National basketball Association (NBA) franchise Atlanta Hawks has agreed to remain at its Philips Arena home after the local government pledged US$142.5m (£115.5m, €128.4m) towards refurbishment work.

The team will now play at the multi-use facility until at least 2046 after signing an 18-year lease, and will pledge a further US$50m (£40.5m, €45.1m) towards the work.

Work on the arena will begin in 2017 and is expected to be completed ahead of the 2018/19 NBA season, coinciding with the Hawks’ 50th anniversary in Atlanta.

As part of the revamp, amenities will be built on every level of the building, sightlines will be improved and the latest video technology will be applied throughout the building.

Atlanta Hawks principal owner and chair Tony Ressler said the refurbishment would represent a “meaningful improvement to the downtown area of this city”.

Kasim Reed, the mayor of Atlanta, added that work was the “first stake in the ground” to transform a corridor of the city which includes the soon-to-be-built Mercedes-Benz Stadium, which is being built for National Football League (NFL) franchise Atlanta Falcons.

The Philips Arena hosts 170 events per year, making it one of the “most-programmed” venues in the US, alongside New York’s Madison Square Garden and the Staples Center in Los Angeles.