KeyArena Renovations Reach $900 Million Mark..May Be Ready By June 2021

[gstommylee]

If you absolutely want to talk about Qc...lets do it.

In Quebec the brand new 19k seats arena was built in 3 years (2012-2015) for $370M, Canadian dollars.

Now, it's maybe not the same country nor the same amount, but it's still the same continent, same ''business market'' and the price shouldn't be 3x or almost 4x the other.

Quebec's arena was from ground up and done at the time were cost of material were also lower and probably labor cost could very well be a whole lot less compared to the cost of doing it in Seattle.

Key arena's redo is very very restricted due to the roofline being historic. Trying to take something with that restricted and turn it into a 800k square foot arena isn't going to be cheap to begin with. I knew way before OVG even come out with their plan that it was never going to be cheap to make it work at Key arena. Construction crew has to remove 500k of dirt in such a way that doesn't impact the surroundings day and night and that added to the cost as well.

Even Sodo arena's price would have gone up as well.

 

[StreetHawk]

Chase Center in SF is coming in at $1 billion for brand new as a comparison.

 

[BKIslandersFan]

If you absolutely want to talk about Qc...lets do it.

In Quebec the brand new 19k seats arena was built in 3 years (2012-2015) for $370M, Canadian dollars.

Now, it's maybe not the same country nor the same amount, but it's still the same continent, same ''business market'' and the price shouldn't be 3x or almost 4x the other.

Counter point: QC is not Seattle with no where near the population of Seattle or Greater Seattle area.

 

[TheLegend]

Chase Center in SF is coming in at $1 billion for brand new as a comparison.

You'd have to compare what each set of costs include. Chase Center is more than just an arena.

 

[blueandgoldguy]

You'd have to compare what each set of costs include. Chase Center is more than just an arena.

I thought just the arena was $1 billion...not including the surrounding developments. With that said, I imagine the purchase of the land just to build the arena and plaza must have been a fortune. At least a hundred million? Maybe more?

 

[TheLegend]

I thought just the arena was $1 billion...not including the surrounding developments. With that said, I imagine the purchase of the land just to build the arena and plaza must have been a fortune. At least a hundred million? Maybe more?

Nothing I’ve seen so far Googling around indicated it was just the arena.

The cost of the land parcel was never made public, but land costs in San Francisco average in the $1000 per square foot range. Construction costs run $330 per sq. ft. versus $280 in Seattle.

Construction Cost Boom - May 24, 2017 - SF Weekly

 

[roflstomper]

Lol 1 billion for "renovations". Wonder where all that money is actually going in that cesspool of a city.

 

[gstommylee]

Lol 1 billion for "renovations". Wonder where all that money is actually going in that cesspool of a city.

Seattle's new arena isn't a renovation. Its brand new building under the current shell. A renovation doesn't take the current footprint and make it make it more than double its current footprint.

 

[gstommylee]

Nothing I’ve seen so far Googling around indicated it was just the arena.

The cost of the land parcel was never made public, but land costs in San Francisco average in the $1000 per square foot range. Construction costs run $330 per sq. ft. versus $280 in Seattle.

Construction Cost Boom - May 24, 2017 - SF Weekly

Seattle Center arena is city owned so there is no buying the land cost in the 900m price.

 

[powerstuck]

I didn't wanted anyone to feel attacked by comparing construction costs.

But think about it, OVG even with their super deep pockets, are so far $1.6B into the venture without a single game being played just yet.

What happens if in 10 years time they are out of money and want to sell ?
What happens to the teams spending budget ? Will they be a floor spending team just because owners already invested too much ?

I mean Vegas cost $375M+$500M. That's close to double the cost for Seattle. And there is zero guarantee Seattle will have the on-ice success Vegas have had so far.

 

[MNNumbers]

I didn't wanted anyone to feel attacked by comparing construction costs.

But think about it, OVG even with their super deep pockets, are so far $1.6B into the venture without a single game being played just yet.

What happens if in 10 years time they are out of money and want to sell ?
What happens to the teams spending budget ? Will they be a floor spending team just because owners already invested too much ?

I mean Vegas cost $375M+$500M. That's close to double the cost for Seattle. And there is zero guarantee Seattle will have the on-ice success Vegas have had so far.

OVG is in for 30 years with Seattle City Council. I am not sure how they could get out of that. So, the arena management is fixed - no options.

As for owning the team.....well, I think in this case that the team itself will be viable. I mean, the presence of the team will pull its weight. And, the value of the team should increase. So, selling the team might not be the first option either.

But, this is a question I have tried to think of, also. Could be a tight situation for them.

 

[IamNotADancer]

Well, MSG broke the 1 billion barrier for renovations.

Poor Ed Belfour can barely afford 5 of those.

 

[BattleBorn]

I didn't wanted anyone to feel attacked by comparing construction costs.

But think about it, OVG even with their super deep pockets, are so far $1.6B into the venture without a single game being played just yet.

What happens if in 10 years time they are out of money and want to sell ?
What happens to the teams spending budget ? Will they be a floor spending team just because owners already invested too much ?

I mean Vegas cost $375M+$500M. That's close to double the cost for Seattle. And there is zero guarantee Seattle will have the on-ice success Vegas have had so far.

I think combining the team and arena costs is a mistake when it comes to analysis.

They're going to spend close to a billion dollars building an arena in Seattle because Puget Sound needs a world class arena, that's just what it's going to cost here. They knew that, or at least they had an idea that it would approach that. The team is something different that happens to play in the arena.

They're in $700MM after the practice facility and purchase price for the team and they're in $900MM for the arena. They're not in $1.6 billion for a team and an arena in which the team will play. It's a small difference, but I think it's important.

 

[BigBadBruins7708]

for comparison, Jerry World in Dallas cost $1.15 billion to build.

 

[TheLegend]

for comparison, Jerry World in Dallas cost $1.15 billion to build.

Not comparable. Football palaces are twice the footprint.

Las Vegas is spending ~$1.8 billion on theirs.

 

[BKIslandersFan]

for comparison, Jerry World in Dallas cost $1.15 billion to build.

This was back in 2009 or so. You bet your ass if they’re to build it now it would be more expensive.

 

[Rpenny]

900 mill? They should have built a new one

 

[bleedblue94]

What has caused such a large cost overrun this early in the job?

 

[Bookie21]

What has caused such a large cost overrun this early in the job?

It's the Seattle way.

 

[S E P H]

900 mill? They should have built a new one

There's no space in Seattle and the City Counsel won't approve the use of any land for a new arena since they own KeyBank. Honestly it really is a lose-lose situation.

 

[Bookie21]

There's no space in Seattle and the City Counsel won't approve the use of any land for a new arena since they own KeyBank. Honestly it really is a lose-lose situation.

And the roof they had to keep is an eyesore

 

[aqib]

There's no space in Seattle and the City Counsel won't approve the use of any land for a new arena since they own KeyBank. Honestly it really is a lose-lose situation.

I still think they should have just imploded Key. I never saw what was historic about the place. They should have just brokered a shotgun marriage between Hansen and the NHL group and sold off Key.

 

[Centrum Hockey]

I still think they should have just imploded Key. I never saw what was historic about the place. They should have just brokered a shotgun marriage between Hansen and the NHL group and sold off Key.

Hansen had no nhl group there where some People who said he never wanted hockey and any nhl talk was just pr

 

[TheLegend]

I still think they should have just imploded Key. I never saw what was historic about the place. They should have just brokered a shotgun marriage between Hansen and the NHL group and sold off Key.

Obviously there’s enough people in Seattle who’ve lived there long enough to care about that roof.

Sometimes you just have to “Save the Clocktower!!”

 

[StreetHawk]

OVG is in for 30 years with Seattle City Council. I am not sure how they could get out of that. So, the arena management is fixed - no options.

As for owning the team.....well, I think in this case that the team itself will be viable. I mean, the presence of the team will pull its weight. And, the value of the team should increase. So, selling the team might not be the first option either.

But, this is a question I have tried to think of, also. Could be a tight situation for them.

OVG is spending $930 million for 30 years worth of revenue streams. City owns the land so no appreciation benefit just a depreciating building asset which come 20 years from now will require another $100 million of upgrades like the ones built in the 90’s are or have undergone recently in Philly, Boston, StL, etc.

That better be one seriously busy building to return $30 million profit each year to make it worthwhile.