Cost of Sprint Center Climbs to $276 Million VIDEO webArenaArt
Posted on: Wednesday, 22 February 2006, 18:00 CST
By Kevin Collison, The Kansas City Star, Mo.
Feb. 22--The cost of the Sprint Center will be $276 million, 10.4 percent more than projected, and officials say the addition can be covered with the fees approved by voters.
The downtown arena project was originally estimated at $250 million when city voters approved a financing plan that raised hotel and car rental fees in August 2004. Double-digit inflation in the overall construction industry and other factors has driven the cost upward.
"We went to the voters with an estimate of $250 million," Mayor Kay Barnes said at a news conference today at the offices of the Downtown Arena Design Team. "We arrived at a final price that's somewhat higher but is substantially in line with that estimate."
Project officials, including representatives from Anschutz Entertainment Group, the city's private partner in the project, said the additional costs were due to overall inflation in the construction market and some architectural features demanded by the city for what has always been billed a "world-class project."
Those features include allocating $3.5 million to assure glass will be used for the entire exterior skin of the 18,500-seat arena, and another $2.5 million for terrazzo floors.
The entire $26 million additional cost will be split between the city and AEG using the same formula that guided the original development agreement. The city will pick up 80 percent of the cost and AEG will cover the remaining 20 percent.
The final city cost for the arena, which is scheduled to open in October 2007, will be $222.1 million for the city and $53.9 million for AEG.
Tim Romani, president and CEO of ICON Venue Group, which represented AEG in the negotiations, said the additional arena cost is not out of line with what's been happening in the construction industry.
"This project has expanded less than typical escalations," Romani said. "I feel comfortable it's a fairly priced project and a firm price."
Under the terms of the development agreement, AEG will be responsible for any construction cost overruns.
The Kansas City Council is expected to consider the revised agreement next week, and the final contract is expected to be signed by the city and AEG in early March, City Manager Wayne Cauthen said.
For more on this story, please see Thursday's editions of The Kansas City Star.
To reach Kevin Collison, development reporter, call (816) 234-4289 or send e-mail kcollison@kcstar.com .
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Copyright (c) 2006, The Kansas City Star, Mo.
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Source: The Kansas City Star (Kansas City, Missouri)
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