Dive Brief:

• Peter Feigin, president of the NBA’s Milwaukee Bucks, announced the organization will break ground on the now-$524 million basketball arena on June 18.
• The new facility, for which the Bucks organization has signed a 30-year lease, is scheduled for completion in the summer of 2018, according to the Milwaukee Business Journal.
• The team had given previous cost estimates of $500 million for the arena, and Feigin said a wide range of factors — such as environmental, labor and logistical concerns — added to the bottom line. Feigin said the Bucks organization, which is responsible for any costs over $500 million, is working to reduce costs and won't be certain about the total price tag until June.

Dive Insight:

The Bucks lease deal with the owner of the arena, the Wisconsin Center District, allows the team to pocket all revenue from naming rights and any other sponsorships. The District will monitor the state investment of $250 million.

The city of Milwaukee must still approve the arena design, and the Business Journal reported that will likely happen in May. Now that the team has a firmed-up lease in hand, it will most likely begin seeking naming rights deals and sponsorships. Feigin told reporters that the Bucks organization has thus far held only "embryonic conversations with potential sponsors."

Last month, team officials announced they had chosen Mortenson Construction as the construction manager for the project, which is a public-private partnership between the team and state and local government. In August, Wisconsin Gov. Scott Walker approved the state’s $250 million investment in the arena after the team threatened to leave the city. The Bucks also kicked in $250 million, and the Milwaukee Common Council voted to approve a $47 million investment after the team agreed to a 40% city-resident hiring requirement for the arena and associated facilities.

The new facility will not only be home to the Bucks, but it will also be the focal point of a planned downtown sports and entertainment district on what is currently 30 acres of vacant land. Construction of new residential and office space is also planned for the area surrounding the arena.