After the Milwaukee Bucks and Wisconsin Center District signed a lease Wednesday to finalize the construction of a new arena, Milwaukee’s NBA team will remain in the state for the next 30 years.

The new arena serves as the “centerpiece” of a $1 billion development plan to transform part of the city into a “vibrant” urban community, hopefully generating economic growth throughout the region, according to a Milwaukee Bucks statement.

The lease agreement states that the arena will be publicly owned by the Wisconsin Center District and operated by the Milwaukee Bucks. The Bucks committed to playing all of its home games over the next 30 years in Milwaukee and $45 million annual lease payments.

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The Bucks agreed to pay any overrun costs during the construction of the arena, as well as operating, maintenance and capital repair costs, the statement said.

The Bucks also agreed to contribute at least $60 million to capital improvements throughout the lease agreement.

“This agreement is the realization of a commitment Senator Kohl and our owners made two years ago to Bucks fans and the entire community to keep the team in Wisconsin and help revitalize downtown Milwaukee,” Bucks president Peter Feigin said in the statement.

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While the arena is expected to be costly, it aims to generate revenue for WCD and the state through a $2 surcharge on every ticket sold for events at the arena. The city, county and state are expected to gain approximately $634 million during the life of the lease from the taxed income of Bucks players, staff and from visiting NBA teams.

“We’re incredibly thankful for all of the hard work that went into this historic public-private partnership from the WCD, elected officials and community leaders,”  Feign said. “This is just the beginning of our effort and we can’t wait to see the economic impact this will have on our community.”