$300 million for new arena?

[Trueblood]

This story notes that the arena would cost $300 million. That sounds really low when you consider that the number being thrown around for Cal Expo was over $500 million. Not sure if they have their facts straight but new arena article nonetheless.

http://www.sacbee.com/kings/story/2443805.html

 

[PurpleHaze]

This story notes that the arena would cost $300 million. That sounds really low when you consider that the number being thrown around for Cal Expo was over $500 million. Not sure if they have their facts straight but new arena article nonetheless.

http://www.sacbee.com/kings/story/2443805.html

As proposed Cal Expo project is gigantic and much more than just a new arena - also including new condos, biz office space, remodeling old fairgrounds entirely, and more.

 

[Trueblood]

As proposed Cal Expo project is gigantic and much more than just a new arena - also including new condos, biz office space, remodeling old fairgrounds entirely, and more.

Right but the entire project would cost more than a billion. The arena alone was quoted as around $500 million. With the cost of steel and glass, it would seem to be tough to build a modern arena for just $300 million, especially away from Natomas where the land is cheaper.

OTOH, out of work construction people are so desperate for work, they will probably be willing to work for less than normal pay so that brings down the price a bit but not to that extent.

 

[hrdboild]

$300 million does seem very low for a brand new state of the art arena. Since the last time those numbers were thrown around property values have plummeted and I know that labor estimates have gone down substantially as well with the high unemployment rates -- but even factoring those in $300 million sounds too low to me.

 

[bajaden]

Right but the entire project would cost more than a billion. The arena alone was quoted as around $500 million. With the cost of steel and glass, it would seem to be tough to build a modern arena for that much, especially away from Natomas, where the land is cheaper.

OTOH, out of work construction people are so desperate for work, they will probably be willing to work for less than normal pay so that brings down the price a bit but not to that extent.

You have heard of Unions haven't you? The $300 mil is out of context with which project site their talking about. With Cal EXPO there's a lot of infrastructure involved. Not so much with the rail yards, and hardly any where the current arena is located.

 

[Trueblood]

$300 million is out of context for any site in America, especially California, for an NBA caliber arena.

 

[kennadog]

$300 million sounds low to me, too, when they were talking about $500 million to build in the railyards. I'm sure both of those quotes are for arena/parking only and does not include all of the infrastructure costs.

Labor and material costs have come down, but I find it hard to imagine it reduced potential costs that much. Not only that, but by the time they could actually break ground on an arena, I expect some of those costs will be back higher. Not likely as high as they were, but not as low as they have been the past year or so.

Building in Natomas would likely be the cheapest option as there would be little to no land cost, depending on the deal, and the most important infrastructure is already in place. For other reasons I'd rather see dowtown or CalExpo where the arena would be more integrated into the neighborhood, rather than being out on an asphalt island as in Natomas.

I just hope we don't end up with another super cheap arena (like Arco), with little to no architectural appeal and can't be upgraded in the future. Palace of Auburn Hills was built the same year and cost twice what Arco did. Guess what? It was much niver to begin with and was built in a fashion that allowed it to be upgraded, which has already been done.

 

[kupman]

I think that the most expensive arena built to date is American Airlines in Dallas @ 420 million - finished approximately 10 years ago.

Staples center was built for 375 million 10 years ago in LA. (are LA prices 10 years ago similar to Sac prices today? - I have no idea).

The most recent arena (I think) is the Ford center in OKC, built for less than 100 million 7-8 years ago.

source: ballparks.com

 

[Trueblood]

I think that the most expensive arena built to date is American Airlines in Dallas @ 420 million - finished approximately 10 years ago.

Staples center was built for 375 million 10 years ago in LA. (are LA prices 10 years ago similar to Sac prices today? - I have no idea).

The most recent arena (I think) is the Ford center in OKC, built for less than 100 million 7-8 years ago.

source: ballparks.com

Good find. The Ford Center was a bare bones arena though. That's why they had to pass the one cent sales tax to upgrade it to NBA specs. The upgrades costed $120 million.

The most modern NBA arena is TWC Arena in Charlotte. That was in the $250 million range and it broke ground over 6 years ago and opened up in November of 2005.

The big problem is that land is cheaper in NC and Oklahoma. California and all over the west coast makes it that much more expensive.

 

[Circa_1985_Fan]

I think that the most expensive arena built to date is American Airlines in Dallas @ 420 million - finished approximately 10 years ago.

Staples center was built for 375 million 10 years ago in LA. (are LA prices 10 years ago similar to Sac prices today? - I have no idea).

The most recent arena (I think) is the Ford center in OKC, built for less than 100 million 7-8 years ago.

source: ballparks.com

These #'s are misleading...Dallas happened because of Cuban and a better economy+Texas is one of only 3 states not to be hurt by economic downfall, and the price of the land is cheaper. True Blood is exactly right, the land is cheaper in NC and Ok...anywhere on the West Coast will be double the price just because of the land and local shortfalls, especially here in Sacramento.

 

[gunks]

300 million?

Why, thats less than the cost of two Gilbert Arenas'!

 

[Superman]

These #'s are misleading...Dallas happened because of Cuban and a better economy+Texas is one of only 3 states not to be hurt by economic downfall, and the price of the land is cheaper. True Blood is exactly right, the land is cheaper in NC and Ok...anywhere on the West Coast will be double the price just because of the land and local shortfalls, especially here in Sacramento.

I doubt that the difference in the price of land would mean one or two hundred million dollars.

If they were able to do Staples in downtown LA for less than $400 million, they should be able to do a similar or even bigger structure with good parking in Sacramento now in the same range.

 

[Schmoe]

I assume it's well known by now that the $300M is the Maloof family contribution, not the total cost to build.

I am guessing that is why the family put the New Mexico Coor's distributorship up for sale.

 

[keflanag]

Construction costs have also dropped drastically since the Cal Expo proposal. The one positive about this economy is that there will probably never be a time when building a new arena will cost less.

 

[keflanag]

Also, just saw a clip on news 10 that stated total cost is $700 million. $300 million is the Maloof's contribution. The rest of the money is generated from the city/state from the sale of Cal Expo and Arco Arena and however else that land swap works.

 

[Circa_1985_Fan]

Also, just saw a clip on news 10 that stated total cost is $700 million. $300 million is the Maloof's contribution. The rest of the money is generated from the city/state from the sale of Cal Expo and Arco Arena and however else that land swap works.

And the Australian Bank $$$ too??

 

[Emma]

That news10 article left out the remaining 400 million dollar contribution to be made up by Macquarie Capital, Pacific Coast Capital Partners, the Kamilos companies, and David Taylor.

The arena looks funded, the state money would go towards the new Cal Expo site in Natomas.


Edit: the reporting on this story by the city media seems to be full of holes and done on the fly. We will be better informed come Monday I'm sure.

 

[Circa_1985_Fan]

I wonder when/if we will hear about a 'green light' on this project as far as it being a 'go'?? I think it will be a BIG news conference when it happens due to the # fo players involved and the size of the project...probably the biggest news conference in city history, beings that it involves moving 2 major city landmarks(Cal Expo and Train Depot), along with Thomas Enterprises, the Maloofs, Macquarie Capital, Pacific Coast Capital Partners, the Kamilos companies, and David Taylor. INCREDIBLE!!!

 

[VF21]

At this point, having two threads to discuss the same proposal just seems duplicative to me so I'm going to close this in favor of the more recent articles, etc.