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Author Topic: DePaul arena construction contract: What's the delay?  (Read 22085 times)

warriorchick

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Re: DePaul arena construction contract: What's the delay?
« Reply #25 on: November 19, 2014, 08:39:52 PM »
I don't know the particulars, but it also involved cleaning out an old train location and reinforcing underground parking. It was a massive undertaking and, despite the costs, I'm guess it's one of...if not THE...most visited places in Chicago. Obviously, it was too expensive. It's also borderline stunning.

I did always find it funny that "Millenium Park" didn't open until like 2004.

It cost more than TRIPLE the original budget.

If this had been a private project, everyone  involved would have been fired.  Instead. the cost just gets passed onto the taxpayers like it's no big deal, and the idiotic voters keep reelecting these fools and criminals.

Just one of the many reasons why I live in the 'burbs.
Have some patience, FFS.

Tugg Speedman

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Re: DePaul arena construction contract: What's the delay?
« Reply #26 on: November 25, 2014, 12:12:24 PM »
Hey it's only money!

McPier greenlights tweaked — and pricier — DePaul arena design
November 25, 2014

http://www.chicagobusiness.com/article/20141125/BLOGS04/141129905/mcpier-greenlights-tweaked-and-pricier-depaul-arena-design

A new 10,000-seat arena next to McCormick Place will be built for more than its projected cost.

The Metropolitan Pier and Exposition Authority today approved a proposal from a venture led by Clark Construction Group to build the new McCormick Place Event Center for $164 million, or about 17 percent more than it expected to spend when the city-state agency that operates the convention center announced the project in May 2013.

In addition, the base floor of the building will be at ground level as opposed to the previous design, which had placed that floor 22-feet below ground. The roof of the building will be four feet lower than its original height, however, as a result of lower roof trusses.

The extra expense comes from a combination of higher than anticipated labor costs and an "underestimation" of the project's cost, said McPier CEO Jim Reilly.

When asked about the price, Reilly said, "This is a good price, and we're comfortable with it." He added that McPier will cover the extra cost of the arena using reserves from previously sold bonds.

McPier officials unveiled renderings of the new design, which retains much of the glass exterior as originally planned, at today's monthly board meeting.

Reilly said he expects the extra cost to be split between McPier and DePaul, which had originally promised $70 million toward the building. "It will have to be a 50-50 partnership and I'm confident that it will be," he said. "If it's not a 50-50 partnership, (the project) won't happen. But I'm reasonably confident it will happen."

DePaul could not immediately be reached for comment.

The board also approved a construction contract for Clark to build a new 1,200 room Marriott hotel just east of the arena for just under $291 million as expected, but it reduced the size of the building from 51 stories to 40 stories.

As a result of the delay in awarding the construction contract, McPier officials estimate that they won't break ground until May or June of 2015. The project is expected to take two years to complete and therefore won't be completed until mid-2017. The original plan was to complete the project in time for DePaul's 2016-17 season.

ENTERTAINMENT DISTRICT

The arena and hotel are part of a larger effort by the city and McPier to create an entertainment district around McCormick Place and revitalize the Near South Side.
A rendering of the hotel portion of the project - Image via McPier   
A rendering of the hotel portion of the project
Image via McPier

The winning bid, led by Clark Construction of Bethesda, Maryland, which built the McPier-owned Hyatt McCormick Place hotel as well as the convention center's west and south buildings, was selected over one from a venture led by Chicago-based Walsh Construction that included two Chicago-based architectural firms, A. Epstein & Sons International and VOA Architects.

But the board's approval came two months after it had intended to award the design-build contract because of a struggle to get the design to meet the projected price tag.

The biggest factor in the heftier price tag: The cost of the subterranean design the authority selected for the building would have been as much as 75 percent higher than the $140 million McPier projected in May 2013, according to sources close to the bidding process. That forced McPier to seek alternative options, including tweaking the design or finding another source of financing.

While the dug-in nature of the arena design has driven up the cost, neighborhood groups have vehemently opposed one that is wholly above ground for fear that it would be too obtrusive and not fit the character of the area.

FINANCING ISSUES

DePaul University last year committed $70 million toward construction of the arena, where it will be a tenant paying $25,000-per-game rent for men's basketball games and $15,000 for women's games.

The other half of the $140 million projected arena construction bill was to be footed by McPier, which would pay using proceeds of earlier bond sales that it is holding in reserve. The bonds are being retired using the authority's revenue from hotel taxes, among other sources.

The project has drawn ire both from those skeptical of the demand for a new arena and from critics who are concerned about debt-laden McPier taking on a new financial burden.

McPier posted an operating loss of $91.4 million last year. And while that was 21 percent less than it lost in 2012, it still faces an uphill climb to meet its towering debt obligations. Its assets trail its liabilities by $1.1 billion, which threatens to eventually handcuff the convention authority when it comes to borrowing money to fund new projects.

The authority projects that the arena will break even on its operating expenses during its first year and will turn a profit after that. It expects an assortment of convention-related events, concerts, shows and amateur sporting events to fill its seats aside from DePaul basketball games, which would have to more than triple their current attendance to meet McPier's projections.


warriorchick

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Re: DePaul arena construction contract: What's the delay?
« Reply #27 on: November 25, 2014, 12:19:31 PM »
Quote
DePaul University last year committed $70 million toward construction of the arena, where it will be a tenant paying $25,000-per-game rent for men's basketball games and $15,000 for women's games.

Wow. 

Pay for half of the stadium AND pay rent?  Especially when they could have played in the United Center for free?

What brilliant DePaul Business Econ prof ran the numbers on that deal?

Have some patience, FFS.

Groin_pull

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Re: DePaul arena construction contract: What's the delay?
« Reply #28 on: November 25, 2014, 12:25:04 PM »
Wow. 

Pay for half of the stadium AND pay rent?  Especially when they could have played in the United Center for free?

What brilliant DePaul Business Econ prof ran the numbers on that deal?



And this new arena is further from campus than the UC, correct?

Litehouse

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Re: DePaul arena construction contract: What's the delay?
« Reply #29 on: November 25, 2014, 03:42:52 PM »
Slightly farther distance-wise, but a shorter, more convenient ride on the El.

dbwarriors

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Re: DePaul arena construction contract: What's the delay?
« Reply #30 on: November 25, 2014, 11:40:29 PM »
It's 100% about the casino.

MUsoxfan

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Re: DePaul arena construction contract: What's the delay?
« Reply #31 on: November 26, 2014, 12:17:51 AM »
It's 100% about the casino.

Exactly. They want a playground that can somewhat compete with Vegas and New Orleans

warriorchick

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Re: DePaul arena construction contract: What's the delay?
« Reply #32 on: November 26, 2014, 07:39:16 AM »
Exactly. They want a playground that can somewhat compete with Vegas and New Orleans

But why does DePaul feel it needs to be a part of this?  It appears to be a very bad deal for them
Have some patience, FFS.

Tugg Speedman

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Re: DePaul arena construction contract: What's the delay?
« Reply #33 on: November 26, 2014, 08:49:06 AM »
Exactly. They want a playground that can somewhat compete with Vegas and New Orleans

I hear what you're saying but the Chicago area is so oversaturated with casinos that this will not be as successful as they think.

Further, if they really want a playground to compete with Vegas and New Orleans, that does not mean fifty cent slots and busloads of welfare and social security recipients to blow their government assistance.  That means high-end hotel rooms ($500+/night), high-end entrainment ($200 to $500 a ticket) and $100 to $5,000 tables.  Are they planning on a sports book?  Will I be able to make a $5k to $100k on the Superbowl?

The answer to all of this is no.  They are planning a crappy low-end dump, made with lots of cement (to pay off the contractors that support Rahm's re-election) with an endless number of slots.  Such a casino will be populated with the saddest people in the area and somewhere people that think of Vegas and New Orleans their playground would not be caught dead.

Finally, as Warriorchick said, what any of this has to do with Depaul is beyond me.  Let the blue demons cut a deal with the United Center and if Rahm wants a useless building to pay-off cement contractors and steal welfare checks though rigged slots (see Chicago's rigged red-light cameras), Depaul does not need to be involved with it.

mu-rara

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Re: DePaul arena construction contract: What's the delay?
« Reply #34 on: November 26, 2014, 09:06:23 AM »
It's Chicago, It's Chicago.

MUsoxfan

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Re: DePaul arena construction contract: What's the delay?
« Reply #35 on: November 26, 2014, 09:18:30 AM »
I hear what you're saying but the Chicago area is so oversaturated with casinos that this will not be as successful as they think.

Further, if they really want a playground to compete with Vegas and New Orleans, that does not mean fifty cent slots and busloads of welfare and social security recipients to blow their government assistance.  That means high-end hotel rooms ($500+/night), high-end entrainment ($200 to $500 a ticket) and $100 to $5,000 tables.  Are they planning on a sports book?  Will I be able to make a $5k to $100k on the Superbowl?

The answer to all of this is no.  They are planning a crappy low-end dump, made with lots of cement (to pay off the contractors that support Rahm's re-election) with an endless number of slots.  Such a casino will be populated with the saddest people in the area and somewhere people that think of Vegas and New Orleans their playground would not be caught dead.

Finally, as Warriorchick said, what any of this has to do with Depaul is beyond me.  Let the blue demons cut a deal with the United Center and if Rahm wants a useless building to pay-off cement contractors and steal welfare checks though rigged slots (see Chicago's rigged red-light cameras), Depaul does not need to be involved with it.

You're very correct on all counts.

But for whatever reason, Chicago will fight to the death for every convention dollar imaginable

Tugg Speedman

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Re: DePaul arena construction contract: What's the delay?
« Reply #36 on: November 26, 2014, 09:43:11 AM »
You're very correct on all counts.

But for whatever reason, Chicago will fight to the death for every convention dollar imaginable

If they want convention dollars, they can ditch the useless overpaid union contracts that run McCormick that make it too expensive.

MUsoxfan

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Re: DePaul arena construction contract: What's the delay?
« Reply #37 on: November 26, 2014, 09:49:23 AM »
If they want convention dollars, they can ditch the useless overpaid union contracts that run McCormick that make it too expensive.

That wouldn't be the Chicago way

warriorchick

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Re: DePaul arena construction contract: What's the delay?
« Reply #38 on: November 26, 2014, 10:41:44 AM »
That wouldn't be the Chicago way

Besides, they pass a lot of that on directly to the convention attendees (i.e., in your display booth, you are not allowed to plug in your own electrical cords into the outlets; you have to hire an expensive union electrician to do it), so in their minds, it's not a cost to the city.  Then the PTB are mystified as to why no one holds conventions in Chicago any more.
Have some patience, FFS.

ChitownSpaceForRent

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Re: DePaul arena construction contract: What's the delay?
« Reply #39 on: November 26, 2014, 11:11:31 AM »
Still the greatest city in the world. Have to go to the DMV today to get my license renewed though. May have a different opinion after that experience.

Tugg Speedman

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Re: DePaul arena construction contract: What's the delay?
« Reply #40 on: November 26, 2014, 11:55:01 AM »
Besides, they pass a lot of that on directly to the convention attendees (i.e., in your display booth, you are not allowed to plug in your own electrical cords into the outlets; you have to hire an expensive union electrician to do it), so in their minds, it's not a cost to the city.  Then the PTB are mystified as to why no one holds conventions in Chicago any more.

... and they think the answer is to spend another zillion dollars putting up a bunch of buildings not needed and will be late, massively over-budget and uninspiring.  But, it will employee of bunch of overpaid union thugs that will offset their loss of conventions.

warriorchick

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Re: DePaul arena construction contract: What's the delay?
« Reply #41 on: November 26, 2014, 11:55:38 AM »
Still the greatest city in the world. Have to go to the DMV today to get my license renewed though. May have a different opinion after that experience.

That's state, not city, but fortunately for you, Jesse White is probably the least incompetent of all high-ranking state officials.


Curious, though.  Since you believe that Chicago is the greatest city in the world, what other cities have you lived in long enough to compare, besides Milwaukee? And what criteria are you using?
Have some patience, FFS.

Benny B

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Re: DePaul arena construction contract: What's the delay?
« Reply #42 on: November 26, 2014, 12:06:16 PM »
That's state, not city, but fortunately for you, Jesse White is probably the least incompetent of all high-ranking state officials.


Curious, though.  Since you believe that Chicago is the greatest city in the world, what other cities have you lived in long enough to compare, besides Milwaukee? And what criteria are you using?

Right?  Everybody knows the greatest city in the world is Naperville... as evidenced by 98% of their population who hasn't ventured outside the city limits anytime in the past ten years.
Wow, I'm very concerned for Benny.  Being able to mimic Myron Medcalf's writing so closely implies an oncoming case of dementia.

ChitownSpaceForRent

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Re: DePaul arena construction contract: What's the delay?
« Reply #43 on: November 26, 2014, 01:04:27 PM »
That's state, not city, but fortunately for you, Jesse White is probably the least incompetent of all high-ranking state officials.


Curious, though.  Since you believe that Chicago is the greatest city in the world, what other cities have you lived in long enough to compare, besides Milwaukee? And what criteria are you using?

Tampa is the only one I can say I've spent enough time in. Bogota as well in colombia. If all fairness though Bogota is great.

warriorchick

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Re: DePaul arena construction contract: What's the delay?
« Reply #44 on: November 26, 2014, 01:12:31 PM »
Tampa is the only one I can say I've spent enough time in. Bogota as well in colombia. If all fairness though Bogota is great.

If someone offered me a job in Tampa, I'd have my bags packed before the sentence was all the way out of his mouth.

I'd live in Clearwater, though.
Have some patience, FFS.

Tugg Speedman

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Re: DePaul arena construction contract: What's the delay?
« Reply #45 on: November 26, 2014, 02:36:13 PM »
If someone offered me a job in Tampa, I'd have my bags packed before the sentence was all the way out of his mouth.

I'd live in Clearwater, though.

All this statement says is you have not been to Tampa.

Detroit with nicer weather.

Clearwater = Birmingham Hills

warriorchick

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Re: DePaul arena construction contract: What's the delay?
« Reply #46 on: November 26, 2014, 02:49:28 PM »
All this statement says is you have not been to Tampa.

Detroit with nicer weather.

Clearwater = Birmingham Hills

That's a  bit of stretch. 

No state income tax.  Short drive to many of the best vacation spots in the country.

Oh, and there's this, which I don't think anyone says about Detroit:

http://www.tampabay.org/about-us/news-media/partnership-blog/2013-10-17/tampa-bay-cities-make-list-%E2%80%9Ctop-100-best-places-live

And this:

http://www.tampabay.com/news/business/workinglife/report-deems-tampa-the-third-best-city-in-the-country-to-find-a-job/2168479

Even if what you said was true, it's still better weather FTW. 
Have some patience, FFS.

MU Fan in Connecticut

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Re: DePaul arena construction contract: What's the delay?
« Reply #47 on: November 26, 2014, 02:58:18 PM »
If someone offered me a job in Tampa, I'd have my bags packed before the sentence was all the way out of his mouth.

I'd live in Clearwater, though.

Ditto.  Tampa/St. Pete's is high on my family list.  Although the wife and I pretty much decided we won't do anything for at least another 6 years until both kids finish school in Connecticut. 

My company recently moved one product line to our sister company in Clearwater and they offered the one technician involved paid relocation and he wasn't interested.  He's married with no kids and for some reason is a huge Florida State University sports fan but still said no.

You also get to see Winter the Dolphin at the Clearwater Marine Aquarium.

brandx

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Re: DePaul arena construction contract: What's the delay?
« Reply #48 on: November 26, 2014, 04:15:33 PM »
... and they think the answer is to spend another zillion dollars putting up a bunch of buildings not needed and will be late, massively over-budget and uninspiring.  But, it will employee of bunch of overpaid union thugs that will offset their loss of conventions.

Or we could start a conversation about overpaid corporate thugs.

Point being that it is a human condition - not a union condition. People everywhere - rich or poor - are almost always trying to look for an advantage.

brandx

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Re: DePaul arena construction contract: What's the delay?
« Reply #49 on: November 26, 2014, 04:18:09 PM »
That's a  bit of stretch. 

No state income tax.  Short drive to many of the best vacation spots in the country.

Oh, and there's this, which I don't think anyone says about Detroit:

http://www.tampabay.org/about-us/news-media/partnership-blog/2013-10-17/tampa-bay-cities-make-list-%E2%80%9Ctop-100-best-places-live

And this:

http://www.tampabay.com/news/business/workinglife/report-deems-tampa-the-third-best-city-in-the-country-to-find-a-job/2168479

Even if what you said was true, it's still better weather FTW. 

So what percentage is the sales tax. I spend lots of time in Tenneessee (Knoxville area) and some places the sales tax is as much as 13%-15%.