Overview

• The City Council voted unanimously to extend the Sharks' SAP Center lease to June 30, 2051, with stiff penalties for any early exit.
• San Jose will commit $325 million and the Sharks $100 million for upgrades, with no city payments required in 2026, cost overruns covered by the team, and each side adding $32 million for capital maintenance.
• City staff anticipate issuing about $350 million in bonds in five $70 million installments from 2027 to 2031, with options that include commercial paper, a hotel‑tax increase, or a general obligation bond.
• Planned work widens concourses, adds premium seating, and upgrades locker rooms and back‑of‑house systems, while the city must preserve specified parking counts within a half‑mile of the arena.
• Facing a $35.6 million deficit this year and a projected $52.9 million shortfall next year, labor groups seek safeguards on public funds as the agreement also requires new‑arena planning to begin by September 2027 and includes community‑benefit payments of $12.35 million from the team.