So where is the extra $19.5 million going?

[davidnark]

Bernie reported in his bits this morning what has been suggested by Majerus and previously reported by Nate Latsch: SLU is enhanching the arena plans to spend an additional $19.5 million. On the radio yesterday, Nate said there would be more luxury suites added. Where is the rest of the additional money being spent?

[Clock_Tower]

Same question. Thought the arena would hold 10,000. Then, 600 more seats were apparently added because they replaced seats with benches for student seating. Am I correct about this?

Added to Nark's question, will there be fewer seats?

[davidnark]

The good news is that Majerus has spend the last three years traveling as a broadcaster (different perspective than as a coach) to most of the major college basketball facilities in the country. He should have a very good idea as to how to improve the design.

[stlsoccer]

This is quite a large chunk of change. Wouldn't there have to be some sort of approval process via the Board of Trustees to allocate additional funds?

I was thinking that maybe the extra money raised was the money needed for RM and his assistant's salaries and the additional personnel (Strength and Conditioning, Academic, etc.) that was a part of RM's contract.

Although the price tag has been raised, it must be a good sign. Biondi must not have raised the price tag if he didn't feel that the goal of $100 was not a achievable goal.

[kshoe]

has there ever been a major building project that didn't cost more than projections?

There may very well be some improvements to the design but my bet is much of that additional price tag is due to increases in the production costs (labor, concrete, steel, etc.).

[kmbilliken]

I think kshoes right. The construction was well under way before Majerus ever came into the picture. If there was a significant change wouldn't there have been an announcement and some pr generated?

[Guest BillikenReport]

>I think kshoes right. The construction was well under way

>before Majerus ever came into the picture. If there was a

>significant change wouldn't there have been an announcement

>and some pr generated?

Majerus did mention the $100 million dollar arena at his introductory press conference, though at that point I don't know if people thought he was joking around or being serious.

- Nate

[davidnark]

I am working closely with Clayco on two other projects. They typically do their deals based upon GMPs (guaranteed maximum price). I am fairly certain that this is how the two SLU projects were done. This means that any increase in the price is due to changes requested by SLU, not due to cost overruns.

[davidnark]

BernieM Post subject: Re: SLU arena changes

Posted: Sat May 26, 2007 1:05 pm

Staff Moderator

Joined: 10 May 2001

Posts: 4660

more luxury suites, for one thing. Some modifications to the locker rooms and offices (plans). Otherwise I'm not sure. But Majerus is quite proud of calling it a 100-million dollar arena. He has done some extra fundraising things for Biondi to help defray the cost.

[Abe Froman]

we were already short of fundraising goals by nearly $8 million, does this mean we're still short over $20 million?

I'm not an architect, but if more suites are being put in (mistake, IMO) wouldn' that mean there will have to be a redesign of the entire arena which would slow down construction even more?

[Band Legend]

I don't think the construction has ever slowed down. They have been moving along quite nicely in my opinion. I'm in the construction business, and so far the weather has been quite favorable. The architectural changes to put in more suites should be finished without changing the timeline of construction. They are not at that point in the project yet. More suites will mean that some of the high rollers and corporate types whom everyone is worried about stealing good seats will be up in the extra boxes(with corresponding higher revenue for the program). Besides, 11,000 seats sounds alot better than 10,600.

[TheBand]

Maybe the balcony seating is back and we're back up to 13,000??

...yeah, I know, its just my pipe dream....

[cheeseman]

I agree - if the contract is negotiated properly ( I have some experience with this - not $100 million but several $25 million buildings) you will not get hit with increases unless you change the design. In fact most of the times the building can actually come in slightly under. They have changed the something with the arena maybe the practice facility is being enlarged, more locker rooms, more office space but from what I see on the webcam the arena footprint is done and you can not change that now. As long as you keep within the footpring you can move things around all you want inside but it will cost you. I also would like to know what upgrades are being made. Nate said during his visit with Bernie and Randy that RM has really been selling the arena to big boosters so maybe they have raised the $8m and Biondi said to RM and CL go for it.

[jjray]

>Maybe the balcony seating is back and we're back up to

>13,000??

>

>...yeah, I know, its just my pipe dream....

Agree. If they are spending an additional $20 mill, I hope that means putting a mezzanine on top of the Fetz to increase seating. With the hiring of RM, we'll sell those seats bumping up the school's revenue.

[davidnark]

Keep it at 10,500. It is the perfect number for an on-campus arena. Bigger is just not better.

Regardless, I don't think it is an issue because Majerus has said that he likes the size of the arena, and I haven't heard anyone indicate that they are further increasing the general seating capacity.

[kevinfootes]

let's hope the money is for more seats. I want the 3000 seats that had to be cut due to poor planning. that way we don't have to send every big game to kiel.

[Billikenbooster]

Such a change would cost much much more and require moving around concrete that already is poured.

mhg

[cheeseman]

Sorry that probably won't happen - besides you have to build the arena for what you think will be the size that would best meet your needs long term not short term. RM might fill it the first few years but is to say that when he leaves his replacement will be as good. Like I said, the footprint is what it is and there would be no realistic way to add another tier at this time. My money is on the improved locker rooms, practice areas, weight training, sports medicine, offices, and maybe parking and a few other amenties along with more luxury boxes although I am not sure how to do that without loosing something else like seats or concession areas or even bathrooms. I would really like to see the new changes being talked about.

[slufanskip]

I like the size as it is also. It will be good if we have big games that not everyone can get a ticket to.

Official Billikens.com sponsor of H Waldman

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[jjray]

>Such a change would cost much much more and require moving

>around concrete that already is poured.

If the Fetz was originally designed to have the extra mezzanine (as I believe it was) and then it was chopped off later to save money, it's possible the old footprint designed to take the extra mezzanine was left in place. But I doubt the $20 mill is for an extra 3000 seats as an improvement that substantial would warrant a press release at the very least. Probably upgrading the practice facilities, et alia as suggested above.

[TheBand]

you don't think long-term we can have 10,500+ season ticket holders? I certainly do, especially since we used to have 12,000 season ticket holders before Romar came in.

Admittedly, I KNOW they won't be adding the seats back in, but like I said in my post, it was my pipe dream.

[billiken_roy]

it's going to happen.

my greatest personal financial fear is that the arena will sell out with season tix holders. when that happens, watch the prices and donation minimums skyrocket.

slu basketball will become the sport of the high rollers.

[jjray]

>>slu basketball will become the sport of the high rollers.<<

That's why I wanted the added seats. One need only look at the sort of financial demands placed on season tix holders at places like NC.

[billiken_roy]

that said, jjray, if you double your seats, you also will double your minimum required billiken club donation.

[BleacherBum593]

Based on my past experience with the construction industry, I would have to agree with you that the increased price is due to SLU requested design changes.

However, on most major projects of this nature, the Owner will have a contingency amount set aside to cover changes. Even though the announced budget amount could be $80, they'll have another 10-20 mil set aside to cover any design changes.