Officials continue to work on the planning of a Las Vegas stadium for the Oakland Raiders, but some financial details remain unknown.
The Las Vegas stadium project has been estimated to cost $1.9 billion, but that price tag includes more than the actual construction of the stadium. Also rolled into that figure is the team’s practice facility, which has been estimated to cost $100 million, but a final site has yet to be announced.
Additionally, some details remain unknown regarding the Raiders’ loan from Bank of America. The loan came at a point where the Raiders were seeking additional funds after Sheldon Adelson withdrew his $650 million contribution to the project, but Bank of America has never revealed whether its loan covers that entire amount. Some of the details behind that loan are expected to remain under wraps, because of the confidentially given to the bank and the Raiders.
As for the final cost of the project, there are a few factors that could determine that amount. While the developer is expected to be on the hook for most cost overruns, there are some cases in which the Las Vegas Stadium Authority could pick up the cost. More from The Las Vegas Review-Journal:
The estimated $1.9 billion price on the stadium includes $100 million to build a practice facility and headquarters for the team. The team has not identified a site for that facility or any details about its construction, but several local governments have expressed interest in having it within their boundaries.
The bill for the projects could come in under that figure if the team opts to spend less initially and add improvements over the 30-year duration of the lease agreement, or more if there are cost overruns. Some local construction experts say the cost of labor may be higher than expected because of the numerous projects in Southern Nevada competing for laborers and craftsmen.
The Las Vegas Convention and Visitors Authority, for example, is anticipating higher labor costs for its $1.4 billion convention center expansion and remodeling project and is budgeting $114.9 million in contingency funds to cover what the LVCVA’s contracted building representative, Terry Miller of Cordell Corp., called “construction industry compression.” Cordell was backed up by the seven-member Oversight Panel for Convention Facilities in Clark County, which is monitoring the project.
Under Senate Bill 1, the stadium developer would be responsible for any construction cost overruns with one exception: if the overrun is caused by a change mandated by the stadium authority after the execution of the development agreement. The authority wouldn’t be responsible for cost overruns if it mandates changes required by county building and safety codes.
The Raiders’ relocation bid and their lease at the stadium has already been approved by NFL owners, but plenty of planning remains in the process. The current timeline calls for the stadium to open in time for the 2020 NFL season.
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