Charlotte will also spend $600,000 each year for the next decade to maintain the building.
The team and the Charlotte Regional Visitors Authority had asked the city for $48 million to improve the arena earlier this year.
The Hornets plan to bid on hosting the NBA All-Star Game in 2017 or 2018 and improving the arena is paramount for the team to secure a winning bid, according to NBA Commissioner Adam Silver. The city will spend $775,000 to rework part of the lower bowl of the arena and a new scoreboard is scheduled to be put in by 2018.
Time Warner Cable Arena opened in 2005 and seats 19,000 for basketball.
- Scooby Axson