The latest update on the downtown arena project shows it is $35 million over budget and the cost could soar even higher, despite efforts cost-cutting efforts.
The new cost estimate for the arena announced Thursday morning is $485 million, which is $35 million above the original budgeted cost of $450 million.
The price of the proposed Winter Garden is also higher than expected, estimated at $80 million from the original budgeted $50 million.
The new figures have all sides looking at cutting even more out of the project to remain on budget.
“We’re $8 million in cuts. We’ve got another $8 million we think will shake out over the next few weeks and then we’ve got the big ones that are really a challenge to pursue,” said Rick Daviss, executive director for the Edmonton Arena District with the city.
“Everywhere that we can find an opportunity to shave some cost without effecting the functionality or the appearance or what is considered critical to the building, we are taking advantage of those.”
“We’d like to have everything but if you want A you can’t have B,” said Mayor Stephen Mandel.
Planners have already taken away some food and beverage areas, the Oilers store, and changed materials for the arena flooring and its exterior.
They’re also looking at cutting underground parking from 400 spots down to 200 spots and further modifying the exterior, which could put the iconic appearance at risk.
“That is a concern,” said Daviss.
“That is what we will be looking at as we test these different materials because that is what we don’t want to have happen.”
“It’s not great news,” said Coun. Kerry Diotte. “I’d be pretty interested when the arena comes down to $450 million, which it has to, I’d be interested in seeing what it looks like then.”
Bob Black, executive vice president for the Katz Group said in a statement released Thursday that the financial report was encouraging but there are challenges that still need to be resolved.
“We have told administration that while some of the ideas it has proposed have merit, others do not. This is not an easy problem and is further complicated by the fact that the community rink, Winter Garden over 104Avenue, and related commercial areas are integral to the arena’s structure and design,” Black said in the statement.
“We are also concerned about rising construction costs if the project is delayed.”
Black said he is optimistic that the current estimated cost can be reduced.
“The obvious challenge is to find a way to do that without sacrificing the integrity of the arena design, or the revenue streams we need to sustain our investment.”
The financial report will be presented to city council on Tuesday, with ideas on how to get the project under the $450 million budget.
With files from Kevin Armstrong
