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| Downtown Mall as it is today |
Is it fair to say that if demolition does not start by this time next year, the new arena project will be behind schedule? In my rough estimate, the cost to demo four blocks and clear the land before any work can be done will be around $40 million or more. My number is based on what it cost John Saca to clear the land at 3rd & Capital Mall which was $8 million. The old Sacramento Union building occupied only about half the block and did not have any underground parking. The malls foot print covers nearly 100% of each block with two floors of below ground parking.
Is this demo expense going to be absorbed by Ranadive as an assumed cost overrun?
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6 comments:
Why are you assuming the demo cost was not included as a cost in the total projected development budget?
Did you see it itemzed in the term sheet like everything else? If you look at what it would have cost to build an arena in the railyard and now the downtown mall, the numbers have been the same. The differance between the two is that the railyards did not require any demolition where as the mall does. Show me I'm wrong and I'll gladly say I was wrong.
Looks like the investors will cover the cost over runs according to the term sheet... after 7.5 M is spent on demo they will pick up the rest of thr cost.
I'm a construction project manager, and there is no way the demo of the mall will cost $40M. $8M tops.
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