The Hawks will be playing in Philips Arena in downtown Atlanta for the foreseeable future.

In response to demands from Hawks majority owner Terry Ressler, Atlanta Mayor Kasim Reed said on Thursday that his administration is working to significantly renovate Philips Arena.

"We will retrofit Philips. That is the agreement. The discussion is about the number," Reed said, as relayed by Chris Vivlamore and J. Scott Trubey of the Atlanta Journal Constitutional.

Reed added that the Hawks have retained a firm to design the overhaul. He also mentioned that the total cost would number $150 million to $250 million.

The project will involve an undisclosed amount of public investment, the Journal reports. That parallels comments made by Reed this summer in regards to his willingness to spend public funds towards improving the Hawks' facility.

Ressler opined just one day into his ownership of the Hawks that their arena would either need to be renovated or replaced.

"I think clearly something has to be done to that arena. … We have no idea what the right answer is, truly have no idea. Is it to move? Is it to rebuild there? Is it to remodel?" Ressler asked.

Philips Arena opened in 1999 at a cost of $213.5 million. It is home to the Hawks and the Atlanta Dream of the WNBA. It also served as the home of the Atlanta Thrashers of the NHL between 1999-2011 before the franchise moved to Winnipeg.