Glendale, Ariz., would pay the main tenant of city-owned Jobing.com arena $11 million in 2013 to operate the venue in a revised financial plan outlined last week to the City Council.
Council members agreed in June to a $17 million payment to investor Greg Jamison to manage the arena. Jamison is trying to buy the Phoenix Coyotes hockey team, which plays at the arena, from the National Hockey League.
Glendale built the facility, which opened in 2003, with $180 million of revenue bonds.
In August, the city asked for revisions, including lower annual payments in the early years of the arena lease deal. The council is expected to vote later this month on the agreement.
The renegotiated pact calls for total payments to Jamison of $320 million over 20 years, down from $324 million in the earlier agreement.
Glendale would pay $308 million to Jamison for arena management rather than the original $300 million, but the city's share of capital improvements funding would be slashed to $12 million from the previous $24 million.
The city's annual payment would drop by $60,000 for each hockey game that is not played because of a strike or lockout.
The NHL is currently locking out its players and this week announced the first regular-season game cancellations.
The proposed deal also provides incentives if Jamison brings in 50 or more non-hockey events to the arena each year. There are penalties if Jamison fails to schedule at least 30 concerts or other events.
Voters will decide in November on a temporary 0.7% sales tax hike that would fund the arena deal. Without the additional revenue from the tax, city officials said, Glendale would face a revenue shortfall of $25 million a year.
Glendale's general obligation bonds are rated Aa3 by Moody's Investors Service and A-plus by Standard & Poor's.