A big deadline is approaching, as Oakland team officials will be meeting with construction reps to determine a final price for the new Las Vegas Raiders stadium.
This number is important. Currently the tally for the new Las Vegas Raiders stadium is $1.9 million — a number used for several years — and with the need for a final stadium development agreement between the Raiders and Las Vegas Stadium Authority, the tally will guide the Raiders on their financing part of the equation. The contribution from the state via the Las Vegas Stadium Authority is topped at $750 million, so the Raiders are responsible for all costs overruns. From the Las Vegas Review-Journal:
Determining the price Minneapolis-based Mortenson Construction Co. will charge the Raiders to build the 65,000-seat domed stadium, estimated at $1.9 billion, is a critical step toward finalizing a stadium development agreement between the Raiders and the Las Vegas Stadium Authority….
If the actual price turns out to be higher, the Raiders would be responsible for paying the extra amount. That is because Senate Bill 1, approved in a special session of the Nevada Legislature in October 2016, locks the public contribution to the project at $750 million, which will be raised to pay down bonds through a 0.88-percentage-point increase in a tax on Southern Nevada hotel and motel rooms.
Don Webb, chief operating officer of the Raiders’ stadium company subsidiary, is expected to review every line item of the construction budget to determine the guaranteed maximum price, which will become a part of the final development agreement document. That document will be considered for approval by the authority on March 1.
There’s a lot at stake regarding this final number. If it’s too high, the Raiders and its development team will undoubtedly enter a phase of value engineering to bring down costs. The trick will be bringing down costs without impacting the promised fan experience. The new stadium, set to open in 2020, is already eagerly awaited as a venue that can provide comfort for fans in the desert.
Rendering courtesy MANICA Architecture.
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