AJ Neuharth-Keusch

USA TODAY Sports

The Atlanta Hawks and the city of Atlanta announced Tuesday that they have reached an agreement on the terms for a $192.5 million renovation of Philips Arena — the downtown venue where the Hawks play home games.

According to a release sent out by the team, Atlanta mayor Kasim Reed committed to provide $142.5 million toward the renovation process, while the Hawks pledged the remainder. The Hawks also committed to an 18-year lease extension to stay in downtown Atlanta through 2046.

The renovations are scheduled to begin in the summer of 2017 and conclude by the start of the 2018-19 season. Despite the renovation process, the Hawks are still scheduled to play in Philips Arena next season.

The modified arena will feature "new amenities on every level of the building, 360-degree connected concourses at all levels, improved sightlines and state-of-the-art video throughout the building," according to the team.

“When our group became owners almost a year and a half ago, we pledged to work diligently with the City of Atlanta to ensure that the Club remained downtown," Hawks owner Tony Ressler said in a statement.

"We knew that a key part of producing a winning team, providing a superior fan experience and being a civic asset to the City of Atlanta required a renovation of our arena and a meaningful improvement to the downtown area of this city. Today’s announcement with the Mayor is a significant step toward this goal, and we look forward to this exciting transformation that will ensure that we provide the best fan experience possible now and for the next 30 years."

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