Costs for new Giants and Jets stadium rise

[40yearfan]

Costs for new Giants and Jets stadium rise


NFL.com wire reports



NEWARK, N.J. (Jan. 26, 2007) -- The price of the new football stadium for the New York Giants and New York Jets has risen by $600 million to $1.4 billion.

"Costs continue to go up," said Alice McGillion, a spokeswoman for New Meadowlands Stadium Corp., a company that represents the team owners.

The teams awarded a contract to Swedish construction company Skanska AB, which said it had received a $998 million order to design and build the open-air stadium at the Meadowlands sports complex in East Rutherford, N.J.

"It shows the continued momentum and we are on the timeline that we need to be for a 2010 opening," McGillion said.

The teams, which announced the joint venture in 2005, originally estimated costs at about $800 million.

The stadium will seat 82,000 spectators and include 217 luxury suite boxes, Skanska spokesman Peter Gimbe said. McGillion said the number of seats could change, depending on the final design.

Skanska said that the contract, with the Meadowlands NFL Football Stadium LLC, was its largest U.S. contract yet. The company will include it in its order bookings in the first quarter.

Skanska has constructed several major stadiums in the U.S., including Reliant Stadium in Houston and Gillette Stadium in Boston. It is working on the new Yankee Stadium in New York.

"Skanska has in recent years proven itself to be among the leading sports stadium builders in the world, and has shown a great affinity and understanding of the U.S. market," said Giants president John Mara.

McGillion said the teams expect to unveil exterior plans for the stadium in late February or early March, with a ground breaking in late spring or early summer.

In December, the teams got a big boost from NFL owners, who approved a $300 million loan to help fund the stadium.

"(Skanska is) up to the challenge and will help us reach our objective of delivering a truly extraordinary facility for our fans, one that will set new standards for the NFL and indeed for stadiums around the world," Jets owner Woody Johnson said.

The project is going through the approval process with the state of New Jersey.

The state Department of Environmental Protection and the Meadowlands Commission expect a final environmental impact study of the project in February. The approval of the stadium plan could come in March.

The teams will pay $5 million annually to lease land at the Meadowlands from the New Jersey Sports and Exposition Authority. Once the new stadium is built, the authority will no longer collect 10 percent of gross ticket sales from games.

The state isn't paying for the stadium's construction, but will continue to pay debt on the old stadium, about $120 million.

Couple of questions--

Why would you build an open air stadium in a cold environment like this?

What kind of a bargain did the TSA get when it built UOP Stadium for $400 million and this is going to cost $1.4 billion?

 

[lobo]

Couple of questions--

Why would you build an open air stadium in a cold environment like this?

What kind of a bargain did the TSA get when it built UOP Stadium for $400 million and this is going to cost $1.4 billion?[/quote]

i am sure jeff g can share with those who are interested the "cost of doing business in the ny metro area"

i can share some of the wonders here in chicago!!!

 

[joeshmo]

i am sure jeff g can share with those who are interested the "cost of doing business in the ny metro area"

i can share some of the wonders here in chicago!!!

No doubt. They probably paid 400 Million just for the land they want to build it on.

 

[jw7]

What kind of a bargain did the TSA get when it built UOP Stadium for $400 million and this is going to cost $1.4 billion?

40 - you can't be serious here. UOP was built on a wide open cotton field whereas this is being built in a major metro area. Heck, if I sold my house here in Phoenix, the best I could afford is maybe a 1 br condo out there.

 

[NYCARDS]

Costs for new Giants and Jets stadium rise


Couple of questions--

Why would you build an open air stadium in a cold environment like this?

What kind of a bargain did the TSA get when it built UOP Stadium for $400 million and this is going to cost $1.4 billion?

It doesnt get real cold here most winters until late December, early January. And I for one still think football is meant to be played in open air stadiums. I love to watch games from Chicago or Green Bay. Ask those fans if they would want a dome.

 

[40yearfan]

40 - you can't be serious here. UOP was built on a wide open cotton field whereas this is being built in a major metro area. Heck, if I sold my house here in Phoenix, the best I could afford is maybe a 1 br condo out there.

That cost doesn't includes the land. See this from the article--

The teams awarded a contract to Swedish construction company Skanska AB, which said it had received a $998 million order to design and build the open-air stadium at the Meadowlands sports complex in East Rutherford, N.J.

The contract to the guy building it is almost $1 billion dollars. Construction costs don't include land.

 

[40yearfan]

It doesnt get real cold here most winters until late December, early January. And I for one still think football is meant to be played in open air stadiums. I love to watch games from Chicago or Green Bay. Ask those fans if they would want a dome.

So what is that going to do if you want to play the Superbowl there? If I'm not mistaken, the only open air venues on the SB circuit are in warm climates.

 

[jw7]

That cost doesn't includes the land. See this from the article--

Yup - you are right. Did not read the article closely enough to see the land is leased at 5M per year.

But seriously, the cost of labor and logistics has to be much more expensive in a major metro area than an open field. No?

 

[40yearfan]

Facts from the new Cardinal Stadium:

Date Built 2006

Ownership (Management)
Arizona Sports & Tourism Authority (Global Spectrum)

Surface Grass

Cost of Construction $455 million*

Stadium Financing Public/Private
The Cardinals contributed $147 million, the Arizona Sports and Tourism Authority contributed more than $298 million, and Glendale, Ariz. contributed $9.5 million.


*Does not include cost of land

Seating

Football 63,000 to 73,000
Luxury Suites 88 Suites
Club Seats 7,400


As far as the Jets/Giants stadium goes-----

The new Meadowlands stadium will be a technologically advanced open-air stadium with seats for 82,000 spectators, including 217 Luxury Suite boxes. The stadium project comprises 175,000 square meters and will be part of the Meadowlands Sports Complex in East Rutherford, New Jersey.

Looks like 9,000 more spectators and 129 more luxury suites. Not a whole lot more construction when you consider the costs the Cards had for having a domed stadium with a movable ceiling and a movable tray for the whole bottom of the stadium.

 

[40yearfan]

A couple of interesting facts about UOP--

-115+ Number of event days already booked for first year at the stadium
-1.1 million Projected number of visitors to stadium in its first year

I'll betcha Mesa and Tempe are crying in their beers.

 

[CardsRep03]

A couple of interesting facts about UOP--

-115+ Number of event days already booked for first year at the stadium
-1.1 million Projected number of visitors to stadium in its first year

I'll betcha Mesa and Tempe are crying in their beers.

No doubt! I guess they thought,(Dumb guy voice that Dave Letterman/Jay Leno would use)---"Nobody will even come. The thing will be just like Sun Devil Stadium--half empty." Right.

 

[Scott MS]

The new stadium is being built again in the Meadlowlands area and not in the city. The Meadlowlands is probably the equivalent to NYC as Glendale cotton fields to Phoenix. It's a ways out there, not far from Newark.

But, you're right, there will be a premium to build in the tri-state area vs. building in Phoenix.

Don't forget that the Cards also built their stadium during a downturn in the construction industry here in Arizona. 2001-2004 weren't that great and the entire economy is on much better footing now.

 

[40yearfan]

The new stadium is being built again in the Meadlowlands area and not in the city. The Meadlowlands is probably the equivalent to NYC as Glendale cotton fields to Phoenix. It's a ways out there, not far from Newark.

But, you're right, there will be a premium to build in the tri-state area vs. building in Phoenix.

Don't forget that the Cards also built their stadium during a downturn in the construction industry here in Arizona. 2001-2004 weren't that great and the entire economy is on much better footing now.

Scott, I'm in the construction industry. I have no idea why you think there was a downturn in the construction industry in AZ in the early 2000's. There actually was an unprecedented boom in the housing industry and the industrial sector which caused severe manpower shortages.

In the matter of more costs for NY vs. AZ, I agree that there is a big disparity in wages, but wages are only about 40% of the cost of a project like a stadium. The material costs are virtually the same no matter which part of the country you are in. That's why I'm questioning the huge difference in construction costs.

 

[Duckjake]

In the matter of more costs for NY vs. AZ, I agree that there is a big disparity in wages, but wages are only about 40% of the cost of a project like a stadium. The material costs are virtually the same no matter which part of the country you are in. That's why I'm questioning the huge difference in construction costs

We've seen huge increases in material costs here over the last 18-24 months. Especially steel and copper.

FYI Elementary schools that were 9.5 million are now projecting to 13-15 million just 3 years later. Middle Schools are running in the $22-25 million range. How does that compare with AZ?

 

[JeffGollin]

Why would you build an open air stadium in a cold environment like this?
i am sure jeff g can share with those who are interested the "cost of doing business in the ny metro area"
I'll try.

Unlike the Glendale site (which was totally empty and undeveloped) the Meadowlands location (where the current Giant Stadium and Byrne Arena where the Devils play) already has some of the infrastructure in place.

A long range transportation plan is (very) slowly but surely being implemented to tie the Sports Complex to a commuter rail network that will bring it to within 15-20 minutes from NYC and Newark.

The new stadium is tied into a commercial recreation complex called Xanadu which (depending on which financial people you talk to) may or may not get done. The Devils will move to a new arena in Newark in a year. The Nets are headed to a new arena in Brooklyn, NY in a year or three.

Most stadiums in the Northeast - Philly, Baltimore, Washington, New England, Pittsburgh, Buffalo - have been (and probably will continue to be) open air. I doubt either the Giants or the Jets would be willing to surrender the advantage they have opening and closing the doors at either end of the field in order to control the wind currents (both positively and negatively) prior to field goals.

Also - whereas the Cardinals had to overcome an apathetic fan base to fill a new stadium - and felt that the lack of a roof and AC would be a huge hindrance, there already is a huge waiting list of Giant and Jet fans waiting for season tickets - regardless of cold, wind, snow or rain. They don't have to go to a covered-roof setup to fill their stadium. It's a different dynamic here.

I'm not sure about this, but - while it's a truism that "it costs a lot to do business in NY", - it seems to me that Jersey is a bit different, because the State and organized labor will sometimes work together to get major stuff done (not that it doesn't cost something somewhere somehow).

But just the cost of digging up the contents of the hole under the northwest goal post and moving its "contents" somewhere else "can't be cheap."

 

[Scott MS]

Scott, I'm in the construction industry. I have no idea why you think there was a downturn in the construction industry in AZ in the early 2000's. There actually was an unprecedented boom in the housing industry and the industrial sector which caused severe manpower shortages.

Depends on what kind of construction, I guess. My father in law is in the steel industry and there just weren't as many large buildings being built in 2001 and 2002. Here's a quick quote on found online. Building stadiums is not in the same category as building houses.


The structural steel erection industry reflected general economic trends in the United States. With an economic downturn in the early 2000s, there was less construction of new factories and office buildings, which depressed the industry. In fact, by early 2003 the office vacancy rate had jumped to 16.5 percent, compared to 8.9 percent in 1998. Between 2002 and 2003 spending on office building construction declined from $43 billion to $39 billion. However, structural steel and prestressed or precast concrete remained the primary construction materials for large-scale projects, and the industry was expected to rebound with another spurt in new construction as the economy recovered in 2004 and 2005.

 

[40yearfan]

Depends on what kind of construction, I guess. My father in law is in the steel industry and there just weren't as many large buildings being built in 2001 and 2002. Here's a quick quote on found online. Building stadiums is not in the same category as building houses.


The structural steel erection industry reflected general economic trends in the United States. With an economic downturn in the early 2000s, there was less construction of new factories and office buildings, which depressed the industry. In fact, by early 2003 the office vacancy rate had jumped to 16.5 percent, compared to 8.9 percent in 1998. Between 2002 and 2003 spending on office building construction declined from $43 billion to $39 billion. However, structural steel and prestressed or precast concrete remained the primary construction materials for large-scale projects, and the industry was expected to rebound with another spurt in new construction as the economy recovered in 2004 and 2005.

I keep forgetting that we are in 2007.

The construction market in Arizona was depressed during the latter part of the 90's and the first part of the 2000's until Bush's tax cuts took effect and construction started rebounding in 2002 - 2003. It's been Katie bar the door every since then. I don't know how much of an effect that would have had on the building of the stadium as wages didn't go down during that period, but they didn't have any major increases. Regardless, it requires that either we have much better production here than they do in NY (which I find hard to believe) or there are other costs associated with construction in that area that we don't have here.

 

[Scott MS]

Construction on the Cards stadium went from July 2003 through July 2006. I do know that most of the stadium was contracted back when they were ready to build on the Tempe site that was in the flight path.

In fact, steel was ordered for the Tempe site and held until the Glendale site was ready. The decision to nix the Tempe site was made in December 2001.

 

[ANDY440]

Ya gatta grease a lot of palms back in Jersey to get things done,every step of the way there will be someone who "needs a little extra to get the job done on time" I used to live there & found out the hard way.

 

[CardLogic]

But just the cost of digging up the contents of the hole under the northwest goal post and moving its "contents" somewhere else "can't be cheap."

You referring to the "Hoffa goalpost"??

 

[ajcardfan]

This is going to be a major boondogle before it's all said and done. Maybe not on the order of the "Big Dig" in Boston, but it will be huge.

 

[Jersey Girl]

But just the cost of digging up the contents of the hole under the northwest goal post and moving its "contents" somewhere else "can't be cheap."[/color]

 

[KingofCards]

I keep forgetting that we are in 2007.

The construction market in Arizona was depressed during the latter part of the 90's and the first part of the 2000's until Bush's tax cuts took effect and construction started rebounding in 2002 - 2003. .

 

[nurnay]

I'm pretty sure the cost of concrete went up quite a bit over the last few years as well. The college I work for has been trying to build a new student center for some years now, and just when it was about to get started a year ago, they stopped because of concrete price increases. The original budget wouldn't cover the costs. I know very little about construction, but I do know they specifically mentioned concrete costs. If that's true, that could raise the price of a stadium quite a bit.

 

[Jersey Girl]

Besides the Hoffa relocation, they'll also have to take into account the weather. Construction could be delayed a while due to rain, wind, snow, frozen ground, etc. Crap like that always pushes things back.