DETROIT (AP) Officials say the cost of building the Detroit Red Wings’ new arena has jumped by $105 million to nearly $733 million.
The city’s Downtown Development Authority said the revised estimate to build the Little Caesars Arena for the NHL team reflects the specific cost of materials, permits, design refinements and subcontractor agreements. City documents indicate other construction costs could rise, The Detroit News (http://detne.ws/2eAzo3L ) reported.
Officials said the revision doesn’t indicate massive cost overruns nor that taxpayers will face additional expenses.
”The increases represent enhancements or changes that our private partner, Olympia Development of Michigan, will be paying for – as they are required to do under our contract,” said Moddie Turay, executive vice president for real estate for the Detroit Economic Growth Corporation – which administers the Downtown Development Authority, in a written statement.
According to Turay funding invested by Olympia creates new potential opportunities for Detroit-based subcontractors and Detroit residents.
Olympia Development will be constructing the arena and will also manage it after its opening in September.
The owner of the Detroit Pistons Tom Gores has said that team is close to a deal to move the NBA franchise and suggested it could also play at Little Caesars Arena next season.
However, the city and Olympia wouldn’t confirm whether the new total provided by the city has to do with changes that would have to be made if the Pistons move their home court.
The design concept of the venue will be ”deconstructed” with a glass-roofed concourse that will circle the arena and provide a street-like walkway with storefronts. Additional shops and restaurants will be added and will remain open even when the arena is not in use.
Construction began last year and the venue is scheduled to open next fall.
The total cost for the arena and other associated construction projects will top $1 billion.
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This story has been corrected to show the price of the stadium rose from $627.5 million to nearly $733 million, not from $105 million to nearly $733 million, and that the Red Wings play in the NHL not the NFL.
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Information from: The Detroit News, http://detnews.com/
Detroit Red Wings’ new arena cost jumps by $105M, now $733M
