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Raiders Stadium Total Construction Costs = $1.8 Billion (Sound Familiar?)

The stadium board will be told Thursday the Raiders stadium construction costs will be $1.8 billion -- which has been the estimate all along. Photo credit: Daniel Clark/LVSportsBiz.com

By ALAN SNEL

LVSportsBiz.com

 

It’s turned out the construction bean counters/estimators for the new Raiders stadium were on the money with the projected cost of the palatial new 65,000-seat football playground to open in Las Vegas in 2020.

 

The Raiders have been telling the public the project would be $1.8 billion to build the domed stadium with the rolled-in-tray of playing surface grass and $100 million for the team’s training center in Henderson near the Henderson Executive Airport.

Raiders stadium construction has been going on for a while. Photo credit: Daniel Clark/LVSportsBiz.com

 

And you know what? That’s exactly how much the stadium project will cost, according to Thursday meeting documents posted by the Las Vegas Stadium Authority on its website Wednesday. Yup, $1.8 billion —  more than than the costs of new NFL stadiums in Atlanta and Minneapolis and less than the new one being built in Los Angeles for the Rams and that other tenant, the Chargers.

 

For those curious about the “guaranteed maximum price” of the construction, that number is just a hair under $1.4 billion — or $1,398,900,999 to be exact.

 

Your Guaranteed Maximum Price

 

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Minneapolis-based Mortenson and McCarthy Building Companies are teaming up to build the much-ballyhooed $1.8 billion stadium for the Raiders, an NFL team receiving a record $750 million public subsidy from Southern Nevada. A hotel room tax was created under 2016 state legislation to raise money so that Southern Nevada could give the Raiders the subsidy and prompt the team to move from Oakland to Las Vegas.

Just in case you’re wondering, Mortenson and McCarthy are teaming up to build the stadium. Photo credit: Daniel Clark/LVSportsBiz.com

 

As you can see from the documents, about 10 percent of the $1.8 billion has already been spent on the project on 62 acres on the west side of I-15 across the highway from Mandalay Bay in an industrial neighborhood at Russell Road and Polaris Avenue. So, the rest of the stadium construction expenses will be about $1.62 billion.

 

 

Your Raiders stadium construction budget numbers.

 

And here’s a breakdown on those construction expenses:

 

$1.33 billion for construction

$234 million for design, engineering and soft costs

$123 million for stadium, furniture and equipment

$77.8 million for land purchases

$31 million for stadium infrastructure and equipment

 

Here’s what the $1.8 billion is paying for.

 

And who’s paying for this? Well, the Raiders are bringing $850 million to the party, including a big loan from Bank of America; the Southern Nevada public is giving $750 million (though you will have to raise about $1.1 billion over 30 years to pay back the bonds that will soon this spring.); the Raiders’ NFL G-4 contribution is $200 million.

Here’s Raiders President Marc Badain and we’ll see him and a few lawyers at tomorrow’s stadium board meeting. Photo credit: Daniel Clark/LVSportsBiz.com

 

UNLV’s football team will also use the Raiders stadium and there’s a deal for that, too.  The Nevada state Regents signed off on that Jan. 19.

 

There’s not much drama for Thursday’s stadium board meeting. Stadium consultant Jeremy Aguero is expected to read about two dozen stadium agreements. And if past history is a guide, the stadium board will move the agreements along with little discussion.

You can’t publish a Raiders stadium story without the obligatory stadium drawing.

 

No matter what the construction costs turned out to be, SB1 (Senate Bill 1) maximized the public subsidy at $750 million.

 

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Follow LVSportsBiz.com on Twitter, Facebook and Instagram. Contact LVSportsBiz.com founder Alan Snel at asnel@LVSportsBiz.com 

 

 

 

 

 

 

Alan Snel: Alan Snel brings decades of sports-business reporting experience to LVSportsBiz.com. Snel covered the business side of sports for the South Florida (Fort Lauderdale) Sun-Sentinel, the Tampa Tribune and Las Vegas Review-Journal. As a city hall beat reporter, Snel also covered stadium deals in Denver and Seattle. In 2000, Snel launched a sport-business website for FoxSports.com called FoxSportsBiz.com. After reporting sports-business for the RJ, Snel wrote hard-hitting stories on the Raiders stadium for the Desert Companion magazine in Las Vegas and The Nevada Independent. Snel is also one of the top bicycle advocates in the country.
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