The Nashville Predators plan to invest $350 million in renovations and maintenance at Bridgestone Arena over the next 20 years thanks to the new lease agreement the team struck with Mayor David Briley's administration.

The Predators will no longer receive an operating subsidy, which covered the losses they incurred by running the arena. The subsidy has cost the city about $3.5 million annually.

But the Predators will still receive incentives in the form of sales tax collections and ticket tax revenue, which they will use to invest in maintaining and improving Bridgestone Arena.

Predators CEO Sean Henry said the franchise wants to capitalize on the unique situation of running an arena in the thick of a world-renowned entertainment district on Lower Broadway.

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Rather than seek a new arena after 20 years, which NBA and NHL teams have done in recent years, the Predators plan to play at Bridgestone Arena for decades to come, he said.

"When you look at unique venues and real strong partnerships, they can really change a city and they can change areas," Henry said. "We're pretty proud of that, more so than wins and losses, rankings, awards. We like those and brag about those all the time.

"But what we're really excited about is that I'm hard-pressed to find another venue in North America where you can point to it and say, 'Look what's happening around that building.' "

Metro Director of Law Jon Cooper detailed the arrangement to the sports authority board at its meeting on Thursday. The board is expected to vote on the new lease next month.

Under the plan, the first major upgrade will come in 2021 when the franchise intends to add about 1,200 seats to the upper level in addition to a new press box.

Henry said a new tower at the northwest corner of the arena, where city offices were located, remains a possibility. A 2017 venue study identified that part of the building as a possible hotel in the future.

And Henry identified the southeast side of the building, which currently houses a large rehearsal hall that country artists use before launching their tours, as an opportunity for renovations as well.

The Predators have already sunk $80 million in upgrades at the arena in the last eight years. About half of that came from investment from the team's ownership group, which is now led by Herb Fritch. The other half came from public dollars.

Ticket surcharges, currently capped at $2 per ticket, will increase to $3 per ticket on July 1. Capital improvement fees will also rise to $3 per ticket or 5% of the total cost of a ticket, whichever is lower. Those fees increase the total ticket surcharges the team will use for capital improvements at the arena to as much as $6 per ticket. The surcharges will rise by 5% annually beginning in 2021.

Under the new deal, the Predators bear the responsibility for capital improvements, not the city. Members of the ownership group will no longer be required to file annual guarantees proving their net worth eclipses their financial commitment to the city.

The annual operating subsidy and incentives were the linchpin of a deal struck in 2007 by then-Mayor Karl Dean to help stabilize the hockey club's operations. The incentives played a key role in turning Bridgestone Arena into one of the busiest arenas in the world.

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The elimination of the operating subsidy helps the city's budget, and proves the government's commitment in the team — beginning with former Mayor Phil Bredesen's decision to build the arena on Lower Broadway — was wise.

"It's a moment when the city can look back and say, 'Aha, our investment in this team has paid off,'" Briley said. "And now we're at a point where we don't need to worry about public subsidy for this team."

Briley, who is up for reelection in August, called the deal a "great moment for the city." He lauded the partnership

"It has turned out to be an incredible asset for our community in many respects, not just for being able to root for a team, but in terms of economic development and regional pride."

Reach Nate Rau at nrau@tennessean.com or 615-259-8094 and on Twitter @tnnaterau.