Details of the $15 million project were unveiled in The News Sentinel two months ago, including 32 luxury suites, new black seats throughout the arena and a $2.5 million scoreboard hung from a reinforced roof.
Phase I will also include 166 side-court loge seats directly below the luxury suites in the north balcony, improved graphics and concourse amenities. The roof will be painted black.
The arena will be closed to events for the majority of the construction period.
No timetable has been announced yet for Phase II, which will include new lighting, food courts and ticket kiosks.
Construction of the $15 million Pratt Pavilion practice facility adjacent to the arena has already begun.
"The University of Tennessee is making a statement that basketball is a top priority here,'' men's coach Bruce Pearl said.
Lady Vols coach Pat Summitt lauded the boosters whose financial support made both projects possible.
"They continue to provide the tools we need to give our student-athletes the best possible experience,'' she said.
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