Friday, April 21, 2006

BOK Center Overdrawn

I've just returned from City Hall, where I watched the unsealing of the construction bids for Tulsa's BOK Center/Arena.

The mood was more than somber, as each of the bids came in. It's going to take some time to fully crunch the numbers, and some of the bids are a bit complex, but it is safe to say this:

This phase of the arena's bids came in roughly 50% over what was anticipated.

My first pass on running the numbers reveals that the combined engineering estimates for the arena were $67,652,380. These numbers include such items as structural steel, cast-in-place concrete, exterior composite metal wall, electrical and wiring, the Icon Wall glass, and drywall. Each of these individual bids came in at $101,033,466.

Once again, I need to review my audio recordings to confirm the dollar amounts, but the actuals will vary little. If these numbers hold, the actual bids came in 49.3% above the engineers' estimates.

If memory serves me right, Tulsa Vision Builders has publicly stated that they have spent approximately $40 million on the project during the first two phases of construction. Adding today's numbers means that the first three phases of the $140 million arena project will cost $141 million. The final phases were assumed to have cost something in the range of $30 million when the arena was first conceived. No wait, the original estimate for the arena was $121 million. At least, that's what the voters were told in September, 2003.

Anyway, if we estimate that the final phases will run a mere 33% over budget, rather than today's 49%, the minimum assumed cost of the BOK Center should be somewhere in the vicinity of $181 million. That leaves little or nothing left to renovate the Convention Center to create the new ballroom space. If the current 6,000 seat arena in the Convention Center isn't converted, then won't it compete with the BOK Center in attracting the Talons and Oilers games?

If they can't build it, they can't come.

More details after I've had a chance to review my notes.

2 comments:

Paul Tay said...

Why do I git da feeling da Boss Dudette will be pullin' a Bill soon by askin' da voters to pony up? Up until da Life Services Forum, I did not know you had voted for the Arena. Keep up the good analysis and you'll be scoopin' Arnett soon 'nuff. Of course, it don't take much to do dat these daze. But, I really wished you had jump up and down, screamin' NO, when ya had da chance. Now, let's see if we can kill dat Third Penny scam.

Dan Paden said...

It's good to see you doing some more blogging; you're good at it.