneapolis will provide no less than $50 million for Target Center capital improvements in order to keep the facility competitive over the life of the agreement, which expires in 2032.

I am pleased to get moving on improvements to Target Center. It has been a pleasure to work with our partners the Timberwolves and AEG, Council President Johnson said.

Under the terms of the agreement, AEG will continue to operate the Target Center through 2032.

Our ongoing partnership with the City of Minneapolis and Minnesota Timberwolves and Lynx has proven to be a winning combination that provides the basis for a great platform worthy of the multi-millon dollar investments that each of our organizations is committing to today, said Bob Newman, president of AEG Facilities. We are committed to and believe in the potential of downtown Minneapolis. This is another big step for our company in partnering with one of the worlds greatest cities.

Todd Klingel, president of the Minneapolis Regional Chamber of Commerce, Dan McConnell, business manager of the Minneapolis Building and Construction Trades Council, and Jerry Bell, former Minnesota Twins executive, also joined Mayor Rybak and others in announcing the renovation agreement.

Earlier this year, Lifetime Fitness announced its 12-year Target Center lease extension, as well as a multi-million-dollar renovation of its club there. Once finalized, todays lease extension with the Timberwolves will automatically extend the Lifetime Fitness lease by three more years.

The Minneapolis City Council will hold a hearing on the Target Center renovation agreement at Committee of the Whole on October 31, with a vote on the agreement expected on November 12.

Minneapolis City Goals: A Safe Place to Call Home. Jobs & Economic Vitality. Eco-Focused. Livable Communities, Healthy Lives. Many People, One Minneapolis. A City That Works

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