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Another blog

A poster on another blog put 2 + 2 together and came up with 4.5 regarding cost over runs.
Let me reiterate how cost over runs work - these are 2 separate issues
$31M for stadium -
If the city changes anything the city pays all cost over runs
If Mandalay changes anything Mandalay pays everything
If the contractor causes it then $500,000 is paid by the city towards the over run. Mandalay then makes $25K payments to the city for 10 years for a total of $250,000 or half of the $500,000.

The land:
Allocated funds are $6M for acquisition and mediation.
If this goes over $6M the city pays it all so the key here is get the land as cheap as possible and to try not to have that much in clean up costs.
If the land and mediation costs $4M - it is my understanding the excess $2M would go towards the stadium and could potentially raise the construction costs to $33M. If the land exceeds $6M the construction is capped at $31M plus $500,000 (for over runs).

Clear so far? Good !
Now what happens if the land costs $4M AND then there's a cost over run of an additional $2M on the stadium?
Well Mandalay darling you won't have to pay one red cent of Ted Turners money because the city GAVE the construction fund that extra $2M !!!!!
Bless our 'lil hearts.............

Vog

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