Construction Firm Again Lowers Cost To Build Louisville Arena
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Final Guaranteed Maximum Price For Louisville
Arena Of $238M Is Lower Than Previous Estimates |
Minneapolis-based construction firm M.A. Mortenson Co. Thursday announced that the "final guaranteed maximum price" to build the 22,000-seat downtown Louisville arena is $238M, according to John Karman of BUSINESS FIRST OF LOUISVILLE. The cost, down from earlier estimates of $254M and $249M, was announced at a Louisville Arena Authority (LAA) meeting. M.A. Mortenson Senior VP John Wood said that the savings are due to "a high level of interest in the project from subcontractors submitting bids." Karman noted the savings also occurred because "projections of tax-increment financing revenues … are ahead of original income estimates." The $238M includes a "$6[M] contingency for [LAA] to make adjustments and enhancements as it sees fit," along with a "$5.2[M] contingency for Mortenson to cover such things as unforeseen expenses associated with the arena's construction" (BIZJOURNALS.com, 8/28). LAA Chair Jim Host said that LAA has an "agreement to sell bonds to pay for construction" of the arena and noted that he "expects to collect the money next week." In Louisville, Marcus Green reports the total project budget is $351.3M -- $263.1M in design, construction and administrative costs and $88.2M to acquire and move former Humana and Louisville Gas & Electric properties. Kentucky state funds of $75M are "being used for site work prior to construction" (Louisville COURIER-JOURNAL, 8/29).
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